DVC...Need quick advice! Are there any CONS?

[Mirthrindr2]

A previous post on this thread said that there would be a fee starting next year for about $95 a pop anytime you used points for anything other than a DVC stay (like for the DCL cruise, etc). Is that true? (not like I'm thinking you're lying but I wanted to make sure I'm understanding this!)

No problem Carol, I understand. Not sure if it's for ALL possible locations you can stay across the globe using your DVC points, but this is directly out of the 'Product Understanding Acknowledgement' document which is part of the contract paperwork we just received this past week:

"- Currently there is a non-refundable administrative fee of $75 for each requested exchange through the World Passport Collection or confirmed reservation through Disney Cruise Line; and a non-refundable administrative fee of $95 per confirmed exchange reservation using the Concierge Collection and Adventurer Collection. There is no exchange fee to request or confirm a reservation at any DVC Resort or the Disney Resorts hotels.

- Effective January 1, 2008, the non-refundable administrative fee will be $95 for each requested exchange through the World Passport Collection or confirmed reservation through The Disney Collection (except Disneyland Resort hotels in CA), Concierge Collection and Adventurer Collection."

I don't see the DCL specified in that second paragraph, so I'm not sure if the fee will increase to $95 for DCL as well, but as can be seen, they WILL be applying a $95 fee for each reservation made to the WDW non-DVC resorts (aka The Disney Collection). Actually, now that I think about it, since DCL is part of 'The Disney Collection', one can probably assume the fee increase will affect DCL reservations as well.

 

[DLBDS]

Ok, talked to DH and this is what he says.....

The following figures are based on a WL resale listed at The Timeshare Store (210 pts./$82 per pt.)

$20,000 (Total cost of points w/ interest....guestimate)
$35,000 (Total cost of MF over 35 years)
$55,000

$55,000 divided by (don't know how to type that symbol) $2,000 (approx. cost to stay a week at the WL) = 27 1/2 years (our break-even point)

Does this make sense to you guys? I was just figuring the total cost of points w/ interest and a break-even of 10 years. The MF, I figured, were what we would pay annually for our vacations. I'm awful at this kind of stuff and don't trust my logic. How did you guys figure your break-even? Right now he's leaning towards NOT doing DVC as it's just prepaying for your vacations. He feels that we should just pay OOP every year. Of course, I don't feel the same as he does.

 

[Chuck S]

Ok, talked to DH and this is what he says.....

The following figures are based on a WL resale listed at The Timeshare Store (210 pts./$82 per pt.)

$20,000 (Total cost of points w/ interest....guestimate)
$35,000 (Total cost of MF over 35 years)
$55,000

$55,000 divided by (don't know how to type that symbol) $2,000 (approx. cost to stay a week at the WL) = 27 1/2 years (our break-even point)

Does this make sense to you guys? I was just figuring the total cost of points w/ interest and a break-even of 10 years. The MF, I figured, were what we would pay annually for our vacations. I'm awful at this kind of stuff and don't trust my logic. How did you guys figure your break-even? Right now he's leaning towards NOT doing DVC as it's just prepaying for your vacations. He feels that we should just pay OOP every year. Of course, I don't feel the same as he does.

But there is an unknown...the ever increasing cost of Disney resort cash reservations.

I remember paying about $180 (and I though that was high) a night for a park view tower room at the Contemporary in 1991. It is now $400 to $570 per night, depending upon season.

 

[crisi]

If you are going to buy resale, I'd just hang here for maybe two weeks. You will learn:

Most people LOVE their DVC.

Sometimes rooms aren't available short notice.

You need to plan - it can be hard to know when to bank points (its a phone call to do so).

It can be hard to book your non-home resort seven months out, but it isn't impossible - just depends on which resort, what timeframe and how critical it is to you.

Occationally there seem to be maintenance issues. Not significantly enough that I myself have been disappointed, but you should be aware and evaluate them.

There will ALWAYS be changes to the program. Next year they may announce villas at the Poly or the Contemporary. They might drop our annual pass discount, or make us ineligible for the dining plan. They may make add discounts. You never really know. Buy what you are contracted for - everything else is a bonus.

 

[Selket]

I think that is right - there is no inflation built in for your WL hotel stays for 27 years - it is all in 2007 dollars.

I guess you need to know how much the deluxe resorts usually increase in price every year and factor that in. I'm sure 27 years from now it will cost more than $2000 to spend a week at the WL.

Are you also comparing the same type of room that you would pay cash for at WL vs. the type of room you'd get with the DVC?

