How to figure out how much your DVC stays REALLY cost...

[kristenrice]

I've posted this before and I think it got lost in a thread a long time ago so I thought I'd post it again for those considering DVC. I see people always analyzing if DVC saves them money and how much their vacations cost. This is the "formula" I use to calculate the true cost of our DVC stays.

First, take your total purchase cost (INCLUDING ANY INTEREST) and divide it by the number of TOTAL points remaining for the life of the contract. This will give you your buy-in cost per point.

==> We bought 100 AKV points in Aug 2008 with a FEB UY with all 2008 points banked into 2009. We bought resale for $92/pt + $450 in closing costs for a total cost of $9650. We immediately rented the banked points for $10/pt which gave us a "rebate" of $1000. Our net purchase price was $8650. There are 4800 points remaining for us to use so our buy-in cost per point is $1.80.

Then, add in the maintenance fees for each UY of points that you are using for a reservation.

==> In November 2013, we are staying in a value studio at AKV for 5 nights (Th-Tu) which costs 51 points. All of those points are 2013 points so the MF's on those points cost $289.42. Add to that the initial buy-in cost of $91.80 and our total ACTUAL lodging cost is $381.22, or $76.24/night.

Here's another scenario...

We travel in April, many times in premiere season, and typically stay in a 1BR standard at AKV for a Sunday-Thursday night. Here's what that would have cost us in 2013.

==> Using 85 banked 2012 points (total MF's of $462.07) and 100 2013 points (total MF's of $567.49), added to the buy-in cost of $333.00, the total cost would be $1362.56, or $272/night. Booked direct, the 1BR at Kidani is $770/night (tax incl), or $444/night if you rented points at $12/pt.

This is how we realized that DVC was for us. It may not save us money overall, but we can get much nicer accommodations on property for a "reasonable" cost.

I hope someone finds this interesting and I'd like to hear the results others have when they plug in their numbers with different resorts, purchase prices, etc.

 

[GotLabradors]

It's also nice for those who are considering a purchase into DVC.

 

[beer dave]

I've posted this before and I think it got lost in a thread a long time ago so I thought I'd post it again for those considering DVC. I see people always analyzing if DVC saves them money and how much their vacations cost. This is the "formula" I use to calculate the true cost of our DVC stays.

First, take your total purchase cost (INCLUDING ANY INTEREST) and divide it by the number of TOTAL points remaining for the life of the contract. This will give you your buy-in cost per point.

==> We bought 100 AKV points in Aug 2008 with a FEB UY with all 2008 points banked into 2009. We bought resale for $92/pt + $450 in closing costs for a total cost of $9650. We immediately rented the banked points for $10/pt which gave us a "rebate" of $1000. Our net purchase price was $8650. There are 4800 points remaining for us to use so our buy-in cost per point is $1.80.

Then, add in the maintenance fees for each UY of points that you are using for a reservation.

==> In November 2013, we are staying in a value studio at AKV for 5 nights (Th-Tu) which costs 51 points. All of those points are 2013 points so the MF's on those points cost $289.42. Add to that the initial buy-in cost of $91.80 and our total ACTUAL lodging cost is $381.22, or $76.24/night.

Here's another scenario...

We travel in April, many times in premiere season, and typically stay in a 1BR standard at AKV for a Sunday-Thursday night. Here's what that would have cost us in 2013.

==> Using 85 banked 2012 points (total MF's of $462.07) and 100 2013 points (total MF's of $567.49), added to the buy-in cost of $333.00, the total cost would be $1362.56, or $272/night. Booked direct, the 1BR at Kidani is $770/night (tax incl), or $444/night if you rented points at $12/pt.

This is how we realized that DVC was for us. It may not save us money overall, but we can get much nicer accommodations on property for a "reasonable" cost.

I hope someone finds this interesting and I'd like to hear the results others have when they plug in their numbers with different resorts, purchase prices, etc.

Yup-- I've done this too-- comes to about 7.50 a point for the lifetime of the contract.

The interesting thing is that the buy in cost is not a huge contributor to the costs-- it's the maintenance that adds up.

 

[Micca]

Nice numbers crunching Kristen I don't know all of our figures so I can't offer a comparison.

