convince my husband

[granolacruncher11]

Would everyone tell us a bit about why they bought into DVC. How do you justify the huge annual dues compared to just putting that money towards any resort in WDW? Basically what does the DVC do for you for the money?

 

[spiceycat]

most of the timeshares in Orlando have huge annual fees - anyway from $500 to $900.

So DVC is in the ball park. DVC free transportation to the WDW theme parks - more than makes up for the extra amount. (my opinion).

staying on site has advantegous - the extra magic hours - 1 hour in the morning, 3 hours in the night - at different parks on different days.

you can charge to your ID (key, room charge and in some cases ticket).

package deliver.

all dvc resorts have at least a kitchennett - so you can save (if you want too) on food - you don't have to eat out at every meal.

the new Magical express makes getting a rental car not necessary.

rent points from a DVC member and stay at a DVC resort - then see how you feel.

as long as Disney is the management of the resort - it will stay in top shape.

some of the other timeshares (even with the high fees) have suffer because of bad management. Once your rating goes down - it is really hard to bring it back up.

You expect more from a DVC resort - because it is Disney. the landscaping, the villas, the resort itself is in top shape - no matter when you visit.

 

[princess mom]

it took us a long time to finally make a purchase, thinking that it did cost quite a bit of money. We have young children (7 & 3) so we know that we will be spending a lot of time there. ( not to mention that is our favorite place to go). Besides there are a ton of things to do there that is not disney. Plus we are only 2 hours from HH, and 7-8 from WDW. We like to bring family with us, and DVC allows us the rooms that we need. Keep reading this borad, you'll find a wealth of information here to help you better understand Missy

 

[Tramp68]

Are you comparing this to any hotel in Orlando or any WDW hotel or what?

A full week in a studio on OKW is 147 points at PEAK times (Easter, Xmas) The dues for 147 points is $561.54 a year. How are you going to stay a full week at PEAK times for $562...(Don't forget to include room taxes not just the quoted rate!)

Move that to an off peak time and you can now stay in a studio for almost 2 weeks for the same number of points...Try getting 13 days for $562.

Let us also compare rooms...do you get a Refridgerator, Microwave and Coffee Pot in your budget room? If you do, is it nice, functional and clean?

DVC is not for the budget traveller, this is true. If that is your family, do not buy into it. DVC cannot compete price-wise with $29 a night rooms. But, what are you getting for your money? If you are happy with those accomodations then DVC is not for you. WIth DVC you did get a great package for your money and it is well worth it.

Now, lets look at free bus and/or boat transportation to all of the parks. Free Package delivery, Discounts on Annual Passes, Discounts in shops. Many other perks that you are entitled to.

I look at this the way I look at restaurants. I take a good friend of mine and his DW to a lovely restaurant, have a beautifully cooked meal with top notch service, decor and cuisine. The Bill is about $240 for the 4 of us with Tip and Drinks. He says " I could have gotten the same Sirloin steak at the Diner for $13, I will never come back here, it isn't worth it." I say "That was the best damn meal I have had in 6 months and I can't wait to come back."

The question is, are you like me, or my friend?

 

[mbb]

I was a "help me convince my DH" as well..

For us, our decision to purchase DVC was made up of lots of factors...
1)We knew that we would be returning to WDW, if not every year, then at least every other
2)We prefer "Deluxe" accomodations
3)The "pre-paying" for vacations works
4)DVD supports "selling" your points through ROFR
5)We could bring my parents with us to stay as well
6)Flexibility with points - we aren't thrilled with the fixed/floating, 7 nights Sat-Sat thing
7)Orlando has sooooo many options for a wonderful family vacation...

We spent a year thinking about it...and after purchasing our 160BCV points and staying there, wished we had purchased more.

All that being said, we have thought - occasionally - about selling our points, and buying a 4bdr house in the area......

Nahhhh....
...now could someone help me to convince DH to keep the points AND buy a house??? LOL!

 

[gonzalj1]

For my family it was an easy choice. We love WDW and seems to end up there most years whther we plan it or not. We figured the money we were spending on accomodations was rising every year and this was a great hedge against inflation.

It's worked out better than we could ever have hoped for. Not only do we have guaranteed luxury accomodations on site at WDW but we have ended up taking our extended families along as well.

So far our favorite vacation was the one where DSIL, DBIL and 3 DNephews came along. This was the best time we ever had on vacation and I know it never would have happened without DVC.

 

[tjkraz]

If you're basing your decision on dollars-and-cents, then you probably need to spreadsheet the entire thing and see what you would save in the long run vs. YOUR typical vacation habits.

"Huge annual dues?" Guess it depends on your perspective. You can get a studio room for as little as 9 points per night. With annual dues of about $4 per point, that room is costing $36 for the night. Not bad when rack rates run $250+ per night PLUS resort tax.

