How did you decide it was "ok" money wise to purchase DVC? Loooong

[cseca]

Wow-- this thread is fascinating and very helpful. We have been thinking about DVC as well, and as much as I *want* to love it, I am having trouble convincing myself. Our situation is rather odd: my inlaws, who are in a good place financially, know we enjoy Disney, and would like to do something nice for us, have offered to buy into DVC for us as a gift; we'd pick up the annual dues. (We are me, DW, and DD9.)

Even so, here is why I am hesitant:

1) We would not go to WDW every year. Maybe every other at most. Maybe every 3. Playing with a spreadsheet I found here, I am having a hard time seeing how it would be a better deal with DVC (even just considering the dues) than paying cash unless you go every year.

2) There are other places we'd like to go, plus we love cruises. While I understand that DVC can be used for other places and DCL (at least buying direct), the points needed seem outrageously expensive and not a good use of DVC.

3) We've stayed at moderates our past couple trips and been more than happy. Plus we've gone during free dining. We would LOVE to stay at a deluxe but have been unwilling to spend $300+ a night.

4) We don't necessarily care about having a kitchen as cooking for us is not vacation. And DW especially hates the idea of not having daily mousekeeping, which would mean we'd probably shell out extra to buy it.

5) We are deal hunters! And why not with free dining, room discounts, etc. etc. Sure, they may not always be around, but if Disney stopped offering them, we'd either go less or just go somewhere else.

So are we crazy to consider turning down their offer? Am I not thinking this through right?

I think you're on the right track with your thinking.
Another assumption people make (or not make) when doing DVC cost analysis is usually hotel price increases (inflation). Since we don't know what the future will hold all we (DVC owners) do basically is just locking in today's price for tomorrow's vacation.

We don't know if next year's hotel price will go up 10% or 3%, and we don't know if Disney will continue with the promos (free dining, kids stay free, etc.). But we know that whatever they do, we'll get our room for roughly the same price plus our annual dues.

And if the numbers you crunch end up not matching your vacation habit, that's ok too.
DVC doesn't always work for everyone. Although if it was me getting free DVC from someone, I'd definitely accept it. Even if I only get small points hehe... But then again our vacation habit is much different than yours. So you're thinking it about it the right way.

 

[clutter]

I started with a 130 point contract at BCV, then added 30 pts at AKV (only because we love it so!).

When I bought in, my dd was younger and our vacations were just her and me. We rented studios. While we never 'cooked' in the studio, it was great being able to throw breakfast together in the room. We did a bunch of trips down there, thanks to the DVC discount on APs, some great AP rates, and some free dining.

Now turning 14, we won't be going so often. However, with only 160 points, I can bank and borrow and do a every-third-year trip in a 2BR, and she can bring a friend. (Maybe I can, too!) That should get us through High School. Then, once she's off to college, I'm sure she'll want my points at least once for spring break . The other years, I can travel with friends. Even if we don't do parks, AKV is a vacation unto itself, to me.

So I'm with the 'start small' group. Check out the resales and purchase a small contract. Maybe with an April use year, since you tend to go in May a lot. The annual fees won't be that big.

 

[EWL]

Check out the resales and purchase a small contract.

I was thinking about this option too-- but what does everyone think will happen now that DVC has changed the benefits? Granted, those benefits seemed not to be good uses of points, but is the resale market going nuts right now with people trying to get in before the change takes effect so are prices high? Will resale prices drop once they are in effect?

 

[disneyofcourse]

This has been so helpful. I'm checking out resales and now just really trying to figure out which resort would be the best fit for me. I'm thinking of either Boardwalk, Beach Club, Contemporary and Wilderness Lodge Villas. Those are all in the final selection. How did you all decide which one to go for? SSR is not totally out of the running but I just keep reading about buses taking 45 minutes and being too crowed.

Also, I am still not sure if I should buy before the March changes. I have never been on a cruise. The idea of actually going on one would be exciting! Are cruises a good use of points for DVC? Or does it end up costing more in the long run? I just looked up a Western Caribbean 7 night cruise with a large porthole window at a cost of 2,220.19. While the 4 night Bahamian cruises are surprisingly affordable. I've always thought cruises were so expensive until I just checked

I might have posted this already but I'm gonna go with a small contract of 150 or less. This way if buying DVC ended up not being good for me I could rent out my points and I'm guessing this would cover most of my dues?

