Considering joining DVC

[rpinsky]

Hi...I took a Disney Cruise and then went to WDW and personally visited the Saratoga Springs Resort. I looks like a great place to stay. I am trying to make a decision if I should join or not. Perhaps some of you can look over some of the issues I am thinking about.

When I travel, I have two of my kids and three of my sister in law's kids for a total of 7 or 8. They suggested that I buy 316 points so I can stay 1 week in prime season at Saratoga Springs. The annual maintenance fee would be about $1000 a year.

I spent an incrediable amount of money on this trip to WDW and I really can't afford to spend that kind of money again. I was thinking....I live in California. I would need to pay for airline tickets for 8...lets say I could get them for $350 each...that would cost $2800. Then I would need to buy park tickets. I just went to the web site and put in 8 tickets with park hopper and magic plus option and it costs $2100. (I know there is some savings with DVC but its only going to save small percentage). Then there is food. Figure we buy food for breakfast and lunch in the room and then only purchase dinner at the park. Assuming the average person costs $20 a day its $20 x 8 people x 7 days = $1120. (Lets call it $1500...I sure we'll buy drinks and ice cream somewhere).

Totals $1000 + $2800 + $2100 + $1500 = $7400. That is a lot of money for a vacation and I'm sure it would actually cost more because you always spend more then you think you're going to spend. (I'm sure I am saving by using DVC, but its still a lot). What about taking a Disney Cruise with DVC points? With 8 people, I'd have to borrow ahead 5 years into the future to get enough points to do it, so thats not really an option.

What if we took a vacation to San Francisco? If we used our points to go there, we could drive and stay there over a long weekend, and then use the remaining points elsewhere. I am thinking $3000 is about the most I would want to spend on a vacation.

What about renting unused points? Perhaps I could use only 1/2 of my points and rent the other half out. How hard is it to find someone that wants to buy them? What price do people pay for them? Perhaps that is a way to get the $1000 maintenance fee paid for?

I like the idea of locking in future vacation points, but I am trying to figure out how it would work for my family. Any ideas or thoughts? In the past we have taken Carnival Cruises for a very reasonable cost. But Carnival is not the same quality of vacation that Disney is.

Thanks for your help,
Robert

 

[TnRobin]

Hi Robert and welcome to the DIS Boards. I am going to move this thread to our Main DVC Board. That is a great place to discuss the details of the program and to try to decide if DVC is right for you and your family.

 

[jarestel]

As you've illustrated already in your examples, vacationing at WDW isn't inexpensive, no matter how you do it. With DVC, there are ways to mitigate some of the costs. For example, you could prepare most of your meals in the room, and this would save a lot. Granted, not everyone wants to cook on vacation, so if you fall into this category, you need to figure out the cost benefits of cooking your own meals vs the inconvenience of doing so.

You could also buy one-half the amount of points and do a trip every other year for now by banking one years' points and using them the following year. Since point costs tend to rise fairly regularly, you're probably better off buying the maximum number of points you feel you need now, but you can always add on points later if you want.

One other point... there is a "rumor" that there may be a DVC built at DisneyLand in the future. This may or may not ever happen, but there's a lot of buzz about it anyway. This might be more convenient for you if that happens.

Good luck!

P.S.
Using your DVC points outside of the regular DVC resorts is pretty expensive, from a points perspective. If you don't think most of your vacations would be at a DVC resort, then it wouldn't be a good idea to buy DVC with the intention of using them in San Francisco, or some other non-DVC destination.

 

[JimMIA]

Hi Robert, and welcome!

It's good that you are thinking this decision through carefully, but I think you are approaching it in the wrong way.

The only real comparison you can do with the cost of DVC is to lodging cost, and really only compare that to lodging costs for comparable accommodations. That's the most important consideration in your decision, so I'll hit this one first and then come back and touch on some of the peripheral issues you mentioned later.

(You are going to have airfare, food, and park ticket costs no matter where you stay. And don't forget souveniers! Our DD3goingon23 can spend $100 per day in the retail outlets without even trying!)

