An article on "Does DVC save you money?"

[Grumpy by Birth]

DVC doesn't "save" us money because, even though we save a lot compared to the cost of paying cash for those deluxe accommodations, we wouldn't have paid cash for staying at deluxe resorts.
Despite being able to afford them, I'm just too cheap and would never bring myself to spend that much!

With DVC, we can stay at those deluxe resorts at a price that is acceptable to me. So, even though we aren't "saving" money, the additional money we now spend on vacations is affordable for us and we get an immense amount of enjoyment staying in the deluxe resorts/villas that we would otherwise have just gone without.

 

[crisi]

Thus, “adding on” is just an appreciation if this evolving vacation budget. As I’ve said, I don’t see any of it as savings, but I don’t see addonitis as the culprit.

I remember someone who bought and used to post here in the early 2000s. She bought the same amount of points as I did about the same time I did - she really stuck out to me, same resort, same points, about the same time - we were "DVC twins." Within a month of closing, she was buying more points. She was here about two years, and over two years went from the 150 points she initially bought to well over 500. That wasn't an expansion of her budget, she had a really bad case of addonitis. She wanted to own more resorts. She decided studios weren't going to cut it. And the "I need to be able to take my parents." She sticks with me. One day she disappeared from the boards. But she isn't the only one.

Most people's vacation budget doesn't grow that much over time. If your family grows, you don't end up with extra disposable cash. And increase in earnings - who gets raises anymore in excess of the cost of living? Most people are lucky to get that. There are promotions, job changes....but I'm not buying that everyone with addonitis does it in reaction to a increase in available budget.

 

[Chuck S]

Does it save money? For me, it does. I purchased in mid 1992. I have enough points, through banking and borrowing, for a GV and a 2 bedroom for Thanksgiving week. There is no way I could afford that on a cash basis. My last cash stay prior to DVC was a tower room at the Contemporary. It was $2,000 in 1992 dollars. Even with maintenance fees, I'm way ahead what a cash stay in todays' dollars costs.

 

[Nabas]

Does it save money? For me, it does. I purchased in mid 1992. I have enough points, through banking and borrowing, for a GV and a 2 bedroom for Thanksgiving week. There is no way I could afford that on a cash basis. My last cash stay prior to DVC was a tower room at the Contemporary. It was $2,000 in 1992 dollars. Even with maintenance fees, I'm way ahead what a cash stay in todays' dollars costs.

"I purchased in mid 1992."

DVC price was $51/point during the first half of 1992. Adjusted for inflation, that would be about $95/point today.

Median household income was about $30K in 1992. In 2020, it probably will be around $70K. Using that ratio, DVC would be about $119/point.

Without incentives, RVA is $201/point today, almost 4 times what it was at the start of 1992. The reason why it's so difficult to save with a direct purchase today is that Disney has raised DVC prices much faster than inflation or household income.

For people buying directly from Disney today, it probably will be decades before they start saving money.

I purchased a resale 10 years ago at $55/point, pretty much when the DVC resale market bottomed out. Yet when I add in all my costs and divide them over the 10 years I've taken DVC vacations, I'm still at $12.10/point.

I can't imagine how long it would take to save if my original purchase was at $201/point.

People buying DVC today need to know that the numbers are vastly different than what they were years ago.

 

[Chuck S]

"I purchased in mid 1992."

DVC price was $51/point during the first half of 1992. Adjusted for inflation, that would be about $95/point today.

Median household income was about $30K in 1992. In 2020, it probably will be around $70K. Using that ratio, DVC would be about $119/point.

Without incentives, RVA is $201/point today, almost 4 times what it was at the start of 1992. The reason why it's so difficult to save with a direct purchase today is that Disney has raised DVC prices much faster than inflation or household income.

For people buying directly from Disney today, it probably will be decades before they start saving money.

I purchased a resale 10 years ago at $55/point, pretty much when the DVC resale market bottomed out. Yet when I add in all my costs and divide them over the 10 years I've taken DVC vacations, I'm still at $12.10/point.

