An article on "Does DVC save you money?"

[crisi]

Agreed.... I mean, there are some clear cut things. But the “savings” of DVC isn’t one of them.

I’m not discouraging anyone from buying DVC. I’m an owner.
Just saying I wouldn’t use “savings” as the reason for the purpose.

I will discourage people from buying. IF you require a savings calculation in order to justify your purchase, you can't afford it. You MIGHT make it work, or you might not, and the downside is bigger than the upside. If this sort of exercise is fun and has no real world impact on your decision, go ahead and buy. DVC can "add value" - it MIGHT "save you money" - it definitely will remove liquid cash out of your assets and tie it up into a timeshare during a time of global instability - or alternatively, create a contractual liability - and create a annual ongoing expense that needs to be factored into your budget. It will have a long term impact on what else you can do with your money (remodel the kitchen, send kids to college, retire). And even if you know you can afford it, make sure its a good fit - it really isn't a good fit for everyone, even if you can just throw money at it.

For those whom it is a good fit and they can afford it - its awesome.

 

[smisale]

I will discourage people from buying. IF you require a savings calculation in order to justify your purchase, you can't afford it. You MIGHT make it work, or you might not, and the downside is bigger than the upside. If this sort of exercise is fun and has no real world impact on your decision, go ahead and buy. DVC can "add value" - it MIGHT "save you money" - it definitely will remove liquid cash out of your assets and tie it up into a timeshare during a time of global instability - or alternatively, create a contractual liability - and create a annual ongoing expense that needs to be factored into your budget. It will have a long term impact on what else you can do with your money (remodel the kitchen, send kids to college, retire). And even if you know you can afford it, make sure its a good fit - it really isn't a good fit for everyone, even if you can just throw money at it.

For those whom it is a good fit and they can afford it - its awesome.

Who here can tell someone if they can or cant afford it. I cant believe my eyes and what I'm reading yes I'm pro DVC but that's my opinion and only my opinion. And what no-one takes in account is that is thread was- if DVC saves money
I believe that it does - again that's my opinion . Also the person that started this thread asked if DVC saves money so if you give your opinion and let them make a decision for them selves. I think that Purchasing a DVC contact allows you to put more money into the kitchen, sending kids to college and retire.

 

[Runnsally]

Of course just one data point, but we have our first stay in a DVC room booked for this summer - 8 nights in a Copper Creek one bedroom over July 4th. The cash rate with an AP discount is significantly less than what it would cost to rent points - around $550/night I think.

 

[Eric Smith]

Of course just one data point, but we have our first stay in a DVC room booked for this summer - 8 nights in a Copper Creek one bedroom over July 4th. The cash rate with an AP discount is significantly less than what it would cost to rent points - around $550/night I think.

These are very abnormal times.

 

[Runnsally]

These are very abnormal times.

Yes indeed, but I’ve typically gotten significant discounts on deluxe rooms with AP, etc. and for me, would rather stay in a deluxe room with two queen beds and housekeeping than a DVC studio with king + alt bed. To each his/her own of course.

 

[4luv2cdisney]

Of course just one data point, but we have our first stay in a DVC room booked for this summer - 8 nights in a Copper Creek one bedroom over July 4th. The cash rate with an AP discount is significantly less than what it would cost to rent points - around $550/night I think.

Yes indeed, but I’ve typically gotten significant discounts on deluxe rooms with AP, etc. and for me, would rather stay in a deluxe room with two queen beds and housekeeping than a DVC studio with king + alt bed. To each his/her own of course.

If you don't enjoy the DVC resorts, then absolutely, do not buy or try to compare them.

For those that do, for the week of July 4th, on points that room would run about $450/ night for an owner (not renting from an owner) and if a direct member saved you up to $400 per AP. If a resale buyer, no AP discount but less on the room.

(Back of napkin calculations)

 

[crisi]

Who here can tell someone if they can or cant afford it. I cant believe my eyes and what I'm reading yes I'm pro DVC but that's my opinion and only my opinion. And what no-one takes in account is that is thread was- if DVC saves money
I believe that it does - again that's my opinion . Also the person that started this thread asked if DVC saves money so if you give your opinion and let them make a decision for them selves. I think that Purchasing a DVC contact allows you to put more money into the kitchen, sending kids to college and retire.

I'm not judging any individual - I have said before (I think several times in this thread alone) I don't know anyone's financial position but mine. That's for the individual to decide. But anyone who needs to save money in order to justify the expense shouldn't buy. I know, without a DOUBT, that buying DVC didn't allow ME to put more money into the kitchen, sending the kids to college or retiring. That doesn't mean I regret buying it because I could afford it, and all the trips I took as a result, and the times I paid for a friend or relative's room, and the time we took our kids friends and paid their way...... and I'm paying cash for my kid's college educations and have enough saved for retirement (but the kitchen still isn't redone).

