DVC Confusion maxed out!

[ericstac]

I'm sure I'm not the first but the more I read the more I get confused. lol

I got interested in DVC during a DW trip in 2010 from one of the DVC booths. Passed on it because I like flexibility in where and when I go. The following year at Disney again, got a little deeper into it, almost signed, but then reading online read the resellers market is where to go.. never bought thought, quit reading.

Fast forward to this Xmas trip and looking at DVC again because it is obvious we LOVE Disney and go nearly every year.

But, everytime I open a new thread I get more confused.

How exactly does DVC work?
The way I understand it is I buy a package of 100pts at Bay Lake Villas, Contemporary, for $10,000.00. just a number.
So I pay $10,000.00
then I pay like $5.00 per point every year? and every year I get 100 points?
and they are only good for that year unless I bank them to use the following year?
And then I can also rent points to add to my points at $11.00 a point to cover the vacation?

and whats it matter on the home resort? it sounds like you can use points whereever you want.

too many questions I know. hopefully I wont be banned from all the questions. more to follow I'm sure..

Help the clueless. please.


maybe if I say what I think we want.. we love the contemporary (but have never been elsewhere) and we usually go for 7-10 days during Christmas each year.

 

[chalee94]

How exactly does DVC work?
The way I understand it is I buy a package of 100pts at Bay Lake Villas, Contemporary, for $10,000.00. just a number.
So I pay $10,000.00
then I pay like $5.00 per point every year? and every year I get 100 points?
and they are only good for that year unless I bank them to use the following year?

the numbers might be a little low (and the $5.00 per pt in annual dues will increase every year) but that is basically it.

also, note that the contract will expire at a certain point depending on which resort you buy. (and points can only be banked one time - if you don't use them in that next year, they are gone and you get nothing.)

And then I can also rent points to add to my points at $11.00 a point to cover the vacation?

1) rental price can vary.
2) you can try to find a point transfer to make a longer vacation but you can only transfer once per year and only that specific resort's points can be used at 11 months out, so it's not exactly a given that you can get what you want.
3) if you rent pts, you would need to ask MS to link the reservations. you would have no control over the rented reservation, just like any other renter.

and whats it matter on the home resort? it sounds like you can use points whereever you want.

"based on availability."

if you want standard view at BLT, those are very important words.

if you have a strong opinion on where you want to stay with DVC, "buy where you want to stay" and book at 11 months out. if you are happy just being onsite, buy SSR and save a little money...but understand that you might get in elsewhere at 7 months out and you might not. there are a ton of SSR owners...

 

[ericstac]

Thanks Charles..

And this is supposed to save you money by being a DVC?

From what I gathered there is no free dining packages but with all the different numbers its hard for me to figure out if I actually would save or not. It seems like every time we go we get free dining.

like this year we are going from 12-22 to 1-3 with 10day hopper and free dining at the Poly and it is right around $11k

12day dining for my family of 5 would cost me $2875.00
10day hopper for us all is $2100.00
then the 12 night stay would be what at the BLT DVC?

 

[DougEMG]

then the 12 night stay would be what at the BLT DVC?

Room costs are dependent on the time of year, size of the room and resort. Daddio (a rental broker) has a points calculator were you can plug in your dates and see how many points are required for your stay and what it would cost to rent the room at

http://www.dvcrequest.com/PointsCalcNew/PointsCalc.asp

Just remember to compare that to only the cost of the POLY room, not tickets and food. While renting would cost more than owning over the long term, it is can still be cheap than booking directly with Disney and it is more flexible since you don't have to go every year. DVC should save you money if you normally stay deluxe even if you get free dining, it just is a matter of how many years it takes before the saving materialize.

 

[disneynutz]

If you are going to Disney every year, DVC might save you some money if you like to stay at deluxe resorts.

If you are happy just going every few years and you love "free" dining, then you might not save.

Step 1 is decide how often you will vacation at Disney, what resorts and room sizes. Compare the cost for those stays with a DVC purchase.

If it still looks like DVC might work, then come back and we can work on steps 2 through 10!

Bill

 

[Missyrose]

Look at the point charts carefully. You go to Disney during peak point season. So it might make a 100-point contract tough to stretch to the number of days you want to stay.

 

[Deb & Bill]

DVC isn't a way to save money. You prepay your lodging. That's all. And if you don't use the points, you lose them. Dues go up every year.

If you like the deal, just reserve a hotel room directly from Disney when they offer deals.

 

[Nabas]

.like this year we are going from 12-22 to 1-3 with 10day hopper and free dining at the Poly and it is right around $11k

12day dining for my family of 5 would cost me $2875.00
10day hopper for us all is $2100.00
then the 12 night stay would be what at the BLT DVC?

