I know everyone is asking the same question...

[disneyofcourse]

Would it make financial sense to buy DVC for our situation?
We go to Disney almost every year and would like to continue doing so for who knows how long. Usually we stay at PORS for about 6 nights a year during regular season prices. I'm wondering though with all these sales Disney comes up with we usually get such a great deal! (Like the recent $500 gift card). I know Disney might not always have sales like this but right now it seems cheaper than joining? or am I thinking wrong? How long would it really take for us to "break even" from the amount we paid up front to equal out to the normal vacation costs. I don't know if i've giving this enough thought but we are still in the figuring things out stage.


I know the interest over the loan period adds up to alot of money if you finance the whole thing. That's why I want to pay at least half up front and finance whats left. So at least that would help us save a bunch of money.

 

[kerri0616]

I'm not an owner, but I am a lurker. I hope some owners reply to you, but here's what I know....

DVC is for people who want to stay in Deluxe Resorts.

I jiggled some number around, and it would take me 7 years to breakeven, so any trips after the 7th year would be "free." (I realize nothing is free)

I hope some more knowledgeable owners chime in.

K

 

[RobDoc]

With our initial purchase back in 1993, it took just under 4 years to break even. I tracked our stays using a spreadsheet figuring in purchase price, financing, loss of use of the funds and deducted the value of the stays, DVC discounts, etc. . Admittedly, since we got the park admission included thru 1999 the value of the stays was enhanced over current costs, but there is no question in my mind of the value.

If you are accustomed to staying in moderate resorts, you will find that you will be able to break even rather quickly and will enjoy the upgraded accommodations in the meantime.

Certainly the recent trend in discounts has created the sense that they will be there forever, but that is not likely to be the case as time goes on.

Just do the math and see what will work for your family. There is no question that DVC has been the best family decision we've made and continues to be so.

 

[marynvince]

i think u will be way better off. Don't forget the memories are priceless. We love it!

 

[ToddyLu]

why not buy a small contract for cash and stay a couple of nights then just add on. That way you get the DVC "perks" and can make sure it is an investment you enjoy. Just ask the Timeshare Store and others to put you on their email list. You do not have to start out big.

 

[NH Disneyfan]

I recently joined via a resale after years of lurking. The resale was perfect for me, as I received lots of banked points and could do an entire family trip with points. We had 4 rooms - 3 for 7 nights and 1 for 9 nights. Actually, it was 2 studios and one 2BR. That was January after October purchase.

We stayed for this large trip for about $1000 total, given the points and price we paid.

DVC is not something I would finance. Just me, I don't see any reason to finance vacations (unless you put them on a credit card, DVC might actually be cheaper with the loan). I firmly believe in paying for vacation outright, so I don't stress about vacation.

So, bottom line, if you can find the right deal, the right resort, the right price, and the best financing for you, DVC might be a great option if you go every year. You need to run the numbers an consider the expanded accommodations DVC can offer. I guess DVC is more than $$, it is everything that makes up the experience. If you are happy with the Disney discounts, perhaps stick with them.

Good Luck!

 

[3DisneyKids]

Would it make financial sense to buy DVC for our situation?
We go to Disney almost every year and would like to continue doing so for who knows how long. Usually we stay at PORS for about 6 nights a year during regular season prices. I'm wondering though with all these sales Disney comes up with we usually get such a great deal! (Like the recent $500 gift card). I know Disney might not always have sales like this but right now it seems cheaper than joining? or am I thinking wrong? How long would it really take for us to "break even" from the amount we paid up front to equal out to the normal vacation costs. I don't know if i've giving this enough thought but we are still in the figuring things out stage.


I know the interest over the loan period adds up to alot of money if you finance the whole thing. That's why I want to pay at least half up front and finance whats left. So at least that would help us save a bunch of money.

I'm not an owner, but I am a lurker. I hope some owners reply to you, but here's what I know....

DVC is for people who want to stay in Deluxe Resorts.

I jiggled some number around, and it would take me 7 years to breakeven, so any trips after the 7th year would be "free." (I realize nothing is free)

I hope some more knowledgeable owners chime in.