I can't imagine how long it would take to save if my original purchase was at $201/point.

People buying DVC today need to know that the numbers are vastly different than what they were years ago.

Yes, but Disney cash prices have also increased significantly. That same tower room at the Contemporary that was $2000* in 1992 is well over $5000* today.

*1992 was a theme park view, the $5055 price is lake view, theme park view was not available for the week I checked.

 

[DVCSunDevil]

I think the vast majority of this article is BS. The author states "people who go to Disney every year don't have much interest in saving money". Excuse me? I am not wealthy by any stretch, yet we try to go to Disney every other year and bought into DVC precisely to save money. I have A LOT of interest in saving money. The author goes on to state that if someone was truly interested in saving money they should stay in a "low rated discount hotel near the property". That's the point...staying in one of those hotels doesn't strike me as a very fun Disney experience. We love to be immersed in the bubble when we go to Disney...that is the whole reason we go to Disney. It has been said by myself and other members ad nauseam: DVC saves money if you are going at least every other year and prefer to stay in deluxe hotels. Period.

About the only thing on which I agree with the author is that DVC absolutely IS NOT an investment. DVC is a way to save money, plain and simple. It's akin to a coupon where you get $25 off if you spend $100. If you were planning on spending $100 at that store then, great, the coupon is going to save you money. But the $25 isn't free, you have to spend a good amount to get it. The coupon isn't an "investment", it's a way to save money. DVC does the same thing. If you were planning on going to WDW into the future then DVC will save you money on what you would have spent on deluxe hotel rooms. Some people have even commented that they are now able to stay in deluxe for even cheaper than the cash rates they were paying for moderates or value hotels. Will you be able to sell your contract down the road for a profit? Maybe...maybe not. But if DVC is viewed as saving on entertainment/vacations, then what does it matter what the resale price may be in the future? Just don't buy into DVC with the purpose of trying to make money on it.

If someone is super frugal and prefers to stay at "low rated discount hotels" then DVC probably isn't for those people. But if someone loves being in the "bubble", prefers staying in deluxe rooms, and sees continued Disney vacations in their future then DVC is a great option. But I wouldn't make a decision based on this article. The author seems to not have a real understanding about what DVC is all about.

 

[Chuck S]

I think the entire article is BS. The author states "people who go to Disney every year don't have much interest in saving money". Excuse me? I am not wealthy by any stretch, yet we try to go to Disney every other year and bought into DVC precisely to save money. I have A LOT of interest in saving money. The author goes on to state that if someone was truly interested in saving money they should stay in a "low rated discount hotel near the property". That's the point...staying in one of those hotels doesn't strike me as a very fun Disney experience. We love to be immersed in the bubble when we go to Disney...that is the whole reason we go to Disney. It has been said my myself and other members ad nauseam: DVC saves money if you are going at least every other year and prefer to stay in deluxe hotels. Period.

If someone is super frugal and prefers to stay at "low rated discount hotels" then DVC probably isn't for those people. But if someone loves being in the "bubble", prefers staying in deluxe rooms, and sees continued Disney vacations in their future then DVC is a great option. But I wouldn't make a decision based on this article. The author seems to not have a real understanding about what DVC is all about.

We drove in early once, because of possible bad road conditions. The Disney Value resorts were full, so we stayed at one of those "low rated discount hotels" on Irlo Bronson in Kissimmee. In fact, we did used to stay occasionally at a Motel 6 for a night in Kissimmee, but it was also full. So we went to the Red Roof. Never, ever, again. I really miss the Disney welcome center in Ocala, where we could stop, renew our APs (prior to the DVC AP Discount) , and book one night at Pop Century.

 

[DVCSunDevil]

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.

