Cost of WDW Vacation with DVC

[🍀TwinsMom]

IDK how much mental contortions you want to do to justify the costs, LOL, but we like forced yearly vacations in nice accommodations, private bedrooms (not sharing beds with kids in one room,) relaxed WDW trips versus being grumpy park warriors, and saving money cooking in the room, not having to get dressed in a bra and real clothes to get morning coffee and breakfast, having clean laundry every day, and basically vacationing for “free” after three trips worth of point usage.

Now, after seeing prices skyrocketing, I definitely feel confident we could sell if needed and recoup all/most of our initial outlay, which is great.

A big intangible we never anticipated is a pandemic! It’s really great to be able to still vacation in some fashion and stay safe(r) by cooking in the room. We did a resort-only stay in February and had a great, relaxing trip.

The money is spent. Unless you’re in bad shape and need to sell soon, take a breath and just enjoy your trips and memories.

 

[ajsanford]

We bought for a similar reasons- I am a total budgeter, and it doesn't matter if I can afford something or not- It is just in my nature to try to save money.
If we didn't have DVC, we would be staying at pop century and squeezing in one room, eating bad food at the food court, going to the parks from sun up to sun set to get the most out of the tickets... etc lol
Having DVC makes me feel like the stay is free.... and we get to stay in nice accommodations, which means it is a much more relaxing and enjoyable trip for everyone involved. It also makes me feel okay with splurging on more meals! I know we are coming back, so we don't have to rush through the parks and feel like everything needs to be crammed into one trip.

 

[Nabas]

I’m not sure why you would add this as a “cost”. This is a pretend calculation and is part of accounting, not calculating the actual cost of a trip.
You did spend the money to buy DVC, you didn’t do the other option.

This is not a "pretend calculation". This is known as "opportunity cost".

I'll take an extreme example to show how this is real.

Let's say that I have to spend $50,000 to buy a DVC. Let's also say that, as an alternative, I can get a cash room at the same DVC resort for $5000.

Now let's say that if I don't buy that DVC, I can invest it in something with a 100% annual rate of return. This means that in the first year I can spend $5000 on the WDW room, invest the remaining $45,000, and have $90,000 one year later. The next year, I can spend another $5000 on the WDW room, invest the $85,000, and have $170,000 two years later.

Even if the opportunity cost is low (@Leight19 suggested 4%), over the 20, 30, or 40 years of a DVC membership, the opportunity cost adds up, the same way interest adds up on your home mortage.

 

[Akck]

Like many others here, I too maintain a spreadsheet of our cost and savings of owning DVC. My spreadsheet contains multiple sheets which include my original in making the decision to purchase and one that gets updated with actual costs and savings. The savings part is a comparison of paying cash for the rooms and tickets versus the cost of maintenance fees for the points used and APs. For instance, for our first stay, we booked 2 studios with a cash cost around $9,500 (rack rate, no discount available for that stay), compared to around $1,900 for MF of points. Likewise, I included the savings of Gold APs compared to purchasing tickets for 3 trips that we used. I also include the DVC food/shopping discounts since my wife plans on saving enough to account for the initial points purchase (she keeps track of savings).

All totaled, we “saved” $9,000-10,000 in the first year, which bodes well for the financial analysis of the DVC purchase. With current Riviera resale prices, we’d come out ahead if we ever needed to sell.

 

[prouddaddycdn]

This was an interesting read and exercise. Like many, we simply bought into DVC because we wanted to and it allowed us to vacation at WDW more often with less hassle. Using the same math that the OP used, I wanted to see how much each night was actually costing me for an upcoming trip vs rack rate for the same rooms. My cost per point amounts to $11.47 (an average across multiple contracts) and my upcoming trip uses 431 points total. My trip breaks down as such:

1 night 2 bd SS - 42 points x $11.47 = $481.74 vs $1016.25 rack
3 nights 2 bd RIV - 160 points x $11.47 = $1835.20 vs $4132.38 rack
4 nights 2 bd BC - 180 points x $11.47 = $2076.07 vs $4578.75 rack
3 nights studio Poly - 48 points x $11.47 = $550.56 vs $1841.75 rack

So, cost of this trip via DVC amounts to $4943.57 vs $11,569.13 rack rate, a savings of $6625.56 from just 1 trip.

Airfare cost was $1018 for family of 4 and we had our annual passes re-instituted so renewed at Platinum for family of 4. This was pricey at approx $3440 but we will use on 2 other trips so cost really drops to approx $1147. So in total, this trip is costing us $7100 plus food and souvenirs for 11 nights in large accommodations so not too bad overall since it is Disney.

To be honest, we paid cash for our DVC contracts and bought them piecemeal so I no longer think of the cost of my trips from this perspective. I only think of the annual pass costs, DVC annual dues and airfare since these are yearly costs that hit my budgeting and we would visit WDW yearly anyways. What the math above DOES show me is that I have likely paid for my contracts in savings alone by this point since we have been on numerous DVC trips since buying in 2017 so happy about that aspect.