I know many check in here to determine if DVC is the right choice for their situation. I think one can justify their decision either way. For us, I know we'd never spend the cash to stay deluxe on a trip by trip basis. With DVC, we're staying at the top accomodations on property and it was paid for years ago.
With the laundry facilities and Owner's Locker there's less to pack (minimize bag fees.) With the kitchenette we spend less on food and have some really delicious snacks in the room. I add these details because it's part of the value of being a DVC member that isn't reflected in a straight breakout of costs for points and maintenance fees. Sorry if I rambled

 

[DebbieB]

All I know is I had a 5 night AP discount (35% off) BWV studio for next month that was going to be $1,430. Rack rate would be around $2200. My waitlist came through today , so I'm using 75 points. Heck of a bargain no matter how you figure it.

 

[Dean]

I've posted this before and I think it got lost in a thread a long time ago so I thought I'd post it again for those considering DVC. I see people always analyzing if DVC saves them money and how much their vacations cost. This is the "formula" I use to calculate the true cost of our DVC stays.

First, take your total purchase cost (INCLUDING ANY INTEREST) and divide it by the number of TOTAL points remaining for the life of the contract. This will give you your buy-in cost per point.

==> We bought 100 AKV points in Aug 2008 with a FEB UY with all 2008 points banked into 2009. We bought resale for $92/pt + $450 in closing costs for a total cost of $9650. We immediately rented the banked points for $10/pt which gave us a "rebate" of $1000. Our net purchase price was $8650. There are 4800 points remaining for us to use so our buy-in cost per point is $1.80.

Then, add in the maintenance fees for each UY of points that you are using for a reservation.

==> In November 2013, we are staying in a value studio at AKV for 5 nights (Th-Tu) which costs 51 points. All of those points are 2013 points so the MF's on those points cost $289.42. Add to that the initial buy-in cost of $91.80 and our total ACTUAL lodging cost is $381.22, or $76.24/night.

Here's another scenario...

We travel in April, many times in premiere season, and typically stay in a 1BR standard at AKV for a Sunday-Thursday night. Here's what that would have cost us in 2013.

==> Using 85 banked 2012 points (total MF's of $462.07) and 100 2013 points (total MF's of $567.49), added to the buy-in cost of $333.00, the total cost would be $1362.56, or $272/night. Booked direct, the 1BR at Kidani is $770/night (tax incl), or $444/night if you rented points at $12/pt.

This is how we realized that DVC was for us. It may not save us money overall, but we can get much nicer accommodations on property for a "reasonable" cost.

I hope someone finds this interesting and I'd like to hear the results others have when they plug in their numbers with different resorts, purchase prices, etc.

To me there are several issues related to how much DVC actually costs. From a number crunching standpoint I feel using the full life of the contract is far too long due to the risks and variables, I personally use 10 yrs. I also feel one should include the time value of the up front costs reduced by the savings from each given trip over time. Lastly I think it's foolish to use the rack rate of DVC, or even a discounted rack rate, as the comparison value unless one would stayed at DVC on cash or other means. Basically up front costs over 10 years increased by the lost savings of those monies and decreased by any real and true savings on a given trip PLUS yearly fees adjusted by inflation over the life of the contract. Compare that to what you would have paid also adjusted by the same inflationary adjustment. That is the cash savings (or cost) from a math standpoint. There's also an added value determination for many but it's far more difficult to measure and often mostly emotional. Obviously a 2 BR at DVC has more value than a hotel room at a value resort just like a Deluxe costs more and MAY give more than the value resort.

However, I feel there's more to it for most. I feel the psychology of the system causes many people to spend any savings they would have seen on other things and ultimately, spend significantly more than they would have spent without owning DVC. Obviously this is a far more difficult or impossible measure for all but those that track every dollar in and out over a long period of time.

 

[luckyman_apd]

I used the OP's math when we purchased ours 2 years ago. While Dean, you don't want to use the life of the contract because it's too far out...I used it because the initial buy in price and those points will never change in value. I got points for 30 years from now at todays buy in price. No matter what my dues cost, I will still factor a $2.05 buy in cost on my points. I, like the OP, see the immediate value of my points when making a room comparison of cost per night for each stay.

