Do We Purchase DVC or Pay Per Trip?

[Carolynleanne]

Sigh... we've been back and forth with this for half a year now, and we still cant come to a decision. I'd love some other opinions from fellow Disney lovers.

We're Canadian. We generally do a Disney vacation once a year. This year we aren't and it's already torturing us knowing we aren't going back for at least 12 months. We can't afford to buy anything more than 160 points though because of that Canadian dollar.

Do we stick with renting points and paying more, but having no commitments in regards to when and where we travel? Or do we dive in and if we don't feel like doing Disney one year, rent out the point and use that money towards a different trip?

 

[GrumpyInPhilly]

Right now I'd wait. Prices may come down with the stock market in flux and also the recent increase in member dues and nightly point costs for the rooms.

 

[kniquy]

Or do we dive in and if we don't feel like doing Disney one year, rent out the point and use that money towards a different trip?

DVC does save you money and does commit you to going there often. Do you go there at least every year or every other year? Do you like to stay in deluxe accommodations or moderates? If you said yes, then it could make sense for you.

If you don't use your points one year you can rent or you can bank them. Many people feel they never have enough points so keeping and banking helps to either book larger accommodations or book a longer stay. Or you could rent for the cash in your pocket.

Have you looked into resale? That will certainly save compared to buying direct. Do you have the cash to buy now or does paying OOP for a rental work better for you now? You get more from your purchase if you can pay cash and not finance your purchase, so this could be a goal if you don't have the cash saved up yet.

There are so many variables in saying whether or not the time is right for you to purchase or not. You best bet it to read up as much as you can. The only benefit from renting is that it saves you money, but it can be a bit risky because someone else is in charge of your reservation. When you own your DVC then you are in full control - if you need to add something or if you need to cancel for some reason. So owning does have its benefits.

 

[Deb & Bill]

DVC does save you money and does commit you to going there often. ...

No, owning DVC does not really save you money. You tend to go more often, especially if you have the points. Or you purchase an AP with the DVC discount and you want to use it as often as possible before it expires. You buy the DVC souvenirs, you want to attend the DVC events that cost extra money. After 21 years owning DVC, we no longer buy souvenirs, we don't do the paid events, but we do like to go to WDW for F&W and F&G festivals. We have moved to Florida (about three/four hours from WDW), so we no longer have to book a hotel for the trip down and the trip back. But we still have to board our pets and that usually costs us more than we spend.

 

[Disneypapa]

Just offering a thought or two. No way you can make a decision without tons of input and very very thoughtful analysis.

I purchased resale OKW (200 pts for about $13,000) about 16 years ago. We visit every other year using a 2 BR condo. points not used I have successfully rented to help pay the annual dues. We have definitely saved a lot of money. But now that I am retired, my travel plans do not include Disney. My bucket list is way too long and I love to travel internationally. My son and his family still go frequently, but that is likely to change to as the grandchildren grow older. So when you think about what to do, consider what your long term travel needs are going to be. No regrets here, just recognize that your travel habits are going to change.

 

[DougEMG]

Just be aware that your 160 points might not get you the same thing tomorrow as it does today. Disney has a lot of room to adjust the points requirements for rooms. Take a look at this thread https://www.disboards.com/threads/2020-point-charts.3725229/page-20#post-60070898

 

[TheGecko]

I am selling my resale contract right now after about 4 years of use. It is working out well since the resale prices have shot up on many resorts. I am actually "gaining" over 30% from my initial purchase price, so break even is not an issue.

Some points and counterpoint of why I got in and why I am getting out already:

Pros:
You are staying at the Deluxe resorts for the most part, which means nicer facilities and generally a better level of clientele.
If you have more than 2 children, it is probably the most cost effective way to stay onsite
There is a healthy resale market, though you may not recoup your initial outlay without keeping your contract at least 5 years.

Cons:
Vacation preferences can change. My kids are getting disneyed-out. They are getting older and moving away from the younger themed rides (alot of MK). The rest of the parks are slightly lacking in thrills though Disney is putting in some effort right now.
Annual Dues. The dues rise like clockwork and will never stop. Some of the projections on annual costs are downright concerning 20 years from now.
Lack of Flexibility in planning vacations. You have to plan 7-11 months out to get what you want. Otherwise it becomes a crap shoot. Cash reservations let you be more spontaneous.
Constantly rising ticket prices, and a trend of upcharges for a lot of events. The tickets are outpacing inflation quite a bit.

That all being said, I personally still like Disney and may purchase another contract down the road when my kids are out of the house just for the wife and myself. Even with DVC the money spent for a week vacation is getting to the point where the costs make other options (Europe, Cruises, etc.) right in the same ballpark.

 

[JenniferYoung44]

I’m in the exact same boat. I just can’t make the number work over renting. But I just WANT to be a DVC owner. So I keep going back and forth trying to make the numbers work.

 

[BillPA]

I would not buy with the games Disney is playing these days. Save your money and rent when you want to go, and explore other vacations. The $4 sodas and $120 a day ticket prices along with the 10% increase in dues and the points games Just stay away,

 

[RipperSB]

DVC does save you money and does commit you to going there often. Do you go there at least every year or every other year? Do you like to stay in deluxe accommodations or moderates? If you said yes, then it could make sense for you.

