Help! Join DVC even if I always save 20-30% on rooms?

[Christina2.0]

We go to Disney at least once a year (for my daughters birthday in May, usually twice (First week of December) sometimes a 3rd (sometime in the late summer) if I can sneak in a trip "while visiting my parents" in FL. When I book a room I usually do it through a bounce back offer (which I forget is it usually 25% or sometimes 30%?). Or I'll book it when there are fall/summer savings. Considering I get these savings, would I still be saving money if I were to join DVC? We usually like to stay at Poly or GF. But open home resorts being in other resorts and we have stayed: AK, Contemporary, Wilderness Lodge, Boardwalk.

The whole reason we're looking to join is because with 2 kids (currently 1 and 4). It would be nice to have separate/bigger rooms and eventually we all aren't going to be changing around each other. I was looking that the 1 bedroom room my kids would be sleeping on the couch? I would prefer two queen beds instead if that's the case Which i will probably close up everyday because I'm a little ocd with keeping the room neat when we vacation haha.

So would I infect be saving money

 

[Tigger1]

Compare prices that your paying with DVC. I use a rough estimate of $10 per point for my DVC room. That accounts for maintenance fees of about $7 per point and $3 cost per point per year. My calculations suggest that I do save $ I compared to the specials. I do not even consider the Rack Rates. Also consider the size of room you will stay in. I compared the free dining offer by subtracting ticket and dining plan cost from total offer. My 1-bedroom would have cost a lot more than DVC cost.

 

[disneynutz]

How does buying DVC compare to the cost of a cash discount DVC room or renting a reservation from a DVC owner?

It's all about the numbers.

Bill

 

[Deb & Bill]

We go to Disney at least once a year (for my daughters birthday in May, usually twice (First week of December) sometimes a 3rd (sometime in the late summer) if I can sneak in a trip "while visiting my parents" in FL. When I book a room I usually do it through a bounce back offer (which I forget is it usually 25% or sometimes 30%?). Or I'll book it when there are fall/summer savings. Considering I get these savings, would I still be saving money if I were to join DVC? We usually like to stay at Poly or GF. But open home resorts being in other resorts and we have stayed: AK, Contemporary, Wilderness Lodge, Boardwalk.

The whole reason we're looking to join is because with 2 kids (currently 1 and 4). It would be nice to have separate/bigger rooms and eventually we all aren't going to be changing around each other. I was looking that the 1 bedroom room my kids would be sleeping on the couch? I would prefer two queen beds instead if that's the case Which i will probably close up everyday because I'm a little ocd with keeping the room neat when we vacation haha.

So would I infect be saving money

The only way to get real beds for the kids is to book two bedroom villas. Only OKW has a studio with two real queen beds. Every other configuration up to getting a two bedroom would get you one real bed and at least one sleeper sofa, maybe a sleeper chair or murphy bed. And even some two bedroom villas will only have two real beds (one king in the master and one queen in the second bedroom, plus a double sleeper sofa in the second bedroom).

 

[Dean]

We go to Disney at least once a year (for my daughters birthday in May, usually twice (First week of December) sometimes a 3rd (sometime in the late summer) if I can sneak in a trip "while visiting my parents" in FL. When I book a room I usually do it through a bounce back offer (which I forget is it usually 25% or sometimes 30%?). Or I'll book it when there are fall/summer savings. Considering I get these savings, would I still be saving money if I were to join DVC? We usually like to stay at Poly or GF. But open home resorts being in other resorts and we have stayed: AK, Contemporary, Wilderness Lodge, Boardwalk.

The whole reason we're looking to join is because with 2 kids (currently 1 and 4). It would be nice to have separate/bigger rooms and eventually we all aren't going to be changing around each other. I was looking that the 1 bedroom room my kids would be sleeping on the couch? I would prefer two queen beds instead if that's the case Which i will probably close up everyday because I'm a little ocd with keeping the room neat when we vacation haha.

So would I infect be saving money

As noted, just compare the costs. IF you assume 20% on average discount for the cash options, I think that's a good long term compromise as it will likely be higher at times. Apples to apples is a hotel room to a studio or 2 hotel rooms to a 1 BR or even 2 BR in some cases. What you would have paid not owning DVC is likely your best comparison, a private rental is the other reasonable benchmark. The actual cost of DVC on cash is not at all a reasonable comparison unless that's what you'd do not owning. I think you'll find a 1 BR is more expensive but a studio is likely cheaper if you make good purchase decisions. But would a larger villa be worth the extra cost, that's what you'll have to decide. Part of the issue is VGF and Poly are the 2 most expensive properties both in terms of points and cost per point. $$$ wise I doubt it'll be worth it but once you don't feel a single hotel room is workable, that's the point where DVC will be a significant plus. In reality few people save money with DVC, often quite the opposite. But many that don't save money get more enjoyment with more trips and the other things they're able to do.