Are you coming from overseas? WDW never offers Free Dining for the Holidays to U.S. residents.

 

[Nabas]

like this year we are going from 12-22 to 1-3 with 10day hopper and free dining at the Poly and it is right around $11k

12day dining for my family of 5 would cost me $2875.00
10day hopper for us all is $2100.00
then the 12 night stay would be what at the BLT DVC?

Let's walk thru an example.

Going to the official Disney website, I get $8728 for your 12 nights at the Poly in its least expensive room. (Not sure how you are getting free dining for the holidays.)

The least expensive room at BLT is a Standard View Studio. But that only sleeps 4. That costs 266 points for the 12 nights you're going. A 266-point resale contact would be nearly impossible to find but I've seen 270-point contracts from time-to-time. Let's assume you purchase one of these. That's a larger than average contract so you should be able to get it on the resale market for around $100/point. Assuming another $700 in closing costs, the cost of your DVC purchase would be $27,700.

The annual Maintenance Fee (MF) for BLT in 2013 is $4.50. So, in 2013 you'd have to pay $1215 ($4.50 X 270) in MF.

Ignoring inflation (which usually is not significant short-term), over 4 years, your room would cost $34,912 ($8728 X 4) whereas for a BLT DVC, you'd pay $32,560 ($27,700 + ($1215 X 4)) in 4 years. After 4 years, you'd come out way ahead every year with your DVC purchase.

The problem is, there are 5 of you. You'd be forced into a one-bedroom villa, which is essentially 2 rooms. It's lovely, way nicer than a Studio, which is basically a hotel room. But it's also a lot more points for the 12 days: 502 points. That nearly doubles your DVC cost but also gives you essentially 2 rooms instead of the single room you are squeezing in today at the Poly.

All things considered, it probably will take you about 8 years to break even, assuming you don't finance your DVC purchase.

How sure are you that you are going to vacation at WDW in 8 years?

 

[ericstac]

Are you coming from overseas? WDW never offers Free Dining for the Holidays to U.S. residents.

no I'm in Texas.

 

[ericstac]

Free Dining for the rest of 2013 is:

Free Dining is being offered to guests ARRIVING during the following dates. A minimum stay of 3 nights is required and may not be booked for longer than 14 nights.

September 29  October 2, 2013
October 18  November 2, 2013
November 11  23, 2013
December 12  22, 2013


We originally planned on getting there on the 23rd, but bumped it to the 22nd and get free dining for the entire trip!

 

[ericstac]

Let's walk thru an example.

Going to the official Disney website, I get $8728 for your 12 nights at the Poly in its least expensive room. (Not sure how you are getting free dining for the holidays.)

The least expensive room at BLT is a Standard View Studio. But that only sleeps 4. That costs 266 points for the 12 nights you're going. A 266-point resale contact would be nearly impossible to find but I've seen 270-point contracts from time-to-time. Let's assume you purchase one of these. That's a larger than average contract so you should be able to get it on the resale market for around $100/point. Assuming another $700 in closing costs, the cost of your DVC purchase would be $27,700.

The annual Maintenance Fee (MF) for BLT in 2013 is $4.50. So, in 2013 you'd have to pay $1215 ($4.50 X 270) in MF.

Ignoring inflation (which usually is not significant short-term), over 4 years, your room would cost $34,912 ($8728 X 4) whereas for a BLT DVC, you'd pay $32,560 ($27,700 + ($1215 X 4)) in 4 years. After 4 years, you'd come out way ahead every year with your DVC purchase.

The problem is, there are 5 of you. You'd be forced into a one-bedroom villa, which is essentially 2 rooms. It's lovely, way nicer than a Studio, which is basically a hotel room. But it's also a lot more points for the 12 days: 502 points. That nearly doubles your DVC cost but also gives you essentially 2 rooms instead of the single room you are squeezing in today at the Poly.

All things considered, it probably will take you about 8 years to break even, assuming you don't finance your DVC purchase.

How sure are you that you are going to vacation at WDW in 8 years?

Nadas, excellent my friend!

I'm back to even with the potential savings 10 years down the road where will I be no one knows so I'm thinking it is not for us and we will just enjoy our resort stays as normal. Thanks everyone!!!

 

[lorie13]

Two other things to consider, Disney's Free Dining is a perk and may not be offered ever year, so you can not count on that. Second item is that rooms direct with Disney will go up ever year. As members our maintenance fees will go up, but I believe the maximum is 8% a year and not all years does it reach that amount. The amount of points required for a room will stay about the same, maybe up or down a few points, but it is almost a fixed amount (if Disney ups the points required for a certain time, they must lower another time).