My example....we stayed in a studio for 4 nights at SSR this summer in a studio. My family would NEVER have done disney pre DVC in anything but a standard room, so we are fine with a studio. Now, those 4 nights with our dues (BLT) and buy in of $2.10, my per point cost for 2013 is $6.60. Those 4 nights were 56 points, so I figure I paid $92.40 per night. Now whether SSR is better or not the Port Orleans or any other Moderate, I still saved money. We stayed the first night at a value resort on our AP discount for $84. Now, I can tell you SSR was well worth $9 more a night.

Now we try to stay at BLT, but that was a last minute trip. With BLT, I am getting CR location for value-moderate pricing for my room. That's an extra premium for location, that I'd never get staying in moderates. My downside....I'm locked into going to WDW more than perhaps we would. Once we experienced WDW with our kids...we were hooked. We know we will visit at least once every 2 years minimum, so DVC was for us....especially resale.

Now we bought low....right before prices rebounded, but there is still no increased return had I saved that buy in money elsewhere. We got more "value" out of the trips we've taken so far, then any investment I could have made.

Now with the same comparison, next summer will be staying at BLT standard view studio for 9 nights. I've added a $0.25 increase to my dues for 2014 (just a guess as last years was a high %, but added @ $0.27) my nightly cost for my points with this formula will be $134.72. Now the best price on a room I can get right now on the website is $156 for a value, and $220 for a moderate. I'd say my DVC is still cheaper.

 

[Dean]

I used the OP's math when we purchased ours 2 years ago. While Dean, you don't want to use the life of the contract because it's too far out...I used it because the initial buy in price and those points will never change in value. I got points for 30 years from now at todays buy in price. No matter what my dues cost, I will still factor a $2.05 buy in cost on my points. I, like the OP, see the immediate value of my points when making a room comparison of cost per night for each stay.

My example....we stayed in a studio for 4 nights at SSR this summer in a studio. My family would NEVER have done disney pre DVC in anything but a standard room, so we are fine with a studio. Now, those 4 nights with our dues (BLT) and buy in of $2.10, my per point cost for 2013 is $6.60. Those 4 nights were 56 points, so I figure I paid $92.40 per night. Now whether SSR is better or not the Port Orleans or any other Moderate, I still saved money. We stayed the first night at a value resort on our AP discount for $84. Now, I can tell you SSR was well worth $9 more a night.

Now we try to stay at BLT, but that was a last minute trip. With BLT, I am getting CR location for value-moderate pricing for my room. That's an extra premium for location, that I'd never get staying in moderates. My downside....I'm locked into going to WDW more than perhaps we would. Once we experienced WDW with our kids...we were hooked. We know we will visit at least once every 2 years minimum, so DVC was for us....especially resale.

Now we bought low....right before prices rebounded, but there is still no increased return had I saved that buy in money elsewhere. We got more "value" out of the trips we've taken so far, then any investment I could have made.

Now with the same comparison, next summer will be staying at BLT standard view studio for 9 nights. I've added a $0.25 increase to my dues for 2014 (just a guess as last years was a high %, but added @ $0.27) my nightly cost for my points with this formula will be $134.72. Now the best price on a room I can get right now on the website is $156 for a value, and $220 for a moderate. I'd say my DVC is still cheaper.

You're assuming DVC will be an asset in 30 years, I'm not comfortable making that assumption. It could just as easily be a liability giving you more costs than traveling on cash. We love DVC but IMO, far too many people buy in with calculations that are best case scenario and assume this is their situation long term. Personally I hope for the best and assume the worst and figure I'll end up somewhere in between.

 

[luckyman_apd]

You're assuming DVC will be an asset in 30 years, I'm not comfortable making that assumption. It could just as easily be a liability giving you more costs than traveling on cash. We love DVC but IMO, far too many people buy in with calculations that are best case scenario and assume this is their situation long term. Personally I hope for the best and assume the worst and figure I'll end up somewhere in between.

I agree for some. Many people don't understand what they are buying....but for me, no, Im not viewing it as an asset or a liability. It's a prepaid hotel room.....and for now, and the foreseeable future, it's a cheaper room for me.

Comparing for 1 br or 2 br becomes an entirely different scenario. Based strictly on studio's vs regular room, it's a bargain for us. I'm not going to lie, we have probably added 2 trips we wouldn't have done if we didn't have DVC points, but thats not a bad thing....we added the trips, not made them just to use points. We would go more if we could, but our daily lives prevent it. DVC so far has allowed us to enjoy WDW as much or more for less, but I know everyone's situation is different and this is just us.