Also, looking at your DVC costs, I see one little item missing -- the original purchase price. So here's the math I would do to compute my DVC lodging costs, using your example:

316 points @ $90 = $28,440. That's 316 points 49 times, so it's a total of 15,484 points over the life of the SSR contract. $28,440 divided by 15,484 points = $1.84 per point. If you add the current SSR dues cost to that ($3.83), you get $5.67 per point for this year's points. (Just as a ballpark number, I use $6 per point for my own personal calculations.)

Using my math, your 7 days in a two-bedroom at SSR, during Magic Season is 316 points X $5.67 = $1,790.69. That's $255.81 per night, which I submit is somewhat less than you will pay most places for a luxury two-bedroom accommodation, with full kitchen and free washer and dryer, etc....to say nothing of being onsite.

Looking forward, the $1.84 per point original cost will not change -- that's what you are locking in. The dues will increase, but so will our salaries and everything else we spend money on, so that's probably going to be a wash over time.

 

[Deb & Bill]

I agree that if you don't plan on spending most of your time at a DVC resort, DVC might not be the best investment for your (not really an investment, I know, just a prepaid vacation). So if you don't plan on going to WDW at least once a year or every other year, there might be other vacation clubs that might be a better choice for you.

 

[Tenorsinging]

how many points do you need for a 7 night cruise???

Lynne

 

[CarolMN]

Briefly -

DVC works best for those who:

* Visit WDW at least every other year,
* Stay in a deluxe on site resort when they visit
* Can plan 7 -11 months in advance
* Can minimize the number of stays that include Friday and Saturday nights (whcih cost more points than the weekday nights (Sunday - Thursday)

If the above doesn't describe your traveling habits, DVC is most likely not a good choice for you.

DVC is not a good choice/value unless you plan to use it mostly for a DVC resort. The points to stay at non-DVC resorts are not locked in. They can and do increase every year.

Best wishes -

 

[JimMIA]

Two other general topic areas:

DVC Member Benefits
I would not give any DVC member benefits any weight in making a buying decision. DVC benefits are great, but they can and do change. Disregard the benefits for decision purposes; enjoy them once you join.

Using DVC outside of DVC
One of the good things about DVC is that there are numerous ways you can use your points. From a financial point of view, you get better value for your points using them at DVC than you do using them just about any other way.

There are two schools of thought about using points outside DVC. One is that you are better off paying cash for other vacation options, and renting points to offset the cash outlay. The other school of thought is "I bought my DVC points for vacation options. I know I get more value using them at DVC resorts, but as long as I get good value for them with other options, I'm a happy camper."

I don't think there is a right or wrong answer to this question. Like many aspects of DVC, it is more a choice of which option is a better fit for your family -- understanding that the best fit this year may be one thing, and the best fit next year will be different.

I would not buy DVC with the idea of using the points mostly (or even half) for other options, but neither would I rule out using them for other options.

 

[JimMIA]

Two other ideas...

One is, if you think you may enjoy vacationing somewhere else every other year (for economy, or whatever reason), consider what jarestel suggested. Buy half the points, and use the banking/borrowing capabilities of DVC to maximize the utility of the points.

Second, be aware that there is a resale market for DVC contracts, and depending on what you buy, you may find that considerably less expensive on the front end than buying direct from Disney. You need to go to school on the resale process, because it's complicated. However, my first contract was a 310 point contract, and I saved about $4,000 buying resale at OKW rather than SSR direct from Disney.

EDIT: Regardless of how you purchase, everything else about your DVC membership (dues, rights, benefits, etc.) is the same. There is zero difference between the two avenues once you are in.

 

[dianeschlicht]

If you did this trip and find that you are like many of us and want to visit WDW as often as possible, then you are being very smart at looking into DVC purchase sooner rather than later. We have kicked ourselves many times over for not joining when we first thought about it. That being said, If you don't think you will be going every year or every other year, it might not be a "deal" for you. I think Jim had two excellent suggestions....Buy (or at least consider) resale and buy half the number of points and use banking and borrowing to get an every other year WDW vacation.