 

[smisale]

I'm not judging any individual - I have said before (I think several times in this thread alone) I don't know anyone's financial position but mine. That's for the individual to decide. But anyone who needs to save money in order to justify the expense shouldn't buy. I know, without a DOUBT, that buying DVC didn't allow ME to put more money into the kitchen, sending the kids to college or retiring. That doesn't mean I regret buying it because I could afford it, and all the trips I took as a result, and the times I paid for a friend or relative's room, and the time we took our kids friends and paid their way...... and I'm paying cash for my kid's college educations and have enough saved for retirement (but the kitchen still isn't redone).

Sorry if I came on too strong but I am very passionate about this. All my kids are grown so college is done kitchen done last year and retirement well 2 more years. I have been going to disney for 30 years my daughter is 26 and my son is 31 and has a new son<<<(my Grandson) and are still going bought 2 new contacts to fill the void because I could not really afford to take everyone without DVC that is why I am so pro DVC

 

[Nabas]

We are DVC members, annual passholders, and live within driving distance of WDW. Over the decades, we've vacationed all over the World and continue to price out these for future trips.

The thing is, the DVC and APH programs allow us to take multiple vacations at WDW every year for the cost of what a single vacation elsewhere would cost us.

 

[taaren]

Wow this article is scathing. The author also doesn't seem to understand that DVC isn't terribly different than other timeshares. I own in two other systems, and every system has maintenance fees, and the good ones you have to book the properties everyone wants really far in advance, this is not a special feature of DVC. Timeshares are largely a market for middle class people who like to travel frequently but who often cannot afford to spend a ton on hotels or fly first class. The only times I've flown first class have been on an airline employee's passes.

We haven't saved money, but we have spent the same amount we would have on hotels for the amount we were going to Disney prior to DVC and upgraded our experience. Pre-DVC we would stay at the Best Western across the street from DLR ... In 2018 I stayed there for the first time since buying DVC in 2008, and boy did that remind me why I was so grateful to have owned for that decade!

 

[crisi]

Sorry if I came on too strong but I am very passionate about this. All my kids are grown so college is done kitchen done last year and retirement well 2 more years. I have been going to disney for 30 years my daughter is 26 and my son is 31 and has a new son<<<(my Grandson) and are still going bought 2 new contacts to fill the void because I could not really afford to take everyone without DVC that is why I am so pro DVC

I am as well. But it isn't for everyone. It doesn't save money for everyone. And it doesn't fit everyone's lifestyle. And from where I sit, I really don't know if anyone reading this will save money, can afford it, or if its a good fit. There are too many variables. And frankly, I've seen people jump through some pretty twisted logical/financial hoops to make DVC work for them, then followed them for a few years, and then watched as DVC has turned out to have cost them far more than they could afford. So I'm pretty darn passionate about making sure people don't justify themselves into a regret.

 

[smisale]

I am as well. But it isn't for everyone. It doesn't save money for everyone. And it doesn't fit everyone's lifestyle. And from where I sit, I really don't know if anyone reading this will save money, can afford it, or if its a good fit. There are too many variables. And frankly, I've seen people jump through some pretty twisted logical/financial hoops to make DVC work for them, then followed them for a few years, and then watched as DVC has turned out to have cost them far more than they could afford. So I'm pretty darn passionate about making sure people don't justify themselves into a regret.

I agree I would never knowingly advise anyone to get in over there heads. I have said before unless you have the money to buy it out right you should not purchase it.And you said it, there are too many variables so there is no way for anyone to know from family to family if they are saving money using DVC.So detail math on purchase and saving and investing is not for us to do. So to discourage them from buying they need to do the math them selves. If there spending thousands on vacation like I have this makes sense and saves me money so to discourage me from buying would put me in a worse finical position then if I would have not bought. Again we take account that the purchase does not put them in financial hardship

 

[crisi]

I agree I would never knowingly advise anyone to get in over there heads. I have said before unless you have the money to buy it out right you should not purchase it.And you said it, there are too many variables so there is no way for anyone to know from family to family if they are saving money using DVC.So detail math on purchase and saving and investing is not for us to do. So to discourage them from buying they need to do the math them selves. If there spending thousands on vacation like I have this makes sense and saves me money so to discourage me from buying would put me in a worse finical position then if I would have not bought. Again we take account that the purchase does not put them in financial hardship

Financial math is hard. I have a four year degree in it. It isn't something that you should expect people to "do for themselves" without some background in it - which the vast majority of people don't have.

 

[Runnsally]

Financial math is hard. I have a four year degree in it. It isn't something that you should expect people to "do for themselves" without some background in it - which the vast majority of people don't have.

Isn’t this exactly what a timeshare takes advantage of?

