DVC Purchase vs Just Renting Points

[NJ2Boardwalk]

Can someone tell me the advantages of buying @ 82 per point when I can rent @ 10 to 14 per point?

 

[gppnj]

If you just rent, deep down you'll know you're living a lie.

 

[JimFitz]

Here we go again.

 

[crisi]

Pro's to "just renting"

No long term committment to points

Possible to switch "home resorts" easily and get the eleven month window by chosing the appropriate owner

More flexibility. Can use 100 points this year and 600 points next year just by finding the right owner with points.

Cons to "just renting"

You don't lock in pricing. Will you always be able to rent for $10 per. DVC dues DO change, but a 5% increase in $4 is less than a 5% increase in $10.

You have some risk. Its small, but the member controls the reservation and can cancel.

You need to find an owner each year and make arrangements and hassle. Members pay their dues once a year and call 11 months out (or whenever) for their reservation.

If you look at it over the past few years, its been more expensive to rent than to own - primarily because the points have continued to appreciate. Like building equity in a house - I could rent month to month cheaper, but when I'm done I don't have anything. DVC does have a "shorter term" equity proposal in that ownership reverts to Disney after a period of time, and eventually points will be worth less to reflect the shorter remaining term of ownership. But they haven't started depreciating yet.

 

[ColoradoBelle1]

If you just rent, deep down you'll know you're living a lie.

 

[JimMIA]

If you just rent, deep down you'll know you're living a lie.

OH...that is cold! True...but cold...

 

[littlestar]

We decided it was worth it because we go EVERY year and we want to stay deluxe. If I was happy with value or offsite, no it's not worth it to buy in. But I want to stay deluxe every year on Disney property. So it made sense for us to buy in. And, we'll go on vacation no matter what (Lord willing). I'm not going to sit home and save every penny for retirement or stay super cheap for a vacation. I do save for retirement, but not to the extreme! hee hee I have relatives that do that and they have no family life whatsoever with their children. I decided a long time ago when I die I want to leave a bunch of great memories for my children and some day grandchildren.

Recently I revisited the financial figures for the way we vacation.

I made a list of (3) different scenarios. We go (3) times a year on average and usually stay in studios. I added up the cost of what our trips would be with an annual pass rate. Studio rooms would be about $250 a night, plus tax. At about 22 days a year that comes up to about $6,100 a year (if you can get the passholder rate). This will go up an average of 3% to 4% a year also I figured. So renting came out way cheaper than the passholder rate.

Then I figured a 10 year average of renting points for those points I need. At 337 points (figuring a DVC studio at about 22 days a year). It won't stay $10.00 a point forever so I came up with a 10 year figure of renting points for 22 days a year of around $43,000 (probably more) over a 10 year period.

Then I figured our buy in of our 340 points was about $25,500 and an average of dues for 10 years and it came to about $42,000.

So I figure after 10 years we've broken even on our original purchase with the dues and after that we're going for dues alone every year. So somewhere along the line break even happens and we're paying less than renting DVC points or an AP rate.

We love staying on Disney property and have loved it since about 1994 (wish I would have known sooner about the vacation club).

Good luck with your decision. No regrets here.

 

[JimMIA]

Pro's to "just renting"

No long term committment to points

Possible to switch "home resorts" easily and get the eleven month window by chosing the appropriate owner

More flexibility. Can use 100 points this year and 600 points next year just by finding the right owner with points.

Cons to "just renting"

You don't lock in pricing. Will you always be able to rent for $10 per. DVC dues DO change, but a 5% increase in $4 is less than a 5% increase in $10.

You have some risk. Its small, but the member controls the reservation and can cancel.

You need to find an owner each year and make arrangements and hassle. Members pay their dues once a year and call 11 months out (or whenever) for their reservation.

If you look at it over the past few years, its been more expensive to rent than to own - primarily because the points have continued to appreciate. Like building equity in a house - I could rent month to month cheaper, but when I'm done I don't have anything. DVC does have a "shorter term" equity proposal in that ownership reverts to Disney after a period of time, and eventually points will be worth less to reflect the shorter remaining term of ownership. But they haven't started depreciating yet.

