Considering to puchase DVC

[_auroraborealis_]

Please note that you don't need to rent points at DVC resorts to stay at them. You can book directly from Disney and pay cash. It is generally cheaper to rent points but there are some risks involved - primarily that you are completely the mercy of the renter being upstanding and that your reservation won't be cancelled for any reason. There are rental brokers who can try to mitigate some of that risk, but they can't completely eliminate it. Just something to keep in mind.

However, CRO availability can be scarce for many resorts/room types/dates due to the ownership structure and inventory release.

 

[missycakes99]

And that's exactly how Disney separates people from a great big chunk of their money. There's nothing concrete that a DVC purchase gives you that's not available to you as a non-member. You can stay in all of the same properties, and have all of the same experiences, without ever purchasing a membership. DVC is simply an alternate way of paying for those stays and experiences. To me, getting emotionally attached to DVC is like getting emotionally attached to a mortgage or a car loan. Attached to Disney? You bet I am. Attached to my DVC membership? Only in the sense that it's been financially advantageous for me.

Lynne - I, too, am trying to figure out if buying DVC is wise for us. We've rented a few times and are just still mulling it over. You sound very well educated and I'd LOVE your input on how this was a smart financial decision for you? At first I said "NO WAY," but I just ran the numbers on 125 pts at Poly and it if we plan to go every 2 years then it seems like it's not too bad and actually cheaper than just booking a stay at the Poly. But if we just continue to rent it's about the same. I'd love your input! I'm not a financially savvy person.

 

[suebeelin]

Lynne - I, too, am trying to figure out if buying DVC is wise for us. We've rented a few times and are just still mulling it over. You sound very well educated and I'd LOVE your input on how this was a smart financial decision for you? At first I said "NO WAY," but I just ran the numbers on 125 pts at Poly and it if we plan to go every 2 years then it seems like it's not too bad and actually cheaper than just booking a stay at the Poly. But if we just continue to rent it's about the same. I'd love your input! I'm not a financially savvy person.

If it's the same btwn buying and renting, I would probably buy... And assume there is or will be some residual value to the purchase if/when you want to sell.

I just called for an AP rate on bcv this summer. I almost fell over backwards for a 3 day stay. I'm a deluxe person but I can't pay the deluxe discounted prices.

 

[Lynne M]

Lynne - I, too, am trying to figure out if buying DVC is wise for us. We've rented a few times and are just still mulling it over. You sound very well educated and I'd LOVE your input on how this was a smart financial decision for you? At first I said "NO WAY," but I just ran the numbers on 125 pts at Poly and it if we plan to go every 2 years then it seems like it's not too bad and actually cheaper than just booking a stay at the Poly. But if we just continue to rent it's about the same. I'd love your input! I'm not a financially savvy person.

Well, I think we all have our own justifications for buying. Mine was rather specific. I do a lot of solo trips, and I like staying in deluxe resorts, but the cost of a deluxe room wasn't something I felt I could justify. I'm one of those rare birds who bought into DVC for the studios. I get my deluxe resort stay at a much lower cost than I would by booking a cash reservation. When I do take friends or family along, I can use my points to get us a larger villa.

I should note that I bought VWL about 15 years ago, so I paid something like a third of what Poly is going for nowadays. If I were looking to buy today, it'd be resale or nothing. I would never pay the current direct price for any resort.

 

[viper17d]

Lynne - I, too, am trying to figure out if buying DVC is wise for us. We've rented a few times and are just still mulling it over. You sound very well educated and I'd LOVE your input on how this was a smart financial decision for you? At first I said "NO WAY," but I just ran the numbers on 125 pts at Poly and it if we plan to go every 2 years then it seems like it's not too bad and actually cheaper than just booking a stay at the Poly. But if we just continue to rent it's about the same. I'd love your input! I'm not a financially savvy person.

There's absolutely an emotional side to owning DVC, but if you want to get a handle on financial side, the math isn't too complicated.

To make it easy, let's say you buy resale for $80/pt. Let's say maintenance fees on those points are $7/pt initially. When finding a comparable benefit, you need to look at the best deal, which is almost always renting points. Let's say, conservatively, it costs $15/pt to rent 11 months out. Accordingly, each year (assuming you go once/year) you are saving $8/pt (the $15 alternative minus the $7 MF cost). Since you paid $80 upfront, that $8/year savings will pay you back in 10 years (assuming you go once/year).

This benefit changes if you don't go every year, but it's important to not forget maintenance fees. This example is simple and easy, especially since you can assume that the cost of point rental will likely track with maintenance fees (so you don't need to worry about inflation).

This example ignores the time value of money - which really only matters if you think you could invest that money successfully earning 3-6%.

The reality is, holding a contract to the end of its life, assuming you go resale is probably going to be equivalent to an 8% rate of return investment. Not bad, but you need to use it effectively.

Point being, resale can be an OK investment if you'd definitely go otherwise. Direct from Disney will be a lot closer to a wash since you're paying 50-100% more up front - this extends your payback and lowers your rate of return a lot closer to zero.

If you buy from Disney, you're paying for the incidentals that can be taken away at any time, but you get the emotional gratification of being an "official" DVC member. To some people, that carries value on its own - just know it will take quite a bit longer to "make your money back".

Hopefully this helps!

 

[MsTessP]

If you buy from Disney, you're paying for the incidentals that can be taken away at any time, but you get the emotional gratification of being an "official" DVC member. To some people, that carries value on its own - just know it will take quite a bit longer to "make your money back".

Saving $12,000 on by purchasing resale gave me quite a bit of satisfaction - emotional and financial.

But that's just me.

 

[supersnoop]

but you get the emotional gratification of being an "official" DVC member.

Deeded ownership makes you an "official" member. Buying direct from DVD makes you their customer.

 

[viper17d]

Saving $12,000 on by purchasing resale gave me quite a bit of satisfaction - emotional and financial.

But that's just me.

I quite agree - however, it's not for me to judge what others place importance on

 

[viper17d]

Deeded ownership makes you an "official" member. Buying direct from DVD makes you their customer.

Well for those of us who did not buy resale soon enough to be grandfathered into the incidentals, there is something missing without them.

Having recently gone through that decision-making process, I made the determination that I absolutely would not get the value needed to purchase through Disney.

The problem is - it was a decision - much more so than two months ago. With that being said, if you want the "full" membership experience, don't buy all your points from Disney - only a small portion of them.