 

[DisneyMomJen]

This has been so helpful. I'm checking out resales and now just really trying to figure out which resort would be the best fit for me. I'm thinking of either Boardwalk, Beach Club, Contemporary and Wilderness Lodge Villas. Those are all in the final selection. How did you all decide which one to go for? SSR is not totally out of the running but I just keep reading about buses taking 45 minutes and being too crowed.

Also, I am still not sure if I should buy before the March changes. I have never been on a cruise. The idea of actually going on one would be exciting! Are cruises a good use of points for DVC? Or does it end up costing more in the long run? I just looked up a Western Caribbean 7 night cruise with a large porthole window at a cost of 2,220.19. While the 4 night Bahamian cruises are surprisingly affordable. I've always thought cruises were so expensive until I just checked

I might have posted this already but I'm gonna go with a small contract of 150 or less. This way if buying DVC ended up not being good for me I could rent out my points and I'm guessing this would cover most of my dues?

Budget wise, cruises are not the best use of points. I was going to use points to pay for part of our Med Crusie last summer. It would have been using 3 years of points and that would be just for 3 out of six of us. I wound up renting and transferring points which paid for all six of us when they came out with a special rate. I would definitely do a cruise this way again if I decided not to use our points one year. You can get at least $10 per point for renting or transferring which would more than cover your cost of dues.
Congratulations on your decision!!! We bought into BCV and the way we decided to buy into there was that we stayed at the Yacht Club for 2 nights and loved the pool and the whole Boardwalk area and the Beach Club itself. .

 

[walkdmc]

I had enough money in the bank to cover the costs of ownership and we had concrete evidence that our employment was secure and our pay was established. If we didn't have the cash, or our jobs weren't secure, I wouldn't buy.

Of course, we already established that I loved WDW and planned on visiting regularly. Those would be other criteria.

 

[bebelle]

My DH is CPA and could not find the value once you factor in yearly fees. There does not seem to be many perks. We rent points thru DVC by request. We get to enjoy the DVC resorts for about the price of yearly maintenance fees.

 

[nunzia]

My DH is CPA and could not find the value once you factor in yearly fees. There does not seem to be many perks. We rent points thru DVC by request. We get to enjoy the DVC resorts for about the price of yearly maintenance fees.

...and that is a very valid way to experience DVC without the cost. I've recommended this option to many..But..and for me it's a big deal..I like the CONTROL of my own points and the security that I am in control of every aspect of the trip. So, it's worth something to me to have that security. But..I'm so glad so many are willing to rent points in case I ever have extra to rent out

 

[elbodans]

OK, I have not crunched the numbers, but here is what we came up with on our last cruise . . . a non-DVC, savings vacation fund. It would have cost us about $36,000 for an initial buy in (which we would not finance), the dues would have been about $750 per year. If you were to deposit the lump sum of $36,000 into a savings account gaining a guaranteed 4% interest (DH has this account), and then make annual contributions of $750 representing what you would pay in maintenance fees, but using just this fund to spend the $2000 per year that we would typically use on hotel only (since that is really all that DVC covers), how many years would you be able to vacation using that non-dvc, savings vacation fund? I would like to know the answer, but then your money is not locked up with a contract. Anyhow, for us, we have decided that DVC is not a good deal either.

oh i love this question...and i love the answer even more. the answer to 'how many years would you be able to vacation using that non-dvc savings vacation fund' (given a $2000/year expense) is...drumroll please...

FOREVER. and you'd have your original $36K to will to your children when you die.

4% annually on $36K is $1440. add to that the $750 in 'dues', and you have $2190 per year, and you're not touching the initial investment of $36K!

see--i knew there was something good about math!

 

[tlbwriter]

oh i love this question...and i love the answer even more. the answer to 'how many years would you be able to vacation using that non-dvc savings vacation fund' (given a $2000/year expense) is...drumroll please...

FOREVER. and you'd have your original $36K to will to your children when you die.

4% annually on $36K is $1440. add to that the $750 in 'dues', and you have $2190 per year, and you're not touching the initial investment of $36K!

see--i knew there was something good about math!

What about inflation? What kind of vacation will you get for $2190 in 10 or 20 years?