There is also the fact that maintenance fees will go up too - I think there are websites with the avg. annual increase given (maybe 3-4%?).

I think it is more complicated than that perhaps but that is something thing that you didn't figure in.

 

[Mirthrindr2]

Ok, talked to DH and this is what he says.....

The following figures are based on a WL resale listed at The Timeshare Store (210 pts./$82 per pt.)

$20,000 (Total cost of points w/ interest....guestimate)
$35,000 (Total cost of MF over 35 years)
$55,000

$55,000 divided by (don't know how to type that symbol) $2,000 (approx. cost to stay a week at the WL) = 27 1/2 years (our break-even point)

Does this make sense to you guys? I was just figuring the total cost of points w/ interest and a break-even of 10 years. The MF, I figured, were what we would pay annually for our vacations. I'm awful at this kind of stuff and don't trust my logic. How did you guys figure your break-even? Right now he's leaning towards NOT doing DVC as it's just prepaying for your vacations. He feels that we should just pay OOP every year. Of course, I don't feel the same as he does.

And to Chucks point, the cost for your DVC accommodations will generally remain the same over the life of your contract..., pts. per night 25-27 years from now should be the same as it is today, while OOP costs will be guaranteed to increase over the years.

Without getting into all the detailed peculiarities, in general Disney cannot increase the number of points required for a nights stay in the same way 'cash' prices will continuously increase over time due to inflation and so forth. I am generalizing a bit... there are some very specific rules that describe how Disney can play with and adjust the pts./night numbers, but what it boils down to is, if they increase the pts./night for a given date or room type at a DVC resort, they have to DECREASE the pts./night cost at the same resort for some other date or room type for the same UY. Think of the adage, “For every action, there is an equal and opposite reaction”. Dig around the board some more to see how this aspect works.
However, annual Maintenance Fee will certainly continue to go up over the years as well, counteracting some of the savings gains.

Also, DVC ‘benefits’ are always subject to change, but currently you get a $100 discount off the price of Annual Passes and $125 off Premium Annual Passes. Consider that when estimating your OOP versus DVC costs. That's a $200 savings PER year per couple for AP's for as long as this offer continues.

I think one additional consideration..., are you comparing like accommodations? If you are comparing standard room accommodations at the main Lodge against the superior DVC accommodations, then you are comparing apples and oranges. I think your dollars are stretched further when you get more for your money such as when you get a nicer DVC room. For example, currently, 200 pts. gets a weeks stay in a 1BR DVC villa at VWL during the least expensive season. Using the average price per point to RENT at WL, about $11/pt. I believe, that comes out to $2200 total. When you say you're average stay at WL has been $2000, are you staying in a 1BR Suite? You could be, by using DVC points for nearly the same amount of money. And I would say even the Studio DVC rooms are still more valuable and would cost more than the standard studio rooms in the main lodge.

It IS a very long commitment you are making when purchasing DVC, so having reservations about it is understandable. Best of luck with whatever you choose.

 

[Jaaron2]

When looking at it from a financial standpoint I think you simply need to consider the following things:

1) Can you afford it? Many people will tell you that they paid cash up front for their DVC (as we did with our main purchase at AKV) or financed for 10 years or less to cut down on the finance charge). There are many creative ways to do this. One would be with a zero interest credit card over an exteded period of time. When the zero interest runs out onthe card transfer it to another zero interest card (we have done this in the past and it works out great if you are committed to paying it off)

2) Not looking to profit from purchase: Many people on the threads want to know if they will be able to resell their contract at some time and make a profit. DVC is not structured in that manner. Can you get some of your money back at a later time...yes....based on how many vacations you take before that will you come out ahead...yes.

3) The main reason to purchase DVC is because you love Disney, the atmosphere and what is has to offer (Also the security of knowing that future vacations are already paid for). For us with three kids it was a perfect purchase to be able to spend many quality vacations with our kids and have the ability in the future to do the same with our grandkids (and not have our kids have to pay for pricey vacations when just starting out in life).

Buy becasue you plan on coming, coming often, really enjoy the experience and most importantly because you can afford it.

 

[DLBDS]

When looking at it from a financial standpoint I think you simply need to consider the following things:

1) Can you afford it? Many people will tell you that they paid cash up front for their DVC (as we did with our main purchase at AKV) or financed for 10 years or less to cut down on the finance charge). There are many creative ways to do this. One would be with a zero interest credit card over an exteded period of time. When the zero interest runs out onthe card transfer it to another zero interest card (we have done this in the past and it works out great if you are committed to paying it off)

2) Not looking to profit from purchase: Many people on the threads want to know if they will be able to resell their contract at some time and make a profit. DVC is not structured in that manner. Can you get some of your money back at a later time...yes....based on how many vacations you take before that will you come out ahead...yes.