 

[Dean]

I agree for some. Many people don't understand what they are buying....but for me, no, Im not viewing it as an asset or a liability. It's a prepaid hotel room.....and for now, and the foreseeable future, it's a cheaper room for me.

Comparing for 1 br or 2 br becomes an entirely different scenario. Based strictly on studio's vs regular room, it's a bargain for us. I'm not going to lie, we have probably added 2 trips we wouldn't have done if we didn't have DVC points, but thats not a bad thing....we added the trips, not made them just to use points. We would go more if we could, but our daily lives prevent it. DVC so far has allowed us to enjoy WDW as much or more for less, but I know everyone's situation is different and this is just us.

Then I htink you're assuming that DVC will remain cheaper and you'll be happy using it in 25-30 years, again, I don't think that's a guarantee and the reverse is very possible, just another way of saying what I was saying above. Still around the best scenario possible with little but downside risk if you're wrong. I divide things up into savings and value separately. I can't speak for you of course but I'd venture that most in your situations would have both added trips or days to trips AND spent money they wouldn't have spent otherwise even beyond that. Whether that's a good or bad thing depends on many factors, many of which are emotional and/or subjective. With consumer debt and lack of attention to one's finances, it's certainly a bad thing, otherwise it depends. For me personally prior to DVC it was a long weekend for a meeting a year and a long weekend to see family once a year around the holidays. A forced vacation has not necessarily been a bad thing. However, there have been many other factors in our lives over the years that we would have done more with or without DVC and with or without timeshare in general.

 

[sueg]

We have one more factor. As old time DVC owners, we bought when OKW was DVC. We got those bonus free park passes. What a perk!! How I miss them and I know they will never return.

 

[disneynutz]

Owning DVC can be a double edged sword. Yes you might save on your accommodations but you are committing to frequent expensive Disney vacations. Disney knows that DVC can be an addiction for some which causes more frequent Disney vacations. The AP discount is designed to give you a mental reason to vacation more than once per year and it seems to work quite well.

Bill

 

[gerrym51]

We have one more factor. As old time DVC owners, we bought when OKW was DVC. We got those bonus free park passes. What a perk!! How I miss them and I know they will never return.

those were the days. 56 dollars a point 1993-park passes 7 years. Oh well-it's just money

 

[OneMoreTry]

If we could stay in regular hotel rooms, we would probably not have bought DVC. But due to our daughter with disabilities (and the fact we had a large family until the kids started moving out), we need more room time and a kitchen. Spending that much time in a regular hotel room would not be fun. So we bought DVC. When I compared cost, I compared paying for DVC condo each trip versus buying points. (I didn't compare renting points)

 

[luckyman_apd]

Owning DVC can be a double edged sword. Yes you might save on your accommodations but you are committing to frequent expensive Disney vacations. Disney knows that DVC can be an addiction for some which causes more frequent Disney vacations. The AP discount is designed to give you a mental reason to vacation more than once per year and it seems to work quite well.

Bill

While that can be true....(and I'm always thinking of going back until our AP expires) I took a lot of your advice when purchasing. I purchased with a plan in mind, and I kept our number of points on the smaller side to help counter the "addiction". However, the addiction didn't start with our purchase....the addiction started when we took our children. So, the DVC for us allows us to do it cheaper. We used to always do the dining plan, as where now we have learned to keep our food costs down. So I think it all comes down to each individual. Shoot, I even repack the light up toys they sell in the park so I don't have to hear my kids whine for them. I keep them packed and hidden until we get there. Much cheaper to replace the batteries than to repurchase them.

 

[Mickey'sApprentice]

I agree the OP. As someone who learned anoint TVM in college, but never used it professionally

 

[Mickey'sApprentice]

I agree the OP. As someone who learned anoint TVM in college, but never used it professionally

Oops!

I used to try to wrap my head around the fact that my buy in points that can be used in 2042 should be worth less to me than points I can use now. BUT, my points in 2042 will be worth more due to inflation. My solution was to give my buy in points the same value throughout.

My maintenance fees will continue to climb and will reflect the price nicely.