K

Hi potential DVCers! To the OP, yes this is likely the most commonly asked questions on these boards. And here is a general way to figure out the answer:

--Do you go to Disney at least once per year?
--Do you stay in at least a Mod or better resort?
--Do you see this trend continuing for at least the next several years?
--Can you pay at least part of the ownership upfront without having to finance the entire thing?

If you answered yes to these questions, then DVC is likely a good option for you (both financially as well as in terms of quality of vacation).

As doc already said, this was--hands down--the best decision our family ever made. And we broke even in less than 4 years and we didn't get those free park passes that the earliest owners did (but I did get a CM discount through my brother, so that is why we broke even so quickly). The DVC marketing machine states that you will break even in about 7 years and I would say that is fairly accurate--in terms of the financial piece.

In terms of the quality of vacation piece--that happens from the very first trip. If you are a family, you simply cannot compare staying in a regular room (even at a gorgeous resort like the Poly) with a 1-br where you have not only all of the extra space, but a full kitchen and a w/d right in your room. It is literally a vacation-changer when you get to stay in accommodations like that. (Again, especially when traveling with young kids.)

Things to consider--

--if you consider your resort just a place to lay your head, DVC may not be worth it to you
--while your break even point might be at 7 years like marketing says, you actually may end up going more often (more than your regular once per year), so you might spend MORE money on Disney trips per year than you used to, but again, you are going down a lot more often.
--yes, there are some great sales and incentives for those folks just staying on property. Today. However, this is a bad economy. Once it bounces back, look for these to be fewer and farther in between. DVC is a guarantee. You will have the ability to stay at these high level of accommodations regardless of what incentives Disney is/is not offering and regardless of what current hotel prices may be.

But I go back to my original four questions, above. If you answer yes to those, then I would go ahead and buy in. The quality of your vacation will just skyrocket, imo.

 

[Sandisw]

There are so many things to consider. We bought in in 2009, but had been going to WDW almost yearly since 1994!

Why did we wait? Because we didn't really like the resorts and where they were located. We loved the location of CR an stayed there so we could walk to/from MK.

Until they built BLT, we just didn't want to be anywhere else. So, in addition to looking at the numbers, be sure you know the resort you are purchasing and that you will be happy there.

While DVC members can and do trade out to other resorts (7 months prior), there are times when this can be difficult for exactly what you want.

In addition, timeshares require planning in advance. Many owners book their trips 11 months in advance so they get what they want. If you are not someone who typically can book this far in advance, it is something to consider.

As far as price, I do think that eventually, all DVC owners "save" over what it would cost them for rack rate, if yearly trips continue. However, what happens a lot of the time is that DVC owners add on more points and begin to visit Disney more than before, which negates any savings since they are spending more in terms of food, tickets, etc.

IMO, DVC is not necessarily about saving money but about pre-paying for your vacations. We love WDW and knew that our trips would continue even though our children are now older--21, 17, and 14. For us, knowing that piece is taken care of for the next 20+ years, we are happy.

What you are doing, asking questions, is the best start. Once you know all the ins and outs of a DVC ownership, then you can look at the financial side and decide if it is "worth" it.

For us, we were spending on a deluxe and figured as long as DVC purchase price, interest, and MF's didn't cost us MORE than what we were already spending, it was worth it. As it was, we didn't have to finance, and we will be spending less in the long run AND the best part, be in 1 bedrooms instead of typical rooms!!!

Good luck!

 

[kendzee94]

Now for us, that break even point is an uncertainty. We have been owners since 2006. Then we added on in 2007 as founding members of AKV, and recently closed on another resale because we needed more points. As soon as we get close to our break even points, we add on

Our 8 trips that we have taken would have cost us $23,000 (rack plus tax) in room accomodations since 2006 (it cost us 1247 in points). Our favorite resort prior to DVC was POFQ as we loved the boats to DTD, so naturally, SSR was our initial purchase. I fell in love with the THV's and realized that we had to add on to make sure that we can stay there.

