How did you determine DVC was right for you?

[Pdollar88]

i had written off DVC as out of my price range. But now that I’m looking at renewing my AP this coming year (and probably through 2021), I’m thinking harder about it.

I’ve gone to WDW twice in the last year (staying once at a deluxe) and have one more trip this year. I’ll be for sure going once next year, and likely at least once a year for the next few years.

How did you decide it made sense for you? What calculations should I do?

I’m also a little nervous about being able to book the room type I want with points. And whether I should do resale or direct on my first purchase.

 

[amcnj]

The children were young, we were pricing out a trip to Disney world, and realized that DVC was not a whole lot more than this one trip was going to be, and that we would most likely want to return while they were young. (This was decades ago so costs and prices may vary today!). We liked the flexibility of it, (not having to go the same week very year, being able to vary accommodation sizes as needed, banking and borrowing points so you could go more than once one year, but not go again for three years if you wanted) and also the idea that it was finite (after hearing/reading stories about timeshares that went bad and people could not unload them, or that they could be a burden to those that inherit them). The icing on the cake was the offer at the time of free park tickets (two per bedroom per night through 2000 if memory serves), which lowered the cost even more. Also would advise you to be realistic on how often you would go. If it is not once a year (or more), just look into getting enough points to be able to go every few years or whatever suits your needs, unless you are thinking of renting any excess points.

 

[Pdollar88]

So do you make a down payment and then pay the rest you’d pay on any loan - like a mortgage payment?

 

[ClosetDisMom]

My husband and I did the following to assess if DVC made financial sense for our family:

• We looked at the cost of the size of rooms we wanted in the cash offerings (family suite at AoA and a villa at a deluxe) during the time we travel (July - we are teachers with school-aged kids)
• We decided for simplicity that the increase in cost for rooms over time and the increase in DVC dues were a wash (others can argue that this is mathematically wrong; they are probably right, but we errored on simplicity)
• We took the price of the cash room and multiplied it by the number of times we would go over X years (for us we planned to go once every other year, so X=10 years and 5 visits)
• We took the initial cost of a resale contract that would cover half our maximum points needed (we wanted a 1BR for a week, every other year) - at the time a 145 SSR contract was selling at $87/point; we then took the dues for those points and multiplied it by the number of years from the cash room scenario (10)
• We looked at how the two final figures compared. For us, we determined that 10 years and 5 big trips was our break even. We were ok with that and bought, knowing that we would still like Disney after those 10 years were up.

Since we purchased, a few things have changed:

• We realized that the 290 points over 2 years could get us to Disney more often, so we are planning on going more often. This is an increase in cost we didn't think about.
• I have read all about time value of money on these boards. I get it. I can still justify putting the initial cost into our contract.
• I have the peace of knowing that if I don't get all of the things I want to do into my summer trip this July, IT IS OK. I am going back next January and after that in the Fall of 2019. I like that.
• We realized that we could take family with us and be able to not worry about the cost of the room. That feels nice to say to my mom or his mom, "Just meet us there and we can take care of the rest."
• I really kicked myself for not buying 25 direct points before the rules changed. But only until I ran the math to remind myself of the thousands of dollars I saved going resale.

Hope this helps!

 

[Marionnette]

i had written off DVC as out of my price range. But now that I’m looking at renewing my AP this coming year (and probably through 2021), I’m thinking harder about it.

I’ve gone to WDW twice in the last year (staying once at a deluxe) and have one more trip this year. I’ll be for sure going once next year, and likely at least once a year for the next few years.

How did you decide it made sense for you? What calculations should I do?

I’m also a little nervous about being able to book the room type I want with points. And whether I should do resale or direct on my first purchase.

The kids had gotten older and could no longer share beds. When the first of our 3 kids turned 18, we were not only facing the need for larger space, we were also going to begin paying the "extra adult" fees when we did travel together. That prompted us to take another look at DVC and the numbers on resale in 2009 just made sense. At that time, people were walking away from their homes because they were under water on the loans. Luxuries like a Disney timeshare could be liquidated to help keep things afloat. The prices were coming down on loaded contracts in order to make a quick sale. We pulled the trigger on our first contract and it was quickly followed by a second and third contract.

We had the cash to pay for it, so no loan or mortgages. We did not factor in the time value of the money because that money was earmarked for vacations regardless of where we spent it. We looked at the cost per point on an annual basis (number of points X number of years left on the contract + annual dues based on a maximum annual increase of 15%). I compared that to the what we would spend on a deluxe resort hotel room, which was how we preferred to stay at Disney. I estimated a 10% increase in hotel room rates annually. Up to that time, we were going every 1.5 - 2 years and our first contract was sufficient for a 5-night stay every 2 years in a studio for the two of us. It was our way of dipping our toe in the DVC waters. It helped us learn the ropes of DVC without putting a lot of money into it. We also knew that if it turned out to be a bad fit, that small contract would be snapped up quickly on the resale market.

