DVC's worth: Am I missing something?

[shantay1008]

Hi everyone,
I read a lot of these threads talking about whether or not DVC is worth it, and I sometimes wonder if I'm missing some key information or something.

We bought DVC because we like to stay in Deluxe resorts and we like WDW and could see ourselves vacationing there throughout our children's childhood(s?). We bought 200 points at SSR, and figured that we'd break even after about three or four trips staying in a two-bedroom for a week or so each time. There are dues to consider, but we figured those pay for the basics, like bus drivers, lifeguards, pool upkeep, etc.

So, we know we'll be taking our kids to WDW every couple of years and having a great time. We feel like we got a good deal because after these initial three or four trips, we'll just be vacationing on dues, won't we? Well, if this isn't the right way to think about it, maybe you shouldn't tell me because we're happy with the way things are!
Shannon

 

[spiceycat]

that is how I look at it - of course I count the dues....

but I think it will be longer it is generally 7 to 10 years.

of course I did it less than 3 years - but we got free tickets (which I counted) in those days.

 

[mydogdrew]

You'll see a lot of "break even" calculations here but I would submit that it is not possible to come out even after only four years.

I'll assume you paid $85 and dues are $4 for 200 points.
Invest $17,000
Dues $3,200 (4 years)
Interest?
Total per year $5,050

A 2 BR will cost about 250 points a year so 200 will get you about 6 nights a year. Cash price for an SSR 2 BR is about $600 per night or $3600 for 6 nights ($4k with room tax).

I can't imagine people actually pay $600 a night to stay at SSR but given these assumptions DVC makes a lot of sense, just plan on six or seven years. Now if you financed your purchase and would have otherwise purchased your delux cash room using discount codes (vs. rack rate), you could easily push this breakeven out 12-15 years.

 

[NYMomof4]

I always look at it as guaranteed family vacations while my kids are growing up...and then their kids! Once the initial purchase is made I really only look at the annual dues as our cost-which I know isn't exactly the financial breakdown of years and costs divided up and the break-even point, but as I look at how the resort prices continue to rise, I still think I got a great deal.

Before DVC I paid about $3000+ a year for 3 years in a row to go to Disney (with airfare and tickets included). I am thrilled that I am able to share DVC with my kids!

 

[MinnieGirl33]

The way I look at it is I am still spending the same amount of money every year with my loan & dues as we were when we were staying in deluxes. And we're getting 2BR's to boot!

Once our loan is paid we will be vacationing 2-3x year on dues!

Can't be beat as far as we are concerned!

 

[Tink-n-Belle]

I always look at it as guaranteed family vacations while my kids are growing up...and then their kids! Once the initial purchase is made I really only look at the annual dues as our cost-which I know isn't exactly the financial breakdown of years and costs divided up and the break-even point, but as I look at how the resort prices continue to rise, I still think I got a great deal.


That's excactly how I look at it too. Guaranteed Vacations at Disney at the BWV every year-----Totally Priceless. Its an investment in MY LIFE.

 

[dianeschlicht]

I look at it as an investment in our mental health! I LOVE taking family and friends along and enjoying a WDW vacation several times a year. I'd never do that if it wasn't for owning DVC. Monetarily, we figured we broke even (minus dues) after 4 years. We have 380 points and the most we paid was $65/point. We didn't finance, and have our dues taken out automatically. It is just a painless way to vacation, as far as we are concerned. I would never stay in these wonderful units as often as I do if I didn't own. I figure we owe it to ourselves to do this, so YES it is worth it.

 

[Granny]

So, we know we'll be taking our kids to WDW every couple of years and having a great time. We feel like we got a good deal because after these initial three or four trips, we'll just be vacationing on dues, won't we? Well, if this isn't the right way to think about it, maybe you shouldn't tell me because we're happy with the way things are!
Shannon

Shannon...a lot of people buy DVC for a lot of different reasons. It sounds like you are very happy with your decision, and if you paid off your points already, then yes, you are vacationing on dues.

Some will talk about investing that initial point cost and earning interest and taking that into account.

