Interested in DVC but we did not initially budget for this...

[montrealdisneylovers]

This is exactly how we justified our direct purchase, like a car loan. Monthly payments and the member fees were like gas, insurance, tags, maintenance, etc. No new car for us either, until this is paid off.

We also DID NOT finance thru Disney. We came home and arranged our own financing with our credit union. Got a secured loan (pledged shares) at 4.24% at the time. Since then we have refinanced at 3.24% and currently it is down to 2.14%. We are adding on (in ROFR now) and will refinace at the new lower rate. I know we are paying interest but we still have our $$ at the end of the day.

Just another way to do it. Works for us.

Seems like many people compare buying DVC to buying a new car. Same was true for us although we bought resale and did not finance. The DVC annual dues are comparable to insurance, maintenance costs and registration of a car. Both are depreciating assets. However, a car will be worth nothing after 20 years, yet DVC should still have some value.

We decided that we will remain a one car family for now. It works for us.

 

[montrealdisneylovers]

Rent if you are not completely sure that this is for you. I believe that as the years move along, resale prices will continue to fall so the option to buy will always be there for you.

We looked at DVC 6 years ago (direct) but did not pull the trigger. During the following years we rented points from owners and decided to finally buy in (resale). I am glad we waited since we are now at a different point in our lives financially. One could argue that buying early would have our "break even" year come a lot sooner, but I am finding that saving over 50% on the resale purchase price this past year (from the original price when we first looked) actually has saved us more money!

My children are now 16 and 20 and we just bought in this year. We took our eldest on a weekend getaway trip in January and it was one of the best trips we have ever had to Disney(and we have been there A LOT). Getting to know your adult child and giving her a break from the stress of college was quite a gift for all of us.Good luck!
Stephen

Our children are 17 and 15 and we just bought last year. We went "home" for the first time this Christmas and it was our best trip ever to Disney (and we have been going every year for the past 13 years.). Hard to really explain why.

 

[luckyman_apd]

Seems like many people compare buying DVC to buying a new car. Same was true for us although we bought resale and did not finance. The DVC annual dues are comparable to insurance, maintenance costs and registration of a car. Both are depreciating assets. However, a car will be worth nothing after 20 years, yet DVC should still have some value.

We decided that we will remain a one car family for now. It works for us.

A used car still has value after 20 years. It just depends on who values it If the car is still running, it's worth more to me than what some book says, but to someone on the street, it is only worth the scrap metal they could sell it for.

I think a car analogy does work with DVC if you are trying to figure out the finances of it. In the end though, the vacation you can take in the later years with it, will be worth more than a car you own today.

 

[a742246]

Thanks so much.

Yes, so we are not taking any money out of any IRA or 401K or retirement plans. This is from our disposable income. We have maxxed our 401K contributions to over 49K per year.

I think to take money out of retirement plans is not the best way to go about it, but I may have to budget around this DVC purchase. No new car for a little bit then.

It looks to me that you guys got it together. I would tell you if you like BLT then buy there. BLT has a expiration date of 2060, which is a plus.

You are young, good jobs (careers), smart, and you know what you want in life. I am happy for you..... Go for it!

My suggestions would be to look at the point charts to see how any points you would need, understand use years, and understand bookings (11 month and 7 month windows).

 

[pinipig523]

It looks to me that you guys got it together. I would tell you if you like BLT then buy there. BLT has a expiration date of 2060, which is a plus.

You are young, good jobs (careers), smart, and you know what you want in life. I am happy for you..... Go for it!

My suggestions would be to look at the point charts to see how any points you would need, understand use years, and understand bookings (11 month and 7 month windows).

Thanks so much! I feel like we do have it together so far (knock on wood). We really do not have any credit card debt, we are on our way of saving a good portion into our 401K at conservative rates, one of our cars will be paid off in a few months and the other is at a 0.9% financing for another 3 years.

Although we have a lot of student loans @ $200K, we have a very high gross annual salary.

We were hoping to put into place a $100K emergency fund before we purchase unless a promotion comes out that we cannot pass. We are about 20% towards our emergency fund goal so far, I hope to hit my emergency fund goal within the next 6-8 months.

I suppose in 1 year, we'll be in even better shape, but I just shudder to think what the prices will be by then (direct vs resale).

This is exactly how we justified our direct purchase, like a car loan. Monthly payments and the member fees were like gas, insurance, tags, maintenance, etc. No new car for us either, until this is paid off.

We also DID NOT finance thru Disney. We came home and arranged our own financing with our credit union. Got a secured loan (pledged shares) at 4.24% at the time. Since then we have refinanced at 3.24% and currently it is down to 2.14%. We are adding on (in ROFR now) and will refinace at the new lower rate. I know we are paying interest but we still have our $$ at the end of the day.

Just another way to do it. Works for us.

I saw the high interest rates that Disney was offering 11-15%/yr... way too much. Glad you got good rates through your credit union.

We were thinking of cash so we would avoid financing.