 

[Marionnette]

We go to Disney at least once a year (for my daughters birthday in May, usually twice (First week of December) sometimes a 3rd (sometime in the late summer) if I can sneak in a trip "while visiting my parents" in FL. When I book a room I usually do it through a bounce back offer (which I forget is it usually 25% or sometimes 30%?). Or I'll book it when there are fall/summer savings. Considering I get these savings, would I still be saving money if I were to join DVC? We usually like to stay at Poly or GF. But open home resorts being in other resorts and we have stayed: AK, Contemporary, Wilderness Lodge, Boardwalk.

The whole reason we're looking to join is because with 2 kids (currently 1 and 4). It would be nice to have separate/bigger rooms and eventually we all aren't going to be changing around each other. I was looking that the 1 bedroom room my kids would be sleeping on the couch? I would prefer two queen beds instead if that's the case Which i will probably close up everyday because I'm a little ocd with keeping the room neat when we vacation haha.

So would I infect be saving money

I agree with disneynutz. It's all about the numbers and how your choose to make your comparisons.

A 1-bedroom DVC villa is not a standard hotel room and it isn't priced the same as one. Are you going to compare the long-term cost of owning enough points to stay 2X-3X annually in a 1-bedroom unit vs. staying in a room at a deluxe resort with the assumption that you will always be able to get a 25%-30% discount? DVC is likely to lose out. The convenience of 2 separate rooms, a full kitchen and in-room laundry facility comes at a price.

But if you're going to compare what your OOP cost might be if you were to book a 1-bedroom villa through Disney CRO vs. being a DVC owner booking on points, I would guess that the DVC ownership would be more favorable.

However, there's another possibility that you might want to consider for at least the near future: renting a reservation from an owner for your next few stays in order to give DVC a trial run. You may find that committing to 25-50 years of Disney vacations is not where you want to sink your money when you can rent points when you want without the obligation of annual maintenance fees.

And something else to consider is the lost ROI on the money you are sinking into DVC. Let's say you just paid $20K for that shiny new contract. Imagine what you could earn by investing that $20K instead of spending it! For some people, it's important to take that number into consideration.

Personally, I view DVC ownership as a luxury purchase. It's like deciding between a KIA and a Mercedes. Both will get you where you want to go. I bought DVC because I was tired of chasing down discounts and my 5-person family could no longer comfortably stay in a single hotel room. It was less about saving money and more about convenience.

 

[Wakey]

Good advice on here. I crunched the numbers time and again. In the end, I calculated buying the resort with cheapest overall cost (SSR) resale, cash, would pay me back in 3-4 trips. I simply couldn't make a case for paying 185 a point, particularly on finance.

 

[Christina2.0]

Great advice! I'm going back Aug (just me in the kids) and December for annual big family trip (my in-laws pay for that trip) but for our next trip May 2018 where its just my husband and kids, we decided we were going to rent points and see how we like it. We do waste money OOP paying for laundry to get done so that will save us with DVC. I submitted for a quote but was told I was too far out of the booking window and to wait until June to inquire about renting DVC.

It's just so much information to think about it gets extremely overwhelming. Then there's also the decision of direct vs. resale. For lack of headaches I feel like buying direct is the way to go but at the same time I see that people have saved a lot buying resale.

 

[ScubaCat]

I calculated the cost as comparable, with two major advantages. One, I don't have to cough up and stress over the cost of the room for the next 26 years (including the extra adult charges), and two, a 1br villa is exponentially more comfortable than a standard hotel room. We do use the kitchen and laundry, as well.

Having said that, everyone is different. I concur 100% with the advice to rent points and see if you like it.

 

[ScubaCat]

For lack of headaches I feel like buying direct is the way to go but at the same time I see that people have saved a lot buying resale.

It's not much hassle...just a bit of waiting. It's all by mail anyway. I saved nearly $25,000 buying resale. It'd take me a lot longer than a few weeks of waiting to recoup that!!

 

[SL6827]

OP, I was thinking exactly along the same lines as you. And still sometimes wonder. I think your line of thinking is spot on.

But for me, it seems a bit easier because I want to buy in at Hilton Head. I have absolutely no idea how I can get any type of discount at Hilton Head for a studio in the summer, other than renting. And I have a feeling, renting a studio there in the summer would be of high difficulty.

