DVC makes sense to us!

[NemoMOm]

Ok, so please don't flame me, but there is a thread on the budget board about DVC making sense. Now, quite a few people say they have run numbers and it just doesn't make sense. Now, that I can not understand

I ran the numders of my buy in price divided # of years and yes we will own it
for the entire time. Including dues it came to $912 a year and we get 2 weeks stay from that. Okay when we went in Feb I had called value and it was $1200 for the week, hotel only! Now I'm not figuing in inflation fo dues cause I know hotels will go up as well. In fact, there is already talk of 2008 rates going up.

Now someone else mentioned that they stay offsite (which I understand is okay for others but not us ) for about $100 I'm assuming per night which for a week is $700. And that is assuming that they do not charge extra for weekends. So, for 2 weeks a yr you still pay about $1400 (I suspect a little moe for weekends and taxes). Plus you are offsite and need transpo to the parks!

So, I understand that it is not for everyone, but what is not to understand why it is for some of us?

 

[starbox]

Now someone else mentioned that they stay offsite (which I understand is okay for others but not us ) for about $100 I'm assuming per night which for a week is $700. And that is assuming that they do not charge extra for weekends. So, for 2 weeks a yr you still pay about $1400 (I suspect a little moe for weekends and taxes). Plus you are offsite and need transpo to the parks!

You're assuption about off-site prices is off. Budget-minded folks know to priceline, expedia, or travelzoo a room and Disney is a mecca for hotel bargains. I'm doing next weekend in a newly renovated 3 star for 49 bucks a night. http://www.lexingtonhotels.com/Destinations/20/Gallery.aspx
If I wanted an econo-room, I could easily priceline and get one in the 30-40$ range.

It would be very do-able to stay at a 3-star for considerably less than 400$ a week, including room tax. We took our first 5 night trip in 2001 and spent 800$ total - that was park tickets, hotels, and food. We ate two on-property meals (Sci-Fi and in Cinderalla's Castle). We had one child under 3, and she was free. Next week, we'll go to AKV and not including the DVC unit or annual passes that I've already paid for, I've budgeted 1,000 for food and etc. alone. The cost difference between a budget trip and a DVC trip is huge.

 

[Chuck S]

Some people, given the historic reputation of timeshares, would never own one, even if it was free and they only had to pay maintenance.

Some people are hung-up on the fact that DVC is a leasehold, and not owned "forever."

Some people do not want an ongoing obligation for dues/maintenance, they'd rather pay cash at a value resort by saving up their money for a vacation.

Some people just don't understand the DVC system, and that it is not a traditional "same week, same unit, every year" timeshare.

If you have run the numbers, and it works for you, go for it. It certainly works for us, especially giventhat we can sell for more than we paid for OKW in 1992. Sure, it will eventually sell for less...but for us the long-term value is in the USE of the timeshare.

 

[NemoMOm]

You're assuption about off-site prices is off. Budget-minded folks know to priceline, expedia, or travelzoo a room and Disney is a mecca for hotel bargains. I'm doing next weekend in a newly renovated 3 star for 49 bucks a night. http://www.lexingtonhotels.com/Destinations/20/Gallery.aspx
If I wanted an econo-room, I could easily priceline and get one in the 30-40$ range.

It would be very do-able to stay at a 3-star for considerably less than 400$ a week, including room tax. We took our first 5 night trip in 2001 and spent 800$ total - that was park tickets, hotels, and food. We ate two on-property meals (Sci-Fi and in Cinderalla's Castle). We had one child under 3, and she was free. Next week, we'll go to AKV and not including the DVC unit or annual passes that I've already paid for, I've budgeted 1,000 for food and etc. alone. The cost difference between a budget trip and a DVC trip is huge.

HI,

Actually that qte was from an indv'l whom stays offsite.

 

[tjkraz]

To add to Chuck's list:

Some people do apples and oranges comparisons, like a DVC One Bedroom Villa to a standard Value or Moderate room.

Some people factor in cash promotions like the "free dining" (which is totally foolish given that the free DDP is only offered 4 weeks out of the year and will not be around forever.)

Some people include two weekends in their DVC calculations (say, 8 night stay from Saturday to Saturday), without recognizing how the points change on weekends. If you're paying for 3 or 4 high-priced weekend nights plus 5 weekdays, it really changes the math compared to those who economize and stick mostly to the weekdays.

 

[crisi]

She's getting a three bedroom 2 bathroom condo for $100 a night. To compare, you are looking at the Grand Villas on the DVC point charts. If you are happy staying offsite and want bigger units, that is a way better deal than anything you can get at DVC. We tend to stay for 272 points in a BW 2 bedroom in October. I figure that's about $1800 in point cost and dues. She's getting a bigger unit (one more bedroom) for $700. That $1100 pays for a lot of parking.

 

[Granny]

I ran the numders of my buy in price divided # of years and yes we will own it
for the entire time. Including dues it came to $912 a year and we get 2 weeks stay from that. Okay when we went in Feb I had called value and it was $1200 for the week, hotel only! Now I'm not figuing in inflation fo dues cause I know hotels will go up as well. In fact, there is already talk of 2008 rates going up.

