Are Disney prices too high?

[minnie-apple-mouse]

How is that "worth" determined? Is that a guaranteed price you could sell it for today? If so, that's a great deal - I found some more information on current average costs:

http://vacation-club-review.toptenreviews.com/

In regards to the original topic "Are Disney Prices Too High?" - If you are saying that one should only consider the annual membership/maintenance charges divided by the number of nights per year as an annual "nightly cost" because you are guaranteed to make get your original payment or more back when you sell it then the average nightly cost at those resorts compared to public booking rates sound pretty good. And really low. Assuming, of course, that you do sell it and not keep it until the deed expires.

Its on the disboards

http://www.dvc-resales.com/dvclisting.cfm

Example of BWV small point contract:

BW150-10-0914 Boardwalk Villas-$95/pt. 150 October $484.00 0 132 $14,250.00
282 points coming on 10/1/15 (150 + 132 banked points from 2014, banked points need to be used by 10/1/16) and 150 points coming on 10/1/16. NO ANNUAL DUES UNTIL 2016. Priced at $95 per point.

BW25-08-0912 Boardwalk Villas-Sale Pending 25 August $334.00 0 $3,000.00
25 points currently available and 25 points coming 8/1/16. NO ANNUAL DUES UNTIL 2016. Priced at $120 per point.

 

[RoryRose]

Well to make it easy, lets average $134 a night tax included is $150?

7 nights $1,050

1 week a year is $10,500.

Now that is a "sunk" cost gone forever.

Drop my example in 1/2, to one week a year to compare. Now I have a 7 day hopper for $250 (instead of 14) but still?

And half the investment (83 points) is $5,350. The dues stay the same, so its still $55 a night.

So now for one week a year, $5,350 down and $415 a year dues. Over 10 years that is $4,150 in dues.

So for $9,500 I stayed Deluxe every year, and have an asset worth $8,300.

Or I stayed for a week every year for 10 years for $1,200. $17 a night deluxe.

Or I could have stayed at BW for 7 nights a year for 10 years on cash for about $25,000 ($350 a night) and have no asset to sell.

You can rationalize it all you wish. What you can't do is ignore your initial upfront cost of DVC and annual dues when discussing how much trips cost, which is what happens more often than not.

 

[minnie-apple-mouse]

You can rationalize it all you wish. What you can't do is ignore your initial upfront cost of DVC and annual dues when discussing how much trips cost, which is what happens more often than not.

I just put it in. You even quoted it.

$9,500 was INCLUDING the $5,300 down, plus $4,100 in dues.

So I stayed deluxe for all 10 years AND have an $8,300 asset besides, for what you flushed away with minimal Deluxe stays.

 

[minnie-apple-mouse]

Drop my example in 1/2, to one week a year to compare. Now I have a 7 day hopper for $250 (instead of 14) but still?

And half the investment (83 points) is $5,350. The dues stay the same, so its still $55 a night.

So now for one week a year, $5,350 down and $415 a year dues. Over 10 years that is $4,150 in dues.

So for $9,500 I stayed Deluxe every year, and have an asset worth $8,300.

Or I stayed for a week every year for 10 years for $1,200. $17 a night deluxe.

Or I could have stayed at BW for 7 nights a year for 10 years on cash for about $25,000 ($350 a night) and have no asset to sell.

Above.

So even not recognizing the remaining "asset", it was a better deal than cash stays.

The $8,300 just makes it that much better.

 

[Angel Ariel]

Unlike the vast majority of timeshares, DVC contracts have the reputation of maintaining or even increasing their resale value, so most DVCers don't consider this a cost, just an investment that they expect to recoup.

Regardless of whether they will make their money back or not, it is a substantial up front cost that one has to cover to buy into DVC.

 

[Angel Ariel]

It takes money for sure, choices on cars, homes and lifestyles all relate. $10,000 doesn't go far on WDW Deluxe (which we would stay at if not for DVC), even Value actually, and certainly not a car. Esp at 2 weeks a year.

$10,000 doesn't go far staying at WDW in a value? We have never spent that much on one WDW vacation...not even our week long vacations. i guess at 2 weeks a year it might not, but we dont spend all of our vacation time at wdw.

 

[minnie-apple-mouse]

Regardless of whether they will make their money back or not, it is a substantial up front cost that one has to cover to buy into DVC.

Agreed, but do you think $5,300 for a week a year at BWV in our example was super extreme, esp knowing its worth $8,300 now?

That and a week at the BW is around $2,000 cash the first stay, $4,000 after 1 year later (2nd stay), and now its only $55 a night going forward? And you have the asset.

 

[Angel Ariel]

Agreed, but do you think $5,300 for a week a year at BWV in our example was super extreme, esp knowing its worth $8,300 now?

That and a week at the BW is around $2,000 cash the first stay, $4,000 after 1 year later (2nd stay)?

Whether it is extreme will depend on each person's individual budget. Many people simply don't have the resources to put up the necessary up front costs to buy DVC. And by the time they can save it, who knows how much more the points will cost.

We've thought about DVC, but the buy in is just too steep for us. We have no desire to put off other vacations/experiences outside of Disney to be able to afford buying into DVC, which we would have to do (only talking about us here). Plus, when we are at WDW we just don't spend a ton of time at the hotel. We are there some (and we loved SAB last year), but we prefer to spend our time in the parks...even if we're just walking around or sitting on a bench somewhere for a bit, we prefer to do that in the parks than going back to the hotel. So Deluxe level accommodations on all of our trips is just not a priority for us, esp. not to the point that we're willing to sacrifice other vacations/experiences throughout the year in order to do it.

 

[bcrook]

Agreed, but do you think $5,300 for a week a year at BWV in our example was super extreme, esp knowing its worth $8,300 now?

