I don't understand how DVC works

[pixie3]

Sorry Sorry, but any help would be appreciated. I just don't get this. I looked on Disney's website and it SEEMS to me they don't want to give you specifics on how it works. I looked on the FAQ on this site and it helped, but I still don't get it.

Okay, so you pay a certain amount to join????? Who knows how much because I can't find numbers anywhere. Let's say 10,000. One time fee?

Then you buy points every year at $89 a point.

Then lets say you stay a week at Disney for 200 points (so essentially $1800) which is good if it is a $400/night room.

Lets say over a course of 1 year I want to spend 4 weeks which would include a cruise maybe, so I would need 800 points a year costing me$7200 per year.

Is the point that I am saving money on the room? But don't forget that I put that 10,000 out first so the real savings wouldn't come for years.

I don't care about staying anywhere else but Disney World or Cruise.

It says you get to book 11 mos ahead, but I don't work this way. I work the opposite way - "Lets go to Disney RIght now". Does the DVC not work that way?

Is the point that I always will spend the same amount even when that $400 room goes up?

Help Help Help


Thank You
Confused Kimberly

 

[Caskbill]

DVC is a timeshare. You don't join like it's a club. You purchase a real estate interest in the resort that you purchase, just like other timeshares.

The big difference is the % of ownership you purchase is based on points so you can buy more or less.

Your biggest misunderstanding is the $89. That's basically the up-front cost and is paid one time only. After that, the only fee is the maintenance fee of about $4 per point.

Your math was incorrect anyway. If you figured $89/point for 200 points EVERY year, that's $17,800 (not $1800, you misplaced the decimal point) BUT, it's really about $4 per point annually, so your 200 points costs you $800 a year. And yes, the 1-B/R villas would go for about $400/night for cash rack rate, so if you thought $1800 for a week was good, then $800 is even better.

 

[KLR-wlv]

Regarding the reservation time - if you want to go at peak holiday times - you really would need to reserve when your "11 month window" at your home resort is in effect. If you buy at Saratoga Springs - the resort currently being sold by Disney (all others are sold out and you would need to buy through a resale agent - which would save you at least $10 per point) - then you get 'home resort" priorty at Saratoga Springs for reservations starting 11 months from your check in date. Then at 7 months you can try to reserve at any of the other DVC resorts. If you typically travel at non-peak times, you shouldn't have a hard time finding availability at a resort 3-4 months prior. The waitlist has worked for me numerous times. But if you want to consistently plan a trip within a week or 2 - DVC may not be the best thing for you. Financially the break even point is usually 5-7 years, so it does end up a good deal in the long run if you plan on going to disney ever year or two and would stay in moderate-deluxe accomodations. We have gone way more often than we would have had we not bought - and that's been a good thing for us!

 

[lillasmom]

Example: You buy 100 points (or however many you think you will need) at a one time cost of $89 per point=$8900. You get 100 points every year to use, or bank into next year (so next year you would have 200 points to use). You would pay $4 per point per year for "dues" (Disney uses that to pay for up keep, taxes, etc...).

You can use your 100 points anyway you choose. You could get a studio for a week, depending on where you stayed. You could get a 1 or 2 bedroom, again depending on where you stay and what time of year it is. I think you will find that most here are very careful with their points, going at times of the year when they get the most for what they have.

That boils down to paying $8900, and $400 per year after to take magical vacations for 37-49 years from now.

Hope that helps! Keep asking questions... Everyone here is very helpful!

 

[Par8hed]

You purchase a real-estate interest and spend the rest of your life on these boards discussing ( at great detail) such life changing subjects such as "what if I run out of toilet paper" , " do they really expect me to use a towel twice", and " how 'bout those small Palmolive bottles",

 

[pixie3]

Par8hed - Where do I sign up and quick!!!! ps. I'm growing older but not up

I think I get it. Boy, do I feel dumb.

Here goes:

for example: I buy 200 points at $89 = 17,800 for the first year and by going at the right times of year could get something like 2 weeks and maybe a weekend. or I could roll those over into the next year. For the next year and beyond I spend $800 a year. Or I could buy from resale for a price in the $70 ish range.

The $4/point a year goes up right???
The $89/point initial fee goes up each year also right????
Does it cost to spend your points at another Disney hotel/cruise other than your ownership hotel?
Buying resale: You pay the seller, you get the ownership in your name, then continue to pay Disney the $4/point a year, right?

Thank You Thank You Thank You.

 

[tjkraz]

Originally posted by pixie3
for example: I buy 200 points at $89 = 17,800 for the first year and by going at the right times of year could get something like 2 weeks and maybe a weekend.

How far your points will go depends on the time of year you want to travel, the size of room you want, and even the resort at which you want to stay. But, I think it's safe to say that you could get a Studio (comparable to a Deluxe resort room) during one of the cheaper seasons for 2 weeks / year on 200 pts.

or I could roll those over into the next year.

Yes. You can "Bank" points ONE YEAR into the future if you cannot / will not use them. At the end of that second year they expire if they are not used.

For the next year and beyond I spend $800 a year.