And renting on the weekend in the summer, hardly any savings at all.

 

[Jperiod]

I was just crunching resale numbers and came up with the cost per point to own/use the length of the contract. This is not adjusting for inflation or investment opportunity cost, or even an increase in maintenance fees. But it helped me comparing owning the resorts with lower upfront buy in, yet higher maint fees, or shorter contracts.

Take these numbers and multiple by the number of points you'd need to stay in the unit/time of year you'd want. Then compare to what you usually pay in cash.
aulani (subsidized) 7.17
OKW (extended) 7.985
VB 10.03
VGC 8.63
BLT 8.22
PBV 8.87
ssr 7.65
akv 8.57
BCV 10.15
BWV 9.67
GFV 8.56
HH 9.71
VWL 9.86
CC 10.82

 

[SL6827]

I was just crunching resale numbers and came up with the cost per point to own/use the length of the contract. This is not adjusting for inflation or investment opportunity cost, or even an increase in maintenance fees. But it helped me comparing owning the resorts with lower upfront buy in, yet higher maint fees, or shorter contracts.

Take these numbers and multiple by the number of points you'd need to stay in the unit/time of year you'd want. Then compare to what you usually pay in cash.
aulani (subsidized) 7.17
OKW (extended) 7.985
VB 10.03
VGC 8.63
BLT 8.22
PBV 8.87
ssr 7.65
akv 8.57
BCV 10.15
BWV 9.67
GFV 8.56
HH 9.71
VWL 9.86
CC 10.82

I will look at this, thanks. But I might also want to add that in the summer, I doubt I could even get in there with cash in the summer. Could be wrong?

 

[Disney Dad ADL]

OP, I've crunched numbers enough times with enough different variables to know that if you compare equivalent rooms for the same number of nights (1 BR suite vs DVC 1 Br villa, studio vs hotel room), if you assume the increase in DVC annual dues is somewhere close to the increase in cash prices of hotel rooms every year, and you buy resale, you include a 20-30% discount on hotel cash prices, DVC always comes out ahead, typically breaking even somewhere between 7-15 years. That being said, the numbers are only part of the story as others have mentioned. The main risk of DVC IMO is that you lose interest in Disney vacations or something happens and you can't afford the annual dues.

It's not much hassle...just a bit of waiting. It's all by mail anyway. I saved nearly $25,000 buying resale. It'd take me a lot longer than a few weeks of waiting to recoup that!!

The good thing is that ROFR seems much faster now, many people are reporting turn around times of only a few days, which was unheard of before.

 

[SL6827]

OP, I've crunched numbers enough times with enough different variables to know that if you compare equivalent rooms for the same number of nights (1 BR suite vs DVC 1 Br villa, studio vs hotel room), if you assume the increase in DVC annual dues is somewhere close to the increase in cash prices of hotel rooms every year, and you buy resale, you include a 20-30% discount on hotel cash prices, DVC always comes out ahead, typically breaking even somewhere between 7-15 years. That being said, the numbers are only part of the story as others have mentioned. The main risk of DVC IMO is that you lose interest in Disney vacations or something happens and you can't afford the annual dues.



The good thing is that ROFR seems much faster now, many people are reporting turn around times of only a few days, which was unheard of before.

This is exactly what I feel. But I think, with a small contract, my break even point could be at five years.

 

[Christina2.0]

It's not much hassle...just a bit of waiting. It's all by mail anyway. I saved nearly $25,000 buying resale. It'd take me a lot longer than a few weeks of waiting to recoup that!!

25k that's great!!! I still have so much research to do Maybe resale not so bad as I had thought. How many points did you get? I'm also seeing a lot of people saying buy minimal points from disney (which i think 100 points is the minimum) then buy additional points through resale.

 

[ScubaCat]

I still have so much research to do

Much to learn, you still have...., my young padawan.

 

[Matty B13]

Also, if you like Poly and GF, I would buy there and not at SSR. You could possibly get into Poly at the 7 month mark, but VGF would be a crap shot at 7 months.

 

[Disney Dad ADL]

25k that's great!!! I still have so much research to do Maybe resale not so bad as I had thought. How many points did you get? I'm also seeing a lot of people saying buy minimal points from disney (which i think 100 points is the minimum) then buy additional points through resale.

Yes you can do that, but most go the other way. Buy resale first, then a small contract from Disney. It's easier to match your use year that way, and also officially you can get a smaller contract (25 points) if you are already an owner.

