I need DVC for dummies!!

[mickerbaby]

I've read the FAQ regarding DVC but I still don't get it!

To own a timeshare at WDW, you first buy a room which is somewhere ~$10,000 (resale) depending on where you buy.
I get this part, but what about the points?
You buy them so that you can actually stay at your own resort?
And if you want to stay during a busy time (~April) then you need more points, is that right?
But why are some people "renting" points? This is where I'm not understanding the points concept....

I would also be curious to know why people would buy a timeshare rather than just staying in one of the resorts, is it cheaper in the long run? Do you have to visit WDW each year to really get your money's worth?


I sent away for DVC info, but in the mean time can someone help this newbie out??

Crissy

 

[Maistre Gracey]

The purchase price IS the price for points. Points are currently $75/pt, making the minumum purchase of 150 pts $11,250 (purchased through DVD).
There are point charts that detail how many points a stay will cost you. This depends on where, how big, what time of year, how long, and weekday vs weekend.
You buy however many points you need (there are limits), and they are replenished every year to "spend" as you see fit.
There are also mtc fees that range from about $3.60-$4.20/pt that are due annually.
Hope this helps.

 

[PamOKW]

I'll try to give you the 15 second recap. You've got some things right but some things sound confused.

I'll use buying from Disney rather than a resale for the explanation. You purchase a minimum of 150 points that are currently selling for $75 per point. You also pay yearly maintenance fees (cost of upkeep, running the resort and the real estate taxes). These are charged based on the number of points you own and run $3-$4 per point depending on which resort is your "home resort".....but I'm getting ahead.

What you are really buying is a real estate interest in one of the resorts. To represent this real estate interest you are given "points" each year to use to make and pay for your reservations. By using points, you have the flexibility to change the size of accomodations, time you stay, where you stay, etc. rather than just buying one weeks' use of a particular unit as some timeshare work.

Just like resorts cost more in cash at certain times of the year, the DVC resorts cost more in points. Reservations can be made up to 11 months in advance. Between 7-11 months out, only the actual owners at the resort (BWV, OKW, VWL, BCV, Vero or HHI) can make reservations at their particular resort. This is the "home resort" advantage. After 7 months, everyone is on equal footing at all the resorts.

Joining DVC allows people to enjoy a very luxurious vacation and to pretty much lock-in their vacation costs through 2042 when the program ends. It is not necessarily an inexpensive way to do Disney but it is a way to do it in high-style at a moderate cost. With the way Disney raises the rates on the resorts it is expected by many owners to be a substantial savings in the long-run. The discounts of the past year are not a regular occurence at Disney. Also, with DVC you know your costs and don't have to track down those special rates.

Renting points is a personal transaction -- nothing to do with Disney or DVC itself. If a member does not want to use their points to vacation with or to share with their own circle of friends and family they may advertise and sell them at places like here at the DIS. They aren't really "selling" the points. They are taking cash from people in exchange for them giving over their reservations at DVC resorts. In some cases, they might actually be exchaning points with another member who is making their own reservation.

Keep asking questions if that isn't clear. It is tricky to grasp.

 

[PKK/MJK]

When you buy into DVC, all of your formal paperwork will indicate that you "own" a certain percentage of building number "whatever". How many points you purchase determines how large a percentage you own in a building. This really is only a legal technicality. You don't actually have to stay in that building. As Pam explained, your points are what you actually deal with. You can stay in a DVC resort whenever you want for as long as you want in the size unit you prefer by using the points to "pay" for the room. Your points are replenished each year.

Usually, if you plan on visiting WDW at least every other year, DVC is something you might want to investigate. You can bank and borrow points. For example, 2002 points could be banked into 2003. In 2003 you would have a two year supply of points to use--AND you could also borrow the points from 2004--for a three year supply. You can also use these points to stay at most (not all) of the Disney hotels if you prefer not to stay in a DVC resort. Frankly, though, the accommodations in the DVC resorts are beautiful and are so much larger than a hotel room, that you will probably will never switch back to a regular room. You have the option to do this though--although it is not the best use of your points (points "go further" in the DVC resorts).

If , for some reason, you are not able to use all of your points, you can "rent" them to someone else for a ressie. You would make the reservation in their name and they would pay you for the points their ressie "costs"--usually a rate of about $10/point. Or, if you happen to be short on points, you could rent extras from someone else.
I hope this all makes some sense to you. Good Luck!!

 

[Hilary]

Hi Crissy, I can understand why you're confused! It took me a long time before I finally 'saw the light' and felt I understood DVC - but I'm still learning new things every day from this forum!

Just one thing from what's been said before:

You buy however many points you need (there are limits), and they are replenished every year to "spend" as you see fit.

We did it the other way around - bought the number of points we felt we could afford, and tailor our vacations to use those points in the best way for us.

Good luck with your 'research'.

 

[dianeschlicht]

to put it simply....
DVC is NOT a fee simple sale. You are buying a timeshare point system with a home resort. While you have a deed, it is not for all time. It is really a lease for a time period up to 2042.