Nickunited:
With the current promotional pricing, points are selling for as low as $85 each. A purchase of 150 pts (the minimum
DVC will sell) will run you about $12,750.
The downpayment would be in the $1500-3000 range. As others pointed out, the balance is then financed over a period up to 10 years. Payments on the initial purchase would run you about $130 per month for 10 years.
In most cases, interest paid on the 10-yr note is tax-deductible as mortgage interest on a 2nd home.
Then there are the Annual Dues. Right now, dues at SSR run $3.80 per point. On 150 pts, that's $570 for the year, or about $47 per month. DVC will let you pay in monthly installments via direct debit. There is no additional fee for using the monthly payment option.
So, for the first 10 years, you'd be paying about $180 per month. Dues are subject to change annually, and at the oldest DVC property (Old Key West), they've increased at a rate of 3-4% per year. Unless I'm mistaken, that increase is actually lower than the increase in Disney's Rack Rates at their resorts over the same time period.
Anyway, after the first 10 years, you pay only the annual dues. That's it!
DVC is truly a "Prepaid Vacation" plan. There's a significant front-end investment (the $85 per point), but ultimately you can save hundreds per year on your accommodations as opposed to paying the going rates for Disney's hotel rooms.
DVC's booking seasons have greater variety than the standard Disney hotel rooms. However, for comparison's sake, about 5 months out of the year you could get a Studio room at SSR (which is very comparable to a WDW Deluxe resort room, but also has a kitchenette in each room) for as many as TWELVE consecutive nights.
So financially, here's one way to look at it (there are many!):
For years 1-10, you're paying about $180 per month or $2160 to DVC. For that money you can get 12 nights in a studio. That means you're paying about $180 per night. That's on par with the discount rates you see for WDW deluxe properties.
Contracts at Saratoga Springs run until the year 2054--a full FIFTY years. So, once you've paid off your initial investment, in years 11-50, you are paying only $570 per year (in today's dollars) to DVC. For that $570 you are still getting TWELVE nights in a studio. In other words, for the subsequent forty years, you pay only $47.50 PER NIGHT for accommodations. See where the savings come in?
The ownership in a DVC resort is a deeded interest. It can be sold if you find you aren't using it, need the money, etc. It can be willed to a child or grandchild. Until 2054--you own it.
DVC also has many different resort trade options available. DVC points can be used toward Disney Cruises, stays at hotels in
Disneyland, and even at non-Disney properties around the world. The most economical use of your points will always be at the DVC resorts, so I wouldn't recommend buying unless you intend to stay at one of the DVC properties the vast majority of the time. But if you anticipate annual trips to WDW staying in Deluxe or even Moderate accommodations, DVC will pay for itself in a fairly short amount of time.
