Considering an AKV purchase through Disney

[J Buzz]

Hey guys, I'm considering a DVC membership purchase at AKV and ran some numbers, was hoping someone could take a look at it and tell me if these seem accurate.

At this point, if I'm going to purchase a membership I would really prefer to do it through Disney just because I hate the limitation on points usage that comes through retail. With the deal Disney has going right now, I would purchase 200 points and get the 20 extra for "free".

I ran some numbers on it to see if the purchase makes financial sense per year until the points expire, I was hoping someone could take a look and see if this is accurate:

$130 per point x 200 = $26,000 buy in.

Annual dues are presently $5.4356 per point, $5.4356 x 220 = $1,195.832 due per year.

$1,195.832 x 45 (years left until points expire) = $53,812.44 (This number is not factoring in dues increases).

$53,812.44 (lifetime dues) + $26,000 (initial buy in) = $79,812 total cost (again not factoring in dues increases).

$79,812 / 45 years = $1,773 per year.

Does this seem accurate? As I said, it's not taking into account dues increases, which I know will increase over time. Looking at this rate, over the course of the lifetime of the points, it would save money in the long run. If my numbers are right, I couldn't even get into a discounted moderate resort at those rates over the same amount of time.

Any thoughts? And yes I'll listen to the resale sales pitches which I'm sure will follow

 

[MickeyFan612]

Hey guys, I'm considering a DVC membership purchase at AKV and ran some numbers, was hoping someone could take a look at it and tell me if these seem accurate.

At this point, if I'm going to purchase a membership I would really prefer to do it through Disney just because I hate the limitation on points usage that comes through retail. With the deal Disney has going right now, I would purchase 200 points and get the 20 extra for "free".

I ran some numbers on it to see if the purchase makes financial sense per year until the points expire, I was hoping someone could take a look and see if this is accurate:

$130 per point x 200 = $26,000 buy in.

Annual dues are presently $5.4356 per point, $5.4356 x 220 = $1,195.832 due per year.

$1,195.832 x 45 (years left until points expire) = $53,812.44 (This number is not factoring in dues increases).

$53,812.44 (lifetime dues) + $26,000 (initial buy in) = $79,812 total cost (again not factoring in dues increases).

$79,812 / 45 years = $1,773 per year.

Does this seem accurate? As I said, it's not taking into account dues increases, which I know will increase over time. Looking at this rate, over the course of the lifetime of the points, it would save money in the long run. If my numbers are right, I couldn't even get into a discounted moderate resort at those rates over the same amount of time.

Any thoughts? And yes I'll listen to the resale sales pitches which I'm sure will follow

Looks good to me....Now take half of 26,000 then subtract several thousand for any extra points you have to rent or use personally. Now that number looks REALLY GOOD!! Always better to rent points and pay cash for cruises and other places that are not a good value for your points Get the most bang for your buck!! Resale all the way!!!

 

[arthur06]

Are you sold on AKL, or would you be interested in other properties?

SSR has cheaper dues and can be bought for much less.

There is a 220 point resale on one of the websites.

A2203BR Animal Kingdom 220 Mar 2057 33 points available now (in holding status) 209 points coming on 3.1.13 (48 banked from 2012, 161 from 2013) $70 $15,400

That would take at least $10,000 off right off the bat.

 

[disneynutz]

Your money numbers are just a start. There is more to consider than just buying what DVD is currently selling.

What are the resale restrictions and how do they really affect you?

What UY is best for your vacation habits?

Which resort is your favorite, you have tried them all before making a $80,000 decision right?

You have factored in the cost of transportation, food, admission, and Disney stuff that you will be buying. (these costs increase each year)

If you look at the total number of resales from all of the Brokers and the number of contracts that Disney gets back each year that's a good indication of people who didn't do their homework or who ran into financial problems or got tired of Disney.

Bill

 

[Deb & Bill]

Annual member fees can go up 15% each year. So ultimately you will pay a lot more in just your fees than in the original purchase price.

Each and every member is only guaranteed using their points for DVC stays. So purchasing to be able to use points for the Disney Collection is not guaranteed and could go away next year. Would that make a difference for you?

 

[joelp]

I did some calculations a few months ago before buying resale ... Assuming a 3.4% annual increase in maintenenace fees over the life of the contract, the fees average about $12.45 per point. So to get a better estimate of the total cost over 45 years, you need to up your maintenence fee subtotal ...

