DVC Virgin...

[SharpMomOfTwo]

I'm sure these questions have been asked a million times (just like the stroller questions on the family board!!! )
Though we cannot afford it right now , I'm really interested in joinging DVC. I called today, and the guy said that to join its something like $17,000 for the stuido, and then something like $750 per year, but after I told him that was a bit out of our range right now, he almost hung up on me!!!
The first woman I spoke with said that there was nothing left in the Boardwalk, but then the guy I spoke with said there was... whats the deal with that, do they or don't they?
I was also wondering if you can BUY into moderate resorts, like POFQ or whatever, or if you HAVE to buy into AKL or Boardwalk, and if you buy into a moderate is it cheaper?
If you buy into AKL, can you use your points to stay somewhere like POFQ and make your points last longer?
Does anyone share their DVC with anyone to cut costs and only take a vacation once every other year? Are you allowed to do that?
After paying all this $17k and $700+ a year, do you have to pay anything at all when you book your room?
When does it start being worth it?? When do you pay off the $17k to the point that your really saving money?
Is it cheaper/better to just rent points from someone, and where can you do that?
Will Disney buy it back from you if you can no longer afford it, or do you have to sell it on your own?

Thats all I can think of right now.... any other points/suggestions please feel free to post!!!! I just ordered the free DVD and book from Disney, so I'm waiting learn from them too!


TIA!!!
Sarah

 

[CarolA]

It sounds like you are really at step one.

DVC is not buying into any Disney resort, you are buying one of the membership resorts, OKW, SSR, BCV, BWV and VAK. You can buy any of them via DVC BUT OKW, BCV and BWV are sold out. So you may have to wait to buy until Disney gets the 160 points you need at the resort you want. And you will not get any incentives so you will be paying the top price for that.

Right now you can buy into VAK for only 100 points which is less money then the 160 required for SSR.

You can use points to stay at Disney moderates and/or values, but they are generally HIGHER in point cost then a studio plus you have to pay a $95 "exchange" fee. You can't use them for the value resorts.

This link is to the DIS's info on DVC. You might want to read it all and then see what questions you have.

http://www.wdwinfo.com/disney-vacation-club/index.html


Most of us on here are fans of the "cash purchase" plan. In other words you probably won't get a lot of "it's worth it" if you are financing. Disney's interest rates also aren't the greatest!

 

[rsinj]

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[princessfionasmom]

We had the same problem, couldn't afford to buy in at the 160 point price so I started looking at resales. We just closed on 50 pts at OKW (which means we get the 11 booking time frame for our home resort but can book at any of the other DVC's at the 7 month mark based on availability). Now 50 pts may not seem like a lot but it gets us a Sun thru Thurs visit every year or if we go every other we can get a week somewhere. How you spend your pts is up to you. The way I see us using it is arriving on a friday, staying at a value (or SOG, hubby is in military) for fri and sat night and they switching to a studio at a dvc for the sun thru thurs nights. This way we can get a week every year if we want to do so. What we love is the flexibility of how you spend your pts. Good luck with your decision. You have certainly come to the right place to find out just about everything there is to know about DVC. I knew nothing before I found this sight, now I know more than my friend who joined 5 yrs ago

 

[jdg345]

I'm sure these questions have been asked a million times (just like the stroller questions on the family board!!! )
Though we cannot afford it right now , I'm really interested in joinging DVC. I called today, and the guy said that to join its something like $17,000 for the stuido, and then something like $750 per year, but after I told him that was a bit out of our range right now, he almost hung up on me!!!
The first woman I spoke with said that there was nothing left in the Boardwalk, but then the guy I spoke with said there was... whats the deal with that, do they or don't they?
I was also wondering if you can BUY into moderate resorts, like POFQ or whatever, or if you HAVE to buy into AKL or Boardwalk, and if you buy into a moderate is it cheaper?
If you buy into AKL, can you use your points to stay somewhere like POFQ and make your points last longer?
Does anyone share their DVC with anyone to cut costs and only take a vacation once every other year? Are you allowed to do that?
After paying all this $17k and $700+ a year, do you have to pay anything at all when you book your room?
When does it start being worth it?? When do you pay off the $17k to the point that your really saving money?
Is it cheaper/better to just rent points from someone, and where can you do that?
Will Disney buy it back from you if you can no longer afford it, or do you have to sell it on your own?

Thats all I can think of right now.... any other points/suggestions please feel free to post!!!! I just ordered the free DVD and book from Disney, so I'm waiting learn from them too!

TIA!!!
Sarah

That's a great start! Others have already posted some answers to your questions. the DVD and Book should address many of your future questions and concerns, and there are plenty of folks here more than willing to help iron out any wrinkles of confusion.

 

[mommomtoJoseph]

I am trying to understand the benefits of DVC. I requested some information from last week and hopefully it will help me understand things better.

I don't get how you pay $16,000 for something and still have to pay yearly dues in the hundreds and come out ahead. My thinking is it would just be better to pay the regular price at each resort one time a year for vacation and save my thousands and thousands of dollars.