Two things quickly became apparent:
We like 1- bedroom villas for ourselves or 2-bedroom villas when we are traveling with someone else.
We wanted to be able to go every year or gift a stay for our kids.

Hence, the addon-itis. More contracts for more points and more home resort advantage. Each purchased resale and only when we had the cash to do it. We're up to 670 points at 3 resorts and while having a 4th home resort is tempting, that's enough points for me. It's enough for grand villas during F&W two out of 3 years and with enough points left over to rent out, book a trip for a family member or to take a brief couples trip.

We're happy with our purchases. It enables us to vacation at Disney in a manner that fits our style. I don't think we will ever go back to staying in hotel rooms there unless we are there for a conference (those rates are too good to ignore and they can be deducted from our business taxes).

 

[iheartglaciers]

We started going consistently to WDW at least once a year and, after the first few times staying in values, began staying with family on their DVC points or rented points for our own room. After staying at the DVC resorts, we didn't want to stay at values anymore. When I first looked into buying our own DVC points I decided renting wasn't that much more expensive than buying (and less commitment), but rental prices started increasing a lot and I wanted more control over our reservations.

I ran the numbers looking at initial buy-in cost (divided among the years left on the contract) plus maintenance fees (knowing they will increase each year) and it made sense for us. So happy we made the plunge!

 

[Pdollar88]

Thank you both! That is helpful. I’m going to have to do some serious figuring/computing.

I’m still not sure it’s something that I can do this or even next year, but maybe one day in the near future.

 

[Marionnette]

Thank you both! That is helpful. I’m going to have to do some serious figuring/computing.

I’m still not sure it’s something that I can do this or even next year, but maybe one day in the near future.

TBH, today's pricing is nowhere near the value it once was. I look at resale prices for my home resorts (AKV, BWV and VGF) and I cringe. But when I look at what DVC wants for those same resorts in direct sales, I get sick. It's nice to know that the BWV contracts that I bought at $59/point could be sold for twice that amount today but still...

 

[ClosetDisMom]

So do you make a down payment and then pay the rest you’d pay on any loan - like a mortgage payment?

We actually paid cash - because of the size and price, which was only available via resale. However, I believe a lot of people do a down payment and loan.

 

[Ben E N]

For me personally it was renting in a DVC resort that made me realize how much nicer the deluxe experience is compared to moderate and value. I started looking at DVC on my own, and once I realized that my wife was doing the same on her own, we started to discuss it. The discussion had a few components to it:
1.) Do we see ourselves coming back to Disney World a whole lot? That was an easy yes.
2.) Would we be able to go back to moderates? Yes, but we would always look longingly at the deluxes.
3.) Would it just make more sense to rent DVC points? This was a harder one to dissect, but we realized that after something like 17 years it would balance out to favoring ownership. That's a long time to see an investment pay off, so if the previous two answers were not hard "yes", then renting probably would have won out.
4.) Most importantly, do we have the cash on hand for this purchase? I had money just sitting around in some stocks and bonds that wasn't really earmarked for anything, so we were able to buy in without it having any real significant impact on our finances. We can now continue to build those random savings accounts now that we have already paid for our next two summer's vacations by buying into DVC and purchasing their cheap annual passes.

I am sure there are many other variables that others have to consider, but those four were the most important ones that my wife and I considered. We never thought of going direct when we bought in, either, and went with the hybrid method back when it was cheaper to do so.

 

[pineapplepalms]

We were already paying cash to stay in deluxe resorts for several years, going around twice a year, and buying annual passes. We used to go for races and take advantage of runDisney room discounts for the deluxe resorts. Now we have a 2 year old (and another in my belly!) and races are on the back burner, and DVC will allow us to stay in larger rooms as a family for much less than we could otherwise. We bought to stay primarily in 1BRs and 2BRs as the kids get a little older. We didn't want to rent points because we wanted to be able to control our own reservations.

Disney sent us a couple of targeted offers last year - once we were staying at CR and we got an in-room offer with a Poly lithograph and offer for a $100 gift card if we did the tour (we didn't end up doing it on this trip since I wanted to do research first), then we got an offer in the mail for CCV to pay a reduced rate for a 1BR villa for 5 nights plus passes to check out the Epcot lounge and TOTWL before buying as long as we attended the tour during our stay. The timing worked out so we booked the stay and I did a solid half year or so of research before that trip (including a ton of reading on these boards), and decided (as long as we loved CCV - which we did) to buy CCV direct and then a couple of other home resorts resale. We paid cash using some stock we liquidated (it accumulates through work so it's something we should be doing more often anyway for diversification purposes). DVC wasn't on our radar before last year or else we probably would have bought sooner!