Over 7 years. My stays have gone up about $10/ night for an adventure season studio,

 

[disneynutz]

While that can be true....(and I'm always thinking of going back until our AP expires) I took a lot of your advice when purchasing. I purchased with a plan in mind, and I kept our number of points on the smaller side to help counter the "addiction". However, the addiction didn't start with our purchase....the addiction started when we took our children. So, the DVC for us allows us to do it cheaper. We used to always do the dining plan, as where now we have learned to keep our food costs down. So I think it all comes down to each individual. Shoot, I even repack the light up toys they sell in the park so I don't have to hear my kids whine for them. I keep them packed and hidden until we get there. Much cheaper to replace the batteries than to repurchase them.

Most of what I post is based on personal experience or observation. At one point we squeezed 4 Disney vacations into 1 year.

Now maybe 2 per year, we keep saying only 1 but the addiction is hard to fight. We don't do the DDP unless we have a very short split stay but split stays are less and less since we have stayed at all of the DVC resorts several times. We always do the numbers and in that last couple of years the DDP prices have made paying out of pocket a better value. Now we settle into the room and kick back.

Bill

 

[Dean]

Oops!

I used to try to wrap my head around the fact that my buy in points that can be used in 2042 should be worth less to me than points I can use now. BUT, my points in 2042 will be worth more due to inflation. My solution was to give my buy in points the same value throughout.

My maintenance fees will continue to climb and will reflect the price nicely.

Over 7 years. My stays have gone up about $10/ night for an adventure season studio,

Maybe, maybe not. IMO those are assumptions, ones that are not guaranteed. It is just as likely that late in the course it will cost more to own than it's worth and that it will not be a blessing. Then at some point it is worth nothing. The questions include when this is and is it worth the risks later for the benefits sooner. That's one of the reasons I use a 10 yr window when looking at DVC. If DVC makes truly sense in a 10 yr timeframe both usage wise and financially, then participating is likely a good option. To me that means no consumer debt, can pay cash and assumes around a 20% savings and/or 20% increased value (more subjective) compared to what one would have paid and using a reasonable rate of return and the time value of money. For anything less, it's simply not worth fooling with, IMO. I strongly believe that DVC first has to make sense financially for the demographics of those likely to be interested in DVC.

I feel far too many people think owning DVC is the only way to take advantage of it and that's simply not the case. I also think many people assume they'd be unhappy staying off property in otherwise similar accommodations, but have not tried it. It's been almost 7 years since I've had a full length stay on points but yet I've had several trips a year for a week at a time staying at DVC 1 BR or larger as en example.

 

[luckyman_apd]

Maybe, maybe not. IMO those are assumptions, ones that are not guaranteed. It is just as likely that late in the course it will cost more to own than it's worth and that it will not be a blessing. Then at some point it is worth nothing. The questions include when this is and is it worth the risks later for the benefits sooner. That's one of the reasons I use a 10 yr window when looking at DVC. If DVC makes truly sense in a 10 yr timeframe both usage wise and financially, then participating is likely a good option. To me that means no consumer debt, can pay cash and assumes around a 20% savings and/or 20% increased value (more subjective) compared to what one would have paid and using a reasonable rate of return and the time value of money. For anything less, it's simply not worth fooling with, IMO. I strongly believe that DVC first has to make sense financially for the demographics of those likely to be interested in DVC.

I feel far too many people think owning DVC is the only way to take advantage of it and that's simply not the case. I also think many people assume they'd be unhappy staying off property in otherwise similar accommodations, but have not tried it. It's been almost 7 years since I've had a full length stay on points but yet I've had several trips a year for a week at a time staying at DVC 1 BR or larger as en example.

We have never stayed off site as a family. Maybe when the kids are older it might work out for us, but I did it as a kid. I never stayed on property growing up. I HATED it. There are plenty of places to visit florida other than Orlando to vacation, but when we go to orlando, it's because of Disney. For us, driving is not something we want to do from the Northeast, and the cost of renting a car to stay offsite just isn't worth it.

I like the microwave in the studios as we do cook, and the kitchens have been great when we stayed in the 2 bedrooms. I have friends that scoff that they don't want to cook on vacation. Me? I don't want to drive. It's one of those things about vacation that makes it a vacation for me. To each their own.