explain why dvc is a better deal than....

[hellokitty]

OKay, how can this dvc be better than:

AP rate of $ 50 a night at all stars for 8 nights is $448 including taxes.

so if i purchase dvc for $11250 (current price for 150 pts. minimum)

it would take me 25 yrs. to recoup the cost of just spending $448 a yr. at the all stars!

Even though the dvc resorts are nicer--25 years is alot of vacations!!!

 

[Pluto4President]

I would start by reading the FAQ on this board, here is the link:

Newcomer DVC FAQ

then ask away on the main dvc board here:
DVC Board

 

[normr]

The current price from Disney is $75 per point, resales can be purchased from the mid 60's (per point) But there is a program called Magical Beginnings where you can sell back some of your first years points to Disney at $10 per point

You can finance up to 10 yrs from Disney

You need to buy at least 150 points, ($11,250)

Points for accomodation vary depending on the size of unit and the season, they can be as low as 8 points per night for a studio. (weekends are higher (Friday & Saturday))

Maintenance fees vary depending on where you own, they are in the $3-$4 range per point.

 

[hellokitty]

thank ya'll

 

[Lhargus]

If you are happy with budget accomodations there is no way that DVC can compete.

On the other hand, if you enjoy deluxe accomodations with at home amenities, then you are better off with DVC.

DVC financially outperforms standard deluxe accomodations over time. It's just a matter of how you like to spend your time at WDW.

 

[chris1gill]

If you are happy with the All Stars, it does not make any financial sense to buy into DVC... It's only cost effective if you like to stay at the moderates and above...

 

[Dean]

Originally posted by chris1gill
If you are happy with the All Stars, it does not make any financial sense to buy into DVC... It's only cost effective if you like to stay at the moderates and above...

Agreed, DVC is not an economy hotel. Also, I don't think you can expect to get the All Stars for $49 (plus tax) for high demand times or indefinitely. If you could, you'd never break even with DVC. The yearly fees would be as much as the All Stars at that price and you'd never recoup the upfront costs. DVC doesn't save us money, it just allows us to have better options for a controlled cost. Why not try renting points and trying it out. If you do, be careful as you may not be able to go back.

 

[ripleysmom]

hellokitty, it is not so much the cost of the rooms as the accommodations (at least for us). With DVC in the 1BRs and higher you get a full kitchen, a washer/dryer and a jacuzzi in the bathroom. It is easily twice the space of a room at the All-Star.

Even in the studios you get a coffee maker minifridge and microwave.

If you don't mind your family in a regular sized room at the All-Stars then DVC is not right for you. But just remember that $50 a night will not necessarily last forever. It was $100/night a year ago and probably will be again.....

 

[jctwizzer]

Assuming you can get a $50 room when you want it, do you really think that the $50 rate will last for the next 25 years....figure in an inflation rate of 4% per year and see what the price is in 2026. And after, being in a DVC room, you'd throw rocks at the budget resort facilities. See you in the Parks!!

 

[TnRobin]

In addition, to the future price increases that you will see at the All Stars. Factor in the ability to save money at DVC by just having breakfast in your room. I buy breakfast stuff for less than $20 each trip and save at least $15 a day on breakfast. If you are willing to do Ravioli and Speghetti-Os for Lunch that will save you even more money.

You also didn't mention the size of your family. One thing I enjoy is the privacy of a 1BR. Right now it is not too bad with DS being only 6, but when he gets older, having a place to change clothes besides a cramped bathroom is wonderful.

Don't get me wrong, I love the AllStars. I think they are probably the best themed resorts. It is just after have the huge bathroom in an OKW studio, I really hate staying in any hotel room.

But again, you must consider your own situation. If you are happy with the AllStars and intend to stay there at every visit. Plus never intend to use the Vero Beach or Hilton Head Island locations, DVC may not be for you.

 

[imgoingtodisney]

My husband, 4yr son (at the time) and I stayed at All Stars in 1996. We felt it was too small. This Oct my MIL, husband, 9yr son and I spent 9 nights at the Wilderness Lodge. We had reserved 6 nights and added on another 3 on our 5th day. We love this place! It's absolutely gorgeous. Of course, you need to make the time to enjoy the resort and not run to the parks.