In the long run, fees cost more than the purchase price ...

 

[CMOORE185]

Unless AKV is just the resort you have to have, or you want it for concierge booking, I would stay away from purchasing AKV's direct. The price right know is ridiculous (probably because it is the only non sold out resort at WDW) Not too long ago it was selling for $99 direct. The dues are one of the highest at WDW and will probably stay that way. On top of all this AKV's are pretty easy to book at 7 months unless you want concierge. You can buy any of the sold out resorts direct from Disney if direct is still the route you want to go. With a combination of price, years left, and dues, SSR is the best deal if you are not tied to any particular resort.

And although it is true that you are only guaranteed your own home resort, the chance they take away all the other options is so slime that it is not even worth talking about.

 

[DizBub]

As far as the restrictions with resale, those are simply not good value for your points. You would need a whole lot more than 220 points to be able to use them for cruising and the "Collections" that you would lose access to.

If you must have AKV I agree that you can buy resale for half the price of direct. If I had $13000 extra to spend, I personally would use it to buy double the points. Then you could rent those extra points to help pay for the MFs.
Agree that SSR is definately the best over all value, even if you have to buy direct.

 

[ELMC]

$1,195.832 x 45 (years left until points expire) = $53,812.44 (This number is not factoring in dues increases).

$53,812.44 (lifetime dues) + $26,000 (initial buy in) = $79,812 total cost (again not factoring in dues increases).



Does this seem accurate? As I said, it's not taking into account dues increases, which I know will increase over time. Looking at this rate, over the course of the lifetime of the points, it would save money in the long run. If my numbers are right, I couldn't even get into a discounted moderate resort at those rates over the same amount of time.

Any thoughts? And yes I'll listen to the resale sales pitches which I'm sure will follow

Not factoring in dues increases is a big mistake. Increases compound annually, which means that they will be significantly more expensive as time goes on. If you assume a 4% increase of maintenance fees over time, the actual 45 year maintenance fees will be $144,847. That is significantly different from the numbers in your calculations. So I would have to say that no, your numbers do not seem accurate. A realistic comparison for long term DVC costs vs. moderate resorts is that they are about equal, not including any discounts. So your assertion that DVC will be less expensive than a discounted moderate is not accurate.

Forgive me for saying so, but your analysis is a bit oversimplified and seems geared towards justifying a direct purchase. There are a lot of reasons to buy direct, but savings is not one of them. If you are crunching numbers as a means of justifying your purchase, then that is one thing. But if you are truly interested in analyzing where the cost savings of DVC lie, you need to be looking at a resale purchase.

 

[DougEMG]

If you want to save money, buy resale instead of direct.

If you assume dues go up at a similar rate as DVC, then if $1,773 saves you money now, then DVC will be saving you money in the future.

When I was looking at numbers, DVC was about equal to a moderate with free dining for 2 people, you are just not dependent on waiting for a discount code.

DVC does allow you to upgrade your level of accommodations. My next two trips are at BWV, a resort I always wanted to stay at but would never have paid the cash rates for a room.

 

[abdgeek]

Hey guys, I'm considering a DVC membership purchase at AKV and ran some numbers, was hoping someone could take a look at it and tell me if these seem accurate.

At this point, if I'm going to purchase a membership I would really prefer to do it through Disney just because I hate the limitation on points usage that comes through retail. With the deal Disney has going right now, I would purchase 200 points and get the 20 extra for "free".

I ran some numbers on it to see if the purchase makes financial sense per year until the points expire, I was hoping someone could take a look and see if this is accurate:

$130 per point x 200 = $26,000 buy in.

Annual dues are presently $5.4356 per point, $5.4356 x 220 = $1,195.832 due per year.

$1,195.832 x 45 (years left until points expire) = $53,812.44 (This number is not factoring in dues increases).

$53,812.44 (lifetime dues) + $26,000 (initial buy in) = $79,812 total cost (again not factoring in dues increases).

$79,812 / 45 years = $1,773 per year.

Does this seem accurate? As I said, it's not taking into account dues increases, which I know will increase over time. Looking at this rate, over the course of the lifetime of the points, it would save money in the long run. If my numbers are right, I couldn't even get into a discounted moderate resort at those rates over the same amount of time.

Any thoughts? And yes I'll listen to the resale sales pitches which I'm sure will follow

I say go for it! My only caution about buying AKL is that their dues are really high. Is there another resort with lower dues that you want to buy direct from Disney? My rep asked me that same question when I added-on a while ago. She knew I only wanted the points for travel and didn't recommend that I buy AKL because I didn't plan on staying there.

