DVC simplified.

[MeeskaMomma]

I am sure this question has been asked a thousand times but every search I came up with was too broad, so I am asking for the most likely thousand and one time.

Can someone please explain how DVC works and what the cost is? In simple terms. Really dumb it down.

We plan on going to Disney every year so I thought it was worth looking into, but DS said it would take like 50 years to to be worth it (or maybe he said 20 years and would be 50). Any who any clarification would be much appreciated.

 

[myxdvz]

DVC is a timeshare. You are pre-paying the cost of your lodging (repeat: ONLY lodging) for the next 50 years. You will still have to pay for your transportation to WDW (air or gas), tickets, food, etc.

Depending on where you buy and whether you buy direct or resale (better value), your ROI will vary.

Best case scenario, if you buy enough points for peak season stay from the RESALE market, but use it at off-peak seasons, you can stretch that 1 week into longer stays, THUS shortening your break even period.

Depending on all your circumstances, break even period is normally around 6-8 years (assumes you buy resale and don't finance). After that, you're getting your room at the cost of your yearly maintenance fees.

How it works is documented well on the boards - read the stickies. Cost will depend on how many points you buy, what your home resort is and where you buy (direct vs resale).

 

[Nabas]

I am sure this question has been asked a thousand times but every search I came up with was too broad, so I am asking for the most likely thousand and one time.

Can someone please explain how DVC works and what the cost is? In simple terms. Really dumb it down.

We plan on going to Disney every year so I thought it was worth looking into, but DS said it would take like 50 years to to be worth it (or maybe he said 20 years and would be 50). Any who any clarification would be much appreciated.

I suggest you read the following:

http://www.mousesavers.com/other-dis...vacation-club/

It should answer most of your questions.

Ultimately, DVC is a timeshare. You pay a lot of money upfront and annual dues (called Maintenance Fees) every year so you can get what amounts to a discounted stay at a WDW Deluxe Resort.

Calculating how long it takes to reach the breakeven point depends on a lot of information. It's a surprisingly complex calculation. Depending on what assumptions you make, the breakeven point can be reached in as few as about 3 years or long as never.

 

[AmyB2006]

Well, it's not for everybody. If you're really interested, I highly suggest you sit down with a DVC guide and have them explain it to you. Check out the link posted earlier. Don't feel pressured into buying just because you sat down with the guide. It isn't something that can be answered that simply for every single person. Lots of different factors will come into play.

Simply put, it's a timeshare. You purchase points at a "home resort" and you can use those points to book lodging throughout the year. How many points depends on how often and what type of accomodations you think you'll want to stay in. Anywhere from a studio up to a Grand Villa.

 

[BillPA]

I am sure this question has been asked a thousand times but every search I came up with was too broad, so I am asking for the most likely thousand and one time.

Can someone please explain how DVC works and what the cost is? In simple terms. Really dumb it down.

We plan on going to Disney every year so I thought it was worth looking into, but DS said it would take like 50 years to to be worth it (or maybe he said 20 years and would be 50). Any who any clarification would be much appreciated.

Call DVC sales, 1-800-800-9100 and request a DVD that explains about the workings of the DVC. Watch it a few times then post any questions you have on this board. You will find many on this board have a better understanding than most DVC sales people.

 

[chalee94]

Calculating how long it takes to reach the breakeven point depends on a lot of information. It's a surprisingly complex calculation. Depending on what assumptions you make, the breakeven point can be reached in as few as about 3 years or long as never.

yep - it varies a lot - you might pay $165 per pt directly or $60 per pt resale in upfront costs. annual dues varies by resort (see the DVC Resource Center.

it also varies by whether you are happy staying in a studio (like a hotel room but usually with only 1 queen bed and 1 pullout sofabed) or you want the space and amenities of a 2BR...

you can check out the point charts for the different size villas in the different resorts here:

http://www.wdwinfo.com/disney-vacation-club/DVCpoints.shtml

your upfront costs pay for your annual points allocation - you get 100 pts per year or whatever your contract says - it is a real estate interest similar to a lease as it expires at a certain date (depending on the home resort).

your annual dues pay for things like housekeeping, maintenance of the grounds and such. that also varies by resort as linked above.

take your time and look into it...then come back and keep asking questions...

 

[bwvBound]

Your 2yo son came up with that evaluation? Good for him!

 

[AmyB2006]

Your 2yo son came up with that evaluation? Good for him!

I didn't even catch that. That's funny.

 

[calypso726]

I am sure this question has been asked a thousand times but every search I came up with was too broad, so I am asking for the most likely thousand and one time.

Can someone please explain how DVC works and what the cost is? In simple terms. Really dumb it down.

We plan on going to Disney every year so I thought it was worth looking into, but DS said it would take like 50 years to to be worth it (or maybe he said 20 years and would be 50). Any who any clarification would be much appreciated.

Cost: is relative to how many points you plan to buy, which resort you plan to buy these points for and whether or not you buy them direct from Disney or on the resale market. You do not buy your points every year. Just the one time and then you receive the same number of points you have bought each year until your contract expires.

