DVC Newbie Question

[hyzdufan]

So let's say I purchased 200 points at $84 each for $16,800. I know I would receive the points every year to use, and that can I can borrow, and save points up for a few years in advance, or behind.

How many years do I continue getting these points for before I have to pay again?

 

[Nick@ VB+OKW]

If you buy at SSR it will last for 50 years. You will only pay the dues(maintenence fees) every year. On 200 pts it would roughly be $800 yr in dues.

If you buy re-sale at OKW,BWV,VB,HH,VWL it will last until 2042.

 

[Deb & Bill]

You can only bank or borrow one year. So you can have up to three years' points to use at one time.

 

[hyzdufan]

So paying $16,800 for the points, and then $800 a year in maintenance fees...what makes this worth it? It just seems a bit pricey to me...

 

[helenabear]

I know it does seem pricey... that's what has kept me from buying into it until this year. I finally ran numbers on a spreadsheet and it worked out that this will at least match what I pay a year (for the first 4 years) or become considerably less than what I pay a year for my average travel habits.

You have to look at the $16K as a one time buy over the course of the 50 years. And then the maint will be there every year. I did math on this and in my case, even with interest added, I will be paying on average, about $3/point/year for the next 38 years. The maintenance will actually be the most expensive part for me, but still if I take that average and add it to the maint, I am still spending less for a room for one week than I would for two trips (with my discount codes I get). Or if I do the math for the points for just the life of the loan I can look at it the way I first mentioned and after 4 or 5 years I will be ahead again (given average increases in hotels and all that).

My dad helped me come up with an excellent spreadsheet to work average costs and even how much more/less I would make if I just put the amount/year in a savings account and got 3, 6 or 9 percent a year in return. Interesting how the numbers work out.

I agree that this isn't for everyone and it can be more costly (especially if you stay at values or even a moderate at the AP rates... which I must say I doubt will be around as much in the near future), but in my case I will either be very close to breaking even the first few years or come out ahead based on my travel habits.

 

[Cruelladeville]

I thought it was pricey, too, when I first toured OKW in 92, but I first began going to WDW back in the 70's when Poly cost a whopping $65 per night, and now they cost over $300, so prices do go up. I finally bought in 97, when I figured that the cost per night for a studio was about $60, and I was paying over $100 per night at Caribbean Beach. That $60 is high, since I was trying to figure all costs, including interest, and I used the interest in the first year times the total years of the loan, which is much too high.

If you go to WDW most years, then DVC is a good choice, especially if you tend to stay at places like Poly rather than at All Stars. DVC is quality and luxury, not just your basic place to sleep. Don't even consider DVC if a Motel 8 is good enough for you.

 

[tjkraz]

Since your next stay is at Port Orleans, let's see how far 200 points would go in a DVC studio room.

A studio at Old Key West, Sunday to Thursday night, in Adventure or Choice season (Jan, Sept, Oct, Nov except Thanksgiving and first 3 weeks of December) will run you 8 points per night. That means for 200 points you could get as many as 25 nights in a DVC studio.

With maintenance fees of $800, those 25 nights would cost you $32 per night. How does that compare to what you are paying for your moderate room?!?!

Other DVC resorts / room types / seasons / days of the week will require a different amount of points. As they say, your mileage may vary. You can use the point calculator on this web site to plug in some of your own criteria and "price" out the stay.

There are no resort taxes--you pay NOTHING when you check-in at the resort.

There are also a few other ways you can save here and there. If you finance the purchase though DVC, the interest paid should be tax-deductible if you itemize on your 1040. A portion of the annual fees represent property taxes, which are also tax deductible. Lastly, even in a studio you get a kitchenette (mini fridge, toaster, sink, microwave.) Just two people can easily save $30-40 per day buying things like bottled water, soda pop and breakfast food (waffles, pop tarts, cereal) at a grocery store rather than paying WDW prices.

There are a few situations where DVC doesn't make sense for people. If you like to make long weekend stays, it will be difficult to justify since the point costs are much higher on the weekends. It can be difficult to book on short notice, so DVC typically works out well for the advance planning crowd. And, remember even the smallest DVC rooms (studios) feature better amenities than most Deluxe resorts. So comparing costs with a Value resort just won't fly. These are not value resorts.

But beyond that, there are many very good reasons that 80,000 families have chosen to buy into DVC.

 

[all5ofus]

Originally posted by hyzdufan
So paying $16,800 for the points, and then $800 a year in maintenance fees...what makes this worth it? It just seems a bit pricey to me...

I'm not yet a DVC member, but hopefully will be soon. I'm trying to find the illusive BCV resale.

I stayed at the Poly over spring break for a week and paid about $4,000 for the room with taxes. a BCV studio for a week in premier season is 181 points. As I figure the cost of the points over 37 years and add in annual maintenance, the BCV studio would probably cost abound $1,100, $2,100 for a 1BR, and $2,900 for a 2BR for a week in premier season (assuming a cost of $77 per point). Based on that DVC would actually be a cost savings. I've paid similar amounts at WDW deluxe resorts for each of the past 3 years so if I had bought DVC 4 yrs ago it ould have nearly paid for itself already.

You can certainly stay at WDW for less money, but you cannot compare the quality of a DVC resort to a value or moderate class resort. You need to decide what type of vacation meets the needs of you and your family.

The upfront cost of the purchase may be difficult for many to justify on a cash flow basis, but the actual cost of ownership does make sense compared to the cost of staying at WDW deluxe resorts.