This is the exact situation we are in. We bought resale last year. My financial consultant looked into it first and confirmed that it absolutely would save money. The break even for our purchase is around 12 years or so. We go around every two years, but we wanted to go more. We always stayed at Shades of Green because my father in law is retired military, but they are getting too old to keep going to WDW. So DVC was a great option for us to continue staying in deluxe rooms. The funny thing is we have 4 straight years of Disney vacations planned now that we are DVC members, with an Aulani trip in there for my daughter's HS graduation trip. We wouldn't have been able to afford the Hawai'i trip without DVC.

 

[DL1WDW2]

...DVC used to pronounce a 70% savings billboard at all the kiosks... now they don’t actually want to make any specific savings amount...
As long as they can manipulate the yearly dues and create point charts that can change from a 5 season to a 7 season to target vacation date trends , makes it feel like the future best deal will be for DVC management.

 

[Grumpy by Birth]

The author goes on to state that if someone was truly interested in saving money they should stay in a "low rated discount hotel near the property".

For many years, we scrimped and saved just to go to Disney for a day or two (visting family in Florida for most of our time in Florida and just popping over briefly) and those cheap offsite hotels were where we always stayed.

Later in life, I was finally able to afford to stay onsite (All-Star Movies and then Caribbean Beach) as well as being able to afford a week-long visit.

We can now afford to stay in places like AKL/AKV and LOVE it! But it's difficult to let go of my penny pinching nature and I know that I would never bring myself to spend what Disney charges for those rooms. So, even though I could budget for deluxe, I would always talk myself into cheaper accommodations to save money. DVC brings the price for those accommodations down to a level that I'm willing to pay.

So, like I said earlier, even though I'm not "saving" money (compared to what I would have spent without DVC), it allows us to affordably "splurge" on the resort and what a difference that makes in enjoying our vacation!

Sure, I could still save a LOT of money by continuing to stay at the same cheap offsite hotels that we used when that was all we could afford. But it wouldn't be the same experience. If we really wanted to save money, we could just (gasp) not vacation at Disney, period. Or not go on a vacation at all.

So, I agree that it's a weak argument on the author's part to say that DVC doesn't save you money by comparing it the cost of the Motel 6 down the road. That's like saying getting a discount on a BMW didn't save you money because you could have bought a used 1972 Gremlin. Sure, that would cost less, but you wouldn't be driving the BMW!

 

[Bing Showei]

why do you alway pick something that suits you let’s look at it this way. I went to buy groceries because I need to eat to survive and the told me that if I pay a certain amount. I will be able to pay today’s groceries price for the next 50 years. I know this is ridiculous but this is my comparison

It's not that your analogy is ridiculous, but that it actually illustrates the point people are making about discretionary spendings vs. a necessity. You will always pay to eat. You will always pay to live somewhere. Buying a house could make sense because you will pay to live somewhere, every year, no matter what happens. Through dot com boom/busts, 9/11, 2008 housing crisis, COVID, people had to pay to live somewhere and pay to eat.

Going to Disney? Not so much. Historically, a discretionary spending like travel will be the first to be cut when times are tough. It was true for 9/11, 2008 crisis, and true for COVID. When you buy a timeshare, you take a portion of your discretionary budget and you lock it into a financial liability.

I get that many in this corner of the internet have Disney coursing through their veins. Cut that off and there will be some serious chained-to-the-radiator level withdrawal, but people would survive.

Will a Disney timeshare save you money? It might. More likely you will go in proclaiming this:

DVC is a way to save money, plain and simple.

Justify it by saying this:

We go around every two years, but we wanted to go more.

Realize this:

The funny thing is we have 4 straight years of Disney vacations planned now that we are DVC members,

And reason it by this:

We wouldn't have been able to afford the Hawai'i trip without DVC.

All the meanwhile still proclaiming that you bought in “to save money.”

 

[AvidDisReader]

So I just checked, standard room at Pop Century for one week is $1805. How does this enter into the computations? All I know is I have stayed at Pop Century and while I enjoy the resort, it just in not worth that amount of money. However, each to their own.

