DVC versus AP

[disneycrazed139]

With all the AP benefits--very deep room discounts, what pushed you over the edge to buy DVC?

If I buy an AP at 392 (about?) per year, I figure that equals what the annual dues are or somewhat less. Then I get about 40% room discounts.

Opinions? Can everyone explain why they bought? Did you compare to AP?

 

[JohnNJ]

See my reason for buying in. I love using AP's.

http://www.disboards.com/showthread.php?s=&threadid=414872

John

 

[Lesley]

AP rates aren't always available...and over time DVC will still cost less. Also, if you plan in advance, AP rates aren't available until much closer to your dates....and you may not be able to get exactly what you want. If I take a comparable resort and look at typical AP rates, I'd pay approx. $1260 per year for a week long vacation. I'm equating a room at a deluxe resort with a DVC studio (and the studio has a refrigerator and microwave). My annual dues are about half that amount and I could stay for up to 19 consecutive nights in a studio with my current # of points. Once you go into DVC's larger accomodations its harder to create equivalents.....but if I had paid rack rates for the rooms I've stayed in with my DVC points so far, I'd have spent well beyond my initial purchase cost plus the dues I've paid so far. And that's in only 3 years. Also there is a limit on the amount dues can increase each year....room rates do not have such a limit.

We do buy AP's to get into the parks, and occasionally use the room discounts for a day or two to try something different. But DVC is the way to go for us. We basically prepaid 42 years worth of vacations...and get a substantial financial savings by doing so.

But then again, its not all about what's least expensive. We probably could stay at the All Stars every year for about the same cost....but DVC accomodations are far superior. We kind of like the idea that we own a small part of our favorite place! And its nice to not have to figure in room costs when taking a vacation....of course with AP's we often take vacations that we don't have to figure in the cost of park passes either! Its nice going on a vacation that everything besides food is covered.

 

[sheryl0521]

I just booked a room with a DVC Cash discount and got 25% off my room, while my AP was only going to get me a 16% discount.

I wanted a 1-bedroom at WLV on a specific date, so perhaps that is why I couldn't get a better AP discount.

Sheryl

 

[Cruelladeville]

I am an AP holder, and I love it! I wouldn't give mine up for anything! I like to use the AP rates for the weekends when DVC room points are more. I always use my DVC during the week, when the cost for my studio works out to be around $60 per night, on the weekend it's nearly double, and that's when I use the AP rates, but only if the cost is less than $120 per night, otherwise it's cheaper for me to use my points. This way I get twice as many trips in a year than I would ordinarily get. This year I will get 5 trips, but the one I am taking next weekend is a shameless extravagance, at 164 pts for 4 days at ALK. I had some pts in holding to use up, but it's still shameless. So I am getting a "free" trip, the room is on points, the flight is on membership rewards, and I have an AP for the parks--all I pay for is food. That's why I love DVC and my AP.

 

[Lisa F]

AP rate for boardwalk: $204/night, $226.50/night with tax. For 12 days (checking in sunday, checking out a week from following friday) that is $2717.28

DVC points: Say you buy in right now at the boardwalk resale for $75/point including closing. At 39 years left on the contract, that's $1.92/point/year. With dues it's about $6/point/year. I'll even use preferred view points. The highest season NOT including christmas/easter holidays (when you wouldn't get AP rates anyway) would cost you 204 points for the same stay in a studio (the closest equivalent to what you will get with AP rate). At $6/point that's $1225.

Say you want 2 full weeks. Cash AP rate is $3170. Using the same season (magic) preferred view including 4 weekend days is 268 points, or $1608.

Even if you finance and end up paying DOUBLE your initial investment in interest, say that's $4/year/point for the initial investment and $4/year/point for dues. That's $8/year/point. For 12 nights (2 weekend nights) that's $1632 for DVC vs. $2717. For 14 nights (4 weekend nights) that's $2144 for DVC vs. $3170.

Hope that helps! Remember, those numbers are for the most expensive season. By the way, we bought in 4 years ago at $55/point. We figure our cost per point is $1.30/point/year. Dues have gone up less than $.10/point. AP rates were $169 for the boardwalk when we bought in. 4 years later they are $204 at the boardwalk for the same time of year.

Lisa

 

[DebbieB]

I stayed at OKW 1 bedroom in May, 5 weeknights were 100 points. The AP rate was $301 including tax. So 5 nights would be about $1,505. I only paid about $1,000 in dues for this year for all 250 points I own, I still have 6 nights at BWV in December to go (121 points). I bought DVC about 4 years ago at $65 per point, I could probably recoup my initial investment in a resale, it's already paid for. So I'm getting 11 or 12 nights per year in a 1 bedroom for $1,000 in dues.

 

[Simba's Mom]

What pushed me over the edge was that after I'd booked POR with an AP rate, a few weeks before I was going, they had to switch me because it closed. I felt kind of like Chevy Chase in "Vacation", I was pretty upset! So one reason was, they don't close DVC. Also, the feeling of "owning" part of WDW was very appealing, far more than the feeling I got when I got my first AP.

 

[vernon]

What pushed me over the edge (in 1992/3) was the thought of free Length of Stay theme park passes up until the year 2000. I reckon that alone saved me well over $1,000 a year over that 7 year period.

Obviously that perk finished long ago, but for a more current opinion. As has been pointed out the AP rates are not always available, not always as aggressive as they are in the current very difficult climate and not guaranteed at all for the future. It's a little less obvious now as to the financial benefits (no where near as easy to see as they were in 1993, that was just a no brainer IMHO) , but it doesn't require an enourmous leap of faith to work out that DVC is likely to be a long term saving over paying cash rates for rooms, even with discounts for APs.

On a side note, how much has the cost of that AP gone up over the last 10 years? Have you considered how much an AP will cost in 40 years? While it's true that an AP may be your ticket option of choice, it may not be the case that you always want to buy an AP, in which case you'll be paying top $$ for your room.

 

[jaysue]

On AP Rates not being available all the time - right now unless something changed today, there are no AP rates for after August 23rd at this point

If you love Disney, DVC makes it easy and almost care free if you can afford it to go to Disney

Thanks
Jason

 

[Disney Doll]

Our reasons for buying DVC:
1. We knew we'd be going at least once every other year(and as it turns out, we have been able to go twice a year since we bought and some years we even sneak in a 3rd trip!).
2. When we were paying on our loan, it was easier for us to come up with $180/month than it was for us to save the big "chunk of change" to book a room for a week.
3. The accomodations are superior to the moderates, which is generally where we was staying when we went to WDW, but for a couple of exceptions when we went to a deluxe.
4. It was a safe investment...if it had to be sold for some reason, it probably wouldn't be sold at a loss.
5. Now that the loan is paid off, we pay about $1440/year in dues. For that $1440, we get deluxe accomodations plus, and have enough points to stay almost 3 weeks a year.

 

[FOTM_Ring_Bearer]

We just closed on our DVC last week. It took me a while to justify the cost. My DH was convinced, but I wasn't. After lurking on this board for a while, it finally made sense. Once you figure out the cost per point, you are basically getting deluxe resorts for moderate prices.

We've been buying annual passes since 1998 and the last couple years the AP discounts have been really good. But at some point I think the 40% off rack rates is not going to be there.

 

[dvc_john]

Take a look at the Resorts board for the thread with all the people going crazy because no AP rates have been released For September and beyond. I've had my November, December, New Year's, January and May DVC reservations booked months ago. No stress here waiting for AP rates!