Now someone else mentioned that they stay offsite (which I understand is okay for others but not us ) for about $100 I'm assuming per night which for a week is $700. And that is assuming that they do not charge extra for weekends. So, for 2 weeks a yr you still pay about $1400 (I suspect a little moe for weekends and taxes). Plus you are offsite and need transpo to the parks!

DVC is not going to be the absolute least expensive way to pay for accommodations when visiting WDW. As mentioned, staying off site in a low budget hotel is much less expensive. You'll never convince people who go that route that staying anywhere on site make sense since they can save money off site. To each their own.

One thing that is constantly ignored by people crunching numbers is the tax. I think it is somewhere in the 11-14% range for hotel/resort cash reservations. Somehow that gets conveniently overlooked by many in comparing finances to DVC. And tax rates will certainly go up over the years, not down. DVC has no additional costs beyond the buy-in and dues.

So, I understand that it is not for everyone, but what is not to understand why it is for some of us?

"Some of us" now numbers more than 100,000 families who are DVC members. If DVC makes sense for you, go for it.

And then you'll have no need to open any Budget Board threads about accommodations!

 

[crisi]

To add to Chuck's list:

Some people do apples and oranges comparisons, like a DVC One Bedroom Villa to a standard Value or Moderate room.

Some people factor in cash promotions like the "free dining" (which is totally foolish given that the free DDP is only offered 4 weeks out of the year and will not be around forever.)

Some people include two weekends in their DVC calculations (say, 8 night stay from Saturday to Saturday), without recognizing how the points change on weekends. If you're paying for 3 or 4 high-priced weekend nights plus 5 weekdays, it really changes the math compared to those who economize and stick mostly to the weekdays.

People also do the opposite....DVC can be a great deal if you are comparing that room at the Poly to a DVC studio - but they stop staying in studios the minute they become DVC members. Or they factor in all those meals they'll cook in the room - and then never buy more than a frozen pizza that they leave behind. If you have the discipline to continue "like for like" - or even improve upon it by proving that the stove is not just a large prop, and you start with a Deluxe resort and regular trips, DVC can be a great deal.

Without DVC we'd go less often and still stay in studios when we went - Deluxe studios, but studios. With DVC we go every other year (which is a lot less often than a lot of DVCers) and stay in at least a one bedroom.

 

[DBorges]

This is like comparing apple to oranges.

If you want to stay cheap go anywhere but dvc.

I think the the cost of the vacation for what you get over the period of time is what you need to look at.

I was paying over 6500.00 per stay from my room and passes .

Then add the 1400.00 for air fare and 200-400 for the rental of a car

Then add the 3000.00 for spending money.

Now I am over 10,000 for my 10 days

so let see my payment right now is 162x12 1944 +1400+400+3000

That is not bad for me It saves me over 8000 grand per year for my two trips

Think cheaper is better sure it saves you money but you are not in I Wonderful Room with a view your driving in by west gate and stay off property

I think that the 45 years that i can go and just pay air fare and my car rental and (dinningplan) is for me I hate it when people say it is not worth it

I think I have saved over 28000.00 so far and been able to anywhere on disney property and Disneyland with out any trouble or worring that my room will be NASTY

 

[hellerjw]

I think the number crunching scenarios only truly make sense if you can actually do an apples-to-apples comparison. Since it may or may not even be possible to do a 100% accurate comparison between DVC and cash-stays you have to take an educated guess and use the general information that's available.

Like Granny mentioned, I always find it confusing why all the "non-DVC is best" type calculations never include the accomodations taxes, which I believe are at 12.5% right now. This difference can be significant and is on top of the rates you are paying each night. Your DVC dues already include any taxes that might be imposed.

For us it was never just about the DVC cost vs. discounted cash stays. It was about the level of accomodations we could choose from and our desire to go more often. DVC fit this desire perfectly and, at least for us, would save us money in the long-term. DVC allowed us to entertain the idea that vacationing was more than just the number of days and the cost, it was about taking the time to step away from the mundane and enjoy life a little more. Before DVC we simply spent too much time worrying about the costs to truly enjoy ourselves when we did go.

I think another thing that isn't often considered is that for most of us we do end up going more often with DVC than before we joined. This totally throws off the idea that your existing vacation habits will remain constant, a frequent assumption in most of the monetary comparisons. Once you throw in a second or third annual trip the dollar comparisons only start to favor DVC more.

The bottom line is that no scenario is best for all people. A lot of us, over 100,000 and growing, have decided DVC is the better choice. There are many more who have decided it isn't for them. There is no right or wrong answer. If you have done your due diligence and feel its right for you then it doesn't really matter what another person's comparion scenario came up with.

