If you rented DVC and then purchased.......question

[JenB1104]

We recently rented DVC at GF. I researched purchasing DVC a bit and it seems to be way more expensive than continuing to rent with the up front cost as well as the annual dues. Did anyone who rented find that it was a better deal for them to buy? Thanks!

 

[disneynutz]

You need to analyze all of the factors to decide if ownership is for you. Resorts, rooms, room categories, sizes, location, views, DVC policies, support, issues, long phone hold time, website problems, and contract cost and dues cost. In addition you need to be rich enough to vacation at Disney every year or so including travel, food, admission, and other expenses.

Everyone is different, DVC ownership works for some but not for others.

Bill

 

[supersnoop]

We recently rented DVC at GF. I researched purchasing DVC a bit and it seems to be way more expensive than continuing to rent with the up front cost as well as the annual dues. Did anyone who rented find that it was a better deal for them to buy? Thanks!

I rented some points, but purchased my own before I even checked in to that reservation. It's pretty simple math, really. If you can rent at $13 per point and pay dues at $5 per point, that's a difference of $8 per point that you would "save" by owning. So, if you buy points at $80 per point, your return-on-investment is 10 years. And that ignores the asset value of the points after you've "made your money back."

 

[chalee94]

We recently rented DVC at GF. I researched purchasing DVC a bit and it seems to be way more expensive than continuing to rent with the up front cost as well as the annual dues. Did anyone who rented find that it was a better deal for them to buy? Thanks!

if you are making a long-term commitment, it eventually becomes cheaper to buy rather than to rent.

some of that can also hinge on how much you expect to get back if you sell your contract...i bought my OKW contract in the $85ish per pt range 10 years ago and could probably sell it for close to that now, so i have mostly travelled with DVC while just paying annual dues of $5-ish per pt. that beats renting every time. and i also control my own reservations and can change or cancel them with more flexibility than renting.

but it does require a commitment to making trips to wdw and it does require a big upfront payment that would significantly limit your savings if you had to add financing charges...so renting can be a great deal with less of an obligation.

it's also true that upfront costs have also gotten much higher and there is always the risk that past performance is no indication of future prices...it's not impossible that DVC might change the rules to damage resale values, for one thing. so renting is a reasonable choice...

 

[DVCcurious]

If you rent at 13 and dues are 5 then you're paying $8 more per year to rent than to own. If you pay 80 per point then that's a 10 year break even.

But it's not just a pure financial decision. I don't think DVC makes a lot of sense financially, but then going to Disneyworld doesn't make sense financially, either. Neither does buying a car more expensive than a Ford Focus or having a house more than 1500 square feet.

But we do things because we find there is a value to paying more than the bare minimum. Maybe renting DVC is cheaper than buying. But when I buy I then control my reservation. I can cancel a trip if I want (you can't cancel if you rent). I don't have to depend on other people, I do the reservation myself. It's a peace of mind thing for me.

So whether you buy DVC or rent DVC you're going to spend a lot of money either way. So worrying about what is "cheaper" is silly to me. DVC is a pure extravagance for the wealthy people (yes, that means you) who can afford $5k per year on Disney vacations. Most people in the 99% can't afford Disneyworld on an annual basis. Most of the regular people are lucky to go to Disneyworld once or twice in their life.

So ignore the dollars and cents and do what you want to do. Enjoy your 1% lifestyle that most people will never achieve.

 

[kristenrice]

Although subject to change at any time, the perks of ownership are a tangible benefit that is not extended to renters. The AP discount can significantly lower the cost of park passes, even for those (like us) who typically only take one trip per year. The ability to purchase a TIW card can be very cost-effective for those who take multiple trips or one longer trip. One of my favorite perks is the access to the TOTWL at BLT. I don't ever have to fight the crowds on Main St anymore and get a fantastic and unique view of the MK fireworks. Pool hopping is an intriguing perk that I will probably take advantage of in the coming years. The increasing costs of park admission make a resort-only trip more and more appealing.

For me, the deciding factor was the control of the reservation. I am constantly planning and tweaking my reservations. While I LOVE my WDW home resort (AKV), I still like to see what is available at 7 months so that I can try something new. I've done split stays so that I can experience more than one resort in a single trip. Sometimes, airfare or vacation times fluctuate and I can easily make those changes myself, if needed.

We bought our AKV contract in 2008 and paid $92/point (resale) with all 2007 points banked. Then, we added on 50 points at HHI in 2011 and paid $80/point (direct) so that we can get a 1BR for 5 nights every three years for Spring Break. I have the ability to tweak our vacation plans as needed and I do not need to worry about making a non-refundable reservation 11 months in advance.