I would suggest doing your homework on banked and borrowed points and Use Years, so that you understand loaded contracts and stripped contracts in the resale market and how they compare apples to apples with what you will get direct from Disney. With a direct purchase, you will always get current year points (even if there's only a few days left in the "current year").

These days, resales are less expensive than direct, but in some cases not as much as you'd think.

My understanding is that:
1. You can pretty much bank points for up to 2years (or 3?) - I forget.
2. You can borrow 1 year prior... so you could combine 3 years worth of points in 1 year or visit.

Correct or no?

 

[a742246]

Yes, for example. You can bank 2012 points into 2013, then you can borrow 2014 points into 2013. This way in 2013 you have three years of points.

If you wait 1 more year to purchase.... The Grand Floridians DVC may be for sale by then. I would imagine that will be DVC's "Class Act" resort. I just want to bring this to your attention.

 

[Dean]

Seems like many people compare buying DVC to buying a new car. Same was true for us although we bought resale and did not finance. The DVC annual dues are comparable to insurance, maintenance costs and registration of a car. Both are depreciating assets. However, a car will be worth nothing after 20 years, yet DVC should still have some value.

We decided that we will remain a one car family for now. It works for us.

Actually there's a real risk that owning DVC in later years will be more costly than non owning.

 

[Kidanifan08]

We bought direct in '08 and financed through Disney. We paid it off in about 2 years. I am comfortable with our direct purchase contract, but so far, it hasn't gotten me anywhere. If I had known about resale then, and the resale prices were as good as they are now, I probably would have bought resale. We will pay cash for our DCL trip in the future. The DVC point cost for DCL is just ridiculous.

Just some thoughts:

1. If you can save 80k in the next 6-8 months, really look closely at the points charts and make sure you are you really going to be happy with only 100 points at BLT.

2. 100 points doesn't get you much at BLT, no matter what time of the year you are planning on traveling. (the studios are really small)

3. There are several 100-200 point contracts on the resale market for $90-$100/pt.

4. If 100 points really does meet your needs now, why not buy resale now and save 4-5k; if direct sales become an important issue, buy direct later.

5. If 100 points meets your needs now, consider buying SSR or OKW resale now and save 8-10k; buy direct later if it becomes an important issue.

 

[DisneyMouseHouse]

Hi -
Just thought I'd give you one more thing to chew on - please check with DVC on the yearly maintenance cost/point. Some resorts are much higher than others on a yearly basis.

We own points a SSR, AKV and BLT. BLT is by far the cheapest per point as the actual property is smaller, and there are less maintenance fees associated with the smaller overall size (as in actual land size, not villa size!)

 

[Deb & Bill]

Hi -
Just thought I'd give you one more thing to chew on - please check with DVC on the yearly maintenance cost/point. Some resorts are much higher than others on a yearly basis.

We own points a SSR, AKV and BLT. BLT is by far the cheapest per point as the actual property is smaller, and there are less maintenance fees associated with the smaller overall size (as in actual land size, not villa size!)

Plus they sold so many points for BLT - it takes a whole bunch more for each size villa than any other resort. So the dues are spread around more.

 

[montrealdisneylovers]

Actually there's a real risk that owning DVC in later years will be more costly than non owning.

Why, Dean? Is it because you think that maintenace fees will be much higher than CRO rack rates? Please explain. Thank you.

 

[TifffanyD]

Hey guys,

We enjoy our Disney vacations and stumbled into the Disney Vacations Club at our mall... we took the video tour, then the physical tour, and the sales pitch.

To me, it seems like a long term deal - it sounds like it *might* work out well if you use it every year.

My wife and I are 29 years old and we were looking at BLT as our home resort. We were looking at 100 points and we were interested in a direct buy from Disney.

That said, I noticed that there are resales available on this site - but I also read somewhere that there are restrictions to what I can use resale points for.

Questions:
1. What are the restrictions for resale points?
2. Is DVC a good deal if you start young and go every year?
3. What are the pros of going direct? What happens when I pass the time share to my kids? Do they get limitations just as if they had bought resale points?

Also, how did you guys justify the purchase? $14500 for 100 BLT points is quite a lot of money upfront... we're still young and starting our lives so I don't want to make rash decisions.

Thanks for reading!

Hi there! I think I can help with a couple of questions. I bought in to DVC when I was 28. My reason was that I was planning my honeymoon and it was doing to be at Disney and it was going to be at a deluxe resort. I was looking at rack rates and it was going to be about $4000 for the hotel! So instead I bought 100 Boardwalk points for $8600! We did buy resale for this contract but it was before limitations were in place. We actually lost the first contract (someone else bought it SECONDS before us) but got an almost identical one (same sellers and everything but just no banked points). So that was how I justified it.

I was living in Ohio at the time and determined I would go to Disney annually and 100 points would suit my needs. It took me awhile to understand the banking/borrowing and the reservation window and not feel like it was too much work. Probably at least a year of watching the dvds and reading online.

