Does DVC really save you money?

[Craig Williams]

DVC purchase certainly makes family vacations more affordable. As others have mentioned, the OP is not comparing apples to apples.

Take for example a two bedroom ocean view villa at the Aulani for this September. The cash price booking through Disney, after factoring in taxes and parking, comes out to $7,900. That same room is 310 DVC points. The price of a DVC AUL contract that size @ $90 pp is $27,900. Factor in your monthly fees of $7.86 pp and your break even point is slightly above 5 years. So for the next 36 years thereafter (remaining years of an AUL contract is 42 years) you can enjoy the same vacation for just the cost of you annual maintenance fee. So when you actually compare apples to apples it is a good financial investment into your family vacations.

 

[Karlrob]

We bought when it was $72.00 per point, then sold half to my brother. We could afford the initial price, but the yearly fees are killers. Not sure if it saves us money, but it does provide us with great family vacations that everyone looks forward to. We go every other year because we need points for a 2 bedroom. Have enjoyed staying on the different properties. We find the benefits of a kitchen, a laundry, and a living room in the unit makes it worthwhile for us. We will make breakfast, pack some lunches, and make some dinners. Have learned to only pack for half the time and do a wash halfway into the vacation. The family feels this was all worthwhile, so much so that daughter bought points for their family, and we now have more options.

 

[MICKIMINI]

Parking fees are a new cost that adds up quickly - DVC owners and those that rent through an owner do not pay parking. Not a reason to buy but rather an "offset" to costs.

 

[anomamatt]

If OP is going every other year, I can see the break even point being 7-8 trips (15 years). Breaking even after that number of trips is not bad at all.

However... as others pointed out, comparing a standard BWI club level hotel room to a 2-bedroom DVC room is apples to oranges on many levels. But if that is what you would do cash vs DVC, then I suppose it's a fine comparison. But again, if the break even is 7-8 trips that is pretty good.

And somewhat related... I used to always stay club level prior to DVC. We have learned to live without it and enjoy the larger spaces of DVC. And we have stayed CL at AKV and did Reunion Station (RIP) when it was around... CL is nice, but I'll take the bigger 1BR and 2BR rooms (and cottages and bungalows) any day.

 

[Mikamarii]

I don' think there is any clear way to do an exact comparison. There is always going to be a variable: size of rooms, discounts, packages, other hotel/housing options, change of habits, etc. We've owned for 9 years now. One year we got a 2BR at Aulani for 12 nights. I priced it out cash through Disney's website and it was something like 13000US (about 17k Cdn). There is no way we would have paid that for one trip. We used about 2 years worth of points so roughly 2ish grand in maintenance fees back then. The other variable is we could have rented an Air Band B for much less per night, stayed at a different hotel, gotten a smaller room, etc. But we love Aulani and have enjoyed every minute there.

When we go to WDW we could stay at a value resort/offsite/or rent a house and it would be much cheaper than buying/staying at DVC. There is probably no way we would every pay (or would want to) for 10+ nights at a deluxe resort the amount of times we have gone.

Without DVC we probably wouldn't be going for weeks or longer to the parks. This costs us more but we also enjoy our time more as we can slow it down. There has been a couple trips where we have gone and something was really busy, closed, or we just didn't make time. The idea of "oh well we will be back again" relieves the pain of missing something. We have two kids, we don't NEED 2 BRs but the option sure is nice. While the financial aspect certainly has to play a part in decisions to buy; a lot of it has to be how much you will use it and is the place you will be staying worth it. That is a value only you can decide. For many, many reasons I think we've gotten our 'value' out of DVC and, for us, not all of it is about money.

 

[Doberge]

The difficult part of comparing to rack rates is that so few people are paying rack. I think the better comparison isnto renting the same point from a broker (or whomever).

Here's the best way, imo, to calculate break even.

Dont look at how many points you need, just look a single point. For argument we'll look at a Poly resale for $145/point. There are 47 years remaining. $145/47 --> $3.09 per point per year. 2019 maintenance fees are $6.76/point. 2019 value is $3.09+$6.76 = $10.85.

TTS rents at $17.

$17-$10.85 = $6.15 savings over renting the same point.

Maintenance fees and rental fees will both increase annually, at least close enough that we will likely see the savings be approximately the same per year. Hopefully this assumption is wrong though, if savings increase break even year decreases.

Divide what you paid by the savings under rental to estimate . Here's that's $145/$6.15 = 23.5 years.

Of course, doing this math with direct numbers doesnt include savings from any other discounts like APs, tables in wonderland access, etc. It also doesnt place a monetary value on ability that you control your reservation, it's not just rented and nonrefundable. It's inexact but should get people close to a breakeven.