3) The main reason to purchase DVC is because you love Disney, the atmosphere and what is has to offer (Also the security of knowing that future vacations are already paid for). For us with three kids it was a perfect purchase to be able to spend many quality vacations with our kids and have the ability in the future to do the same with our grandkids (and not have our kids have to pay for pricey vacations when just starting out in life).

Buy becasue you plan on coming, coming often, really enjoy the experience and most importantly because you can afford it.

I agree and I meet ALL the criteria. I've already thought about the 0% interest credit card too but haven't mentioned it to DH. Right now he's against DVC and I think he's getting a bit tired of me talking about it at this point. I was online all afternoon yesterday researching and telling him things as I learned them. I even made him listen to the DIS podcast about DVC via TTS. Right now we have 3 choices....buy at the VWL through a resale (fewer years), wait and buy directly through DVC at the CR (50 years) or, and I don't like this option...don't buy in at all. I don't feel pressured anymore to make a decision right away so I'll continue researching and see what happens. We'll be in a much better financial situation in about 6 months. We bought a fixer-upper earlier this year and are still paying off the costs to fix it up. Gotta love those 0% interest cards! Quick question....the DVC rep that spoke to us during the Open House...is he called our 'guide'? I see references to "guides" here quite a bit.

 

[Jaaron2]

I agree and I meet ALL the criteria. I've already thought about the 0% interest credit card too but haven't mentioned it to DH. Right now he's against DVC and I think he's getting a bit tired of me talking about it at this point. I was online all afternoon yesterday researching and telling him things as I learned them. I even made him listen to the DIS podcast about DVC via TTS. Right now we have 3 choices....buy at the VWL through a resale (fewer years), wait and buy directly through DVC at the CR (50 years) or, and I don't like this option...don't buy in at all. I don't feel pressured anymore to make a decision right away so I'll continue researching and see what happens. We'll be in a much better financial situation in about 6 months. We bought a fixer-upper earlier this year and are still paying off the costs to fix it up. Gotta love those 0% interest cards! Quick question....the DVC rep that spoke to us during the Open House...is he called our 'guide'? I see references to "guides" here quite a bit.

You will be assigned a "guide" from Disney. Whenever you call into member services (for questions, purchases, add on's etc) you will be directed to your "guide". This individual will be assigned to you as long as he remains in that position with Disney.

I cannot say for sure that the person you spoke with would be your actual guide but it could be possible.

I do feel for you... I know the more I investigated DVC the more I just "had to have it now!" We just bought in May at AKV and have since already added on at BCV. We leave for vacation on Nov. 23rd to SSR for 10 days and I cant wait!!! I have never seen the DVC presentation myself so I am planning on going when I am down. I just have to convince myself not to buy anymore points right now. I did a ton of research so if you have any more questions let me know and I will try to help you out.

I hope everything works out for you and I can be welcoming you home in the future

 

[J and R's mom]

Hi DLBDS! From your signature, it appears you guys head to Disney quite often. I think DVC would be a good choice for you.

A few questions:


1) Have you ever stayed in DVC accomodations?

It might be worth renting some points from a member (Click on this forum) and seeing if you like the DVC rooms/accomodations before you buy. Now that I've stayed in a DVC studio, it will be very hard for me to want to go back to a regular room. The kitchenette is VERY handy. Of course, it's even harder for me to stay in a studio now that I've stayed in 1br and 2br units.

2) Will you be okay with not getting daily mousekeeping (unless you pay the extra charge for it)?

I notice that you like to stay in the posher sections. Although the DVC rooms themselves offer more space and ammenities, you might not get the same level of service (no daily mousekeeping, no concierge--except AKL) that you get in the regular rooms.

3) Can you make most of your trip plans more than seven months out?

If so, your home resort REALLY WILL MATTER. It's becoming harder to book at seven months out now. Last minute trips (within a couple of months) are even harder...although OKW and SSR tend to have availability.

Just remember that DVC prices have increased (and will continue to do so) over time. WebmasterDoc has a thread that lists the DVC prices per point since inception. Maybe he can list a link to it here?

Good luck in your decision (and getting your DH to agree). I'm hoping to welcome you home soon.