Is DVC a "Good Deal" for Dave Ramsey Fans??

[TNKBELL]

My DH and I are going through FPU and by next year, we should be DEBT-FREE!! Not including our mortgage. My question is, I have heard lots of negative comments about timeshares not being a good investment..I agree for the most part, but what about DVC? Someone pointed out that you can use the points for Disney Cruises and also if you have the ability to travel off-season(which is our situation), it can be a great deal. We only travel every other year to Florida, so we could easily bank our points to use double points. Any Dave Ramsey fans out there who own DVC..why and what is the best advantage to owning versus renting DVC??
Thanks in advance!!!

 

[JKMJ441724]

My DH and I are going through FPU and by next year, we should be DEBT-FREE!! Not including our mortgage. My question is, I have heard lots of negative comments about timeshares not being a good investment..I agree for the most part, but what about DVC? Someone pointed out that you can use the points for Disney Cruises and also if you have the ability to travel off-season(which is our situation), it can be a great deal. We only travel every other year to Florida, so we could easily bank our points to use double points. Any Dave Ramsey fans out there who own DVC..why and what is the best advantage to owning versusWe renting DVC??
Thanks in advance!!!

I will be debt free - including my mortgage in five years.
After going to Disney 4 times in 5 years, we decided to buy DVC. We bought AFTERMARKET and paid substantially less than what we would have paid by going through Disney - even with Disney's incentives. We paid it off in about 2 years. I've been checking out add-ons ever since then, and prices on the resale market are even less now than when we originally bought.

I did not buy mine thinking that I could sell it later and make a profit (like selling a home). I just looked at how much it would save my family on our yearly vacations. Since we bought it, we've used it every year, but I still have people asking me if they can rent my points from me, so if there ever is a year that we won't go, I know I can get AT LEAST the cost of my dues from someone else.

IF YOU DECIDE TO BUY - my advice, for what little it's worth, is NOT to buy too many points. You can always buy an add-on, but you can't sell off just part of your points.

 

[Trinity524]

Where did you go for resales?

 

[mrsklamc]

Well, for us personally it's not a good deal because we prefer to be off site, so I haven't run the numbers of buying vs. renting DVC.

Deals will always be available in the offseason though- you don't have to own DVC for that to be the case.

 

[JKMJ441724]

Where did you go for resales?

http://www.dvc-resales.com/

I know the Time Share Store sponsors the DVC section of the DIS. The disboards is where I heard about them originally and where I bought mine.

You can find lots of info on the DVC board. I ran some numbers for my upcoming vacation. We are staying 2 nights at the lowest AKL DVC room. If I rented that room straight off the internet with no other discounts, it would cost me $889 for the two nights PLUS tax. I pay $4.52 per point in annual dues so my ACTUAL cost for those two nights is $126.00, no tax.

We are staying at OKW in October. If I rented that room for the same dates off the internet with no discounts, my cost would be $2,678.00. My actual cost for my DVC points for those same nights is $289.28 in dues. I don't think you can stay off site for that price.

 

[ilovemk76]

My DH and I are going through FPU and by next year, we should be DEBT-FREE!! Not including our mortgage. My question is, I have heard lots of negative comments about timeshares not being a good investment..I agree for the most part, but what about DVC? Someone pointed out that you can use the points for Disney Cruises and also if you have the ability to travel off-season(which is our situation), it can be a great deal. We only travel every other year to Florida, so we could easily bank our points to use double points. Any Dave Ramsey fans out there who own DVC..why and what is the best advantage to owning versus renting DVC??
Thanks in advance!!!

I am not a DR follower but from what I have read he would not want you buying a luxury unless you are debt free (that means no mortgage), had a fully funded retirement account and money for the kids college and then you paid it in cash.

You have a large family so the cost of tickets would surely be costly.

 

[LovableGluttons]

I get the impression that owning DVC would be fine with Dave Ramsey if you had no debt, had saved for retirement and college.

I think your money is yours to do with as you please anyway, but with the Dave Ramsey program you just have to be set up first before making purchases like DVC.

 

[TNKBELL]

I am not a DR follower but from what I have read he would not want you buying a luxury unless you are debt free (that means no mortgage), had a fully funded retirement account and money for the kids college and then you paid it in cash.

You have a large family so the cost of tickets would surely be costly.

Yes, I agree, we are just in the "dreaming" phase right now..it kind of gives us motivation to stay the course if we had owning DVC in mind as a reward for getting to that point. Aaah yes, the cost of tickets is something that always restricts us.

 

[mrsklamc]

I am not a DR follower but from what I have read he would not want you buying a luxury unless you are debt free (that means no mortgage), had a fully funded retirement account and money for the kids college and then you paid it in cash.

Actually it is only until you are debt free that he says no vacations. (beans and rice, he says.) He says for the average person on his plan that is 18 months. After that luxuries are fine if they are in the budget, with some exceptions; His official stance is no timeshares, ever.

 

[crisi]

Congrats on your debt free status.

DVC is NOT a good investment. It MAY BE a good value.

It commits you to making fairly expensive vacations at least every three years - probably every year. As was just mentioned, there are a lot of expenses in a Disney trip other than the hotel - you still need park tickets, transportation, food, etc.

If you want a condo like accommodation and are an on-site snob, and you are going to go to Disney regularly for at least ten years, DVC might save you some money.

You cannot use points purchased aftermarket to cruise (this is new) so you'd have to pay full price. And cruising on points - or in fact using DVC points anywhere other than DVC resorts, is not a good value.

 

[JKMJ441724]

Actually it is only until you are debt free that he says no vacations. (beans and rice, he says.) He says for the average person on his plan that is 18 months. After that luxuries are fine if they are in the budget, with some exceptions; His official stance is no timeshares, ever.