 

[kboo]

We go to Disney at least once a year (for my daughters birthday in May, usually twice (First week of December) sometimes a 3rd (sometime in the late summer) if I can sneak in a trip "while visiting my parents" in FL. When I book a room I usually do it through a bounce back offer (which I forget is it usually 25% or sometimes 30%?). Or I'll book it when there are fall/summer savings. Considering I get these savings, would I still be saving money if I were to join DVC? We usually like to stay at Poly or GF. But open home resorts being in other resorts and we have stayed: AK, Contemporary, Wilderness Lodge, Boardwalk.

The whole reason we're looking to join is because with 2 kids (currently 1 and 4). It would be nice to have separate/bigger rooms and eventually we all aren't going to be changing around each other. I was looking that the 1 bedroom room my kids would be sleeping on the couch? I would prefer two queen beds instead if that's the case Which i will probably close up everyday because I'm a little ocd with keeping the room neat when we vacation haha.

You may want to think about what happens when your older one goes to kindergarten or 1st grade, and whether you'll still go at the times of year you have been. Our kids are almost 6 and 1.5. the 6yo is finishing up her 1st year in kindergarten. In the past, we had always stayed where we wanted, and usually with at least a 30% discount, but that was through stalking discounts, getting pin codes, and getting really good orbitz deals (like 30% + Orbitz's 15% off). We had noticed that those great deals were most plentiful and at the best resorts in the off seasons, but with kids in preschool it didn't matter when we went. Then our oldest started kindergarten at a pretty intense school (and also one that we are very lucky to have gotten into - it's a great school that has a very tough lottery) and we felt bad pulling our daughter out of school. We took her out for a week in January for a trip to Hawaii, and although she didn't fall behind or anything (it IS still just kindergarten!), we did feel like we needed to show *some* educational value from our trip. And I felt bad because I felt like I was taking our spot at the school for granted. Anyway. We thought that we'd maybe buy DVC in a few years when we really couldn't take our kids out of school, and booked point rentals this summer to stay in a few studios (we have stayed at DVC 1BR via pixie dust, and 2 BR point rental for a family reunion*) before deciding which resort and how many points to buy. Well, just before an unexpectedly long April break this year, when we were looking into costs for spring camps/babysitters for the 10 days off, we decided to see how much it would cost to go away. Well of course, EVERYONE was on break Easter week, so the only deluxe rooms available at that point were $700... needless to say, we didn't go to WDW over Easter week and it accelerated our points purchase. Long story short, while the deals can be great, and we did great in hotel rooms, we knew we'd be planning up to a year in advance just because our likely travel times would be during school breaks, which are also times unlikely to get good discounts unless it's late summer.

As noted, just compare the costs. IF you assume 20% on average discount for the cash options, I think that's a good long term compromise as it will likely be higher at times. Apples to apples is a hotel room to a studio or 2 hotel rooms to a 1 BR or even 2 BR in some cases. What you would have paid not owning DVC is likely your best comparison, a private rental is the other reasonable benchmark. The actual cost of DVC on cash is not at all a reasonable comparison unless that's what you'd do not owning. I think you'll find a 1 BR is more expensive but a studio is likely cheaper if you make good purchase decisions. But would a larger villa be worth the extra cost, that's what you'll have to decide. Part of the issue is VGF and Poly are the 2 most expensive properties both in terms of points and cost per point. $$$ wise I doubt it'll be worth it but once you don't feel a single hotel room is workable, that's the point where DVC will be a significant plus. In reality few people save money with DVC, often quite the opposite. But many that don't save money get more enjoyment with more trips and the other things they're able to do.

I agree with Dean - and this is why we bought DVC this year, after a few stays on points to see if we would like DVC over the regular hotel room experience. With 2 smallish kids, we found the kitchen and laundry to be invaluable for trips longer than 4 days, and the extra space in a 1BR or 2BR to be so worth it because our little kids go to bed early and are up early. I kind of wish we had tried a studio before we'd bought, because I have a feeling we are going to want to stay in 1BR (or even larger) as the kids grow up. So ultimately probably not saving money because we are staying in larger accommodations, but we did really enjoy the space and I think our vacationing style was much more relaxed. (To compare apples/apples - we stayed at BLT last year in a 2BR on rented points. The points cost a little over $5,000 for 8 nights, working out to an average of $650/nt. There was availability through Disney's cash reservations for the same size and view and the exact same days, for over $10,000 for the same period. Since that trip was a family reunion with 9 people, we were going to get a 2BR no matter what.)