 

[Doctor P]

It also depends on the time of year you like to go. We like to go at the Christmas holiday season. This is the first year in recent memory that there have been deep discounts for these weeks (Christmas to New Years in particular). Quick and dirty, I have always figured that my membership at OKW lets me stay at OKW for the cost of All Stars. Let me give you the quick and dirty. 150 points cost (one year ago) $10,500 and the annual dues for roughly 42 years are about $19,000. That is $702.38 per year. Divide that by 1.11 to take into account taxes, at that is $632.78 per year. That will buy between about 7 nights (weekends included at the holidays) and 19 nights (low season, no weekends). Thus, you are paying between $33.30 per night and $90.40 per night. Thus, DVC is actually usually less than even All Stars when all the math gets done! Now, it is very true that it will take you many, many years to recoup your investment at All Star rates (and thus there is more risk involved), but DVC still comes out on top. Though this is a quick and dirty answer, I can assure you that more complex formulas and assumptions do not change the basis point.

I would not count on the $50 rate at All Stars, but if that is the only place you really will stay on site and you will be happy with it , then DVC may not be the best option for you.

Good luck, and hope to welcome you home soon!

 

[Cora]

The way we looked at it was this a prepaid vacation for 42 years. We are guaranteed this. In addition to WDW we have stayed at HH, Vero and have been on the 3 day Cruise. We have also been able to go away with my parents and my inlaws (this coming April) in a 2 bedroom (very spacious). We also look to the future when our son may bring a friend and later his own family. These to us are the plusses. We have yet to find a minus (except too few points! LOL). By bringing our families with us we have easily recouped what we invested. But as everyone stated if you plan on the All Stars you are better off not buying in.

Good Luck in your decision.
Cora

 

[PamOKW]

Everyone seems to have covered this pretty well. The two main considerations are that an All-Star is not a good comparison to the smallest DVC unit....the studio. The studio is actually closest to a deluxe hotel room but is the upgrade you get while still paying basically moderate resort prices. Secondly, this year has seen dramatically reduced room costs and availability at WDW. When the economy picks up again those bargains will probably be gone. Prior to this room rates were rising at a rate of about 6% per year.

Now, my $.02. Just like with cars....you can pay for a Kia or you can pay for a Porsche. They will both get you to the grocery store. But, which one will give you the more enjoyable ride? DVC is a way to purchase the Porsche at a reasonable rate...far below the MSRP.

 

[BraveMom3]

I have yet to enjoy our first trip "home" to the VWL, but have stayed at WL three times, a couple of the moderates, BC, and also the All Star Movies. Although the ASM resort was fine, I have to admit to being a little spoiled, more so than my wallet would reflect! With 3 children, and the fact that 95-100% of our 2 week vacation is one parent, I have to think about all those treks to the food court, how spread a resort is, etc...

Although we've always been perfectly happy in one of the hotel rooms, after 2 weeks our stuff gets a little out of control . If you have a family of 5, you really run into problems with accomodations, especially as our small children get bigger. For the 3 days my DH tries to join us, we have to make different arrangements for the 5th person. This can get very expensive.

For me, the DVC is really the only answer, and can hardly wait the 209 days until our first stay at the VWL

 

[boudreaux0]

I made a spreadsheet to determine how much everything would cost for me to be a DVC member comparing to rack rates, inflation...etc. It is a long and complicated formula, but anyway, to use an example: You would have to be able to find studio accomidations at one of the DVC resorts for under $109 until the year 2042 to match the price that you pay for the DVC. What that is saying is that after you calculate the cost of the points and the dues that you pay... you are paying $109 per night if you stay in a studio. I can email you the spreadsheet if you want to see it for yourself.

 

[Terry S]

boudreaux0 - Did you figure out what that amount would be for the 1 and 2 bedrooms? Just curious.

 

[Cora]

boudreaux0:
Curiousity is that $109 inclusive of the room tax? If not you need to add approx 10% (I chose 10% as a middle ground depending which side of WDW you are on) to that to get the true comparison.

Cora

 

[normr]

People never understand what DVC is really about and why we bought in until they actually experience a DVC stay in a one bedroom or larger, once you walk into that unit and you get that smack in the forehead like in the old I coulda had a V8 commercial, except we're saying why am I spending my vacation in a tiny box of a room when we could be staying in something like this nice and paying the same down the road.

 

[PookaJean]

I am like the original poster and stay only at the all star resorts and am perfectly happy with them....but there are times of the year such as Halloween(except this year) and May-June that the rates are $99 or above for the AS resorts and very difficut to get discounts for so I recently purchased a resale at OKW of only 50 points for those occasions...so it still can be beneficial to someone who is happy with the AS resorts to be a DVC member.