Buying Examples:
direct from Disney - BLT is $165 per point, AKV is $145 per point. BWV, OKW, SSR, BCV and VWL are $130 per point. VGF will be $150 once it goes on sale to the public.
resale market averages: BLT ~$97, AKV ~$71, BWV ~$75, BCV ~$75, OKW ~$70, SSR ~$67, VWL ~$85, VGF not available on resale market as it just started selling to existing members.

Buy where you want to stay if that will be important to you. Where you buy will be considered your home resort and you can book up to 11 months out at your home resort. At 7 months out you and everyone else can book wherever they want if there is availability.

How many points will you need:
This depends on which resort you will be staying, the time of year and the size/view of your accommodations.

Examples: I am using the lowest season and highest season point costs of a resort that generally has a lower point cost for accommodations, OKW and then one that has a high point cost for accommodations, VGF:

OKW for a weekly stay first week of December - studio 76 points, 1 bdrm 157 points, 2 bdrm 217 points, 3 bdrm grand villa 349 points.
Now same resort on the high end for points:
OKW for a week between Christmas and the New Year - studio 152, 1 bdrm 300, 2 bdrm 398, 3 bdrm GV 615

If you were staying at VGF (larger number of points required for accommodations) during those same times here is what those point requirements would be :
VGF the first week of December in either a standard view or lake view respectively - studio 125/148, 1 bdrm 247/296, 2 bdrm 359/433, GV ( all are lake view and 824 points.
VGF for Christmas to New Year: studio 227/271, 1 bdrm 463/551, 2 bdrm 632/752, GV 1419.

Use year, banking borrowing: Your use year is the month in which you receive your yearly points for that year. My use year is September. I chose September because I most often travel to WDW between October and March. I will receive my 1000 points every September and have until August 31st of the following year to use those points. Banking: If I do not plan to use all of my 2013 points that I will receive this September I can bank some or all of them into the next year anytime during the first 8 months of my use year (September - April). Once banked those points must be used in your 2014 use year. Borrowing: If I need more than the 1000 points I will receive in September 2013 then I can borrow from my 2014 points. Once borrowed those points stay in the 2013 use year and cannot be banked.

Booking your vacation: You may book 11 months out at your home resort. You do not need to wait until your use year month arrives to book the following year's vacation. Example: Let's say I used all of my remaining 2013 September use year points for a stay the first week of December in a grand villa at the VGF this year. I decide I'd like to do that again next year. I don't have to wait until September of 2014 to try and book the resort. I can book it 11 months out January 1, 2014 since they will be using the points I will be getting in September of 2014 for my December 2014 vacation. If I wanted to stay in August of 2014 I could still book that but then I would have to borrow those points from my September 2014 use year.

Maintenance fees: each resort carries annual maintenance fees in addition to the initial cost to buy your points. Depending on the resort they range from $4.49 per point - $5.79 per point for the ones located in WDW.

I hope this helps

 

[Mickey'sApprentice]

You are getting new points to spend every year. It may help to think about points like dollars.

We own 100 points at BWV. We get 100 new points every year. We can look at the points charts (listed at the top of this page) to figure out how we want to spend our points.

Rooms have different point values according to how big of a room you want and when you want to use it. For instance, we could use our 100 points to stay 10 days in a standard studio in January OR we could use our same 100 points to stay 2 days in a boardwalk view 1 bedroom at Christmas.

We purchased our points at the Boardwalk Villas. That is considered our "home" resort. Your home resort gives you priority and sets your maintenance fees.
Priority - You can reserve room(s) at your home resort 11 months in advance. This gives you priority at that resort because others must wait until 7 months before the reservation. That pretty much guarantees that you can get some kind of room at your home resort. You can also reserve reservations at other resorts 7 months in advance. (Some people choose to reserve at the home resort at the 11 month window and attempt to switch to another resort at the 7 month window.

Maintenance fees - Your maintenance fees pay for the day to day operations of the resort. That includes the maid service and the front desk, etc. You are literally paying to keep the lights on. You are also paying for a new roof, painting, and the new sofa that you'll eventually buy.

So...let's say you decide that you want to stay in a standard boardwalk studio in January this year for 5 days and spend 50 points. You can bank the other 50 points and use them the next year. Let's say you decide to do that...Here's another scenario.

You've banked those 50 points from 2013 into 2014. You would also get 100 new points to use in 2014. You could also borrow 100 points from 2015. Now let's say your daughter is getting married in 2014 and wants to invite family to watch her get married at Seabreeze Point at the Boardwalk. For arguments sake, you notice that point charts are most favorable in January. (September would be good for this too!) Anyhow, you know that you've got 250 points available to use (50-2013, 100-2014, 100-2015). You could reserve 10 studios for 2 nights and 1 studio for 5 nights (for the happy couple of course).



Finally, you are competing with other people to make reservations. You can generally get something at your home resort within the 11/7 month window. You can generally get something somewhere on property within 4 to 5 months before your reservation. There are times when you could call on your way down and find a room BUT it won't be a popular room at a popular time. Saratoga Springs is often available for last minute reservations. To see the requirements, look at the Saratoga points charts.

Popular times at DVC are not necessarily popular times for other guests. Those cheap rooms in January make DVC more popular then than it is for the average Disney visitor.