 

[upritbass]

We wouldn't have been able to afford the Hawai'i trip without DVC.

All the meanwhile still proclaiming that you bought in “to save money.”

Judgemental much?

DVCSunDevil has a vacation budget. DVCSD wanted to take a vacation to Hawai'i. DVCSD found that it was possible through DVC. Why is that bad?

 

[havoc315]

I don’t understand the term locked into WDW vacation. There are so many options selling points is one there are so many people dying to go to Disney that you can sell your points easily and go on a cruise,a trip to Vegas, California and so on.I had a friend that bought a long time ago and paid very little. I asked him if he is gonna sell since he rarely goes anymore and his words not mine “No it’s money in the bank” in others word he’s sells his points every year and still has his initial investment I know he has a lot of point more the 400 but I can’t tell you for sure and how much. Or how much he paid but he did buy them 10+ years ago

"Locked in" is both physical and psychological. Physically, renting out your points isn't always easy, not always a good value, and requires some extra thought and effort. If I have DVC booked in 2 months.. and my points would expire if I don't use them, not so easy to just cancel and rent out the points.
Psychologically, it's a matter of "I already have these points.." And the value plays into it too. ("If I just rent out my points.. It will take me much longer to break even... Why did I buy DVC if I wasn't going to use it?" "Why should I pay $xxxx for a trip to ______, when my trip to WDW is mostly paid for already?

 

[havoc315]

So I just checked, standard room at Pop Century for one week is $1805. How does this enter into the computations? All I know is I have stayed at Pop Century and while I enjoy the resort, it just in not worth that amount of money. However, each to their own.

That rack rate or factor in discounts?
Outside of Christmas week, doubt a standard room at Pop Century is often $1805.
For example, in mid June, with current offers, a standard room is $1400.

 

[smisale]

"Locked in" is both physical and psychological. Physically, renting out your points isn't always easy, not always a good value, and requires some extra thought and effort. If I have DVC booked in 2 months.. and my points would expire if I don't use them, not so easy to just cancel and rent out the points.
Psychologically, it's a matter of "I already have these points.." And the value plays into it too. ("If I just rent out my points.. It will take me much longer to break even... Why did I buy DVC if I wasn't going to use it?" "Why should I pay $xxxx for a trip to ______, when my trip to WDW is mostly paid for already?

I have never sold my points my self but I talked to the sponsor of this site and they say a different story they say it’s quite easy they now make packages with your point so it’s even easier and dreams unlimited travel actually sell them. As for why did you buy them if your not going to use them I thought it was you that points out things change and even at that he still see the value in it and not to sell it but to rent them even in COVID still had no trouble renting them

 

[Bing Showei]

Judgemental much?

In this instance, no, it's not being judgmental. I did not assign value to the choice DVCSD made. What I did do was, using his own words over two posts, point out a pattern that is not unfamiliar to Disney timeshare ownership. You lobbed off the tail end of the bigger point I was making in order to frame it as seemingly making commentary on the ability for someone to pay for something. That would be judgmental, but that was not what I was doing.

DVCSunDevil has a vacation budget. DVCSD wanted to take a vacation to Hawai'i. DVCSD found that it was possible through DVC. Why is that bad?

It's bad because it was stated to support of a flawed thesis; again, the larger part of the context that you conveniently left off to make whatever point you were trying to make; that buying a Disney timeshare is saving money "plain and simple."

Is DVCSD happier owning? Sure sounds like it. Anyone can get behind that. But when someone has shown no history of traveling to Hawaii suddenly does, it reinforces that travel patterns will change, and it illustrates exactly why Disney is in this game.

How many times have we read on the boards people suddenly realizing they need more points immediately after buying their first contract? Or people staying deluxe and never being able to go back? How many owners have stayed in a 1BR for the first time ever thanks to a Disney timeshare ownership, and now can't do studios anymore? Disney's timeshare powers the hedonic treadmill which is fine as long as you're not in this game to save money.