 

[PsycProfPlum]

"To be honest, we paid cash for our DVC contracts and bought them piecemeal so I no longer think of the cost of my trips from this perspective."

That's what I tell my wife.... if you ignore that 50k buy-in and the opportunity cost associated with it, it's a steal!

 

[DougEMG]

We originally bought DVC to save money on room costs. Back when we first bought in 2010, I compared the costs of buying resale against staying at a moderate with free dining because that is how we had been staying. Back then it worked out to taking about 7-8 years to break even after which owning DVC would start saving us money. We decided we'd rather stay at the deluxe resort and skip the free dining.

11 years later no regrets in that decision, especially since the free dining deals went away.

In 2018 we bought a contract at BLT and that was just because we wanted it, no spreadsheet that time to determine if owning it made sense or if we really needed it.

 

[DVCanadian]

This is not a "pretend calculation". This is known as "opportunity cost".

I'll take an extreme example to show how this is real….

I am aware of opportunity cost.
It’s a good way of doing a scenario analysis to make a choice.
To continue to use it after that choice is made is pretend math, you didn’t do that and you can’t go back in time.

Also, it can be subject to too many assumptions. When I bought in 2010 I had the “opportunity” to buy Apple stock, should I compare that? Or versus my mortgage or vs an ETF? There is no right or wrong answer.

Opportunity cost can be useful for decision making. For ongoing tracking, in my ‘opinion’, it is useless and pretend math. Anyone who likes it should continue to use it and be happy.

 

[PsycProfPlum]

I am aware of opportunity cost.
It’s a good way of doing a scenario analysis to make a choice.
To continue to use it after that choice is made is pretend math, you didn’t do that and you can’t go back in time.

Also, it can be subject to too many assumptions. When I bought in 2010 I had the “opportunity” to buy Apple stock, should I compare that? Or versus my mortgage or vs an ETF? There is no right or wrong answer.

Opportunity cost can be useful for decision making. For ongoing tracking, in my ‘opinion’, it is useless and pretend math. Anyone who likes it should continue to use it and be happy. ☮

A lot of times, I agree that the amount of assumptions that have to be made about the future state of affairs makes it a challenge. In my case though, I sold shares in an ETF tied directly to the S&P-500 back in 2018 to buy my first contract. I haven't done so, but I could go back and calculate to the penny what my opportunity cost was under the entirely reasonable assumption that the money would still be sitting in that ETF.

 

[Westerlin]

DVC causes us to go far more often and spend more money when we do. That is really how Disney is making money on DVC. I also love every minute of it and it’s so worth it.

 

[sssteele]

And those folks come even when the broader travel market is down. Very good deal for Disney

While I enjoy reading the posts on the financials, my decision came down to "I WANT it". Of course, I knew that we wouldn't really miss the initial investment and I still consider that a sunk cost. If/When we sell, anything we get back will be pure gravy. But we bought our points at $65 back in 1999, I won't be using that same "logic" at today's prices!

Where did you buy your points in1999? We have 300 points at BCV that we bought in 2002. We can now sell for over twice what we paid, even though there are only 21 years remaining. Probably not selling since we still enjoy WDW, but it is tempting.

 

[CarolMN]

Where did you buy your points in1999? We have 300 points at BCV that we bought in 2002. We can now sell for over twice what we paid, even though there are only 21 years remaining. Probably not selling since we still enjoy WDW, but it is tempting.

BWV. We also could probably get more than twice what we originally paid, but like you, we still enjoy our WDW getaways. Too bad we can't eat the cake and have it, too.

 

[davidl81]

DVC causes us to go far more often and spend more money when we do. That is really how Disney is making money on DVC. I also love every minute of it and it’s so worth it.

This is the answer 100%! We have added on several times and just finished a 5 night GV stay at AKV. We never would have paid cash for that, but we used points and enjoyed every min of it. I could set up a spread sheet and say I saved all of this money over rack rates, but I never would have paid those rates as we would have stayed at lesser resorts. In the end DVC mostly doe not save you money, but it allows you to stay and big, nice resorts and enjoy your trips more.

 

[Westerlin]

This is the answer 100%! We have added on several times and just finished a 5 night GV stay at AKV. We never would have paid cash for that, but we used points and enjoyed every min of it. I could set up a spread sheet and say I saved all of this money over rack rates, but I never would have paid those rates as we would have stayed at lesser resorts. In the end DVC mostly doe not save you money, but it allows you to stay and big, nice resorts and enjoy your trips more.

So true. We stayed at pop and AOA before, now savanna views at AKV or Boardwalk, or whatever. We have a larger family (2 adults, 4 kids) the size of the rooms alone changed our trips so much for the better. But the mouse does get a lot more of our money now. Really same with the blue card. We finally got a direct contract and blue card and now we spend way more on food and merchandise. Disney has it figured out.