Another discussion is to determine the value of one point at a home resort. For example, boardwalk standard costs fewer points per night AND costs less to purchase that a week at beach club standard costs about 30% more than standard boardwalk over the life of the contract. I'm currently working to put this into a chart forum for the board.

 

[crvetter]

The difficult part of comparing to rack rates is that so few people are paying rack. I think the better comparison isnto renting the same point from a broker (or whomever).

Here's the best way, imo, to calculate break even.

Dont look at how many points you need, just look a single point. For argument we'll look at a Poly resale for $145/point. There are 47 years remaining. $145/47 --> $3.09 per point per year. 2019 maintenance fees are $6.76/point. 2019 value is $3.09+$6.76 = $10.85.

TTS rents at $17.

$17-$10.85 = $6.15 savings over renting the same point.

Maintenance fees and rental fees will both increase annually, at least close enough that we will likely see the savings be approximately the same per year. Hopefully this assumption is wrong though, if savings increase break even year decreases.

Divide what you paid by the savings under rental to estimate . Here's that's $145/$6.15 = 23.5 years.

Of course, doing this math with direct numbers doesnt include savings from any other discounts like APs, tables in wonderland access, etc. It also doesnt place a monetary value on ability that you control your reservation, it's not just rented and nonrefundable. It's inexact but should get people close to a breakeven.

Another discussion is to determine the value of one point at a home resort. For example, boardwalk standard costs fewer points per night AND costs less to purchase that a week at beach club standard costs about 30% more than standard boardwalk over the life of the contract. I'm currently working to put this into a chart forum for the board.

I disagree with always comparing to rental rates, discounted rack rates that historically been offered during your time of travel could be more appropriate. I feel comparing to rentals if you travel during peak DVC demand or desire a peak resort your odds of getting a rental drop dramatically and only keep dropping the more and more popular rentals work. Especially when going through a broker where it isn’t a first come first serve model. Perhaps if you want to rent SSR you have really good odds but near park resorts. Or someone that likes control over a reservation and/or ability to cancel/modify slightly would never rent, like myself I would never rent DVC but no problem owning.

So I think discounted rack rates are more realistic of a comparison for me because that’s how I chose to travel prior to DVC and how I would without it. Also I own a resort that sells at a premium because that is where I wanted to continue staying.

 

[Maistre Gracey]

Short answer: It might.

The biggest thing is being tied to Disney vacations for 30+ years. That may sound great now, but after 10 or so years at twice per year.... things may change.

 

[DVC Fanatic]

From our personal experience, it has not saved us money, but completely upgraded our experience. Over the last 4 years, we have gone from 2 to 5 weeks a year. We had stayed among the gambit of hotels at the moderate, value and off property. We have always had Florida resident season passes, which saved us parking fees at the park regardless of staying on property, and we have used DVC points since we bought in a year ago. Compared to the rooms and locations we had stayed at before, we are definitely spending more money, but staying at deluxe resorts and much closer to the parks. We have completely changed how we approach Disney and the parks in general. In the past we would drive down and start on a Monday and check out on a Friday because we have the weekday passes and we are blacked out over the weekends. Now we purposefully build in a weekend so we can just enjoy the resorts. Also, by being on property so close, we can go back to the room during the day before venturing back to the parks at night. In the past we would open the parks and stay till dark. It would burn everyone out really bad and make everything less enjoyable.

Your experiences sounds different than ours, and DVC most likely will not be a step up. The key point, if you are ok with not staying at club level, it sounds like a viable option. As you pointed out, you will hit a break even in about 15 years. If you are committed to Disney, and think you will continue to go, it makes some sense because eventually you will be saving money each year. You could even rent out your points if you decide not to go one year. The rental market is booming as more people find out they can rent points for their stays. Good luck with your decision.

 

[MICKIMINI]

Short answer: It might.

The biggest thing is being tied to Disney vacations for 30+ years. That may sound great now, but after 10 or so years at twice per year.... things may change.

Things will change as they always do....so you sell. We have a number of small contracts which keep us flexible should we decide to sell as our cash is not tied up in one big contract.

 

[jerseyduke]

In order for you to save money, Disney has to make less money.
This is not happening PERIOD.

Certainly some people will spend less with DVC - cook in the kitchen, etc.

All the calculations done are based on the assumption that your spending habits do not change once you are in DVC, but they do change.

I never had an AP before DVC....now I do. I used to go once a week a year, now its 2 weeks a year. And now that I am in driving distance, since I have that AP, I do a spontaneous weekend trip and stay on the cheap since I will only hit the parks for 2 days.