Buying a Disney timeshare as a luxury, discretionary purchase? Great! Life is short, live it up. I own a Disney timeshare and my wife still insists on split staying in a 1BR at the Four Seasons, be it Orlando or Ko Olina. Whatever. More vacation for me. But am I saving money? I'm sure there's some Mickey Math in there somewhere that I can use, comparing a timeshare to the Four Seasons, in order to show all the winning I'm doing.

People on these boards keep likening buying a Disney timeshare to buying bulk at a savings. The flaw here is the product itself fundamentally changes the individual's behavior.

Let's say I can buy 200 rolls of toilet paper at Costco today and save 70% over buying it slowly over time. That's real savings.

If I buy a year's worth of toilet paper, it sits in the basement. My kid isn't going to suddenly want to take a dump more often. I've never seen my wife say, "Hey, given all that toilet paper we have, maybe I'll go use the loo now. Wasn't planning to, but hey, YOLO." I can honestly say I've never rushed into the bathroom worrying that if I didn't use my toilet paper, it would go bad, so I doubled up the wipeage. I don't recall my wife ever asking why I'm spending so much time on Craigslist trying to sell our toilet paper.

Toilet paper is great to buy in bulk because it really is something I'll use every year no matter what. How many people banked their Disney timeshare points for the first time this year? How many people tried renting for the first time? How many people invited family down to enjoy a Disney trip with them because "Holy smokes, we have a ton of points to burn." How many people took a Hawaii vacation they've never taken before?

There are so many great reasons for owning a Disney timeshare. Why does saving money have to be front and center all the time?

 

[Grumpy by Birth]

That rack rate or factor in discounts?
Outside of Christmas week, doubt a standard room at Pop Century is often $1805.
For example, in mid June, with current offers, a standard room is $1400.

In mid-June, I can get a Savannah-view studio villa at AKL for 130 points. When translated into my cost per point, that's close to the same cost as staying at Pop Century value resort for that same week.

For approximately the same cost, we could also choose from:
Lake-view studio at BLT
Standard-view studio at RIV
Standard-view studio at VGF

For less than the quoted cost of Pop Century, we could choose from:
Boardwalk studio at BWV
BCV studio
BRV studio
CCV studio
Standard-view AKL studio
OKW studio
SSR studio

Only a Poly studio and some of the more "point hungry" view categories at select resorts would cost us more.

And before I say this, I already know it's a flawed comparison (because Pop Century might cost less then too), but I could stay in a 1BR villa at AKL in early June for only about $500 more than Pop Century would have cost in mid-June. For a week in a 1BR, even though I didn't "save" money, I find that to be a much better "value" for my money and I'm able and willing to be flexible in scheduling my trip a little earlier and spend a little more to get a resort experience that we enjoy more.

So, while I concede that DVC doesn't save us money compared to what we could have spent for less, it saves us money on the cost of the deluxe accommodations, which is a good value to us.

 

[havoc315]

In mid-June, I can get a Savannah-view studio villa at AKL for 130 points. When translated into my cost per point, that's close to the same cost as staying at Pop Century value resort for that same week.

Not really. Pop Century still is much less.
Buying 130 direct points, with closing costs, would be about $25,000. Dues are about $1050.


So if you were ONLY paying dues, then it would be $1400 vs $1050. ($350 difference)

But it's putting $25,000 up-front is not worth an annual payoff of just $350

Even putting aside the potential for growth of the $25000 if you didn't pay it upfront, even assuming no growth to that money..
You're effectively paying $1744 per year. So Pop Century is actually significantly cheaper than DVC. (If you factored in a resale purchase instead of direct, then it's a bit closer to break even but still doesn't make DVC any cheaper).

 

[upritbass]

make whatever point you were trying to make; that buying a Disney timeshare is saving money "plain and simple."

Instead of making up some phony-baloney quote, you could have used a real one. Please find the posting where I actually wrote that.

There are so many great reasons for owning a Disney timeshare.

Well said.