I did buy sight unseen and picked our resort based on location and where I thought I would be happiest.

One of the best decisions we ever made! I love love love the boardwalk area... so much to do!!! I feel like we get such good value out of our stays. We live in FL now so we often use it for just a night or 2. So it was definitely a good deal for us to start young.

We've added on direct and pros are that it is FAST and worry free... we did it on a cruise and the points were in our account when we got off the ship. SO easy!

 

[thebigman65]

Hi -
Just thought I'd give you one more thing to chew on - please check with DVC on the yearly maintenance cost/point. Some resorts are much higher than others on a yearly basis.

We own points a SSR, AKV and BLT. BLT is by far the cheapest per point as the actual property is smaller, and there are less maintenance fees associated with the smaller overall size (as in actual land size, not villa size!)

However, this may not always be the case. BLT's dues have increased significantly lately and I think over time it will catch up to the others just because of the nature of the resort. We own at AKV and the fees are slightly higher due to the animals, but we bought where we wanted to stay....If BLT is where you want to stay, then I don't think Maintenance Fees should be an issue.....IMHO

 

[Dean]

However, this may not always be the case. BLT's dues have increased significantly lately and I think over time it will catch up to the others just because of the nature of the resort. We own at AKV and the fees are slightly higher due to the animals, but we bought where we wanted to stay....If BLT is where you want to stay, then I don't think Maintenance Fees should be an issue.....IMHO

And the location and amenities at BLT present a significant risk to dues long term. My guess is that dues will remain on the lower side but not to the degree they have been. One will likely never be able to make up the higher buy in price related to the dues alone (IMO) even comparing resale to resale.

Why, Dean? Is it because you think that maintenace fees will be much higher than CRO rack rates? Please explain. Thank you.

Let me be clear, I think the risk is real but not the likely outcome and it would be due to fees being more than one could get the same thing for other ways which might include a CRO or direct rental. Don't forget the possibility of special assessments. 30-50 years is a long time, there's a lot that could happen.

 

[gray52]

I think that for the majority of the people who own DVC, the only use is for DVC properties at WDW. As many have said time and again on these boards, using them in other ways just does not make economic sense, so the "restrictions" do not effect most DVC owners.
For the prices that resales are currently going for, combined with almost no "real" restrictions, i honestly can't figure out how anyone can justify paying direct purchase prices... $14,500 for 100 points... wow... it's been a while since I've looked at the math using the newest costs. That's just ridiculous, in my opinion. Looking at what recently passed Right Of First Refusal, you can get 100pts at Boardwalk for $5500... or 100 at Saratoga Springs for $5,000. That's a difference of $9,000. That's a ton of dough.
I will (hopefully) soon own two resale contracts... 100pts at BWV (in ROFR at $60/pt) and 100pts at OKW (purchased in 2007ish at $70/point). Paid cash for both.
Disclaimer: I am not a fan of BLT. Stayed there twice at wife's insistence. After our recent stay, she's now crossed over to my camp.

 

[tjkraz]

I think that for the majority of the people who own DVC, the only use is for DVC properties at WDW.

Perhaps. But based upon the trip history in your signature, it looks like your time with DVC only goes back to 2009. I think it's fair to say that one's outlook changes dramatically over time.

I'm not advocating a direct purchase over resale for this reason alone. The price difference is obviously great these days. However, I do think that many members are very shortsighted in thinking that the theme parks will hold the same appeal for 30-50 years.

I have yet to use a single point outside of the DVC resorts, but I can tell you that my feelings toward resorts/parks/non-DVC destinations are much different in year 9 than they were in year 3. And I expect it to change further over the next few decades.

Arguably the best decision I ever made as a member was to NOT purchase too many points. If you'd have asked me 3-4 years ago, I would have said that I could use another 200 points. Today I'm glad I don't have those extra points.

While I do still visit (and enjoy) WDW, I'm now more content with one family trip every 12-18 months. In years past I would have happily taken 2 or 3 trips per year if I had the points. Today I'd rather expand my horizons and take in other destinations. And having bought all of my points direct, it's somewhat comforting to know that the option exists.

I really don't care if staying at Saratoga Springs is the best value--if I want to take a cruise with the points or visit Disneyland Paris, I would spend my points on that and never give it a second thought.

 

[normr]

You do realize that DVC has an end date where it goes back to Disney don't you? If you don't die prematurely, there is a good chance you'll live to the point where your ownership interest ends, so you won't have to worry about leaving it for the kids.

 

[ldo]

Given your situation, I would buy 100 points resale at whatever resort you like--with a high income level, it's not that much upfront cost and annual fees are minimal. With banking/borrowing, you can space vacations out to almost every 3 years, if you got tired of DVC. With 100 points, it really doesn't matter if you can't use for cruises, other hotels, etc. There is a lot of flex with DVC-from size of unit to how many nights. IMHO, 100 resale points is not that much of a commitment financially.