 

[Daitcher]

Would everyone tell us a bit about why they bought into DVC. How do you justify the huge annual dues compared to just putting that money towards any resort in WDW? Basically what does the DVC do for you for the money?

If you are looking to somehow justify the purchase price by asking " What does DVC do for you" then this isn't the program for you. In fact timeshares in general might not be for you. Timeshares as a rule are not investments and probably not a good "deal" in the long run. Buy in only if you want superior and larger on site lodging at WDW. I would also suggest only doing so if you plan on visiting WDW or one of the 2 Beach resorts yearly. I would also say that if you have to finance the cost then do not buy in. Those finace charges add up over the ten years most loans run. Basically people who buy in love WDW and DVC Resorts and probably have young kids. THey plan on visiting yearly or more. They are not "looking to make money or justify the purchase price". They might be hedging against rising hotel costs on proerty down the road. Anything DVC "does for you" like discounts, perks, parties, etc. is a bonus and not justification to purchase. Buy because you love WDW and because you love the resorts and everything Orlando offers. If you are even slightly iffy I would say no. We own and we love it. We have a 3 year old and plan to enjoy many family vacations at WDW and the 2 beach locations. We also love the flexibilty of the program. I have never done a break even analysis or decided if it was a good investment. We simply wanted the quality and flexibilty the DVC program offered. We wanted to be "part of the family". We also could comfortably afford it as well. It isn't an investment it is a way of life and the quality of your travel experience.


DAVE


DAVE

 

[Daitcher]

I look at this the way I look at restaurants. I take a good friend of mine and his DW to a lovely restaurant, have a beautifully cooked meal with top notch service, decor and cuisine. The Bill is about $240 for the 4 of us with Tip and Drinks. He says " I could have gotten the same Sirloin steak at the Diner for $13, I will never come back here, it isn't worth it." I say "That was the best damn meal I have had in 6 months and I can't wait to come back."

The question is, are you like me, or my friend?[/QUOTE]


I love this example ! This is one of the best posts I've seen on the boards. I couldn't agree with this more. If you are the type to worry about the cost of every little thing then I'd say DVC is not for you.

DAVE

 

[tjkraz]

I have never done a break even analysis or decided if it was a good investment. We simply wanted the quality and flexibilty the DVC program offered.

Then I expect (I HOPE) that places you in the minority.

There's nothing more flexible than being able to pick up the phone, call CRO, and have your choice of more than 20 Disney resorts. No points. No dues. No 11-month windows. Calling CRO...now THAT'S flexible. Heck, you can even do it on line!!!

Only a fool would plop-down $15K+ on something like DVC without first performing a cursory analysis to find out if it makes more financial sense than just paying cash for trips indefinitely.

Nothing wrong with your questions, granolacruncher11.

 

[Alexander]

Well said tjkraz!

If money is what is holding up DH, then lay out all of the information and do the math. Call DVC and have them send you the package, not the video, but the package that has all of the nitty-gritty details about cost.

We did choose to finance with DVC, yes we will be paying interest, yes we will be paying off the loan much sooner than 10 years. However, even if we didn't I laid out the cost of all of the points, interest, and anticipated MF and it still comes out better than if we tried to stay in a moderate or deluxe resort two or three times a year. It is a good investment for us and saves us the hassle of having to come up with a couple of thousand dollars at once for a resort stay.

I can't wait until we pay off the loan and only have MF to pay. It will be like getting a free vacation every year!

A lot of people here are of the opinion that if you have to finance then you shouldn't be buying a timeshare. Frankly, even if we had $16K to pay cash, I probably wouldn't. That money would be left alone and I would finance and pay off the loan ASAP keeping the $16K in the bank. However, this is another discussion for another thread!

 

[Daitcher]

lot of people here are of the opinion that if you have to finance then you shouldn't be buying a timeshare. Frankly, even if we had $16K to pay cash, I probably wouldn't. That money would be left alone and I would finance and pay off the loan ASAP keeping the $16K in the bank. However, this is another discussion for another thread![/QUOTE]


This type of reasoning is why most people are broke. " As long as I can make the payments" is a popular phrase in this country. Disney currently charges around 9.75% on DVC loans. Where are you making this type of return on your money? Please let us in on your secret. I stand by my original point : if you are planning on financing ANY TIMESHARE then DO NOT DO IT. Timeshares as a rule are bad investments. Financing only makes matters worse.

DAVE

 

[tjkraz]

I stand by my original point : if you are planning on financing ANY TIMESHARE then DO NOT DO IT. Timeshares as a rule are bad investments. Financing only makes matters worse.

By and large, I can't disagree with you. But there are a couple of factors that I believe set Disney apart from the timeshare crowd.

First, if a family has established a pattern of visiting WDW annually, prefers to stay onsite, and intends to continue that pattern. I'm sure many families have enough disposable income to make annual cash trips to WDW, but do not have the 15K+ to pay cash for DVC. Even if the interest paid while financing adds another 2-3 years to the breakeven point (say, from 8 years to 11 years), doesn't financing DVC still make more sense than paying cash for the next 20+ years?