That and a week at the BW is around $2,000 cash the first stay, $4,000 after 1 year later (2nd stay), and now its only $55 a night going forward? And you have the asset.

My maintenance fees have gone up a lot! I plan on riding out my contract, so I can't just conveniently ignore my $22,000 upfront costs.

I will be curious to see how long those DVC contracts hold their value. I am 8 years in to mine. I don't think I can sell it for what I paid for it. I might be lucky to get $10,000 for Kidani on the open market. I think I have to ride it all the way to the end to reap the most benefits out of it.

Based on all my costs, a 2 BR Villa costs me about $385.00 a night through DVC which is much better than the online rack rate. But I wouldn't consider it cheap. Plus I have committed to paying that for 42 more years.

But I am happy with my purchase overall.

 

[minnie-apple-mouse]

My maintenance fees have gone up a lot! I plan on riding out my contract, so I can't just conveniently ignore my $22,000 upfront costs.

I will be curious to see how long those DVC contracts hold their value. I am 8 years in to mine. I don't think I can sell it for what I paid for it. I might be lucky to get $10,000 for Kidani on the open market. I think I have to ride it all the way to the end to reap the most benefits out of it.

Oh I have no doubt some folks have chosen less wisely. Regardless I hope you got more than 83 points for that amount of money.

8 years ago was about perfect for resale purchases, well 7 years anyway. OKW/SSR, at times in the $45 range.

 

[minnie-apple-mouse]

Whether it is extreme will depend on each person's individual budget. Many people simply don't have the resources to put up the necessary up front costs to buy DVC. And by the time they can save it, who knows how much more the points will cost.

We've thought about DVC, but the buy in is just too steep for us. We have no desire to put off other vacations/experiences outside of Disney to be able to afford buying into DVC, which we would have to do (only talking about us here). Plus, when we are at WDW we just don't spend a ton of time at the hotel. We are there some (and we loved SAB last year), but we prefer to spend our time in the parks...even if we're just walking around or sitting on a bench somewhere for a bit, we prefer to do that in the parks than going back to the hotel. So Deluxe level accommodations on all of our trips is just not a priority for us, esp. not to the point that we're willing to sacrifice other vacations/experiences throughout the year in order to do it.

Its not for everybody for sure. Just like homes and car loans etc.

 

[bcrook]

Oh I have no doubt some folks have chosen less wisely. Regardless I hope you got more than 83 points for that amount of money.

LOL! I just don't even know how to respond to this.

 

[minnie-apple-mouse]

LOL! I just don't even know how to respond to this.

Yea that came out bad sorry-I meant less lucky. You bought at the peak correct? And AK could have gone crazy-just never really did.

 

[bcrook]

Regardless of whether they will make their money back or not, it is a substantial up front cost that one has to cover to buy into DVC.

nearly all rational analysis shows that DVC allows for someone to get rooms for about 1/2 the rack rate.
All narcissistic analyses claim much, much lower.
I like my DVC, but it is a lot of cost over 50 years.

 

[shut_the_front_door]

Not really. When going to Disney its a vacation with the full experience.

A day at Six Flags example:
admission (without discounts) approx. $60 for ONE day
crappy lunch of two tiny slices of pizza and a small soda $15
bottle of water $4
Souvenir - far worse quality than Disney, the stuffed toys are more akin to what you get out a claw-machine and cost $20 for an average one.

 

[minnie-apple-mouse]

How about this.

I know you don't care, but have a scenario.

Lets assume you bought for $100 and its now worth $90. Not that bad.

So 220 points.

An owner in this situation could do this.

AKV studio for a week each January is 70 points.

So you rent out the other 150 each year. Say an average of $12, $1,800 a year.

In 12 years, you have paid off the entire purchase, and stayed a week each year at AKV.

Leaving just dues. Say $6 or $1,320 a year, 12 years is $15,840.

That means worst case, you have an asset worth $19,800, paid $15,840 dues, paid off the principle in rentals.

So you would be up $4,000 AND stayed 12 weeks at AKV, which is worth another $200 a night I would think, or $16,800 and still have the $19,000 asset.

It does take money to make money though.

 

[Angel Ariel]

Its not for everybody for sure. Just like homes and car loans etc.

I wouldn't take out a loan for dvc, that's for sure. A home and a car? sure. Where I live, those are pretty much necessities. A vacation destination? Nope.

 

[minnie-apple-mouse]

nearly all rational analysis shows that DVC allows for someone to get rooms for about 1/2 the rack rate.
All narcissistic analyses claim much, much lower.
I like my DVC, but it is a lot of cost over 50 years.

I think that case can be still made at the POLY. Would have to check. But Early BCV/BWV/OKW owners are much better off, at least for studio comparisons. Then there is the dip in late 2000's-super sweet deals were made.

 

[minnie-apple-mouse]

I wouldn't take out a loan for dvc, that's for sure. A home and a car? sure. Where I live, those are pretty much necessities. A vacation destination? Nope.

To each there own, We paid cash for $5,300 twice actually. I watch folks check out at BW and BC and just laugh at the money thrown away. Many could buy a week right then and there. Actually the mods and values as well are just wasted cash.

 

[Angel Ariel]

To each there own, We paid cash for $5,300 twice actually. I watch folks check out at BW and BC and just laugh at the money thrown away. Many could buy a week right then and there. Actually the mods and values as well are just wasted cash.

You can feel free to laugh at us all you like. It's rude, IMO. Just because it's a different choice than yours doesn't mean they are throwing money away. They are valuing it differently than you, sure, but that doesn't necessarily equal throwing it away. The countless other vacations we've had at places other than WDW are more valuable, to us, than a DVC membership. We haven't thrown anything away.