For us, it is a luxury purchase and a wonderful way to guarantee stress free vacations in a great place for many years to come. That's all the justification we really needed.

 

[Boston5602]

I can't imagine people actually pay $600 a night to stay at SSR but given these assumptions DVC makes a lot of sense, just plan on six or seven years. Now if you financed your purchase and would have otherwise purchased your delux cash room using discount codes (vs. rack rate), you could easily push this breakeven out 12-15 years.

In 2004 my family and I paid just over $8,000.00 for 10 nights BWV 2 bedroom but this included TIX. Since we are going next summer in 2 bedroom I wasn't doing so without buying in , which I've done. WOW I know I should have put that money towards DVC back then

 

[shantay1008]

In 2004 my family and I paid just over $8,000.00 for 10 nights BWV 2 bedroom but this included TIX. Since we are going next summer in 2 bedroom I wasn't doing so without buying in , which I've done. WOW I know I should have put that money towards DVC back then

Yeah, that's kind of like what happened to us. Back in 2003, we had a wedding in Cocoa Beach and thought we'd spend a couple of days at WDW. When I called to see what rates were like, they quoted me $1400 a night for a two-bedroom at BCV. So when we met with a guide on that trip and looked at the numbers for DVC, they looked pretty good to us!

When people talk about discounts, what kinds are they referring to? We wouldn't do the APs (and thus get the discount) because we don't want to go every year, and we don't have AAA. Are there other ones out there? I'm just asking because I'm wondering what room rates other people use when they try to figure out their "break even" moment. At $1400 a night for 7 nights, we'd break even awfully fast.
Shannon

 

[MrShiny]

Also, when WDW opened 34 years ago, rooms were about $25-30. What do you think they'll be in another 34 years?

 

[mello]

Guaranteed Vacations at Disney at the BWV every year-----Totally Priceless. Its an investment in MY LIFE.

DH and I were just talking the other day about how it's an investment in our family, whether or not it's a sound financial investment (which we think it is, since resort prices will only continue to go up, and if need be we could likely sell our contract for as much as we paid, and still have had lots of nice vacations out of it).

 

[truedreamer]

I just went through this recently and receiving the info from the Closing group isn't an indication the contract passed ROFR. My TSS person said it would be 1-3 weeks to get past ROFR and I heard from TSS directly as soon they knew. I'm sure you'll hear good news soon.

 

[Pluto 2]

dvc is defentiely worth it, i use to spend 7 nights in all star resorts now im spending 12 nights in boardwalk,vwl,okw,ssr,bcv. in 2 months im going back to wdw this time only for 5 nights than after that im going on a 7 night disney cruise all on points.

 

[crisi]

Here is what we did:

We assumed that what we would do is stay in Deluxes. We wanted to compare like to like, so we assumed that if we'd be booking two rooms at Deluxes and compare that to a one bedroom (that puts the kids in a different room). WL at that point was about $200 a night. So that is $400 + 11 percent tax - $444. For a week thats $3108

I took the cost of points (only $63 when we bought) and divided that over 38 remaining years for about $2 a point. Then I add yearly dues (at the time about $4), for $6 per point. That one bedroom is 214 points when we travel - so $1284. We "invested" about $10k, to save about $1800 per trip.

I figured - back then at what we paid - it took six or seven trips to break even. I ignored BOTH inflation and time value of money - since many of my investments at that point were tanking it seemed riduculous to argue I could get a guarenteed 12% return in the stock market - plus that says we wouldn't have SPENT that money on something (I'd probably have new kitchen appliances) and its hard to figure what inflation will do - so I considered that a wash. From an accountants perspective, you should figure the time value of money in there.

Now, there is some fuzzy thinking going on to justify this. We do stay in one bedrooms (or better) at DVC - but we probably wouldn't have done connecting rooms at Deluxes (for one thing, with a family of four, they aren't guarenteed). So its more likely we should really be comparing what we would have stayed in (say the bigger square footage rooms of the Poly or the Y&BC) with the one bedrooms we do stay in now. And then there is the "guest" problem. Too easy to take people along and spend more points - we'd never buy my mother in law a hotel room, but we had her stay with us (going to a two bedroom) on points. In the end, I don't honestly think we save a dime, but the quality of life is better with the kids on the sofa bed (and eventually in the second bedroom).