DVC has not saved me a penny, it has cost me. But I go more often, and have a better experience when I do. That is where I get value.

Everyone is different, but I do believe that Disney is doing DVC to make MORE money, and the can not do that by you spending less.

 

[CanadaDisney05]

All the calculations done are based on the assumption that your spending habits do not change once you are in DVC, but they do change.

I never had an AP before DVC....now I do. I used to go once a week a year, now its 2 weeks a year. And now that I am in driving distance, since I have that AP, I do a spontaneous weekend trip and stay on the cheap since I will only hit the parks for 2 days.

This is not meant to be an attack on you or your post, but I do see this advice tossed around here a lot and I feel it's time to address this.

I am not going to argue that this is not possible, or even unlikely. It is important to share personal experiences to those questioning a large purchase like this. But it is also important to understand that just because your behaviour changed after getting DVC does not automatically mean this will happen to everyone. I am sure there are many who use DVC almost exactly the way they intended to when they purchased.

Projecting your own personal experiences to be fact of the way people will behave may mislead others. It is important to any prospective buyer to really be honest with themselves about what they want DVC to provide and what it will provide.

 

[jerseyduke]

This is not meant to be an attack on you or your post, but I do see this advice tossed around here a lot and I feel it's time to address this.

I am not going to argue that this is not possible, or even unlikely. It is important to share personal experiences to those questioning a large purchase like this. But it is also important to understand that just because your behaviour changed after getting DVC does not automatically mean this will happen to everyone. I am sure there are many who use DVC almost exactly the way they intended to when they purchased.

Projecting your own personal experiences to be fact of the way people will behave may mislead others. It is important to any prospective buyer to really be honest with themselves about what they want DVC to provide and what it will provide.

Everyone is different (I think I said that)
And, while correct, it may mislead others, just as the marketing material will do the same. "Save up to 50 percent on future vacations"
I can only speak from my own personal experience.

All we can do is share based on our personal experiences.

It may save some people money, and you may be one of those people. Please share your experiences. How long have you been a DVC member, and do you think it is saving you money?

 

[crvetter]

Everyone is different (I think I said that)
And, while correct, it may mislead others, just as the marketing material will do the same. "Save up to 50 percent on future vacations"
I can only speak from my own personal experience.

All we can do is share based on our personal experiences.

It may save some people money, and you may be one of those people. Please share your experiences. How long have you been a DVC member, and do you think it is saving you money?

Personally isn’t the issue a matter of perspective. Certainly DVC is saving you money though your vacation habits changed though you are saving money if you compare what DVC costs to vacationing that way. If DVC doesn’t save you money compared to cash rates then DVC was a terrible buy.

And as to your value comment that is related to saving money. Basically you are reinvesting the savings that DVC provided (if you vacationed pre and post DVC identical) right back into more Disney so it’s still a saving just immediately spent.

As for Disney that 50% number is accurate if you use the same set of assumptions Disney uses. I would say the only assumption they use that’s bad is rack rate when it should be 10-30% off depending when you travel, thus would be less than 50% off. But this is supposed to be 50% off accommodations not the entire vacation.


Also the reason DVC can be good for a member and Disney has to do with expected rate of returns. As a corporation they take the cash and reinvest at a much higher rate (back into the company, long term projects, etc) than a member buying could ever expect. DVC is used as nothing more than a way to get cheap cash infusion and potentially have people that will go to the parks during recessions, but I suspect the cash infusion is the biggest reason.

 

[jerseyduke]

Allow me to rephrase. DVC has not saved me a cent. It has cost me money. And it has been worth every penny.

(snip)
And as to your value comment that is related to saving money. Basically you are reinvesting the savings that DVC provided (if you vacationed pre and post DVC identical) right back into more Disney so it’s still a saving just immediately spent.
(snip)

This is why I say it doesnt save me any money. A savings spent is not a savings.

As for Disney that 50% number is accurate if you use the same set of assumptions Disney uses. I would say the only assumption they use that’s bad is rack rate when it should be 10-30% off depending when you travel, thus would be less than 50% off. But this is supposed to be 50% off accommodations not the entire vacation.

I am sure Disney has a set of legit computations. However, the DVC marketing material does say "Save up to 50% on future VACATIONS*" - It does not say accommodations (unless its in the *, I admit I never read that)
There are nights when you can not get a discounted room, and I would guess it is those nights that make the number approach 50%

Also the reason DVC can be good for a member and Disney has to do with expected rate of returns. As a corporation they take the cash and reinvest at a much higher rate (back into the company, long term projects, etc) than a member buying could ever expect. DVC is used as nothing more than a way to get cheap cash infusion and potentially have people that will go to the parks during recessions, but I suspect the cash infusion is the biggest reason.

