Correct me if I'm wrong . . .

[KCMiller]

Hi, DVC experts,

I've been trying to understand the whole 'DVC' thing. Correct me if I'm wrong, but this is my understanding of how it works:

1. You buy a certain number of 'points'

2. These 'points' can be exchanged for stays at DVC resorts (at varying 'point costs', I do understand that part )

3. Once you buy these 'points' you get that many points every year. For a long, long time. Like 50 years, or something.

4. So, for instance, if you buy 50 points at $10 a point, spending $5000, you get 50 points every year for 50 years. Which breaks down to $100 per year. (I know these numbers are not specific, they are just for an example that I can divide, math not being my strong point )

If this (basically) is how it works, then can someone explain to me a downside??

Seriously.

KC

 

[canwegosoon]

Your answers to 1-3 are Good.

#4 is points are now $95 a point through disney, for 50 years at SSR. Once paid off..it is paid, except for your annual dues. Annual dues vary for each resort, and seem likely to go up, as resort needs work, furniture needs replacing, etc.


The downside is...
1) Your money is tied up from other investments.
2) If you decide to vacation at non DVC properties it is not the best use of your money, but that might be a mute point depending on your prospective.
3) You will get bitten by the DVC bug and want to join the 1000 point club, so this could get expensive.
4) The financing is high through Disney, but avoidable through other means.

Good luck on your purchase!!

 

[Pa@okw95]

Yes, that is how it works, your price is low-but that is how it works. The points are selling for about $95 a point right now. The down side is that it is very expensive to go to WDW if you can not afford it. If you are used to staying in value, or moderate resorts, it will cost you more to join DVC. I found myself going 3 times a year since I joined. There is no savings to be had. I pay annual dues of about $1000 per year, tickets at the parks every year, travel costs, and I go more to WDW now.

 

[rwcmath]

Hi,

$10 is what many people rent the points for. So, when you say you are getting points for $10, you have a one time use of those points and the member has to make the reservation. You are the renter.

If you buy points, you'll pay anywhere from $65(?) per point resale to $94(?) SSR. There are also other charges for a resale purchase. You then would have the points and get them every year until 2042 or 2054. The longer time is for SSR.

You have to pay maintenance on your points for your resort every year. This maintenance fee is about $4 per point and it depends upon where you own your points.

Yes, you use your points to stay at DVC or other Disney Properties or exchange them out through Member services to go somewhere else. Or you could rent them for whatever you can get per point, then you would need to find a renter. Member services does not find renters for you.

I hope that helps.

 

[KristiKelly]

I'll try to help you a little further, we just joined last week so I may not have it down pat, but I'll explain "my view"

If you go directly through DVC there is a minimum of 150 points you can purchase. If you go through a resale, you can find "add-on" contracts that people are selling, I've seen as low as 30 points, 50, 60, 70, etc. You will have to be patient if you want a specific amount @ a specific resort.

We just purchased 180 points through DVC @ Saratoga Springs, right now they have 2 options:

Option 1: $85 per point & no points or pmt. until 2005

Option 2: $95 per points & they will match your # of points with developers points that can be used @ any WDW resort EXCEPT Saratoga now through 9/30/05, these points cannot be banked.

We chose option 2, that will give us 180 points to use next summer & September. Our 2005 points will be available 6/05, which we will probably bank the majority.

There are yearly dues, the price varies for each resort, Saratoga is $3.80 per point - $3.80 X 180 = $684.00 year. This $ amount may go up yearly but the point value for each resort will never change.

If you figure a studio @ Beach Club Villas is around $300 a night X 7 nights = $2100. for 1 week. 20 years from now, a studio might be $500 night, but your points value will always be the same. For instance, I think it's ~12 points for during the week for October & ~22 for weekend, that's what it is today & what it will be 20 years from now. I hope I'm making sense, DD is begging me to play Hungry Hungry Hippos & I'm having a hard time concentrating.

As far as the downside? I can't think of any except that you're putting a lot of faith & money into DVC with hopes that WDW will still be in 50 years what it is today. Also, if you want to stay at a WDW resort (not DVC resort) it'll use alot of points or pay cash. We are taking a trip to the Poly this year & considered cancelling & using our developers points, but then decided that this might be our last chance to stay there since we bought into DVC & we got a great package rate. We're very excited (even DH, who was not a big WDW fan in the beginning) & also plan to take our kids to the carribbean using our points.

I hope I've helped, somewhat, & good luck in your decision.