And...as usual...Crisi has nailed it.

Renting is a great way to get to know DVC, and it's a great way to enjoy a great occasional vacation bargain. But it's not a long term strategy.

 

[JimMIA]

The other comment you will hear from a lot of people is that buying DVC is more than a financial decision. Many will argue, and rightfully so, that they spend more money with DVC than they would spend without DVC. But DVC also amounts to a committment to taking at least one quality vacation a year with your family...and it's hard to put a price tag on those memories.

DVC is not for everyone, and I often suspect it is most worthwhile for those who can afford the expense and benefit from the pressure membership creates to step back and focus on what's really important on a regular basis.

 

[Disney Doll]

Because you have a piece of the magic.

 

[Granny]

By your signature, it appears that you visit WDW every three years or so. DVC contracts have another 37-49 years of use on them...do you think you will continue to make frequent trips to WDW for the next few decades?

If you think you will want to go on occasion, but aren't planning on a whole lot of trips, then renting is probably your best bet.

If you just rent, deep down you'll know you're living a lie.

Wow, that's a rough response to someone with only 5 posts to their name! Hopefully, they'll understand it in the spirit intended.

 

[JimMIA]

Wow, that's a rough response to someone with only 5 posts to their name! Hopefully, they'll understand it in the spirit intended.

Granny is right about that. I didn't notice the number of posts, so I apologize for piling on. Your question is a very valid question, as you can see by most of the responses.

 

[spiceycat]

I only know my situation and it make great sense for me and it continues too

when I first brought it was $52 a point and we got FREE tickets to WDW every time we came!!!

I dearly love my DVC. I have owned it long enough that I am only paying the dues - where else can I say for $24.08 a night - $3.01 * 8 on property. I don't count the taxes because I write them off.

Now I can definitely understand your situation being different. Especially at the prices that DVC is now charging. but I got a GREAT deal!!! and I still continue to enjoy my DVC to this day.

If I haven't brought DVC and I almost didn't. then we would still have gone to WDW every year I would have just had to pay cash. that would haven't gotten very expensive.

I have managed to save money - but I go cheap - stay in a studio and cook my own food (or at least fix it). with the annual pass discount I have even saved on my tickets this year.

now I look back and wonder - if I had brought the condo in Fl for $50,000 which I almost did - boy did it increase in value now it cost $400,000....but I still don't regret buying DVC.

nothing else has the magic!

 

[Deb & Bill]

Another reason to buy instead of rent: You have more control over your reservations. If you want to change it out at 7 months, you just call MS and change it. If you need to cancel or reschedule, you just call MS and do it. Then worry if you are within 60 days of your reservation. As long as you pay your maintenance fees, they are your points. If the owner you are renting from decides to sell their contract, your reservation is cancelled.

 

[TammyAlphabet]

If you just rent, deep down you'll know you're living a lie.

 

[Laurajean1014]

Both. Buy DVC and rent when you do not want to travel. You get the best of both worlds.

 

[SoCalKDG]

AP discount as an owner, not available as a renter.

 

[Cruelladeville]

Well, let's say that you are renting 150 pts every three years, and you pay $1500 for those pts. If you bought 50 pts and used them every 3 years for your vacation, you would have the pts pd off in about 9 years, and after that you are vacationing on the cost of the dues, about $600. Now, you're getting a huge deal, and you can STILL sell the 50 pts and recoup your original investment, or maybe even more, so all those vacations cost you about $600 vs the $1500 you paid as a renter.

 

[Mom B]

We've rented a few times, and just bought in last year, haven't even taken our first trip "home" as actual members. Maybe it's too soon to tell if it was a "good" decision or not...I just know that it feels great to "belong"! And I guess for me, that makes it worth it.

 

[Deb & Bill]

AP discount as an owner, not available as a renter.

Actually, anyone can get an AP discount. But only a member can get a Member Discount from MS. Unless I misinterpreted your response.