 

[smisale]

Financial math is hard. I have a four year degree in it. It isn't something that you should expect people to "do for themselves" without some background in it - which the vast majority of people don't have.

we shouldn't assume that people can't do the math. If they make an error it not the purchase of DVC that puts them over the edge. its the every day things.i think overall most people know what's important and take care of those thing first and where ever Vacations land in the scenario they can make a good decisions.Again the thread was if there was savings in DVC not people financials and I still say there is

 

[Starport Seven-Five]

I will discourage people from buying. IF you require a savings calculation in order to justify your purchase, you can't afford it. You MIGHT make it work, or you might not, and the downside is bigger than the upside. If this sort of exercise is fun and has no real world impact on your decision, go ahead and buy. DVC can "add value" - it MIGHT "save you money" - it definitely will remove liquid cash out of your assets and tie it up into a timeshare during a time of global instability - or alternatively, create a contractual liability - and create a annual ongoing expense that needs to be factored into your budget. It will have a long term impact on what else you can do with your money (remodel the kitchen, send kids to college, retire). And even if you know you can afford it, make sure its a good fit - it really isn't a good fit for everyone, even if you can just throw money at it.

For those whom it is a good fit and they can afford it - its awesome.

This is a really weird take to me. A purchase the size of DVC should always have some financial analysis done and it should make at least some sense before pulling the trigger. If it cost more than a normal stay, why would anyone do it?

If someone doesn't have a good enough understanding of their budget to allow them to buy DVC while accomplishing other life goals... they should get a handle on that first.

 

[RoseGold]

Isn’t this exactly what a timeshare takes advantage of?

I think it's fair to say that most buyers aren't stalking the math on boards like this. But, hey, free ice cream!

 

[smisale]

Isn’t this exactly what a timeshare takes advantage of?

Can you name another timeshare that you can get some or all your money back. with disney its not just any timeshare.Not to say there are not good and bad in everything.I'm sure there a high presure sale here too. But at least its not worthless and people can recoup something back

 

[Vulnox]

The problem with the assertion that you should just know your budget or whatever, is this is a purchase with a potential 50 year outlook included. There is almost nothing in life that requires that level of future estimation. Even a mortgage generally tops out at 30, which is also an almost impossible amount of time to estimate. In the last five years alone, we had a second kid, moved out of the state we were living in away from two jobs we loved, because we were far from the rest of our family and wanted our kids to be closer to them. We got great jobs here of course, wouldn't have left if we didn't have that lined up, but the point is life happens. All the spreadsheets in the world can't account for it all.

With that in mind, you have to be pretty confident in wanting to visit Disney annually, or as they say AT least every other year. Or be comfortable renting out points or whatever. Then you have to be confident you have the financial cushion to cover your mortgage, car payments (if you have them), insurance, food, gas, DVC, and whatever else if you lose your job. I would say most here, even those giving out advice on finances, don't have that all covered to a 6+ month level without borrowing from 401k or whatever.

I guess the point is, the financial analysis part is a little unrealistic. All you can realistically analyze is what you can do now, and maybe likely moves for the next five years, on an up to 50 year commitment. I am sure some of you will come back saying "well of COURSE I know my 50 year plan!" or something insane, but even if that's true I again don't believe that is true for an overwhelming number of people. So for DVC the biggest questions should just come down to, do you like the resort enough to pay a likely premium to stay there? Do you like Disney enough to return annually? Can you buy this without harming your families general financial well-being RIGHT NOW? Because it can and will all change. Kids get older and care less, or maybe care more. Grandkids come along, or one of you suffers a back injury that makes going around the park miserable. Again, spreadsheets won't cover it.

 

[smisale]

The problem with the assertion that you should just know your budget or whatever, is this is a purchase with a potential 50 year outlook included. There is almost nothing in life that requires that level of future estimation. Even a mortgage generally tops out at 30, which is also an almost impossible amount of time to estimate. In the last five years alone, we had a second kid, moved out of the state we were living in away from two jobs we loved, because we were far from the rest of our family and wanted our kids to be closer to them. We got great jobs here of course, wouldn't have left if we didn't have that lined up, but the point is life happens. All the spreadsheets in the world can't account for it all.

With that in mind, you have to be pretty confident in wanting to visit Disney annually, or as they say AT least every other year. Or be comfortable renting out points or whatever. Then you have to be confident you have the financial cushion to cover your mortgage, car payments (if you have them), insurance, food, gas, DVC, and whatever else if you lose your job. I would say most here, even those giving out advice on finances, don't have that all covered to a 6+ month level without borrowing from 401k or whatever.

I guess the point is, the financial analysis part is a little unrealistic. All you can realistically analyze is what you can do now, and maybe likely moves for the next five years, on an up to 50 year commitment. I am sure some of you will come back saying "well of COURSE I know my 50 year plan!" or something insane, but even if that's true I again don't believe that is true for an overwhelming number of people. So for DVC the biggest questions should just come down to, do you like the resort enough to pay a likely premium to stay there? Do you like Disney enough to return annually? Can you buy this without harming your families general financial well-being RIGHT NOW? Because it can and will all change. Kids get older and care less, or maybe care more. Grandkids come allong, or one of you suffers a back injury that makes going around the park miserable. Again, spreadsheets won't cover it.

I agree to a point. If this is bought through resale is not a 50 year commitment if thing get tough you can rent points and make some money or sell all together and recoup your money. You may lose a little but not all. But I do agree its hard to figure what life is gonna throw at you.