Absolutely. Disney is in competition with every company that tries to get a persons discretionary income, not just vacation providers. And DVC is a weapon in this competition.
And if they can issue a hundred million worth of bonds to build a DVC resort that they then sell for 5 times that, it will certainly help with cash flow.

 

[CanadaDisney05]

I am sure Disney has a set of legit computations. However, the DVC marketing material does say "Save up to 50% on future VACATIONS*" - It does not say accommodations (unless its in the *, I admit I never read that)

The "up to" is key. If your idea of vacation is walking to your Disney World resort from home, not eating anything for the duration of your trip, and not visiting anything outside of your resort, then I'm sure you can approach that 50% number on your entire vacation.

 

[jerseyduke]

The "up to" is key. If your idea of vacation is walking to your Disney World resort from home, not eating anything for the duration of your trip, and not visiting anything outside of your resort, then I'm sure you can approach that 50% number on your entire vacation.

Exactly.
You don't think that that is misleading?

And my point was the marketing material says VACATIONS, and the PP said "But this is supposed to be 50% off accommodations not the entire vacation. "

How do you feel DVC saves you money personally? Share your personal experience with people so we can all get different points of view, and people trying to grasp this can see both sides.

 

[robinb]

Short answer: It might.

The biggest thing is being tied to Disney vacations for 30+ years. That may sound great now, but after 10 or so years at twice per year.... things may change.

That's the beauty of DVC. If that happens, the OP can rent their points or sell them. I could sell my 100 AKV points right now $30+ per point more than I bought them for from Disney 12 years ago, still making money after expenses. My only real DVC costs for those 12 years is my maintenance fees which averaged $5.61 per point over the 12 years. Now, there is "time value of money" which is the amount I would have made if I invested the money instead (we paid cash), but we would have just spent that money (about $830 per year) on another vacation rental.

I guarantee you that we would not be able to afford Disney now without DVC.

 

[crvetter]

Exactly.
You don't think that that is misleading?

And my point was the marketing material says VACATIONS, and the PP said "But this is supposed to be 50% off accommodations not the entire vacation. "

How do you feel DVC saves you money personally? Share your personal experience with people so we can all get different points of view, and people trying to grasp this can see both sides.

Personally to me the vacation part is very clear to be 50% on the accommodations because that is all you are buying. Perhaps it confuses some but I found it very clear. And the * does dictate its off a room and makes no mention on tickets. I mean a hotel room away from home is a vacation.

There are nights when you can not get a discounted room, and I would guess it is those nights that make the number approach 50%

Correct I travel thanksgiving week so DVC saves me quite a bit because discounts are very uncommon during that week, especially where I’d want to stay.

This is why I say it doesnt save me any money. A savings spent is not a savings.

But to say it isn’t a savings is misleading, because your perspective is very different than the OP; though you have provided clarity which is more than fair so the OP has the context to your stated. However it is likely a savings directly on what you are getting. So apples to apples DVC costs less and if it doesn’t it’s a bad buy. But as you say DVC changed your vacation habits because it made it affordable to change your vacation habit.

And if they can issue a hundred million worth of bonds to build a DVC resort that they then sell for 5 times that, it will certainly help with cash flow.

Yep selling DVC is significantly cheaper for Disney then issuing bonds. Cheaper to promise a hotel room with owners covering maintenance than a bond. The added benefit is the recession protection it affords Disney.

 

[MumziMom]

My concern is if you enjoy Club Level so much, you may miss that experience with DVC. We found staying Club Level at the Poly super helpful with tweens/teens. We also rented points to stay in a two bedroom at Kidani DVC. That was a LOT more expensive per night. We're glad we've done both. For us the experiences were very different depending how old our kids are. When they were tweens/teens, we were able to have one room with three beds at the Poly, and the use of the CL lounge. We were close to most transportation, so our kids could be more independent together. We all didn't mind sharing the room, as the lounge was right down the hall and always available to everyone else. It was also GREAT for feeding hungry tweens/teens. We were so grateful to have the much quieter lounge (than the very loud quick dining area at the Poly, before it was renovated.) On the other hand, when our kids were adults, we invited them with their significant others to stay at Kidani in a 2 bedroom with us. We gave them the separate rooms. Having the kitchen was nice. But my husband and I talked later and we missed club level. (He and I had stayed another time at CL for one night at Jambo, and had a great time together.) We like the flexibility of staying Club Level when we can, or renting points other times. On the other hand, I can confidently say that the prices will only go up. We snagged that CL at the Poly 9 years ago for $333 a night. It is over $400 more a night for the same dates. Also, taxes add up.