Just my two cents

 

[El&Asmom]

I also think another thing that gets lost is the intangible factors such as "forcing" yourself to take the time to vacation with your family. And visiting places like VB or HH that you likely wouldn't necessarily do.
This can perhaps work against you in some ways if for whatever reason you don't want to vacation every year.
For me it's also feels better only having to pay maintence fees every year on a monthly basis rather than dishing out a large some 45 days before each trip.
DVC can also go a long way if you conserve weekend points. We only plan to have about 150 points by the time all is said and done. By planning well, we should be able to get 1-2 vacations anually with these.
Granted, we haven't yet closed on our resale, and are considering 2 more add ons.

 

[My2Angels]

This is from a non-DVC member with 3 small children. We have considered, but how much are you paying monthly/yearly for our points?

 

[pcparamedics01]

Some people, given the historic reputation of timeshares, would never own one, even if it was free and they only had to pay maintenance.

Some people are hung-up on the fact that DVC is a leasehold, and not owned "forever."

Some people do not want an ongoing obligation for dues/maintenance, they'd rather pay cash at a value resort by saving up their money for a vacation.

Some people just don't understand the DVC system, and that it is not a traditional "same week, same unit, every year" timeshare.

If you have run the numbers, and it works for you, go for it. It certainly works for us, especially giventhat we can sell for more than we paid for OKW in 1992. Sure, it will eventually sell for less...but for us the long-term value is in the USE of the timeshare.

I believe that too. We are new to DVC and we believe 7 vacations and it will pay for itself. Some of these rooms at Disney are 600.00 per night to stay. Not too many people can afford that. It is money well spent!

 

[Mtnman44]

the yearly cost of points depends on how many you own. how many you own depends on how often you want to stay and what type/seaon of room you will need.

I think most people's annual fees are in the $500 to $1000 range. The cost of the purchase itself is an upfront fee, so if it is financed then you have to factor that in as well. that payment depends on amount, time, and rate, same as any other loan. it will be around $150 to $250 per month for most people, depending on the # of points.

This is from a non-DVC member with 3 small children. We have considered, but how much are you paying monthly/yearly for our points?

 

[chalee94]

This is from a non-DVC member with 3 small children. We have considered, but how much are you paying monthly/yearly for our points?

i started with a small (tiny) contract so i would not have any monthly debt payments. as a result, i only pay $15 a month in maintenance fees. if i like the experience, i can add more points later (disney currently does not charge closing costs for these add-ons.)

for general financing information, you can look at this thread:

http://www.disboards.com/showthread.php?t=1513325

maintenance fees per point per year (ignore the VB(sub) amounts):

Year OKW BWV VB VB(sub) HH VWL BCV SSR
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12

Historical
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

 

[eliza61]

Remember also where it was posted. Folks on the budget board know the ins and outs of traveling to the mouseworld on a budget. Alot of times just the thought of staying in a deluxe doesn't make sense. The poster on the budget board was comparing the cost of a dvc to staying offsite. There are a lot of variables to purchasing any time share and purchase price is only one.

For us and our vacation style, it has more than paid for itself.

 

[jarestel]

I can understand the budget conscious being somewhat wary of DVC. When DVC members say "after 10 trips my vacations are free from then on except for dues", this may be true based on the cost of the DVC accomodations. However I suspect the budget-minded would not be likely to shell out the rack rate cost required to stay in a DVC room. (Though renting points might be attractive to some) The Orlando area is chock-full of timeshares, condos, and hotel rooms that can be rented for close to the price of our yearly dues if the person isn't wedded to the notion of staying on property.

I don't think DVC will ever make sense for those who enjoy seeking and finding the best bargains available. I don't think DVC was ever intended as a program designed to offer families the least expensive WDW vacation option. For what is is, it's pretty good. But a budget travel program it ain't.

 

[Mtnman44]

DVC is definately NOT for those looking to get the least expensive vacation at WDW. There are many other less expensive options.

It is however, in my judgment, the least expensive option for those that travel to WDW at least every other year and want deluxe-level accomodations.

 

[Sammie]

DVC makes sense even financially if you want to stay in DVC accommidations. Especially two bedroom and grand villa units.

It isn't however the least expensive way to stay at Disney on property or off. So it truly does depend on what you want to purchase.

We went to Disney for years, in fact from the 80s to 2000 before we ever bought DVC. For the money we spend in those years we could have bought many points. However at that time DVC did not offer what we as a family group wanted or needed.

As our family grew and our wants changed, DVC was a good fit for us. If it ever becomes a bad fit, we will simply sell our points.

 

[crisi]

The budget board has a different profile than this forum - this forum is a group of people committed to Disney as a lifestyle choice - that board is more likely to get people with an interest in Disney less obsessive - they are FAR more likely to see the people who hit the DIS to get tips for a once in a lifetime trip, or people who take a Disney trip once every five years instead of two or three times in a single year. There are people over there that are naturally frugal, they may make a lot of money, but they choose to spend it carefully - and if they get value offsite, that's what they'll do - a few of them (like me) do find value in DVC, but many of them don't. There are people over there that need to be frugal - they aren't making a lot to start with and keeping a mortgage, kids fed, cars running and squeezing in a vacation or two means they need to be frugal - the last thing they need is DVC. And there are people who are turning over a new leaf, who have been former spenders and are trying to get their debt under control.