As for a BLT resale, if you really search you can get a great deal. I just closed on a 210 point BLT Feb UY contract in August. I paid $90/point (plus closing costs, $571 + $195 admin fee, and 2013 maintenance fees, $945) total cost $20611.25. It came fully loaded with all 2012 points which I did not need so I rented them out at $11/point, this brings my cost per point to $79/point. I now have all of 2013 points and will receive another 210 points in February. BLT contracts do not expire until 2060, 47 years from now. Check out this link to see what other contracts have closed at http://disboards.com/showthread.php?t=3138652

 

[crisi]

Let's walk thru an example.

Going to the official Disney website, I get $8728 for your 12 nights at the Poly in its least expensive room. (Not sure how you are getting free dining for the holidays.)

The least expensive room at BLT is a Standard View Studio. But that only sleeps 4. That costs 266 points for the 12 nights you're going. A 266-point resale contact would be nearly impossible to find but I've seen 270-point contracts from time-to-time. Let's assume you purchase one of these. That's a larger than average contract so you should be able to get it on the resale market for around $100/point. Assuming another $700 in closing costs, the cost of your DVC purchase would be $27,700.

The annual Maintenance Fee (MF) for BLT in 2013 is $4.50. So, in 2013 you'd have to pay $1215 ($4.50 X 270) in MF.

Ignoring inflation (which usually is not significant short-term), over 4 years, your room would cost $34,912 ($8728 X 4) whereas for a BLT DVC, you'd pay $32,560 ($27,700 + ($1215 X 4)) in 4 years. After 4 years, you'd come out way ahead every year with your DVC purchase.

The problem is, there are 5 of you. You'd be forced into a one-bedroom villa, which is essentially 2 rooms. It's lovely, way nicer than a Studio, which is basically a hotel room. But it's also a lot more points for the 12 days: 502 points. That nearly doubles your DVC cost but also gives you essentially 2 rooms instead of the single room you are squeezing in today at the Poly.

All things considered, it probably will take you about 8 years to break even, assuming you don't finance your DVC purchase.

How sure are you that you are going to vacation at WDW in 8 years?

Given that with five they can stay in most regular Deluxe hotel rooms, but would need a one bedroom anywhere but the GF (and maybe future resorts), they will never come out financially ahead.

And even with your calculations - they'd come out ahead $2k over four years. Lets assume that during that four years one year they would - without DVC - take a shorter trip, stay at a value - or maybe take no Disney trip at all - because "life got in the way" - now they are actually losing money.

And since they tend to use promotions - they aren't coming out ahead in those four years - free dining is "saving" them far more than $2000 over four years.

Now, they might get a good deal - staying in a one bedroom is probably more comfortable. Having a kitchen and a washer and dryer is really nice - a lot of DVCers are shocked by how much they actually use those props. They might find value in not scrambling for promotions or in the idea of enforced vacations or in the security of knowing that Disney is on the schedule every year.

(We don't save a dime - DVC is a way for Disney to suck a lot more money out of our pockets. But we get to have the kids in a separate room. Its expensive vacation nookie, but when it comes down to it, we are paying for vacation nookie).

But money - no - they'd do better sticking five in a regular room at the Poly during free dining.

 

[Minniesgal]

I think there are two sorts of WDW holidays. There are those people who are hotel holidayers who want meals out, room service, housekeeping etc. that is not us we are a totally different type of holiday. We would never stay in a hotel room, we haven't since we became a family of four I want a full kitchen because I hate eating out every night I want a meal out to be a treat not an everyday thing. I want laundry facilities because frankly with two young boys a laundry room is a hassle. We also love having a lounge to hang in and separate bedrooms for separate bedtimes. We also want more than one bedroom. So for us buying DVC was not about saving money as compared to a Disney hotel room it was about being able to find an affordable way to stay in a Disney villa. Because we want to stay in a 2 bedroom for now and a 1 bedroom later DVC makes financial sense to us.

However if you are happy staying In a hotel room even with 5, want the DDP whether paid or not I think it makes the financial case for DVC a lot harder to make.

 

[Dean]

I'm sure I'm not the first but the more I read the more I get confused. lol

I got interested in DVC during a DW trip in 2010 from one of the DVC booths. Passed on it because I like flexibility in where and when I go. The following year at Disney again, got a little deeper into it, almost signed, but then reading online read the resellers market is where to go.. never bought thought, quit reading.

Fast forward to this Xmas trip and looking at DVC again because it is obvious we LOVE Disney and go nearly every year.

But, everytime I open a new thread I get more confused.