We have now become spoiled. My family consists of me, DH, DS 12, and DD10. We no longer want studios, and were all complaining about staying in a studio because they are so smallwhen we stayed on a three night long weekend surprise trip. Now a 1 BR is a must. I hate coming home with dirty laundry and like to keep up on it while we are there. Yes, I know I can drag it down to the laundry room but it is a whole lot easier putting it in before heading out for the park and switching it around later.

My last point is that over the last 8 trips that we have taken, 4 of which have been with extended family staying in a 2BR or THV. I have to tell you once you stay in the larger rooms, the standard hotel rooms hurt because they are so small.

Definitely look at buying through the resale market. We went with **** at resales dvc and had great luck. Very timely, put in purchase offer 4/18, accepted same night, and closed this past week. Points just deposited in my account yesterday or today! Yeah! Oh, and we saved $26 per point versus going directly through disney. So my long answer to your question may just very well be....never. I think we will never break even....if we keep adding on!!!!

 

[Crystal_27]

If you typically stay in the Mods, your break-even point will come slower than if you typically stayed in Deluxes. However, you will break even at some point. I would recommend running the numbers and see where you fall. As a means of comparision, we joined DVC in 2009, and paid right at $22,000 for our BLT points. For trips we have taken and booked through 2011, we are more than half way to recouping our investment (although, in fairness, the numbers I'm using are not discounted to provide for any "deals" that Disney is offering). Still, I think that we are doing very well, and I don't have any regrets about joining.

Good luck with your decision!

 

[peabody58]

While 'break-even' point is an important factor to consider, we did not necessarily put that as a high priority. Our 'ah-ha' moment came when we reflected on our past vacation/spending patterns, and what we have sacrificed over the past 2 decades. We have had some great WDW vacations, and have always upgraded each time. After a 10 year absence from WDW, DW and I relaxed at WL and bought into BLT in March. We now have vacations planned for every 5-7 months for the next 2 years!! Family members think we are crazy, but for us, we've delayed our gratification long enough and have earned the opportunity to 'escape' and finally vacation top notch on a regular basis. Cost wise, it may appear that we will be spending $1-2,000 more per year on vacations since we are going more often, but in the long run, I think we will be $$$ ahead and would have had a much better time and quality of life. Stress reduction and marital bliss are high on our priority list.

Another way to look at your DVC financially, is that you can still sell it for a good % of what you paid for it, even after several years of use. Compare that to a $20-40,000 camper/motor home with limited use, higher maintenance, depreciation costs, and you can't take it on a cruise!

In the end, it's your personal decision based on your needs, wants and lifestyle. The only thing I'd do different, would be to research more, and possible buy resale. Our add-on in a couple of years will most likely be resale. Think real hard about your UY selection. I lucked out and pretty much went with a gut choice of Sept UY, which is turning out to be optimal for use.

 

[crisi]

My opinion is a little different. I think its the rare DVC owner who actually spends less owning DVC than they would paying cash - even those that stay in Deluxes. Why? Because we go more often. We staying in a two bedroom when we used to think a regular hotel room did it for us. We bring guests and pay for their rooms. We add on. With no hotel bill, we go to Cirque, eat out more.

There ARE people who are disciplined enough to save money. They continue to use studios. They use their points carefully. They don't let DVC ownership change their vacation patterns. They cook in their rooms. I truly believe those are the minority.

Which doesn't mean those that don't save money aren't happy. DVC adds value, even if it doesn't save money. Its a more effective way for Disney to get our dollar, and for us to feel good about it.

 

[3DisneyKids]

My opinion is a little different. I think its the rare DVC owner who actually spends less owning DVC than they would paying cash - even those that stay in Deluxes. Why? Because we go more often. We staying in a two bedroom when we used to think a regular hotel room did it for us. We bring guests and pay for their rooms. We add on. With no hotel bill, we go to Cirque, eat out more.

There ARE people who are disciplined enough to save money. They continue to use studios. They use their points carefully. They don't let DVC ownership change their vacation patterns. They cook in their rooms. I truly believe those are the minority.

