An article on "Does DVC save you money?"

[yaya74]

Still trying to figure out if DVC really is a way to save money. It's a question that I have been asking since Pete created the DVC Fan website. Then I came across this article... To all DVC members, agree or disagree?

p.s. I was looking into the scenario of a SSR resale contract with 100 points at $115 a point. Since I go every other year, the break-even year for me is 2042 , which would be 9-10 trips.. If there was no COVID, I would probably jump in. But COVID has definitely raised my awareness about the "uncertainty" of what the future holds. A lot can happen in 20 years.

 

[kanerf]

The author is a bit of a jerk. Most DVC members are not wealthy and do not fly First Class (unless you swing an upgrade). I think most DVC members are solidly middle class, perhaps towards the upper levels, but still not what you consider wealthy.

 

[scbruno]

Does DVC save you money? I think so in our case and have been a long time DVC Members. It does save you money in the long run if you use it. Also it does have some potential equity as well on the resale market well when you no longer want to travel. We don't know what the future holds as far what the DVC memberships will be worth however you will save money. We are long time OKW owners and we have recouped our money multiple times plus now we can sell the contracts for more that what we paid for them. We also bought SSR in 2004 for $95 a point and we have saved money as well on that membership plus if we sold that contract to buy another resort, after commissions etc. we should brake even if we sold plus we have had 17 years of vacations that have saved us money. As far as Covid, in my opinion it will take the parks time to get back to capacity so we have been taking full advantage of the low crowds. We like having the space and Deluxe Resorts and now its the only way we travel. My only advice from my experience with thee resale market is you need to find the right broker. Some are really good and honest.

 

[CarolMN]

Very outdated article. Even though the article has a date of March 11, 2020, the figures used appear to be from 2013.

 

[yaya74]

Very outdated article. Even though the article has a date of March 11, 2020, the figures used appear to be from 2013.

So I guess the figure in 2020 would be much higher than those mentioned in the article... That makes DVC cost even more.

 

[EM Lawrence]

I think DVC is going after high income people now. But I don’t think that has always been the case, and there are a wide variety of people currently in DVC to prove it. Can DVC save you money? Yes, it can. But only if the circumstances are right. Can it be a foolish choice that people lose money on? Also yes. It totally depends on the circumstances of the individual buyer.

 

[DisneyMountainWoman]

My husband is accountant and he did the math and we will save money on dvc. It takes some years, I forget the excact numbers...We are just middle class as a teacher and a govt accountant. So disagree with the whole super rich... But key to saving money we are doing resale and paying all in cash. My husband said if we had to finance we would not be saving money. My family goes to disney every 2 years, we like mods or deluxe. Now that we have a son we do not want the small value rooms anymore so this is how we could afford it.

 

[Disneydad81]

When I ran the numbers on the cost of the contract over the course of 20 years factoring in increase in dues I was still coming out to a yearly amount slightly above what I paid for a week at Coronado Springs prior to purchasing DVC. We did not enjoy staying in the casitas so to be able to stay in deluxe villa accommodations for a little more than the cost of a moderate every year for 20 years made it worth it for me.

 

[Spinster Travel]

The article is full of opinions...specifically the author's opinions and I think many owners of DVC would disagree with the majority of his statements. Having that been said, one thing I do agree with is that DVC, at least for me, is not at all an "investment". I didn't get into DVC with the plan of having some glorious ROI 10 years down the road when I sell. I'm sure there are those who do, but most people, buy DVC because they love to stay on property on a regular basis and this allows them to do so at a reduced rate. When deciding whether or not to buy-in, I looked at the money I had been spending on Disney hotels the last 5 years and the math made sense. Before DVC, I was primarily staying in Moderate Resorts, and now I'm in Deluxe resorts that I would never have paid the cash price prior. I can afford it, but I really don't want to spend $450/night to stay in a hotel room when the majority of my time is spent in the parks, out dining and shopping at Disney Springs. In November I am staying at the Polynesian for 4 nights. The dues on those nights equates to approximately $685 total (for my contract. No that does not take the cost of buying my contract, but that expense is already done in my mind). The current posted rate for those dates are $739 per night Yes, there will probably be discounts and the rate may drop at some point, but you get the point. At the end of the day, it is up to each buyer to decide if this makes sense for them. It is not for everybody....but I will say, when I told my friends that I bought into DVC, most of them raised and eyebrow as if to say "really????", but ALL of them are super psyched to have the option to travel with me or potentially rent points from me. So I say, let the haters hate!

 

[CarolMN]

So I guess the figure in 2020 would be much higher than those mentioned in the article... That makes DVC cost even more.

Yes, it does. But on site WDW Resorts also cost more now. IMO, the best analyses compare the cost of DVC with the cost of the lodging one usually chooses for their stays.

DVC is a long term commitment for relatively expensive vacations. It doesn't make sense for a lot of people.

 

[HappyDisneyWife]

Wow. I only skimmed the article and could very quickly see that he does not know what he’s talking about (from “most” contract end dates to price of ownership- both per point cost and MF’s)... but he also seems to have quite the chip on his shoulder which became abundantly clear in the conclusion.