For us it made a lot of sense given our travel patterns, love of Disney trips, growing family, finances, and ability to plan trips in advance.

 

[striker1064]

So do you make a down payment and then pay the rest you’d pay on any loan - like a mortgage payment?

Many people will tell you that you should never a finance a vacation, and they are correct. It almost never, 99% of the time, makes financial sense, and you should pay cash. However, some people will look at their own personal situations and decide that financing is right for them. If you go this route, just remember you do not have to finance with Disney. The lowest rate you will ever achieve with them is 9.9%. You can obtain personal financing through other banks for quite a bit less, so do your research.

 

[OneOftheB's]

We decided DVC was a good option for us when we realized that (a) we, as a family, loved visiting WDW, (b) we liked staying at deluxe resorts, (c) the kids were young enough that we could see us going as a family for 10 years easily, then have the option of adult trips and (d) we had a boat that still had a nice value, but was not being used at all. We sold the boat, called the rep and paid cash. Never looked back & it has been 100% worthwhile for us as a family.

 

[disneynutz]

No different than any other financial purchase. List what you spend today for your Disney vacations, list what buying DVC will cost with dues and any financing. Consider direct buy perks and their savings if any. Total the numbers and see which saves you the most money.

Bill

 

[lovin'fl]

What made us decide is this...
1) We planned to go to WDW about every 8 months (If you go every 24 months or less, then it's a good choice. But if you go every 3+ years, then maybe not).

2) We knew we could plan at least 7 months out (If you can only book at last minute, then DVC is maybe not for you).

3) We are a family of 5 and needed, wanted really, villa style accommodations with master bedroom, kitchen and laundry. And booking those rooms CRO with Disney (non DVC) is crazy expensive and we didn't like staying off site. Could have done 2 regular hotel rooms, CRO, but that would have been more costly.

4) We came into a small inheritance and could therefor pay for it outright (initial 200 OKW contract we bought in 2006) and all add ons since then have been small contracts so we could pay for them outright....no financing.

5) Finally, if not for DVC we likely would have done a couple WDW trips and that's it. And with having 3 kids, it was a great vacation destination so we likely would not have done too many vacations at all (maybe a couple WDW trips with a couple beach trips over the past 12 years). DVC allowed us, or forced us, to go every year and lately 3 times a year. Also, since we have HHI points too, we can still do some beach trips. We add in cruises here and there as well. We just wouldn't have been able to afford any big trips, like Europe or Hawaii, with costly airfare for a family of 5. We are in NC and can drive to HHI and WDW and many cruise ports.

So as you can see we didn't really do a financial analysis to see if DVC is worth it. We went in from the emotional side of things. Except we knew that we were saving money compared to booked 1 bedroom suites, or 2 hotel rooms, with Disney CRO.

 

[cedricandsophie]

For us it was totally an emotional decision. My husband is a lawyer and I’m now retired. We aren’t numbers people. However our first purchase was somewhat out of the norm for us. I was at s business convention at the contemporary hotel for several days snd my kids and husband joined. Back in 1998 there was a deal that every dollar we spent at Disney would reduce our initial price dollar for dollar. So we looked into it, decided we liked it and bought in st boardwalk for about 85 a point. Then we bought a few points at OKW. Then we bought vero beach on the secondary market. Then we bought Ak points on a cruise because they offset part of the cruise. Then we bought bay lake cause I liked it. Then we bought more AK points on resale market because I wanted to use the club floor. Then we bought aulani at the beginning because it looked great and we wanted to go to Hawaii. Then we bought more aulani points over the phone with our sales person because we decided we needed more.

Never once other than looking at savings we were getting was it anything more than..,we like it, sounds good, let’s do it. We are lucky that we can pay cash and now have over 1400 points at 7 resorts. But we use them all, never get less than a one bedroom, never use for anything other than a Disney resort, never stay less than a week and often two, go to aulani once a yeAr, go to DW twice a year, have a disabled adult daughter that still loves Disney and our trust says that these points will be used for her benefit after our death, etc.

So now I just figure if the value of the villas we get exceeds what we pay in annual dues we are ahead. What we paid in the past is a mute point.