Which doesn't mean those that don't save money aren't happy. DVC adds value, even if it doesn't save money. Its a more effective way for Disney to get our dollar, and for us to feel good about it.

I agree, Crisi, and alluded to this in my post earlier. Sure, my price per trip is less. But I take way more trips now. Thus in the aggregate, I am spending more money on Disney than I used to.

 

[jarrdisney]

Count me in as someone who hasn't changed our vacaton habits. We always spend most of our money on food/wine because that's something we enjoy. We also have no problems with studios and don't see us spending double points for a 1 bedroom anytime soon.

 

[canole1]

We bought our DVC in 1994 and leveraged the idea of taking extended family with us on trips as a non-monetary value that is hard to measure ROI. Plus they had park pass discounts/freebies as well. Do they still offer incentives like that to new buyers?

 

[pinnocchiosdad]

.I know the interest over the loan period adds up to alot of money if you finance the whole thing. That's why I want to pay at least half up front and finance whats left. So at least that would help us save a bunch of money.

Think of the interest as the pricetag for a lifetime of memories seeing your children smile everytime you drive through the gates of WDW.

 

[gfyjny]

This was how I was able to figure out what my annual or bi-annual trip to Disney would cost me. I wanted to know exactly how much I'm paying per point so I can figure out how much I'm paying per stay.
We purchased 270 points at $95 per point at the Villas ast Disney Grand Californian Hotel and Spa directly through Disney Vacation Club at The Bake Lake Tower.
The deed is good for 50 years so I would be getting total of 13,500 point (270x50). The purchase price was $25,650 (270x95). So to figure out the per point price, I divided $25,650 by 13,500 and got $1.90. Then there is annual maintainence fee of $3.93 per point or so. So for now, my price pre point cost is roughly little less than $6. We financed the point purchase, but we can use the tax write off with the interest, and part of the maintainence cost also includes property tax also write off. (Just trying to make us feel little better about financing it. LOL)
So what I would do to figure how much it would cost us apply $6 per point figure and times that by how many points I need per night to get the nighly rate to compare to rack or discounted hotel room rate. I hope this makes sense and would help others on their decision to rather get or not get DVC.

 

[crisi]

This was how I was able to figure out what my annual or bi-annual trip to Disney would cost me. I wanted to know exactly how much I'm paying per point so I can figure out how much I'm paying per stay.
We purchased 270 points at $95 per point at the Villas ast Disney Grand Californian Hotel and Spa directly through Disney Vacation Club at The Bake Lake Tower.
The deed is good for 50 years so I would be getting total of 13,500 point (270x50). The purchase price was $25,650 (270x95). So to figure out the per point price, I divided $25,650 by 13,500 and got $1.90. Then there is annual maintainence fee of $3.93 per point or so. So for now, my price pre point cost is roughly little less than $6. We financed the point purchase, but we can use the tax write off with the interest, and part of the maintainence cost also includes property tax also write off. (Just trying to make us feel little better about financing it. LOL)
So what I would do to figure how much it would cost us apply $6 per point figure and times that by how many points I need per night to get the nighly rate to compare to rack or discounted hotel room rate. I hope this makes sense and would help others on their decision to rather get or not get DVC.

Ideally, you do a time value of money calculation in there.

 

[gfyjny]

How would I do that? Is here a simple way to do the calculation?

 

[gerald]

Think of the interest as the pricetag for a lifetime of memories seeing your children smile everytime you drive through the gates of WDW.

Thats the #1 reason why we are close to buying....On our first trip to WDW this past Nov. on the last night on the way out DW said to DS5 say goodbye to mickey inocently enough....upon hearing those words he sat down on Main street and began to cry saying I don't want to say goodbye. This was the same son that when we suprised the kids at 8am when they woke up in the car wondering how they got there and noticed we weren't home, Palm tree's etc, and said suprise we are going to disney said...I don't want to go...let's turn around and go home....

Now both boys keep asking when we are going back... I believe we will be taking yearly trips and DVC will work....now its figuring out which resort? resale or direct?? buy two smaller contracts at two different resorts and alternate years??? etc etc