Another question about buying in

[Buckalew11]

I have been on and off this board since my DVC tour in Feb. asking a million questions and reading a zillion questions from others. Everything has been helpful. I appreciate your knowledge.

Back in Feb. I decided I didn't want to rush in to buy right after my tour (I had 3 days after leaving WDW property to make up my mind and get "the deal"). I decided to wait until I had cash in hand to buy in to DVC and decided to also think about resale.

At this point, I have the money to buy in but now I am wondering this--
Am I better off to buy into DVC (I'd probably do somewhere between 150-250 points), paying the lump some and paying maintanence fees every year OR am I better off just paying for trips as I go along, earning interest on that money instead of giving it to Disney?

Now, I have never stayed at a WDW Deluxe resort (but I'd love to) although I have stayed at the S/D (which is deluxe) but normally have stayed in mods and values. I don;t mind a value resort although once you stay at anything better I think it is harder to go back! At this point, I could stay in a deluxe and not be fretting over spending the money. Of course, anyone can stay in expensives places and just charge it and live high on the hog for a week if they want to. I just have never done it that way. And if I had enough $ to do a super nice trip and stay in a high dollar resort, I would opt to do 2 cheaper trips instead.

So, I am an wondering if purchasing DVC and "prepaying" future trips is really worth it or just paying by the trip and earning interest makes more sense.

This may be the wrong group to ask such a thing but I'd like your opinions.
TIA

 

[Granny]

Many people have done calculations about the savings the DVC brings, and how long it takes to break even including some assumptions about the time value of money. Most would say that over the course of the contract they will incur a savings compared to deluxe or even moderate WDW resorts.

If you are happy to stay in value resorts, I don't think DVC will ever be a less expensive accommodation plan for you.

When you start getting into the 1BR villas and up at DVC, you really see a major upgrade in accommodations over resort rooms and that's what we value the most about DVC.

Here's my suggestion: rent points from a DVC member and stay at a DVC resort on your next trip. Stay in the kind of accommodation you will want to stay in the most if you join DVC. I'd recommend a 1BR if your group is 4 or less people. Getting the full kitchen and washer/dryer plus the separation of the living room and master bedroom makes a big difference compared to a studio or resort room.

If, when your trip is over, you decide that the DVC rooms are nice, but not worth the extra money, then I'd stick to your current plan. On the other hand, if you are thinking..."wow, this really is the way to vacation!" then you might find that DVC is a good option to allow you to stay on-site with increased amenities.

I'm not saying that running the financial numbers is a bad exercise. I'm just saying that there are many ways to crunch the numbers with a lot of different assumptions.

For many, including us, DVC is an investment in a vacation upgrade. Some people have saved money using it, but if that is the primary goal then there are always other ways to save money on accommodations.

Good luck on your decision. It's a major purchase and you are right to ask a lot of questions and be comfortable in your mind before you commit to such a big purchase.

 

[spiceycat]

try it as Granny suggest...

but I would go slow - since you have doubts. I would go with a resaler for 100 points. - then with your remaining money do your investment and stay at a WDW resort...

I don't think it will take many trips to convince you that DVC is better.

Oh I am cheaper than Granny - I love studios!!!

they are pretty wonderful - I can stay at OKW studio for 8 points a night....

I couldn't beat that price until I got All Stars Sport for $36 ($44 with fee and taxes) per night..

OKW has 2 queen beds - not that great for a solo trip.

VWL, BCV, BWV and SSR all have a queen bed and double sleeper sofa - much better for a solo trip.

 

[spiceycat]

oh here are 2 programs to help you decide - they came from tug

http://mysite.verizon.net/brian_siu/timeshare/timeshare.html
http://www.timesharecostcalculator.com/

for the wdw prices
http://www.mousesavers.com/roomrates2006.html

I would do inflation 5%, increase in room rates 5% and fee 5%.

you can, of course, she whatever figures you think would work.