 

[hlhlaw07]

We decided to purchase because:
-I have always loved Disney and currently have two little princess/mickey adoring girls, and my husband humors us all.
-When we travel we never stay in accommodations less than a 1BR with a 2BR being ideal, as I am the world's lightest sleeper.
-We have paid rack rates for 2BR Villas in the past, as well as used the generous military discount for 2BR villas.
-The military discount can be hard to secure for certain travel dates, which is why we have had to pay rack rates as well.
-The savings in owning was greater than the military discount.
-As previously mentioned, my husband humors us, but is also a rabid Star Wars fan so the upcoming Star Wars Land really helped.
-I could not envision a time that I would ever tire of WDW. It hasn't happened in almost 40 years, its not going to happen.
-Much to my husband's consternation, I'm pretty risk averse with money so had a relatively large sum of money just sitting in my savings account and this seemed like a pretty good use of not even half of it.
-My husband and I are dual military, so our children's college educations are fully funded through our GI Bills that we have transferred to each child.
-We will both earn a military retirement, and fully max out our TSPs to supplement the retirement.
-We have a mortgage, but our tenants pay that for us.
-Our jobs and lifestyle make us pretty recession proof, so the idea of tying up a good chunk of change in future vacations did not seem like the worse idea.
-Most importantly, I really just wanted to do it!

 

[Networth]

We looked at four things.

1. We knew we would be going to WDW 1-2 times a year for atleast another 20 years minimum.

2. We always stay deluxe.

3. Fewer and fewer room discounts with rates continuing to climb.

4. We enjoy the Disney product, wether it’s WDW, ABD or DCL.

 

[Dean]

i had written off DVC as out of my price range. But now that I’m looking at renewing my AP this coming year (and probably through 2021), I’m thinking harder about it.

I’ve gone to WDW twice in the last year (staying once at a deluxe) and have one more trip this year. I’ll be for sure going once next year, and likely at least once a year for the next few years.

How did you decide it made sense for you? What calculations should I do?

I’m also a little nervous about being able to book the room type I want with points. And whether I should do resale or direct on my first purchase.

IMO there are 3 steps to purchasing DVC and they also fall in order of most to least important. First you decide if you can afford it (to me that's pay cash). Then you decide if DVC makes sense. Lastly you have to select home resort, Use Year and number to points. DVC only makes sense to use AT DVC resorts, one values staying on property enough to pay more, can plan at least 7 months out routinely and are OK with the compromises of a timeshare. Renting privately isn't that much more for a trip or 2 but it does add up over time.

 

[ToddyLu]

We decided to purchase in 2009, after yearly trips since 2002, staying in values. We financed with Disney it 10.75% interest. We aren't stupid and knew that was high, but at the time with the recession it was difficult to get a second mortgage. We both had always wanted to stay at AKL but couldn't really afford it. Now there are all sorts of reasons people spend money on different things, but that isn't want you asked. You wanted to know why. DH and I do not have children.

We love vacation. We love WDW. We live about 10 hours away by car. DH HATES to travel, will not cruise and anything over a two hour flight requires medication. We can fly to Orlando non stop in under 2 hours on Southwest. DVC just fits us. I knew I wanted to go to WDW every year. As a healthcare worker it was important for me to get completely away into a bubble. DH is now a retired fireman. It was important for him to get away into a bubble. So we purchased 210 points sight unseen at AKL, having never even stepped foot onto the property. I would not recommend that but we were very familiar with the experience at WDW and just knew the resort was the one we really wanted and we were right.

Fast forward to 2018. We paid DVC off 14 months early. We have APs, TIW and Disney reward dollars. We are getting three weeklong trips since Dec 2017. We make sure to get at least two trips out of APs, if not three in a year. So we still "kinda" budget vacations. WDW is where we want to be. We don't travel to the mountains or beach. We often just sit in our DVC room and watch TV or the animals off the balcony. We don't do commando anymore and ninja strike the parks, using our fast passes. We eat at some nice places and most of all relax. Just like people who rent the same cabin every year, we stay at the same resort. It feels like home at this point. DVC allowed a nurse and a fireman to stay at a deluxe resort in a premium destination for some fantastic vacations. Like I have posted before.....DVC is like a Corvette, it is a luxury. DVC changes your Disney trip like a Corvette changes your drive to work. It may be expensive, but those 30 minutes make it so worthwhile. To us DVC has been priceless, we would not have changed a thing really. Yes it would have been nice to pay cash but we didn't and now that is in the past. You have to decide what you can afford, when and how often you want to go and where you want to stay. DH had to pick vacation a year in advance which worked perfectly for DVC. Going forward we aren't confined to that, as he retired less than a month ago. But DVC is flexible to a certain point and we do not mind booking at 11 months for the fall if that is what we want. We have never looked back and so are excited now that we pay our MFs monthly for some terrific times...actually now about 22 days away from the next weeklong trip.