$ doesn't make sense

[disneylady]

I have all my paperwork here and am about to sign; however, my husband keeps saying that he just doesn't know if this is the right decision.

He told me to go online today and try to book a 4 night stay at several of the WDW resorts w/a 2 BR accomodation. He wants to compare the cost of booking a stay outside of DVC w/ being a DVC member. So, I did. Here were my results:

07/02/06 for 4 nights

SSR, 2 BR villa= $2,631.44 (DVC pts= 144 x $83 a point= $11,952)
BCV, studio= $1,538.72 (DVC pts= 44 x $83 a point= $3,456)

Am I not doing something right? Because it looks to me that it is costing more to be a DVC member than it is to book a stay outside of DVC.

Someone please explain to me why it is financially beneficial to do DVC.

 

[starwood]

If you take the number of points needed for your stay and multiply by $83 per point you then must divide it by the number of years in your contract. I get $229 for your 1 stay at SSR.

 

[caspersmom83]

I have all my paperwork here and am about to sign; however, my husband keeps saying that he just doesn't know if this is the right decision.

He told me to go online today and try to book a 4 night stay at several of the WDW resorts w/a 2 BR accomodation. He wants to compare the cost of booking a stay outside of DVC w/ being a DVC member. So, I did. Here were my results:

07/02/06 for 4 nights

SSR, 2 BR villa= $2,631.44 (DVC pts= 144 x $83 a point= $11,952)
BCV, studio= $1,538.72 (DVC pts= 44 x $83 a point= $3,456)

Am I not doing something right? Because it looks to me that it is costing more to be a DVC member than it is to book a stay outside of DVC.

Someone please explain to me why it is financially beneficial to do DVC.

Your forgeting to divide the points over the years of membership. At SSR I think it is 49 years.
My CM explained it is price per point divided by 49 years and then you have your dues.

 

[disneylady]

Thanks! I hadn't really thought of it that way.

Have you ever stayed at SSR? From the posts I'm reading, many are not impressed.

 

[caspersmom83]

Your forgeting to divide the points over the years of membership. At SSR I think it is 49 years.
My CM explained it is price per point divided by 49 years and then you have your dues.

ALos if you have 150 points SSR your dues are 3.98 a point.

 

[dianeschlicht]

Thanks! I hadn't really thought of it that way.

Have you ever stayed at SSR? From the posts I'm reading, many are not impressed.

Very upscale decor and accommodations. FAR better than any deluxe you can stay at at WDW.

 

[lovinthemouse]

The one thing you have to consider is this is long term. If you plan on going to Disney at least everyother year and staying in Deluxe resorts it will pay for itself in a few years. You also have to take into account there are annual dues. It really depends on your vacation habits. If you will go frequently and stay in higher price resorts then it is a good thing. However, if you are content staying at the more inexpensive resorts or off property then this may not be for you. For us it was a no brainer we like high end accomodations and we go frequently. The only regret we had was not buying sooner. Good luck with your decision.

 

[disneylady]

I've noticed that a number of you prefer the BCV over the SSR. Why is that? We've stayed at BCV and yes, we loved it. I, however, have yet to visit SSR.

 

[robinb]

07/02/06 for 4 nights

SSR, 2 BR villa= $2,631.44 (DVC pts= 144 x $83 a point= $11,952)
BCV, studio= $1,538.72 (DVC pts= 44 x $83 a point= $3,456)

Am I not doing something right? Because it looks to me that it is costing more to be a DVC member than it is to book a stay outside of DVC.

Someone please explain to me why it is financially beneficial to do DVC.

Well ... if you only compare the cost of a single trip with the cost of DVC, then it will NEVER make sense. DVC is a multi-year pre-paid vacation.

At the very least you will need to calculate the initial cost of points (say, the minimum of 150 for your 2 bedroom example) and amortize it over the life of the deed (48 Years until 2054). Then, you need to add in your annual dues and you will get a snapshot of how much DVC will cost you yearly until the deed expires.

Initial Cost
150 * $83 = $12,450

Cost (in 2006 Dollars) per Year
$12,450 / 48 = $259

Maintenance (in 2006 Dollars at 2006 Rates) per Year
150 * $3.98 = $597

Cost (in 2006 Dollars) per Year
$259 + $597 = $856

Now, that is a *very* simplistic way of looking at it. There is the time value of money (what you would earn if you invested the 12K instead), there is interest paid (if you take a loan), there is inflation and there are dues increases that all effect the true cost of DVC.