(It would still beat my only guaranteed annual trip, which is a visit to the ILs, but I'm just curious how the numbers would work if you accounted for inflation...)

 

[EWL]

OK, I have not crunched the numbers, but here is what we came up with on our last cruise . . . a non-DVC, savings vacation fund. It would have cost us about $36,000 for an initial buy in (which we would not finance), the dues would have been about $750 per year. If you were to deposit the lump sum of $36,000 into a savings account gaining a guaranteed 4% interest (DH has this account), and then make annual contributions of $750 representing what you would pay in maintenance fees, but using just this fund to spend the $2000 per year that we would typically use on hotel only (since that is really all that DVC covers), how many years would you be able to vacation using that non-dvc, savings vacation fund? I would like to know the answer, but then your money is not locked up with a contract. Anyhow, for us, we have decided that DVC is not a good deal either.

My answer-- if you assume that both the amount you contribute (representing dues) as well as the hotel cost will increase 3% each year-- is 36 years until the account would be depleted.

 

[disneyofcourse]

Well I put in an offer today!! Hoping for the Best! SO so very EXCITED

 

[cseca]

Well I put in an offer today!! Hoping for the Best! SO so very EXCITED

Congrats!!!
I hope you get it...

 

[csharpwv]

I own 500 points, paid cash for them in 3 separate contracts.

I regret it. 50 years is a long time to vacation in the same place. I have owned for about 14 years.

Membership used to have great perks that are now gone plus Disney has so many discount offers that DVC is not the deal it once was.

No matter how you run the numbers DVC is a frivolous purchase. If you are okay with that, go ahead. If you are second guessing or having to justify it, don't do it.

I have to disagree. DVC is a value if you HOW to run the numbers.
I have never posted this because it's long and rather complicated, but I'm finally going to take the time to post it.

It's best if you do this in MS Excel

Take your purchase price and put it in one column (Figure A)

Take the total of your yearly maint. fees and put it in another column (Figure B)

Multiply your yearly maint. fees by the number of years you will own the contract.... (time between now and then including the first and last years of ownership) (Figure C)

ADD Fig. A and Fig. C = Fig. D

You will have a very large number - Fig. D - that is the minimum cost of ownership over the life of the contract. (Maint. Fees do increase!) So it's not the EXACT cost of ownership - but it will at least put you in the ballpark - if you wish you can add 5% - 5% - 5% to give you an idea of what it will look like if it does increase 5% three times. ANYWAY....

Once you have Figure D - once again - take the total number of years of ownership and DIVIDE Figure D by that number. That will give you your TOTAL cost approx. of yearly ownership.

NOW here is where is gets complicated....

if you are buying a 300 point contract - multiply that number by the total number of years on the contract to get Figure E.

That number - Figure E - is the total number of point you will receive over the life of your contract.

Now divide Figure E by Figure D.

That will give you the approx. cost of every point that you will ever receive.

NOW - you can figure out approximately what a reservation would cost in cash to points conversion to see if DVC is a deal. You would just need to take a look at that resort's point chart and take 'run the numbers' on a reservation that you would likely make. 1BR Dream Season - or Studio Adventure Season etc etc

THEN check the rack rates to see what deal you can get with DVC vs. paying cash.

We do not intent to go to Walt Disney World every year for the next 60 years.

We have cruised with our points - we hope to do Adventures by Disney sometime soon - we want to travel the world - see things - go places - and enjoy life.

The best part is - we will NEVER have to worry about where we will stay - Our DVC points will go with us - either as a trade or renting our points out for cash reservations elsewhere.

We feel that DVC was a very wise purchase, it makes sense on every front in our lives. That being said - does it makes 100% sense for everyone.... no - it does not.

The decision to buy DVC or NOT to buy DVC lies solely on how you and your family vacation.

DVC makes a LOT of sense for us - and I am 100% confident that it will continue to make sense.

The numbers just add up for us.

If I confused anyone... sorry! Please feel free to PM me if you have any questions about 'the math'

But we LOVE DVC!

 

[disneyofcourse]

Well, It took them 13 hours (from the time I made the offer) to tell the owners my offer and the contract sold to someone else. Ugh

 

[cseca]

Well, It took them 13 hours (from the time I made the offer) to tell the owners my offer and the contract sold to someone else. Ugh

Sorry about that. Are you working with TTS or someone else?
What a bummer...