Doing the math - The real cost/savings

[Parkhopper13]

I think the issue has gotten a little blurred, here. No one is asserting that instead of buying into DVC you would take all of your money, invest it, and have a huge sum after 48 years. We are simply saying that in order to compare apples to apples, you need to decide if it's better to invest your $15,000 and pay cash for your trips every year. It is not so much "lost opportunity" as it is "maximizing your vacation diollars". I think we can all agree that that is what we are trying to do here.

What CPTJK was responding to was the fact that many people have stated it would be more beneficial to invest your $15,000 and use the proceeds to take your vacations. I posted that not only is that not beneficial, but once you reach break-even (about 10-15 years, depending on many things) you actually begin to save a significant amount of money on your Disney trips which can then be invested. The growth on that invested money can be significant and cannot be overlooked.

I think we can all agree that DVC is meant to give families great vacations and memories for years to come. Many people, like me, want that, but don't want to pay any more than we have to in order to get it. I don't see any problem with people making sure that it makes sense financially. I, for one, believe whole-heartedly that it does. That, of course, is for each individual to decide.

 

[rinkwide]

...I think we can all agree that DVC is meant to give families great vacations and memories for years to come...

That's the line DVD feeds their membership (surprisingly, they have a much different one for shareholders).

 

[3DisneyKids]

Nothing is a sure thing, other than death and taxes.

Don't forget DVC MFs...those are a sure thing as well!

 

[Groucho]

That's the line DVD feeds their membership (surprisingly, they have a much different one for shareholders).

My grocer gives me some line about how delicious his apples, bananas, etc are. Funnily enough, I agree.

I guess that makes me a sucker, eh?

No need for the cynicism. DVD makes its money by providing exactly what Parkhopper13 said. Otherwise, they wouldn't be very successful.

 

[rinkwide]

...No need for the cynicism...

You're right. I think I'll do a big add-on so I can go on cruises and see the world.

 

[CPTJAK]

You're right. I think I'll do a big add-on so I can go on cruises and see the world.

What a waste of points. If I were you I would spend them on the Grand Walieu in Maui. Only 75 points a night.

 

[CPTJAK]

What CPTJK was responding to was the fact that many people have stated it would be more beneficial to invest your $15,000 and use the proceeds to take your vacations. I posted that not only is that not beneficial, but once you reach break-even (about 10-15 years, depending on many things) you actually begin to save a significant amount of money on your Disney trips which can then be invested. The growth on that invested money can be significant and cannot be overlooked.

Correct Most of the financial analysis do not take that into the calculation and thus can skew the results toward not owning. On the other hand you may need to factor in that points can be rented for $10 and it seems that is not changing much.

 

[TheRustyScupper]

1) The fact is that there is no real financial justification for buying DVC.
2) It is still a matter of personal choice for your disposable income.
3) Financial justifications are always used by
. . . time share salesmen
. . . used car salesmen
. . . vacuum cleaner salesmen
. . . encyclopedia salesmen
. . . con-artists as salesmen
4) When you hear people compare DVC costs, they always use DVC rooms.
5) But how many people stayed DVC every year before their DVC purchase?
6) Now, THAT would be a true comparison.
7) In fact, it is a bogus comparison.
8) Buy DVC because
. . . it is a Disney product
. . . it is conveniently at WDW
. . . it has living areas vs a hotel room
. . . it has kitchen space
. . . it is owned by other like-minded people


NOTE: The ONLY time I have seen a financial justification that was proper was when people bought timeshares on the resale market for a place they were going to buy any way through the developer at the higher developer prices.

 

[Groucho]

There's no financial justification for going to a Disney park at all, nor for buying anything but the cheapest food on the menu or buying the cheapest, most fuel-efficient car possible. Fortunately I don't lose any sleep over such things.

 

[Parkhopper13]

1) The fact is that there is no real financial justification for buying DVC.
2) It is still a matter of personal choice for your disposable income.
3) Financial justifications are always used by
. . . time share salesmen
. . . used car salesmen
. . . vacuum cleaner salesmen
. . . encyclopedia salesmen
. . . con-artists as salesmen
4) When you hear people compare DVC costs, they always use DVC rooms.
5) But how many people stayed DVC every year before their DVC purchase?
6) Now, THAT would be a true comparison.
7) In fact, it is a bogus comparison.
8) Buy DVC because
. . . it is a Disney product
. . . it is conveniently at WDW
. . . it has living areas vs a hotel room
. . . it has kitchen space
. . . it is owned by other like-minded people


NOTE: The ONLY time I have seen a financial justification that was proper was when people bought timeshares on the resale market for a place they were going to buy any way through the developer at the higher developer prices.

Opinions Vary

 

[Dean]

1) The fact is that there is no real financial justification for buying DVC.
2) It is still a matter of personal choice for your disposable income.
3) Financial justifications are always used by
. . . time share salesmen
. . . used car salesmen
. . . vacuum cleaner salesmen
. . . encyclopedia salesmen
. . . con-artists as salesmen
4) When you hear people compare DVC costs, they always use DVC rooms.
5) But how many people stayed DVC every year before their DVC purchase?
6) Now, THAT would be a true comparison.
7) In fact, it is a bogus comparison.
8) Buy DVC because
. . . it is a Disney product
. . . it is conveniently at WDW
. . . it has living areas vs a hotel room
. . . it has kitchen space
. . . it is owned by other like-minded people


NOTE: The ONLY time I have seen a financial justification that was proper was when people bought timeshares on the resale market for a place they were going to buy any way through the developer at the higher developer prices.

In large part I agree. However, if one has a track record of staying on DVC property already, I think the discussion shifts dramatically and financial justification can be found. Other than one person who routinely stayed in Disney suites prior to Disney, comparing to DVC rates, esp rack rates, is stupid unless that's what you'd do if you didn't own. And given the current set up even that's not automatic as one can easily rent and stay without the commitment of ownership.

 

[dvc at last !]

Just be happy to be lucky enough to purchase DVC and enjoy it !

 

[manning]

When we bought my wife gave a gift wrapped box. I asked what that was for and she said we bought to save money and this is going help.........It was an apron and a cook book. Talk about a hint. I'm getting pretty good at it.

 

[joepoe]

That's the line DVD feeds their membership (surprisingly, they have a much different one for shareholders).

I think it is true for me. It is not a matter of take a vacation or NOT take a vacation and save the money. It is a matter of what KIND of vacation do I want. You are trolling.

 

[3DisneyKids]

lol...let rinkwide be rinkwide....read his signature.