 

[rinkwide]

...Here's my suggestion: rent points from a DVC member and stay at a DVC resort on your next trip. Stay in the kind of accommodation you will want to stay in the most if you join DVC. I'd recommend a 1BR if your group is 4 or less people. Getting the full kitchen and washer/dryer plus the separation of the living room and master bedroom makes a big difference compared to a studio or resort room.

If, when your trip is over, you decide that the DVC rooms are nice, but not worth the extra money, then I'd stick to your current plan...

When in doubt, always listen to your Granny.

 

[dianeschlicht]

One other thing to consider is that the cost of staying on-site, even at a mod will be continuing to go up by leaps and bounds, and you will basically be prepaying the rest of your vacations at today's rate. Since you plan to visit WDW yearly, I think that's a win win situation. If you can, I would do it as a home equity loan though. It will save you in the long run, and why pay more interest than you need to. Also with home equity, you get to write off teh interest.

 

[brasey]

I (DH) made the mistake of doing the Disney cruise and staying at the BC for the part of out land package a couple of years ago. We usually stayed at the value resorts or the Econo Lodge types for what amounts to less than $60 a night usually. Wow !! big mistake !! I mentioned a cheap hotel for a future stay and after staying at the Beach Club no way was that happening with the DW. Low and behold she finally talks me into doing it in January and we figure on 150 points as we do not mind a studio for now and we can go cheap on year and better the next as our schedule is flexible for the value season. along comes the friends and family promotion and me being the one on the fence (maybe not) bumps it up to 200. The moral is once you stay at a deluxe there is no turning back so be careful.

 

[Granny]

Oh I am cheaper than Granny - I love studios!!!

Now Pat, you know I wasn't dissing studios! But if you traveled with my crew, you'd want as much space as possible! Actually, travelling with DW and 2 DD's, we go with the 2BR so we can get even more space and two bathrooms!

rinkwide...you certainly have a great way of re-phrasing an agreement with a post!

 

[Buckalew11]

Thank you for this advice. I know what you mean because once we stayed at a mod, DH hasn't wanted to return to a value. Once we stayed at the S/D, we're a spoiled mess!

Growing up, my parents had a timeshare and we traded to many different timeshares. Every one of them was super nice. I got very used to those accomodations.

When we first started doing WDW, values were nice enough. DD was young, themeing was fun and we were rarely in the room. Now, though, we do WDW differently. Unless we are showing someone new around, we aren't commando style. We love to relax at the pools and just be more laid back. It just isn't as relaxing at a value resort for that type of vacation IMHO.

BUT, all this being said, Diane mentioned doing a Heloc instead of whatever else I might do. But that really isn't my question. (great advice, as usual though).

What I am wondering is whether I am better off to buy into DVC by prepaying future Disney vacations or spending that $$ on each vacation seperately, KEEPING my money and letting it earn us interest. Does that make sense?
I'm not talking about the interest money spent by my financing this purchased. I am talking about the interest I'd be making on my money if I just pay for a vacation one at a time.

OH and thanks for that inflation thing. I'll look at it and see about those rates. I know rates on accomodations will increase but I'd be making more money on my interest also, right?

 

[brasey]

It is really then going to depend on how often and on what seasonsal rate period you go down. The more you plan to go down the better the DVC is for you.

 

[Buckalew11]

I suppose I plan on at least once a year. It would probably be Oct. Of course, there is always January, February... LOL

Once a year isn't enough for me but it would be at least once a year. Once year I went 5 times. But that was an unusual and GOOD year! LOL

Let's say 1 week in Oct.

gosh, one week a year depresses me...I've been spoiled.

 

[WDWMaggie]

I would definately say to buy in to DVC vs. paying for each vacation as you travel. Hotel rates tend to double every 7 years-I know you're not getting that much interest at you bank. If so I want to the know the name of the bank because I'm opening an account!

I have been a member for 3 years and LOVE my membership. We always used to stay (when I was a kid traveling with my family) in values and moderates and now my family is begging to use my points so they can stay in DVC resorts. I have already done 2 add ons so I can keep up.

I would say go for it!

Mags