Although others would dispute it, I agree that you are better off buying direct from Disney because your point usage is not limited. I have used my points to go on 4 Disney cruises, 2 ABD trips, RCI acommodations, etc. and have only had to pay the $95 booking fee each time. Yes, I go to WDW and DL every few years, but I didn't buy DVC for that reason. I bought DVC to go everywhere Disney went and have the flexibility of traveling with a reputable company. My motto now is: If Disney doesn't go there--I don't go there. Fortunately, Disney goes everywhere--including 6 continents!

 

[J Buzz]

Thanks everyone for all the replies, to be honest I was not expecting so many responses and there's some good insight that was shared

To answer some of the general questions/statements that were made...I understand there's far more to consider when making a purchase like this than simple number crunching. I'm trying to look at this potential purchase from all angles, not strictly financial, however in regards to this thread I was wanting someone to look over the numbers I had ran to see if they seemed accurate.

As for AKL, it is our favorite Disney resort we have stayed at. We love the African theme (my family lived in Kenya for 4 years), the activities, and my wife's personal favorite...the Savannah views with the roaming giraffes, zebras, etc. We would happily stay here each and every time we visited Disney World. We just love the fact that a resort like these even exists and is available to stay at, thank you Disney So yeah I realize there's other resort options to buy into, and we're not necessarily opposed to those, AKV just happens to be our fave.

After considering what everyone had to say and doing some more research, I'm now strongly reconsidering a direct purchase from Disney and will look into a resale purchase. If I truly could get the points for half or near half the price through a resale, that makes significantly more financial sense. Not only that but the potential limitation on points, I think, could be offset by renting points out and directly purchasing (with cash or credit card miles) an Adventure Tour, Disney Cruise, etc.

And even though AKV is our favorite, I'll look at SSR too as many have suggested. We've never stayed there, but if the price difference is that great I'll at least look into it.

 

[DizBub]

AKV is a beautiful resort and also one of our favorites. That said, it seems like you really don't need the 11 booking window to stay there. Unless you really want the value rooms or Club level rooms, 7 months to book is very do-able.

Just did a quick look at the Timeshare Store (at the top of this page) and most AKVs are going for in the mid to high 60's. That looks like a 50% savings to me, at least on the up front costs. Disney isn't ROFRing AKV contracts at all because they are still actively selling it. Of course, resale takes 2 months + to have access to your points and there are closing costs. Ultimately, it's your money and you can do with it what you want.

People here just want you to be aware of all of your options. We bought direct, didn't know about the resale market. Don't regret it but really wish we had known there were options. Good Luck with your decision!

Check out this thread. http://www.disboards.com/showthread.php?t=2661661

 

[Deb & Bill]

Thanks everyone for all the replies, to be honest I was not expecting so many responses and there's some good insight that was shared

To answer some of the general questions/statements that were made...I understand there's far more to consider when making a purchase like this than simple number crunching. I'm trying to look at this potential purchase from all angles, not strictly financial, however in regards to this thread I was wanting someone to look over the numbers I had ran to see if they seemed accurate.

As for AKL, it is our favorite Disney resort we have stayed at. We love the African theme (my family lived in Kenya for 4 years), the activities, and my wife's personal favorite...the Savannah views with the roaming giraffes, zebras, etc. We would happily stay here each and every time we visited Disney World. We just love the fact that a resort like these even exists and is available to stay at, thank you Disney So yeah I realize there's other resort options to buy into, and we're not necessarily opposed to those, AKV just happens to be our fave.

After considering what everyone had to say and doing some more research, I'm now strongly reconsidering a direct purchase from Disney and will look into a resale purchase. If I truly could get the points for half or near half the price through a resale, that makes significantly more financial sense. Not only that but the potential limitation on points, I think, could be offset by renting points out and directly purchasing (with cash or credit card miles) an Adventure Tour, Disney Cruise, etc.

And even though AKV is our favorite, I'll look at SSR too as many have suggested. We've never stayed there, but if the price difference is that great I'll at least look into it.

Wow, 10 posts and you have already got it! Congratulations.

 

[DoryDorito]

I hold an unpopular opinion on the resale suggestion. For my family, the uncertainty of restriction on resale contracts made us uncomfortable enough to buy direct. The initial savings of buying resale seemed incidental when you don't have full use of your points. Buying direct allowed us to purchase that piece of mind.