Someone please help me understand.

 

[Broker]

I am trying to understand the benefits of DVC. I requested some information from last week and hopefully it will help me understand things better.

I don't get how you pay $16,000 for something and still have to pay yearly dues in the hundreds and come out ahead. My thinking is it would just be better to pay the regular price at each resort one time a year for vacation and save my thousands and thousands of dollars.

Someone please help me understand.

What you aren't considering is the cost of a hotel room 25 years from today. This is assuming that you still go 25 years from now. I know exactly what DVC rooms will cost you: Nothing short of annual dues. We did it because we go every year. Our kids will use it and our grandchildren will use it. What will it cost them? Nothing

 

[Mickey'sApprentice]

OP:

We have 100 pts. at BWV and just love it.

Here are some examples that might help you out. I will base the cost of a room to be the LOWEST price that Disney has on their website for a DELUXE room, which is $225.00. (You rarely see this low of a price from Disney, but people aren't travelling right now.)

If you purchase 50 pts. at OKW, ($3,750 + $225/yr.) you will be able to reserve:

5 nts. in a studio for most parts of the year, if you go in the slowest season, you will be able to bank and borrow and stay in 1 bedrooms on occassions, and if you skip a year, you will be able to stay in a 2 bdrm for 5 nights.

(5 X $225= $1,125) So, you pay for 1 nt. through your maintenance fees and the other 4 nights ($900) go toward your purchase price. $3,750/900 = 4.16. So, you pay for your contract in a little over 4 years. If maintenance fees continue to be the same as 1 nights stay, then for the next 30+ years, your maintenance fees pay for 1 night stay, and your other 4 nights are free.

The same holds true for larger point purchases. A 100 pt. purchase ($10k + $471/yr.) from AKV would allow you to take 2 - 5 day vacations per year, and a 160 pt. purchase from SSR ($16k + $673.60) would allow you to stay Sun-Thur + 1 week, or 3 - 5 day vacations.

There is actually a greater advantage if you make higher point purchases, as you can take advantage of the $100 discount on Annual Passes for your immediate family. Keep in mind that the larger accommodations also have a full kitchen, washer & dryer, and jacuzzi tub.

I hope this helps. The key is to not purchase more points than you actually need.

SSR resale for the # of points you require gives you the most bang for your buck, especially when you consider that the contract expires in 2054!

 

[CarolA]

OP:

There is actually a greater advantage if you make higher point purchases, as you can take advantage of the $100 discount on Annual Passes for your immediate family. Keep in mind that the larger accommodations also have a full kitchen, washer & dryer, and jacuzzi tub.

One note, I think that AP discount is availalbe regardless of the number of points.

Also above I said you could use your points for moderates/values... That should read moderats/DELUXES.

 

[Nigel8600]

We agree with going resales. Google GMAC interval. we bought a 160 point contract at AKV for 13000.00. I know its not cheap but its better than 17000.00

 

[Mickey'sApprentice]

One note, I think that AP discount is availalbe regardless of the number of points.

You are quite right!

However, if you only own 50 points, and are staying for 5 nights in 1 year, then the APs don't do much good.

Some people will use APs to take their annual trips 50 weeks apart. (i.e., travel 3rd wk of June '08, and 1st wk of June '09) then your APs will work for both trips.

I'm not sure if its better to purchase discounted APs or MYW tickets for that situation.

Due to poor planning, dh and I have not taken advantage of the DVC APs yet. I'm sure we would have purchased APs if we had owned a larger contract.

 

[Lynne M]

I am trying to understand the benefits of DVC. I requested some information from last week and hopefully it will help me understand things better.

I don't get how you pay $16,000 for something and still have to pay yearly dues in the hundreds and come out ahead. My thinking is it would just be better to pay the regular price at each resort one time a year for vacation and save my thousands and thousands of dollars.

Someone please help me understand.

DVC is a way of pre-paying for upgraded accommodations. It's not a discount program, and it's far from an inexpensive way to go to WDW.

The big deal about DVC is the villas. If you work out the cost of your membership over the life of the contract, and compare your cost per year to the cost of booking a deluxe room or a DVC villa through CRO, yes, you'll certainly come out ahead. WAY ahead.

If you're comparing to the cost of booking a value or moderate room through CRO, you likely won't come out ahead.

 

[Mickey'sApprentice]

I forgot to mention that renting a room from a resort also has 13.5% tax added, so the example of $225/nt. for Deluxe (which I've not seen in 5 years) would actually be $255.38 or $1276.88 for 5 nights.

As for moderates...the best I've seen is $99/nt. + tax or $112.50 or $562.50 for 5 nights. Keep in mind with the 50 pt. example, you were paying in $3750 + $225/yr. maintenance fees. ($562.50-$225= $337.50) With that calculation, you would still break even in a little over 11 years.