 

[Savagekids]

For us renting would probably be cheeper in the long run. There are so many unpredictable variables like dues going up and rental prices going up. It was about being in control of the reservation that was the tipping point for us. Plus I like feeling "obligated" to go every year or being able to rent out point to friends and family.

 

[DisneyGirlFlorida]

The issue with renting is availability of rental points, that may or may not be there when you want to rent. While you have availability issues as an owner, keep in mind rental points are from owners who are not going to Disney that year. Hence, for lack of a better word, "leftovers". If you own, you can be pretty confident of finding accommodations at 7-11 months out. Renting may or may not get you what you want when you want.

You are smart for considering renting vs. purchasing. The thing I like about owning is knowing I won't have to plunk down several hundred to a thousand dollars for a Disney trip (I live 2 hours away, so travel costs are minimal for me).

 

[r5moores]

For us it was def. worth purchasing. We had rented for about 4 years in a row, to make sure we really wanted to do this. I was renting points on the cheaper side too, the person I rented from every year only charged us $10 a point and he was incredible to deal with. Last April we decided it was time to take the plunge. The contract we purchased was fully loaded. Since purchasing we have taken 3 trips ( 1 studio in September for a week, 1 studio in Aulani in January for 10 days, 2 studios in May for two weeks and we have another trip planned for Aug/Sept for 9 days). So all together we will be taking 4 trips in that one years time. Those points totaled roughly 710 points, at $10 a point that would have been $7100 at the rental rate we paid. That would basically total out to about half of what we paid for our whole contract (resale). It's been a no brainer for us. Plus we purchased the discounted DVC rate Annual pass and when we go again at the end of August that will be our third trip on the annual pass so that has MORE that paid for itself.

It's really going to depend on how your travel, how often etc. We've been going to Disney since 1993, I don't see that ending anytime soon. Our children are grown now (27, 25 and 21) and we now have two grandchildren. I can foresee Disney for many years to come. My husband and I have even taken solo trips, just the two of us and we still enjoy it the same. If there comes a time we decide to slow it down there, I still have my children who can use it. It's nice to know that we can ensure they can continue to vacation without the expense of at least the rooms on their shoulders.

And we do vacation elsewhere as well, so we don't feel we are slaves to the Mouse. We go as often as we want, knowing we can bank if we decide to skip a year. Don't feel pressured to buy if renting is working out for you at this moment. Sit back and honestly evaluate how you might use it. If you are not going to go at least once a year, or at worst once every other year, and even then it's going to depend on how long you actually stay for, purchasing DVC may not be for you.

Good luck on your decision

 

[magicaldisney]

We rented twice before purchasing. We anticipated traveling to WDW at least once per year (which we had already been doing), so owning gave us the control of the reservation, the ability to rent out our points if need be and not have to have the hassle of finding an owner and one that we were very comfortable with to rent from (you never know if the person your renting from is going to cancel that reservation out from under you). However, with places like David's I would think finding an owner isn't as difficult as it used to be.

I'm not sure if financially we come out on top, nor do I look back and think about it. I do know it just worked better for us to own.

 

[circhead]

I brought direct from Disney in 2001- pricing for direct sales were very different and my home VWL was only the 3rd DVC property.
We were going once or twice a year and still do - sometimes more. I wouldn't do that if I was renting points every time. Would have cost much more than my contract did even with the annual dues factored in.

We buy the annual passes and time it so we get at least 3 trips out of it. We don't feel the urgency to go to the parks every day and some days we just enjoy the resort amenities, or if it's around the holidays we spend time resort hopping to enjoy all the resorts dressed in their finest. Owning gives me a less stressful vacation because I'll be back so I actually take the time to enjoy the other things WDW has to offer. I'll let my grand kids spend hours playing in the fountains in Epcot or downtown. We'll spend hours sitting on the veranda at AKL watching the animals, and my all time favorite sitting in a rocking chair on the porch or lm the lobby of Wilderness lodge people watching. Love the looks on people's faces when they behold the lobby of WL for the first time.

 

[Dean]

We recently rented DVC at GF. I researched purchasing DVC a bit and it seems to be way more expensive than continuing to rent with the up front cost as well as the annual dues. Did anyone who rented find that it was a better deal for them to buy? Thanks!

Long term it should be more expensive to rent than own but the difference is not as great as some think when you add in the time value of money on the up front costs and any costs if one finances. The cheapest way to get into DVC is often to own non DVC timeshares and trade in but that's also the most risky and getting a higher demand option difficult. The cheapest option owning DVC long term (for WDW) will be SSR resale. BLT will be next when you adjust for the risk for AKV dues. Something like the Poly or VGF will be a LOT more expensive and basically will likely be more than simply renting to stay at different DVC resorts unless one stays almost exclusively in those 2 resorts.