 

[Disney Doll]

Remember, too, that "value" means different things to different people.

Financially, it's not a bad decision if you are a frequent visitor to WDW. It does eventually "pay for itself", so to speak. It odes have a certain resale value, so oyu would probably never lose money. However, it does mean you are tying up money that could be invested elsewhere, with "X" amount of interest and so on.

The biggest "value" in the DVC, IMHO, is the fact that you have a pre-paid vacation property, and a nice one at that, so oyu know you will be vacationing at least yearly. We have owned DVC since 1997, and have never, for one moment, regretted our purchase. We have enjoyed it alone & with family and friends. It has been one of the best purchases of our life. I would give up a lot of other things before I would give up my DVC. heck, I could eat a lot less than I do!!!!!

My only point is that "value" isn't always just financial.

 

[vbalacek]

In comparing DVC prices to one or two rooms at a deluxe, I think you should consider the "intangible value" of having a full kitchen. That is a huge convenience for us. We have small kids and eating out at resturants is, in addition to being expensive, kinda a pain. We can have breakfast or lunch in our room, hold snacks and drinks (and maybe even a bottle of wine for the adults), wash dishes and baby bottles... Anyway, for our family, I think that a one bedroom villa at DVC is heads and shoulders above two adjoining rooms at the lodge.

Although people have said you can always pay cash for a villa, I've tried and have had problems booking (other than OKW and SSR) at certain times of the year. (Although at the time I didn't know about the renter's board....)

 

[kcdisneymom]

I remember fighting over every penny in the early years of our marriage. Then we got DVC. Fighting over saving money for a vacation is one argument we never have now. It actually makes planning the vacation fun too. Disney has standards and so far they're better than any hotel we've ever stayed in. And my husband is a traveling salesman. When you have a vacation to look forward to, you have a goal not anxiety. We're happier people because we invested in our family, and our mental health. This year we spent 3 days before and 1 after(on points) in Jan before the cruise(cash). We leave tomorrow for SSR 2 bedroom for 4 nights, a September 5 day for us and a Dec. 5 day for my mom and her friends. We've had several friends who have used our points and bought in. The value keeps increasing.

 

[crisi]

Here is all the ways we don't save money with DVC. Not that I'd change a thing, but this is our experience:

1) We don't stay in studios. It was a nice idea, but the quality of life staying in a one bedroom was so much better for us.

2) We don't really cook in the room. Breakfast, but we could do cereal and milk or poptarts in a hotel room.

3) Go more often. We are every other year folks with DVC. Without DVC - realistically, we'd be every three year folks. From posts here, I don't think it is unusual that DVC changes your frequency - and with it the investment in park tickets, transportation and meals.

4) Invite guests - a real weakness since its easy to "share" something you are so excited about that costs you so little in real time to share.

5) Spend more while we are there - we don't see a room bill - the cash flow from the room is already long gone. So when we are there, its easy to use the current cash flow for more meals, more drinks, more souvieniers, Cirque tickets, golf, whatever. After all, you don't have a $1500 room bill!

As I said, wouldn't change a thing, but in the end, this is more of a value thing than a savings thing. You can save, or you can spend more and feel that you are getting a better value. Things I value:

1) Having the kids sleep in a different room.
2) Being able to take friends
3) A regular "enforced" vacation somewhere we know we enjoy.

 

[Granny]

crisi...you nailed my sentiments exactly! And we have found our experience to be very similar except:

1. We go every year.
2. We stay much longer than we used to (maybe 3-5 days longer).
3. We haven't taken anyone, but that will definitely be a nice benefit.

As I said, wouldn't change a thing, but in the end, this is more of a value thing than a savings thing. You can save, or you can spend more and feel that you are getting a better value. Things I value:

1) Having the kids sleep in a different room.
2) Being able to take friends
3) A regular "enforced" vacation somewhere we know we enjoy.

I will add 4) Having an extra bathroom since we put 4 in a 2BR and three of them are female!!