(((This is all assuming that maintenance fees and hotel rooms go up at the same rate)))

OK, now the best deal that I've heard of for on-property is $57/nt. with free dining. Since DVC currently charges $37.99/adult, we could use a scenario of 2 adults in the unit, that would be a cost of $75.98/nt. just for the dining. Under this scenario, there is of course no way that DVC would ever work out. This scenario happens every several years in the OFF Season (September).

However, these rates are not the usual.
It is not uncommon for the rooms to go for $99-value; $149-moderate; and $299+ deluxe or even much more for each category.

To sum it up, if you:
enjoy staying on property, in moderate or deluxe
visit wdw often at least every 2 years,
can make plans far in advance,
are sure that you will not burn out of going to WDW after several trips,
can afford to purchase without financing, and
understand that you will have to pay out for park tickets, transportation, and can afford to do so...


then purchasing a minimum interest of at least 25 points in DVC may be right for you.

Finally, unlike most timeshares, DVC has thus far kept a substantial resale value. All of these scenarios have assumed that you just kept DVC and that it had no retail value, which is not true. Not only do you eventually break even under most scenarios, you can also get at least 3/4 of your investment back through resale.

 

[AlexTina]

Our family is a perfect example of how DVC can be very beneficial. DH and I have been going to WDW together since 1993 we now have 3 children and my youngest will be 3 in August of 2009 this means we no longer qualify for a standard room anywhere except the Polynesian, Contemporary, or Grand Floridian. Other than those 3 we would have to book a DVC resort anyhow. We always go at least once a year sometimes twice for 8 - 12 nights and always stay at the deluxe resorts. What this means for our family is that we would be spending a minimum of $3000 per trip just for accomodations provided there were no discounts available but those seem to be harder and harder to come by. Now that we have DVC we no longer have that additional annual expense. All we have now is the maintenance fees which are close to $600 a year (don't have the actual number right in front of me) for our 160 point contract and we will not have to pay for accomodations anywhere for the next 50 years. I recently ran the numbers and figured that over the 50 year contract you would wind up spending something around $60,000 which includes our purchase price and our annual maintenance fees (I didn't take the time to figure out any increases in maintenance fees). If you travel someplace every year for the next 50 years and manage to only spend $3000 on each trip you would spend $150,000 so right there you've got a great savings. Keep in mind resort rates rise much more quickly than maintenance fees.

HTH

Tina

 

[joech]

I am trying to understand the benefits of DVC. I requested some information from last week and hopefully it will help me understand things better.

I don't get how you pay $16,000 for something and still have to pay yearly dues in the hundreds and come out ahead. My thinking is it would just be better to pay the regular price at each resort one time a year for vacation and save my thousands and thousands of dollars.

Someone please help me understand.

It depends on which resort you like to stay and how often you want to go to WDW or DL. If you stay at the valve resort, DVC is not for you.

We bought 160 points for AKV from disney direct this May and it cost us about $15610 including the closing cost. We don't pay any maintenance fee until May 2009. We received 220 developer points with the purchase and we used the developer points to book a 9 nights stay at AKV SV studio and still have 32 points left. The same room would cost us $4973 if we are not DVC member. So we figure we should recover our initial purchase prices plus MF after our fourth trips.

 

[Camping Griswalds]

So I am in a little different situation...but still think DVC will work for us. WE go at least once a year on average, but usually stay at a value. However if we all go as a family of 5 this isn't really an option anymore. My kids are 16 and 12 and 4 respectively. While the 16 yo would just as soon skip Disney, I have a huge fan in my 4yo( rivals my own love) We usually stay at least 7 nights. So I figure, once a year a studio for 7 nights for DD and myself, and possibly a long weekend with the 5 of us? every other year works out emotionally, if not financially Did that make any sense? We do travel in off times ( January) so less points will be used I think too. Anyway, I look at it as a big picture. Even if you finance it, you cannot lose if you truly love Disney, love the idea of being an "owner" and know that you wil be vacationing there once a year. I kinda have thought about it like a car payment. But it's deductible?????? Now mind you we have not bought yet, but I'm traveling there in Sept with just my DD, and may just "go for it"!!!

 

[Mickey'sApprentice]

I would really think about Disney's offer of 100 points at AKV.

If I've heard right...with these contracts, they are selling for $96 and come with 100 developer points.

The 100 points is probably enough to get you started with banking/borrowing and then you can see where you stand.

Its a great way to get your feet wet.

(Also, if you can avoid financing, that would be great too!)

 

[brianm27]

We bought 50 points resale, then added on 70 points at SSR a few years later. We were full DVC members with the 50 points, eligible for all benefits. Based on the way we travel, that 120 points will get us roughly a week in a studio each year. Our dues are about $45 a month.

We buy annual passes (with the DVC $100 off) and usually get 2 weeks or more out of the passes. We also stay at non-DVC resorts (such as the cabins at FW) on a cash basis during specials. Right now, our AP discount on rooms for Aug-Sep gets a value resort for $64, a moderate for $99, and a cabin for only $174. We are in the minority, but we don't find it necessary to do only DVC vacations.