How exactly does DVC work?
The way I understand it is I buy a package of 100pts at Bay Lake Villas, Contemporary, for $10,000.00. just a number.
So I pay $10,000.00
then I pay like $5.00 per point every year? and every year I get 100 points?
and they are only good for that year unless I bank them to use the following year?
And then I can also rent points to add to my points at $11.00 a point to cover the vacation?

and whats it matter on the home resort? it sounds like you can use points whereever you want.

too many questions I know. hopefully I wont be banned from all the questions. more to follow I'm sure..

Help the clueless. please.


maybe if I say what I think we want.. we love the contemporary (but have never been elsewhere) and we usually go for 7-10 days during Christmas each year.

Realize that any math calculations you do are likely to be the best scenario possible and all variables could rob value. Also the psychology of timeshares is MORE important than the math and this is never more true than DVC IMO. In general I'd say that DVC makes sense only for those looking to stay at DVC only, who value staying on property enough to pay more for it and who would stay in Moderates or above. It's roughly break even comparing moderate to a studio or 2 hotel rooms to a 2 BR. That's where the psychology and choices come in, most people don't stay with the studio. The other issue that many fall down on is they don't establish a comparison to off property timeshare options and assume they only will be happy with on property. Another mistake people often make at this point is they assume they should buy retail because they have not fully educated themselves and gotten comfortable with resale options. Still another is they overbuy home resorts. I'd only buy retail for something you can't get resale or where the savings is not significant. Granted for 100 points the difference is far less.

 

[ericstac]

Yeah, I'm the vacationer that likes to go all out and eat out all day everyday lol. I count macros using a gram scale and prepare 6-8 meals a day every single day for bodybuilding purposes and when I hit Disney I turn that off and enjoy all the great food carefree. A kitchen is not necessary for me during vacationing, unless it's to the beach house for the weekend or something while I'm still counting macros.

No the added private bedroom is something that had me interested but we've already discussed double rooms with the shared door..but that's only when the grandparents are not at disney at the same time and so far there has always been someone else that is always willing to have the kids spend the night with them while we have our alone time

 

[quandrea]

Given that with five they can stay in most regular Deluxe hotel rooms, but would need a one bedroom anywhere but the GF (and maybe future resorts), they will never come out financially ahead.

And even with your calculations - they'd come out ahead $2k over four years. Lets assume that during that four years one year they would - without DVC - take a shorter trip, stay at a value - or maybe take no Disney trip at all - because "life got in the way" - now they are actually losing money.

And since they tend to use promotions - they aren't coming out ahead in those four years - free dining is "saving" them far more than $2000 over four years.

Now, they might get a good deal - staying in a one bedroom is probably more comfortable. Having a kitchen and a washer and dryer is really nice - a lot of DVCers are shocked by how much they actually use those props. They might find value in not scrambling for promotions or in the idea of enforced vacations or in the security of knowing that Disney is on the schedule every year.

(We don't save a dime - DVC is a way for Disney to suck a lot more money out of our pockets. But we get to have the kids in a separate room. Its expensive vacation nookie, but when it comes down to it, we are paying for vacation nookie).

But money - no - they'd do better sticking five in a regular room at the Poly during free dining.

Washer dryer, kitchen, vacation nookie. All essential in my book and why dvc was one of the best purchases I ever made.

All kidding aside. That notion of being home is real and valuable to me. Dvc is my second home and there is no where I'd rather go. We go other places, but nothing compares to that intangible home quality. It's not just a numbers game.

 

[DVCcurious]

12day dining for my family of 5

This is the kicker here. A family of five.

Now I don't know this for a fact, but I "believe" that you can not fit 5 people in a studio at any DVC resort.

So if that is true you would have to get a 1 BR at AKL or BLT, or a 2BR at the other resorts. At this point DVC will not save you money.

We own DVC and we stay in 1 BRs. We are not saving money vs staying in a hotel room. But we have a larger/ more comfortable accomodations.

If you are happy with 5 people in one hotel room at the monorail resorts then DVC probably won't be a money saver for you.

 

[timandjanl]

This is the kicker here. A family of five. Now I don't know this for a fact, but I "believe" that you can not fit 5 people in a studio at any DVC resort. So if that is true you would have to get a 1 BR at AKL or BLT, or a 2BR at the other resorts. At this point DVC will not save you money. We own DVC and we stay in 1 BRs. We are not saving money vs staying in a hotel room. But we have a larger/ more comfortable accomodations. If you are happy with 5 people in one hotel room at the monorail resorts then DVC probably won't be a money saver for you.

VGF fit 5. That's it. And a lot of the 1BR don't fit 5.