Give or take. Dues vary by resort. At SSR I know they are currently $3.80 per point for 2004. OKW is a little lower. BWV is $4.25 per point.

Or I could buy from resale for a price in the $70 ish range.

By the time you add in all of the fees, you're probably going to be closer to $80 per point. Of course resales can add extra value in the form of banked points (as mentioned above) that the original owner did not use. If you buy direct from DVC, you probably will not get your first set of points until 2005. But if you shop around for the right resale, you may be able to find one that has 2004 points intact, plus 2003 points that were banked.

But realize that there is a difference in the ending dates of the resort contracts. If you buy points at SSR direct from DVC, the contract will end in 2054. But if you buy points at any of the other resorts on the resale market, the contract will end in 2042.

The $4/point a year goes up right???

Yes. Old Key West is the oldest resort, and increases have averaged about 2-3% per year over its 12-year lifespan.

The $89/point initial fee goes up each year also right????

Yes it will increase, but not necessarily on a regular schedule. Remember it is a one-time cost, though. The only time you need to worry about paying this cost again is if you decide you need more than 200 points.

Also, since you keep mentioning the $89 figure, I wanted to point out that you can get SSR points from DVC now for as little as $85 per point.

Does it cost to spend your points at another Disney hotel/cruise other than your ownership hotel?

Those options are available, but they are considered "trades" using your points. When you buy into DVC, you are getting an ownership (albeit one with an expiration date) in a DVC resort. DVC resorts will always be the best use of your points.

A Studio room at a DVC resort may cost you 10 points per night. But a comparably-sized room at the Grand Floridian or Poly will probably run 30 points or more for the same night. That's just the nature of the beast.

Also, barring any major changes to the point system that I won't expand on too much, that 10-pt room at a DVC resort will ALWAYS be 10 points. The point costs for non-DVC properties increase every year.

Buying resale: You pay the seller, you get the ownership in your name, then continue to pay Disney the $4/point a year, right?

Correct.

 

[Desperado]

Originally posted by pixie3
.....It says you get to book 11 mos ahead, but I don't work this way. I work the opposite way - "Lets go to Disney RIght now". Does the DVC not work that way? ...

Nope. You need to plan ahead. It sounds like DVC is not for you. Best wishes.

 

[Desperado]

By the way, here's a link to additional information:

http://www.allearsnet.com/acc/dvc.htm

I really think the plan ahead part is a deal breaker for you.

 

[pixie3]

Thank You all so much I learned more in the past day from you all than I did in a month. Thank you for being patient with me. Someday when I'm a DVC expert I'll help someone out.

Thank You.

I think if I had to I could plan ahead. Its just that we go a couple times (or more) a year and someone mentioned to be I'd probably be better off in the DVC. I have aan 18 month old (whose been to Disney three times this year) and I'm pregnant now, so I probably won't do anything till next year. I have to think about what is going to be the best time to join for us, and how many points we need. I'll probably buy from a resale as I would like Boardwalk.????

Thank You.

I'll probably have more questions

Kimberly

 

[Desperado]

Originally posted by pixie3
....I think if I had to I could plan ahead.

That's an entirely different matter.....

Its just that we go a couple times (or more) a year .....

Then DVC is for you.......

Congradulations on your growing family.

 

[Laurabearz]

Kimberly... DVC is great for familes with kids. In the studios they have a small fridge, microwave and toaster. Most Studios have a queen bed and a pull out, with the except of Studios at Old Key West, they have two queens (and the room is HUGE) One/two bedrooms are to die for! Full kitchen and laundry in the villa!!! Plus, there is nothing like putting the kids down for a nap(or bed for the night) and having a whole other room to stay up and spend time with your husband in...... a real vacation!

I think you got the whole point thing now, but wanted to add... once you buy a point, it is yours to keep (whether they are resale or Via DVC). Then you have to help maintain the resort and to be fair, they charge per point (so those with more points, thus more wear on the units pay more than those with less points, less wear on the units) Currently maintinence fees are around $4.00 per point.... they can go up every year, but it is capped as to what % they can go up......

Also, even though you plan spur of the moment trips now... think about when your kids start school... and I have to say, most DVCers like to plan YEARS in advance because it is soooooo much fun to do so. Here is a link to a great planner.... it helps you see exactly what your points can do for you... Caskbill's Planner The creator posts here...

Keep asking questions! We are here to help!

 

[kocar]

We bought into DVC because we have a family of 6 and we were able to book a spur of the moment trip for this Dec. 17-21 just this past week. If your spur of the moment trips are at non-peak times, then your chances of finding an available room are even better. Remember that you can use your points at the hotels too if for some reason no DVC resorts have any rooms.

With children of any age or number of kids, I would never go back to staying in a regular hotel at Disney. Our first stay was at Ft. Widlerness cabins, next was OKW, then BCV and we were able to get accommodations for this Dec. when we stumbled across half price airfare for all of us.

We bought resale just over a year ago. Paid $65/point for a 220 point contract at HHI with 129 banked points. I recommend going resale. There's lots of bargains out there and you can get on some of the automatic resale e-mail notifications so you can be notified of current inventory updates.

Hope this helps.

Michelle