 

[sethschroeder]

Even if the opportunity cost is low (@Leight19 suggested 4%), over the 20, 30, or 40 years of a DVC membership, the opportunity cost adds up, the same way interest adds up on your home mortage.

And I have went through with actual tangible math on another thread to show they would have run out of money renting DVC points for a low typical point cost previously.

Everyone loves to talk about it but in reality lots of times its not going to work out. You know why? Because Disney vastly outpaces the normal world and you can sell your DVC baseline investment back (possibly for a profit 10-20-30 years from now).

Last time I did the math the person who bought AKV during the originals sales time would have run out of money in like 2018/19 based on the trips they took vs renting points for the normal going rate through private rentals.

Additionally various people wouldn't be investing that money so its not long term earning whatever interest anyways. If it was for my last contract purchase I likely would have done an addition or built a cabin on our land up north or something else.

 

[808blessing]

Before I owned I thought of all the costs -except opportunity cost. Now that I own- I only think of dues as my cost. Wonder how I will think of it when I sell. Maybe I will consider rack rate and precious memories to the cost. Then I will be exponentially ahead and profitable.

 

[Littlelulu01]

I’m not a fan of dividing the cost up over years on contract. Spreading cost over the life of a contract that might outlive me or that I might want to sell doesn’t seem right for me.

My AKV and Aulani subsided contracts were very inexpensive, not financed, didn’t have the restrictions on use and are long paid for - it’s a real treat to be able to use them knowing it’s just the maintenance fees. The savings on ap’s have been an extra bonus.

I always ran short on points and was in perpetual borrow mode but with restrictions now in place on resale I wasn’t going to buy resale.

Rivera purchase did not pencil out. The opportunity cost plus the initial buy in was just too great until it worked hugely in my favor. Aulani had just reopened. They were one of the few hotels in Hawaii that was actually booking guests so although tourism was still way off, Aulani was only booking I think 30% occupancy? and cash rates were very high at both Aulani and other hotels on the islands that were open. Aulani had a buy 4 get one free special with points (10 night maximum) but I didn’t have enough points. I bought Rivera and got the prior years no fees, current years was prorated at less than 1/2, a discount and was able to split the payment up over 3 months. I ended up with a fixed week standard studio at Rivera.

I know that typically I could book a nice hotel on the islands for MUCH less than Aulani cash rates but Aulani was one of the only resorts open so I honestly would actually have paid the insane cash rates. We had a fantastic 10 night stay for the point charge of 8 nights. We used our bonus year’s Rivera points . I still have a full year banked and we’re getting an 8 night stay at Rivera in December. I’m calling the entire purchase as paid for itself after our December vacation. If I ever sell the contract it will be extra $ but I don’t have to justify or try to make any of our dvc contracts pencil out. It’s just the mf’s from now on so wdw, a cruise, Hawaii are all just the cost of the mf’s.

I think we now have enough points that we can actually plan a few nights here and there in a ccv cabin or something else a little frivolous and it was incredibly painless. It penciled out because I didn’t finance the Rivera contract and the Aulani stay took a huge chunk off . There’s been other times I’ve tried to justify another direct contract and it just never made financial sense. Can’t wait for our first visit to Rivera!

 

[MICKIMINI]

I attempt to simplify things, so pardon me that I could not get through you entire thread.

Disney is expensive. If I use 400 points @$8 = $3200. 12 days meals for 4 $3000+/-, Fly SWA free, airport parking NH $150, rental car $1000 (2021), Boo Bash Tix 2 $360 = $7710. In real life $8000-9000.

I just don't count my cost to buy DVC because I tend to buy loaded, rent excess and if the market is right, flip for a profit so I actually make money on the original contract. I look at the contract as the vehicle and my MF's is the gas. So even though I make money on both rentals and a future flip, I just look at the MF's for my annual costs. Simplified, some may say strange but it works well for me!

 

[RoseGold]

Your OP just shows how painful RIV's chart is, especially 1BR. $414/night for a 1BR? You could have rented a ski in-ski out condo or a fancy hotel on the actual Riviera.

I love Disney and I am heavily in DVC, but yes, Disney is expensive! This is why if APs don't return, I will be listing some contracts. I can't execute my Disney vision without APs.

 

[hhisc16]

1. Driving to WDW (400 miles x 2= 800 with 20 mpg- 40 gallons x 3= $120 in gas)
2. 40 points for 3 studio nights ( 40 x $15= $600)
3. 1 Day Ticket (150 x 2= $300)
4. Food Plan (eat at resorts and park= ?)

Total Cost: 1,000+
The look on my DD1 face when she sees Mickey for the first time on her 1st birthday: PRICELESS

(Disclaimer: I purchased DVC resale at HHI with cash and anticipate a high food cost.)