Second, resale values are much higher than elsewhere in the industry. No, there is no guarantee that current patterns will continue, but I think it's a reasonable risk to take given DVC's increasing ROFR and demand for rooms at WDW.

We paid $79 per point for our contract at Saratoga Springs. In three weeks we'll be on our third trip on those points. And, resale prices at The Timeshare Store are currently creeping upward of $79 per point. If we had to sell tomorrow, we would still almost certainly come out ahead.

 

[TheBeast]

From a husband who had to be convinced - it came down to the realization that we're going to Disney every year. Kids will grow (they're 9 and already saying the value resort rooms are too small, imagine when they're teenagers!?), resort prices will go up (DVC points are fixed), and our tastes are getting more expensive... Somehow the auto payroll deduction really takes the sting out of vacation expenses- I could never pay a visa bill for $3000 to stay at the Beach Club for a week!

We figured over the life of the timeshare we pay about what it would cost to stay at value resorts and get much better accomodations.

Plus my wife didn't really ask, she just kept talking about it until I knew it wasn't going away...

 

[PamNC]

Here's a point of view from someone who is almost ready to take the plunge. Our thinking is we go to WDW every single year - at least once. I would say we average 14 total nights a year, sometimes less, sometimes more. Since 1999 we've been staying at Deluxe Resorts...usually the Poly or the YC/BC. We have no intention of staying at a value, or a moderate. In other words, unless we have a really, really bad year we will be staying deluxe (with a code or AP discount...we don't pay rack rate) from here on out. Okay, that said, check this math out.

The Poly is our fave. The best rate we've gotten is $199 a night plus tax, but more often we get $209 + tax for a total of $233 a night. So, I'll use this example.

$233 x 14 nights a year = $3,262.00 a year in accomodations

OKAY, now. We only need a studio (just me and DH...no kids), and we typically go in the summer. I figured we could make it with 210 points. I've done my comparison now of buying through Disney vs. resale. Even with the current incentives, we've decided to go the resale route. We can't book 11 months out or even 7 usually - we typically book 3-6 months out. That said, it doesn't matter where we buy. SO, we are considering a resale at Hilton Head, 210 points - $70 a point. That's $14,700.00. Add the closing of $520 and the first year dues of $848 and that's $16,068. If you buy Saratoga now, the dues are waived until 2006. Okay, take $16,068 and divide it by what we're spending PER YEAR and I can safely say that in 5 years it will be paid for. NOT counting the yearly dues of course. So, after five years we're paying $848.00 to stay 14 nights in a deluxe type of accomodation.

Can't beat that! In fact, by this point my husband and I could have purchased two contracts. We've spent so much money since 1994 when we first started going.

Anyone see a flaw in my thinking??? PLEASE let me know.

About financing - I wouldn't finance for 9.75% or 10.75% - that's horrible!! Instead, get an equity line or equity loan. I'm applying at my bank for an equity line at 1.99% - waiting to see if I'm approved and then I'm thinking we're done thinking about it - we're buying!!!!!!!!!!!!!!!!!!

It's like this - you're basically pre-paying your future vacations - until 2042. Prices are going to go up - so you're basically locking it in. If you are like us and plan on going for a long, long, long time, I think this is a great deal. Certainly not an "investment" - but I think a cost-effective way to vacation at Disney for years to come.

PamNC

 

[Daitcher]

By and large, I can't disagree with you. But there are a couple of factors that I believe set Disney apart from the timeshare crowd.

First, if a family has established a pattern of visiting WDW annually, prefers to stay onsite, and intends to continue that pattern. I'm sure many families have enough disposable income to make annual cash trips to WDW, but do not have the 15K+ to pay cash for DVC. Even if the interest paid while financing adds another 2-3 years to the breakeven point (say, from 8 years to 11 years), doesn't financing DVC still make more sense than paying cash for the next 20+ years?

Second, resale values are much higher than elsewhere in the industry. No, there is no guarantee that current patterns will continue, but I think it's a reasonable risk to take given DVC's increasing ROFR and demand for rooms at WDW.

We paid $79 per point for our contract at Saratoga Springs. In three weeks we'll be on our third trip on those points. And, resale prices at The Timeshare Store are currently creeping upward of $79 per point. If we had to sell tomorrow, we would still almost certainly come out ahead.

Well, we certainly don't totally disagree. I am more than satisfied with my purchase. I guess it just boils down to the fact that I don't feel that financial reasons are a reason to buy in. Buy in if you will be visiting WDW annually and want top quality on site Resorts. Buy in if you love Disney and want to share that with family and friends. Buying in with the idea that it is " a good investment" or "I'll be saving money in the long run" is a mistake. Hopefully the OP gets a little something of use from all these posts.


DAVE