How in the world can anyone be debt-free (if that includes a mortgage) in 18 months? I've always been good with my money, but it has still taken me 15 years to pay off my house. Maybe I should study DR!

 

[mrsklamc]

How in the world can anyone be debt-free (if that includes a mortgage) in 18 months? I've always been good with my money, but it has still taken me 15 years to pay off my house. Maybe I should study DR!

No- the 18 months is 'except the mortgage'- It's been awhile since I read it but I think the 'pay off the house' timeframe was 5-7 years.

 

[JKMJ441724]

No- the 18 months is 'except the mortgage'- It's been awhile since I read it but I think the 'pay off the house' timeframe was 5-7 years.

Whew. I was beginning to think I was a slacker.

 

[DINKDisneyAddict]

Congrats on your debt free status.

DVC is NOT a good investment. It MAY BE a good value.

It commits you to making fairly expensive vacations at least every three years - probably every year. As was just mentioned, there are a lot of expenses in a Disney trip other than the hotel - you still need park tickets, transportation, food, etc.

If you want a condo like accommodation and are an on-site snob, and you are going to go to Disney regularly for at least ten years, DVC might save you some money.

You cannot use points purchased aftermarket to cruise (this is new) so you'd have to pay full price. And cruising on points - or in fact using DVC points anywhere other than DVC resorts, is not a good value.

Ouch...wowsers! I fit directly into this category, but I don't consider myself a snob for it. To each his own.

If you are debt free, retirement accounts funded, have the cash in hand so not to have to finance DVC, and would take the Disney vacation anyway, DVC might be a good purchase for you. Even without financing, it will still take our DVC membership about 11 years to pay for itself. Disney's numbers fail to include opportunity costs, so make sure you thoroughly run your own numbers.

 

[JKMJ441724]

If you want a condo like accommodation and are an on-site snob...

I would ONLY stay on site. That's the power of Disney marketing. They've convinced me that I NEED IT!

 

[arthur06]

Whew. I was beginning to think I was a slacker.

 

[crisi]

Ouch...wowsers! I fit directly into this category, but I don't consider myself a snob for it. To each his own.

If you are debt free, retirement accounts funded, have the cash in hand so not to have to finance DVC, and would take the Disney vacation anyway, DVC might be a good purchase for you. Even without financing, it will still take our DVC membership about 11 years to pay for itself. Disney's numbers fail to include opportunity costs, so make sure you thoroughly run your own numbers.

Sorry, I don't mean snob in a negative sense. I mean it in the "I wouldn't stay offsite at Disney ever" sense. If you'd consider offsite at Disney as an option, DVC is a bad deal. Onsite is wonderful (I'm an onsite snob myself), but you pay through the nose for it - and you do with DVC too.

I should say "onsite connoisseur" - but its harder to spell.

In fact, because Orlando is a hugely overbuilt timeshare market, you'll pay WAY more to own DVC than you will for most other timeshares in the Orlando market. Particularly if you go resale. AND because Orlando is so overbuilt, you'll do well just booking someone's timeshare through skyauction rather than owning one yourself.

 

[RachaelA]

http://www.dvc-resales.com/

I know the Time Share Store sponsors the DVC section of the DIS. The disboards is where I heard about them originally and where I bought mine.

You can find lots of info on the DVC board. I ran some numbers for my upcoming vacation. We are staying 2 nights at the lowest AKL DVC room. If I rented that room straight off the internet with no other discounts, it would cost me $889 for the two nights PLUS tax. I pay $4.52 per point in annual dues so my ACTUAL cost for those two nights is $126.00, no tax.

We are staying at OKW in October. If I rented that room for the same dates off the internet with no discounts, my cost would be $2,678.00. My actual cost for my DVC points for those same nights is $289.28 in dues. I don't think you can stay off site for that price.

Don't forget the initial buy in cost of DVC (anywhere from $15,000-$25,000 on average).

 

[arthur06]

I would ONLY stay on site. That's the power of Disney marketing. They've convinced me that I NEED IT!

We own DVC and have had many trips onsite. The cost for any Disney room is very high compared to most other rooms in Orlando.

Our next trip is 9 days, Beach Club and Bay Lake, and we are excited. BUT, places like Wyndham Bonnet Creek are a excellent value and closer to many Disney amenities then some of the DVC resorts. I have not personally stayed at WBC, but my next trip will probably be there.

 

[brymolmom]

Personally, I would only do it if mortgage was paid and college was mostly funded and retirement too. I would guess that's what DR would say too.

As for the 'actual' numbers...I'm not sure how to do it personally, but in addition to the $200 - $400 in dues amounts for the points used, I would guess you need to also factor in a percentage of the upfront costs into the number. So if you're paying $15,000 upfront for your purchase, maybe count in $2,000 a year or so toward your costs for the first 7 or 8 years?? So truly, you'd be paying $2,500-ish for a condo-like place (also factor in family size, I'm guessing you would need a lot of points to fund a place big enough for you each year) at least for the first handful of years. When you consider the fact you can likely get just as nice a place, offsite, for about $1000 - 1500 for a week. It is tough to calculate exactly what would make financial sense for you.

My personal opinion and take after going to some DVC presentations is that if you are going to stay in a DELUXE, onsite at least once a year (but more likely twice a year), DVC might make good sense to you.

But if you like staying offsite sometimes or go where the 'best deal' is to be found - like FREE DINING and staying at Values or Mods if that's where the best deal works out - then it likely would not be a good value for you.

We fall into the second category and I found that I could not justify it. We went for a quick trip in December for Xmas decorations and I found an incredible offsite hotel deal. It cost WAY less than the dues would be for a DVC contract - not even factoring in the upfront costs. It definitely does not make financial sense for us, even though we could afford to buy it.