Here is a chart that has the dues increases:
http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm

Edited to change deed end year for SSR. Other properties end in 2042.

 

[disneylady]

I also found it strange that I was able to get a 2BR villa at SSR for July 4th without being a DVC member.

 

[cman]

Starwood is correct. The problem with your example is that you are assuming only one vacation over the life of your contract instead of a vacation a year until your contract runs out.

The price of $229 is a low since you have dues to pay every year that need to be factored in every year but but I would bet if you did the math you are looking at $1000 for the trip not $11,000

 

[disney junky]

I also found it strange that I was able to get a 2BR villa at SSR for July 4th without being a DVC member.

Summer is not necessarily a difficult time to book DVC because it is one of the higher points requirement times. Many DVC members maximize their point usage by going in what is traditionally the off season for others. It spreads the points out much more.

 

[CarolMN]

I also found it strange that I was able to get a 2BR villa at SSR for July 4th without being a DVC member.

Since SSR is not yet sold out, the developer has many rooms completed that are not yet sold to members. Those rooms are rented out to the general public until they are sold. The proceeds go back to the developer. It is not at all unusual to find lots of availabilty for cash at a DVC resort when it is coming on line.

Also, when DVC members use their points for selected options outside of the DVC resorts, the equivalent number of room nights are rented for cash. DVC uses the proceeds to pay for the member's non-DVC choice.

There are other ways that rooms are made available to the public, but those are the two biggest reasons for SSR.

Best wishes -

 

[dianeschlicht]

I also found it strange that I was able to get a 2BR villa at SSR for July 4th without being a DVC member.

Also, CRO has rooms from SSR that come from unsold inventory and trades to Disney collection etc. That is why Disney will often show avaiability at a DVC resort when point stays are sold out. This resort is still for sale, so there are plenty of units not yet in member inventory.

 

[disney junky]

I've noticed that a number of you prefer the BCV over the SSR. Why is that? We've stayed at BCV and yes, we loved it. I, however, have yet to visit SSR.

BC and BWV are popular with many because of the closeness to Epcot and MGM. Stormalong Bay is rated highly with people who stay at BC. We own at BWV and love being able to walk to MGM and Epcot. I can't speak to SSR because we haven't stayed there but I suppose the transportation issues do impact some people's decision to stay there. You do get an extra 12 years at SSR. I'll only be 87 when my points expire.

 

[mommyceratops]

There is another thread on here that breaks the price down to a total $63,000 or something like that savings including your yearly dues.

What sold us on the offer was 10 years ago you could stay at CR or a deluxe for under $100 a night now with the value resorts it is $300 a night.

Which on our budget puts us in a value or moderate resort now. But in 10 more years how much more will it go up. We know we want to go to WDW every year, even when our kids our older DH and I love WDW (we have a history there and we went there on our honeymoon)

Also DH and I are hotel snobs and on a strict budget and on that budget we stay at Value (we could do a mod but I would rather have more spending money) so that said value or mod isn't where we would want to be. We want to stay deluxe.

We loved the DVC when we toured and want to know that we can go to WDW every year and have a nice place to stay in.

So the finacial savings was one but the way WDW has grown was a big factor also. We can afford the yearly dues and had money to put down on the 200 points. So we choose to have a peace of mind we have a vacation home to go every year in the happiest place on earth.

I told DH on our honeymoon a happy wife is one that can go to WDW EVERY YEAR so he is making good on that!

Now if I can just find the money in the budget to get more points

 

[cobbler]

Also know that SSR isn't 83/point anymore. More like 90/point unless you got in during the F&F promotion.

So 90 per point / 48 years = 1.88 per point + 3.98 in dues = 5.86 per point.

So the 144 point stay at SSR is costing you basically 843.84.

 

[starwood]

And to add - what sold DH on this was the fact that IF we ever decided to sell we could get most of our money back!

 

[robinb]

And to add - what sold DH on this was the fact that IF we ever decided to sell we could get most of our money back!

Yup. Check out one of my posts from last month when I calculated how much DVC would cost me if I sold today:
http://www.disboards.com/showthread.php?p=11156983#post11156983

 

[unixadm]

Look at my thread Doing the math - The real cost/savings


Remember, when you add up that you get the points for 48 years, add in the maintenance (and increase in maintenance) and divide it all out, you are paying about $5/per point per year. Some people have estimates up to $6 per per point depending on what their estimated dues increases over the years is.

Take the $5/pp or $6/pp and multiply it by how many points your ressie uses, and that is your real cost for that ressie.