- Apr 26, 2019
I agree.In reality, DVC is a discount program. You are paying a large upfront price plus an annual registration cost to get access to discounted accommodations for a set period of time.
OP, I don’t think you’re necessarily wrong. We just bought in with similar intentions. I think the savings is there especially if you want to stay in the larger villas onsite (though partially that’s because Disney rack rates for those are exorbitant... like $1200/night for a 2br at BCV).
I made a couple assumptions when figuring our math:
—MFs have increased at a higher rate than inflation (about 3.4-3.65% average per year for BCV - though last year’s increase was much higher at 7.8%, and the max cap they can increase per year is 15% I think). However, I assumed that Disney’s cash room rates will also increase at a similarly inflated rate. Point rentals currently cost more than 2x annual dues, so I assumed that would continue as well.
—We have not invested in anything other than our savings account earning 1% and a CD earning 3%. Comparing against those numbers, DVC would save us money. However, now I am considering setting up an investment fund that we could pull money for vacations - we’ll still need to pay for tickets, food, travel costs, etc! Maybe this is a hedge against a hedge lol?
—Mousesavers has an Excel spreadsheet that compares your lifetime DVC costs to paying cash rates (rack and discount) vs renting points vs investing the money instead. I think it uses 3.2% inflation and 7% investment, but you can change the numbers to fit your situation.
DVC is not a great deal for everyone, but it can be for some if it fits your vacation style. It sounds like it fits yours.