Do what you feel most comfortable with. Do your research and make the best choice for your family.

Fwiw, we own at AKV. Love that resort.

 

[lynngirl]

Hi J Buzz - I just went thru the resale process to purchase in at Animal Kingdom Lodge and would highly recommend it to anyone. It is a much larger saving and if you are okay with the resctrictions its a great avenue to try. We bought 160 pts for $10,500. I great price for AKV at $65.63 p/p. Just something to think about.

 

[Simba's Mom]

I'm in the initial stages at buying AKV resale, because I want the AKV value studios. Yes, as the last poster said, there do seem to be some real great deals on AKV resale, running about $20/point or so cheaper than resorts that became available around the same time. Am I just lucky, since that's the resort I want? It's such a beautiful resort, and I can't help but wonder why it's so reasonable. And do resales go quickly? When we purchased resale at HHI, we lost two initially because we didn't make an offer within the first few hours.

 

[Kidanifan08]

As for AKL, it is our favorite Disney resort we have stayed at. We love the African theme (my family lived in Kenya for 4 years), the activities, and my wife's personal favorite...the Savannah views with the roaming giraffes, zebras, etc. We would happily stay here each and every time we visited Disney World. We just love the fact that a resort like these even exists and is available to stay at, thank you Disney

And even though AKV is our favorite, I'll look at SSR too as many have suggested. We've never stayed there, but if the price difference is that great I'll at least look into it.

If AKV is your favorite, and you would happily stay there every visit if you had to, why would you consider a different home resort? Don't get me wrong, SSR is nice, but it's a very different experience, and not for everyone (including me, at this time). The price difference between SSR and AKV resales is not that great (IMO), particularly if you are considering a purchase of 200+ points. You should not have to pay more than $65/pt for an AKV resale that size, and likely you could get closer to $60/pt. Although the dues are higher at AKV, BWV, VWL and BCV all had higher dues than AKV this year and every year since 2007 (reference: resource center sticky). Now, they could eventually exceed one or all of those resorts (somebody has to feed the animals), but the current level is on par with other resorts and shouldn't be a deal breaker. You may find that value rooms or concierge stays are something that you desire, and those are difficult to get, if not impossible, if you do not own at AKV. You can ALWAYS get just about every room type at SSR -- even at 4-5 months out (with a few exceptions).

For my family, the uncertainty of restriction on resale contracts made us uncomfortable enough to buy direct.

Fwiw, we own at AKV. Love that resort.

But, they can't take away the home booking advantage, and that is all that one is really buying in the first place. Our home is AKV, too, and we love it! Our initial points were direct, but we have done 3 add-ons via resale and I cannot think of a good reason to ever buy direct again. Have you seen how many points it takes to use DVC for ABD ? DCL is not that much better.

It's such a beautiful resort, and I can't help but wonder why it's so reasonable. And do resales go quickly?

The resale prices for AKV have plummeted over the past 18 months. When I bought a 50 point resale last March, I paid $85/pt. I was able to get my recent 100 pt add-on for $67. There is a glut of contracts on the resale market, which is probably why they are going for such a great price (to the buyers advantage). As with other resorts, the small contracts (<100 pts) go fast. I did a 55 point resale last year, as well, and both the 50 point and 55 point resales were listed and sold on the same day. I watched another 50 pointer listed the same day as mine sell on that day as well. If your looking at 100 or more points, those sit longer and can be had for less. Good luck shopping!

 

[sjaz22]

Hi J Buzz - I just went thru the resale process to purchase in at Animal Kingdom Lodge and would highly recommend it to anyone. It is a much larger saving and if you are okay with the resctrictions its a great avenue to try. We bought 160 pts for $10,500. I great price for AKV at $65.63 p/p. Just something to think about.

What are the restrictions you mention?

 

[crisi]

What are the restrictions you mention?

Resale members cannot use their points to stay at non-DVC Disney resorts, cruise on DCL or book an Adventures by Disney trip. Many people here do not think these are great values for your points to start with and they have restrictions.

However, if buying direct its important to remember that these are optional components - Disney is not contractually obligated to offer them to anyone. The ability to book these things with any points could disappear. Or they could raise the point cost for it to be even less of a value than it is. In order to make these exchanges work, Disney has to be able to rebook those rooms for cash - if they have issues doing do, the exchange rate needs to adjust to compensate for empty rooms.