DVC worth it for cruising only?? Help sell me!

[NCardella]

I'm seriously considering purchasing the DVC. We are Florida residents and annual passholders, so we get many WDW resort discounts, and I don't feel the annual fees/etc would make it worth it for us to use the DVC at the resort. You can't beat the $49 resident rates at the value resorts and when you can stay for a hundred bucks for the weekend, it doesn't seem frugal to use points there.

However...if I can purchase the DVC and use it to pay for a cruise every year, would it be cost effective considering the annual fees/maintenance fees, etc? We can usually only sail during spring break, so for us, a Category 9 in March cost us around $4800. And since you are using points per person, rather than per room, how many points can you seasoned DVC'ers tell me you typically use?

I figure it this way, if I want to cruise every year, and purchase the DVC for $30k, (my estimate to purchase the amt of points needed, per the DVC presentation on board I attended in March 06), then after 6 cruises the DVC will pay for itself, then after that, as long as my maintenance fees are less than what I would pay for the cruise, wouldn't that make sense?

Please help to sell me on the DVC!!
Sorry if this is confusing, ask me if you need any clarification.
Thanks in advance everyone!

 

[jodifla]

I'm seriously considering purchasing the DVC. We are Florida residents and annual passholders, so we get many WDW resort discounts, and I don't feel the annual fees/etc would make it worth it for us to use the DVC at the resort. You can't beat the $49 resident rates at the value resorts and when you can stay for a hundred bucks for the weekend, it doesn't seem frugal to use points there.

However...if I can purchase the DVC and use it to pay for a cruise every year, would it be cost effective considering the annual fees/maintenance fees, etc? We can usually only sail during spring break, so for us, a Category 9 in March cost us around $4800. And since you are using points per person, rather than per room, how many points can you seasoned DVC'ers tell me you typically use?

I figure it this way, if I want to cruise every year, and purchase the DVC for $30k, (my estimate to purchase the amt of points needed, per the DVC presentation on board I attended in March 06), then after 6 cruises the DVC will pay for itself, then after that, as long as my maintenance fees are less than what I would pay for the cruise, wouldn't that make sense?

Please help to sell me on the DVC!!
Sorry if this is confusing, ask me if you need any clarification.
Thanks in advance everyone!

Sorry, it's not a good idea. First off, there's no guarantee you'll always be able to use your points on the cruise. Also, the point cost is astronomical. There was a man on my DCL cruise two weeks ago bitterly complaining that he'd bought DVC mainly to cruise, and the points kept going up and up for the cruise, and the agents onboard told him it was a bad idea to have bought DVC solely for that purpose. It's meant as a nice amenity.

As Fla residents, we use our DVC all the time to stay on property. Have you seen the DVC properties? The values are pretty shabby in comparison. That's where you get the value of DVC.


Since you are FLa residents, do what we do and take advantage of the Fla resident rates. It's much cheaper.

 

[Doug Wolfe]

Buying DVC for the sole purpose of taking a cruise would be poor. Too many points are required and you just don't get the bang for your buck. So don't do it.

True you can stay on the cheap at the value resorts. They are nice. But there is zero, zip, nada, jack squat comparison between a DVC villa and a value resort accomodation.

Enjoy your summer.

 

[Plutofan]

We looked at using points for our July 2007 cruise. The value put on the points versus paying cash was $7.5 per point. Since the true cost of points is much higher than the $7.5 per point it was not a good value. You should contact a travel agent that specializes in Disney who offers a cash rebate after you complete the cruise.

 

[Dean]

No way to justify buying as you'll spend more money year after year than you would just doing the cruise with cash. That's doubly true if you can travel during times of FL resident specials which usually run about $4.50 per point cash compared to number of points. Not to mention the other risks and negatives using points over cash.

 

[6mouskateers]

We are also Florida residents and our guide told us cruising with DVC for us is wasteful. We can get much better rates as a FL resident when they have specials. Just my $0.02 .

 

[NCardella]

Agreed. Florida resident rates are awesome WHEN they are available. Which is not every cruise, and if your dates are not flexible, you can get stuck paying top dollar.

However, you guys are telling me just what I needed to know. I posted this thread on the DCL board as well and am getting the same vibe. Thanks for your input...keep them coming if you have more to add.

 

[Caskbill]

It's often been reported on these boards that it's a poor value to use points for a cruise. In fact what some members have done in the past is rent their points instead, then use the cash received for the points to pay for the cruise, and even have cash left over.

This indicates that the value of the points when used at a DVC resort is worth more than the value for the points if used for a cruise.

Also as mentioned, unlike DVC resorts where point requirements are 'fixed', the points for a cruise are negotiated each year between DVC and DCL, and historically have gone up every year. So while x number of points may get you a cruise this year, in 5-years it may not be enough. Then what would you do?

 

[NCardella]

Can anyone tell me what the current maintenance fee per point is, and how any other taxes/annual dues are calculated?

TIA, you are really helping to answer my concerns.

 

[RobDoc]

For 2006, maintenance fees range from $3.98 per point at SSR to $5.27 per point at VB. Each resort has a different expense structure and that also changes each year. There are no other fees or taxes.

One method of computing the "value" of a timeshare (any timeshare- not just DVC) would be to compute what the initial purchase expense could reasonably earn if invested, plus the annual fees and compare that against the cost of staying in the same accommodations.

If your initial cost would be about $14,000 for 150 points at SSR, I'd assume an invested return of 10% (the math is easier that way) and add in the maintenance fees of $597 for a total of $1997 per year (interest potential plus annual costs).

If 150 points would allow you to take a cruise each year and have points left over, you may eventually reach a "break-even" using points in this fashion. If you can take a cruise each year for $1997, you will come out ahead by investing the amount of the initial purchase since your principal would remain intact.

You can use this same process to evaluate the relative value staying at DVC resorts too. The important component is to compare the cost of paying cash for comparable accommodations. In the example above, if the cash costs would total more than $1997, you will eventually deplete your invested amount and DVC may offer a cost savings over time.

You can use any interest amount you wish in your computation. Some will prefer to use a higher return, some will insist on using a lower return. I like to use 10% because the math is pretty easy to compute and it is a realistic figure to use and defend.

One of our regular posters (Doctor P maybe?) recently posted an accounting which demonstrated that DVC ownership was cost effective with various usage assumptions and timeframes.

I'd agree with those above that the most cost effective use of DVC points is at DVC resorts. I view the other programs (like DCL) as a nice occasional option, but would advise NOT using that as a basis for ownership as compared with just paying cash for those options.

Good luck with your decision!