 

[rpinsky]

How reliable is renting the points? It seems like the going rate is $10 a point. What about renting the points for years that I don't want to use them? Then say every 3rd or 4th year I can use them. In the next 10 years a lot in my family household will change and I probably will be able to take more vacations. Do you think I would have any problems renting out my points every other year or two years in a row?

Robert

 

[jarestel]

Do you think I would have any problems renting out my points every other year or two years in a row?

Robert

Probably not.

 

[tjkraz]

How reliable is renting the points? It seems like the going rate is $10 a point. What about renting the points for years that I don't want to use them? Then say every 3rd or 4th year I can use them. In the next 10 years a lot in my family household will change and I probably will be able to take more vacations. Do you think I would have any problems renting out my points every other year or two years in a row?

You probably won't have trouble renting, but consider the cost. If you rent for $10 each, you're only clearing $6 per point after you pay your annual dues. If you have to finance the purchase of the points, the remaining $6 could quickly disappear in interest payments. And than there's your time and energy to complete the rental transaction.

jarestel had a good suggestion to just buy 1/2 or 1/3 of the points you need for a single trip, and plan on vacationing every 2-3 years.

Also consider whether you really need enough points to stay a week during peak season. Weekends cost a lot more than weekdays. Your trips could be a lot cheaper if you are satisfied with staying only 5-6 nights, losing one or two of those expensive weekend nights.

Finally, think about whether you really plan to use your points during peak season. Peak season is Christmas week and the two weeks surrounding Easter. You said you just returned from your cruise / WDW trip. Well, September is actually the LOWEST season in DVC terms. Even if you expect to have to work around school vacations, June to August and the week of Thanksgiving are viable options that will help you avoid "Peak Season."

 

[dianeschlicht]

Renting works if you have the time to spend on getting reservations for folks etc. It's not something I have ever done. I don't really want the hassle of it. An every 3rd year thing DOES work though. We have a friend who has 151 points, and she only uses them every 3 years. She will often use all three years at one time. You do that by banking one year into the next and in that next year making a trip that also borrows points from the following year. She has 450 points at her disposal by doing it that way.

 

[JimMIA]

I don't think you will have any difficulty renting points, and yes, they normally rent from $10-12 per point. In that price range, even staying weekend nights, point rentals are a great vacation bargain.

However, for an owner, there is some work involved in renting points (more than many owners want to mess with), and there is also some risk. You need to research the topic carefully -- starting with the FAQ and the thread entitles "A Word to the Wise," on the Rent/Trade Board.

 

[CarolA]

My concern in reading this is "are you sure you want to vacation at Disney that often"

How old are your kids? Are we looking at little kids who want to go to Disney every year or teens who will soon not want to be on the same planet with thier parents? (LOL!)


If you don't see yourself able to go to Disney at least every few years you might want to consider another time share that might give you better trading opportunities out west like Marriott. I know there is the "California" rumor, but the truth is that Disney sold some land that was once "rumored" for DVC California to Marriott so who knows what they will do this time!

 

[rpinsky]

My kids are 9, 13, 13, 14, and 15...(They are not all mine, but I will be taking them anyway). So in a few years, it will probably be a lot less kids to take. So that will make it a lot cheaper to travel in a few years.

 

[dianeschlicht]

I don't really get the feeling that WDW is your first love for a vacation. If not, it's probably not the best use of prepaid vacation money for you. If you would like the use of other areas more than Disney, then another timeshare might be a better choice. One where you might occationally be able to trade into DVC.

 

[palmtreegirl]

Check ot this link- http://www.mousesavers.com/dvc.html

 

[Doctor P]

Why not buy only half the points you need for the trip you intend to take? That way you will have enough to go every other year and not have to mess with paying as high of maintenance costs or worry about renting out as many points. Also, you could consider staying in two studios once some of the kids get a little older. That is less pts. than a 2BR.