Fellow Canadian here (from Saskatchewan - hard to spell, easy to draw!) and this is the advice I have given whenever someone asked if I think DVC would be right for them. DVC does save money (on accommodations only, of course) but not if you go sparingly and are happy staying in the Value or Moderate resorts. The only reason I would give for delaying is to see if the exchange rate is going to improve as, you are aware, that impacts how many points are affordable.

 

[Brian Noble]

generally a better level of clientele.

Having stayed in a wide variety of Orlando resorts---both at Disney and elsewhere, and at a wide variety of price points---this has not been my experience, even remotely. Fellow guests have been wonderful people anywhere I've gone.

 

[bakerworld]

We bought when we decided that staying at the deluxe locations was where we wanted to stay - not moderates or value.

 

[crisi]

Having a lot of capital tied up in DVC is fairly expensive by itself. Buying DVC will not only tie you to Disney, it will tie you much more firmly to your home resort than renting does - since you'll be limited to what is open at seven months. If you value your flexibility, pay cash.

 

[ML_LovesDisney]

Just from our perspective, we loved DVC when our kids were younger. It was necessary to stay in a one bedroom so the kids could go to sleep at their usual time and we could stay up a little later and have separate space. It was also nice to have the kitchen and I don't regret buying in 2010 (we had BLT and BCV). We are currently selling the remainder of our points because it has gotten to the point where our kids are older and we can easily stay in a hotel room, since we truly aren't in the room that much (still stay in deluxe and wait for room discounts). That wasn't the case when the girls were younger, we spent a lot of time in the room taking breaks from the heat, etc. With current prices, I would not buy again, but that's just us.

 

[ELMC]

I’m in the exact same boat. I just can’t make the number work over renting. But I just WANT to be a DVC owner. So I keep going back and forth trying to make the numbers work.

This sentiment deserves further exploration because I think it contains the answer to your question. Mathematically speaking, the numbers probably won't work out vs. renting for a variety of reasons that have been discussed here and in other threads. But this is an emotional purchase. So if the numbers are fairly close, if you can afford it, and if you get some non-financial value from being a DVC owner, then that should be the basis for your decision. It's ok to buy something you like because you like it. But I think it would be a mistake to try to justify it financially when you are fairly certain the numbers don't work out.

 

[JenniferYoung44]

This sentiment deserves further exploration because I think it contains the answer to your question. Mathematically speaking, the numbers probably won't work out vs. renting for a variety of reasons that have been discussed here and in other threads. But this is an emotional purchase. So if the numbers are fairly close, if you can afford it, and if you get some non-financial value from being a DVC owner, then that should be the basis for your decision. It's ok to buy something you like because you like it. But I think it would be a mistake to try to justify it financially when you are fairly certain the numbers don't work out.

Yup. And that what I did. Put the deposit down on Wednesday and the papers arrived this morning to sign. I think what finally made the math convincing was factoring in resale value. For some reason I never considered the amount of retained value in the contract. So in 10 or 15 years when my kids are grown if I don’t want to go anymore (which is unlikely) I can sell it and get some of the money back. I realize this asssumes that neither the economy or Disney goes to crap in that time period, so it’s a gamble. But like ELMC said, I bought it because I liked it and if we save some money that’s just the cherry on top.

 

[DougEMG]

Last Oct I put in an offer on BLT. I didn't really need it as I had enough points, price wise it was more than I like to pay for what I consider a good deal, but what the heck, I always wanted that location to be able to walk to MK and owning there made it so I wouldn't have to worry about booking it at the 7 month. All was good.

But then, before the points even get into my account, DVC makes a BIG point reallocation. One were I think they are screwing over the owners to their benefit. One which the vast majority of owner can not understand. The financial benefit for owning just got a lot worst as studios and 1 bedrooms all increased in point requirements, suddenly my points wont go as far as I thought they would, so the financial benefit took a big hit.

The take away is that by owning you are assuming a lot more risk than by renting. Renting you can walk away at any time, but with owning we are at the mercy of DVC.

 

[ELMC]

The take away is that by owning you are assuming a lot more risk than by renting. Renting you can walk away at any time, but with owning we are at the mercy of DVC.

Yes and no. You and I started buying right around the same time and I think it's safe to say that neither of us are at the mercy of DVC. If we don't like it, we can sell our contracts for significantly more than what we paid for them. That's a good place to be in and it's why I strongly advocate for buying resale. Even people who are buying at today's record level resale prices are still able to get out relatively whole after accounting for the commission and perhaps a slight drop in value. When you buy direct you do not have the same exit strategy and it's definitely something to consider when making a purchasing decision.

For me, it's all about having options.

 

[DougEMG]

Yes and no. You and I started buying right around the same time and I think it's safe to say that neither of us are at the mercy of DVC. If we don't like it, we can sell our contracts for significantly more than what we paid for them. That's a good place to be in and it's why I strongly advocate for buying resale. Even people who are buying at today's record level resale prices are still able to get out relatively whole after accounting for the commission and perhaps a slight drop in value. When you buy direct you do not have the same exit strategy and it's definitely something to consider when making a purchasing decision.

For me, it's all about having options.

Look at the latest rumours about resale restrictions for Riviera resale purchasers, direct Riviera purchasers aren't going to have a very good exit strategy if this rumour turns out to be true, they are going to be screwed!

 

[BillPA]

I think if DVC wants to sell Riveria and what ever comes after, they will need to permit resale buyer of Riveria or other new resorts the ability to use any of the new OR original 14 DVCs. Other wise who would buy with little or no possible market for resale if they get in a bind or just want out/