As @EM Lawrence mentioned, money could be saved -or lost- depending on the individual and their circumstances. I was raised by an accountant who managed to save way more on his modest salary, than average families with above-average incomes... he taught me & my sisters to be shrewd. DVC allows me to stay in deluxe properties that I love and would never pay cash to stay at (even though I could afford it). So, does it save me money in the sense that I would be paying those rates anyway? That would be a no. But was it a financially sound way to pay for many years of vacations that my family & I will enjoy together? Definitely.

Each person/family needs to make that decision for themselves. Sadly, I’ve purchased resale contracts from people for whom the purchase was not a wise financial decision... they lost a lot of money- without ever using the points at all. It saddens me that people are not taught better, but I’ve made plenty of mistakes in my past so I will not be passing judgement. I hope you are able to find more accurate sources of information (like the dvc website and a calculator) as you wade through all of this. Best of luck to you!

 

[Minniesgal]

Heck no it doesn't save you money, it encourages you to go more often.

 

[DLgal]

If it saved you money, Disney wouldn't sell it.

 

[yaya74]

OP here. Thank you to PP for sharing your personal stories and experience with me regarding the article...

Another question: is it wise to buy DVC with the intention to give it as a gift for children? If I buy a 100 point SSR resale contract over the next year or two, my break even point would be around 2042 which will still give me 10+ years of usage after that. In 20 years, DH and I will be in our late 60/early 70. Children will be in late 20s and early 30s..

 

[DLgal]

OP here. Thank you to PP for sharing your personal stories and experience with me regarding the article...

Another question: is it wise to buy DVC with the intention to give it as a gift for children? If I buy a 100 point SSR resale contract over the next year or two, my break even point would be around 2042 which will still give me 10+ years of usage after that. In 20 years, DH and I will be in our late 60/early 70. Children will be in late 20s and early 30s..

It's not really a gift. They will still be on the hook for annual dues for the life of the contract. It's a liability. Make sure they want that before you decide to "gift" it to them. I'd personally be very annoyed of my parents left me something like that when they died. I'd just sell it.

 

[4luv2cdisney]

Yes, it does. But on site WDW Resorts also cost more now. IMO, the best analyses compare the cost of DVC with the cost of the lodging one usually chooses for their stays.

DVC is a long term commitment for relatively expensive vacations. It doesn't make sense for a lot of people.

Exactly. Look at your standard vacation practices and decide what your goals are.

As someone who stayed at Value / Mod resorts, DVC studios are a savings to what I was spending on Mods and about a break-even at Values (for me, my timing, purchase amount, lower point room choices, etc.)

If you stayed in regular rooms hotel side and buy DVC for 1 bedrooms you are not saving $. But if your goal was to upgrade your accomodations at a price you can afford, you probably accomplished that.

If I had bought points to stay in 2 bedrooms at VGF, I should not expect to "save money" in terms of my overall vacation budget! But people who were already staying in those accomodations, could still save money. And I would be saving vs cash stays.

And of course, if buying DVC gets you taking more trips you also aren't saving money overall, but you are still saving money per trip. So, again, if your goal was to be able to afford to go more often..... mission accomplished.

 

[HappyDisneyWife]

OP here. Thank you to PP for sharing your personal stories and experience with me regarding the article...

Another question: is it wise to buy DVC with the intention to give it as a gift for children? If I buy a 100 point SSR resale contract over the next year or two, my break even point would be around 2042 which will still give me 10+ years of usage after that. In 20 years, DH and I will be in our late 60/early 70. Children will be in late 20s and early 30s..

A lot of people do this. I do not. I have 6 kids, and have personally lived through years where the dues alone would have been a serious burden. It’s a wonderful gift for those who can readily afford it (and I would’ve done my best to make it work had my parents given it to us), but I am not going to presume that will be the case for all of my children... nor do I want to put them in the position of wanting something they really can’t afford (like I would’ve been).

 

[HappyDisneyWife]

And of course, if buying DVC gets you taking more trips you also aren't saving money overall, but you are still saving money per trip. So, again, if your goal was to be able to afford to go more often..... mission accomplished.

Love it.

 

[princesscinderella]

OP here. Thank you to PP for sharing your personal stories and experience with me regarding the article...

Another question: is it wise to buy DVC with the intention to give it as a gift for children? If I buy a 100 point SSR resale contract over the next year or two, my break even point would be around 2042 which will still give me 10+ years of usage after that. In 20 years, DH and I will be in our late 60/early 70. Children will be in late 20s and early 30s..

I think if your kids like or love Disney than it’s a great gift. My in laws bought DVC back in 95’. After my father in law passed my mother in law has decided she just doesn’t want to use them anymore on her own so she is transferring them to us. We bought our own DVC years ago because we saw how great the savings were and they were too busy using their points to book stays for us and rightly so. I think it’s a great gift and we will have contracts at the newer resorts to pass along to our children.

 

[Skywalker3]

No, hasnt' saved us money, but I"m still very glad we bought in 2011. Have enjoyed so many wonderful trips, and been able to stay in 1 bedrooms, deluxe properties. We would have never stayed in deluxe w/o DVC, so I don't compare prices that way. Also, before DVC, we were only going maybe 1 week every other year. So how we've travelled to WDW since buying DVC is nothing like what we were doing before. Definitely has not saved us money! But we love our DVC!