Is DVC Budget Board approved?

[labdogs42]

So, I keep trying to do the math and figure it out, but there are so many factors, I keep giving up! So, I'm throwing it out to the Budget Board! Is DVC a good deal or not? I know you can buy points through resale and sure, I'd love to stay in Deluxe-type accommodations for every trip, and get a discount on AP's, but I don't want to make my trips more expensive than they are now, KWIM? So, what do you guys think about DVC? Do we have some owners here on the Bidget Board?

 

[mickeymaker2003]

We stay in value resorts during free dining, so DVC isn't for us. It might save money vs. staying in deluxe hotels, but if you are usually at a value, it definitely won't save money. When staying DVC, you lose out on all the deals (no buy 4, get 3 free, no free dining, no % off room, etc.). The only discount you get with DVC is $100 off AP for the members of your household.

 

[bunnymkc]

So, I keep trying to do the math and figure it out, but there are so many factors, I keep giving up! So, I'm throwing it out to the Budget Board! Is DVC a good deal or not? I know you can buy points through resale and sure, I'd love to stay in Deluxe-type accommodations for every trip, and get a discount on AP's, but I don't want to make my trips more expensive than they are now, KWIM? So, what do you guys think about DVC? Do we have some owners here on the Bidget Board?

We have owned DVC since dec 1997 and wish we would have bought it in 91 when they started..when we lived in NY we would go about 3-4x a year ,spent many a holiday in wdw including xmas,once we had a grand villa in nov 03 with 12 people including 4 kids,,it has been magical 4 us and now that we live in fl we go even more and we have used our points on cruises even booking the new disney dream for jan 2011! we have watched our grandsons grow up thinking everyone has this from 3years old to 14 and still loves it..those memories can't be lost cause we have pics from all those years with them from vero to okw to all the dvc's on disney property except for hilton head in sc we have been to everyone. the rooms are so nice with the kitchens for the family to a studio with just me and my husband it has been magical. we paid cash for it in 97 and just pay the maintence fee every year which is about 120.00 a month cause we have 300 points do not hesitate RUN TO MAKE YOUR OWN MEMORIES..LOVE MY DVC..REMEMBER 1 thing people will try to talk you out of it with all kinds of reasons,(too much money,u could pay 4 your rooms at all stars cheaper, u won't use it that much ha etc..) do what your heart tells u ..u will love it..any ? please ask..marianne

 

[dznyacct]

Hi ~ We joined DVC in 1999. My only regret............why the heck did we wait so long to join ! I am an Accountant and pretty analytical in nature. My son and I did a DVC tour on one of our Spring Break trips, 2 years before we joined. The tour was very informative and VERY low pressure. I requested some more information and discussed it with DH. A year later we all did the tour again and found out about VWL. We love WL, so VWL was a big plus to us . I am happy staying anywhere on property if it means that I'm going to WDW, but boy those DVC rooms can really spoil you. Some people try to look at DVC as an investment, which it is not. I think of it as pre-paid vacation. The AP discount is also a great perk. We have 200 points, which works well for us. I love that we can share our points by having friends and family go to WDW with us . We are going in May and DBIL and his family will stay with us in a 2 BR at OKW (HUGE rooms ). I have gone to WDW for the past 3 years with a good friend of mine to celebrate my birthday. We go during free dining and we stay at PC. She has only been to WDW in September and only stayed at PC. She really wants to see WDW with all the Christmas decorations, so in 2011 we are going to mix things up a bit. I am going to get us a studio at VWL (a really perfect place for a real holiday feel) for the week after Thanksgiving. She is soooooooo excited to go that I have to keep reminding her that we still have our September 2010 trip .

You do need to remember to factor in your annual dues when looking at purchasing DVC. One of the most helpful people to me when analyzing DVC was our own DIS Webmaster Doc . I used the DVC boards to do a lot of research and Doc was always quick to answer any question I had. The funny thing is I found that he lives right here in my city. How ironic is that . Check out the DVC boards. There are very informed DVC owners there.

 

[akcire]

My husband and I also were interested in DVC, and did a cost evaluation in the last 2 years. I was especially interested in the location of Bay Lake Tower, how easy would that be at nap time?

1. If you have to finance the purchase price, it is not a good deal.

2. Currently, with all of the promotions that Disney has been running it is not a good deal.

3. It really depends when you travel. If you travel in the high season your break even point will be much sooner than for someone who travels in September.

4. Are you sure you will want to visit Disney in 35 years (since most time share exchanges diminish your investment)

You need to factor the purchase price of the points, the annual maintenance cost (make certain to escalate your annual dues--each property has a different historical percentage increase), and the lost opportunity cost for investment. (For lost opportunity cost an easy and safe way to estimate this would be to take your current mortgage rate, and apply that as your interest rate factor, so if you have a 5% mortgage use that as your lost rate of return).

We really like Disney, but at the end of the day for us it did not make good economic sense. Paying for the points in cash was not a problem, and we are pretty sure we will want to go to Disney in 30 years; but we could not get over the high maintenance costs and the discount incentives Disney is frequently running. How many of us have gotten discounts of 35%-45% on a fairly regular basis? or free dining? Heck we stayed at the DVC Hilton Head property this past October for $65 or $69 a night, and we were upgraded to a two bedroom.

Here is the final red-herring to consider. The ease and availability of renting points from DVC members. Now I think most of this is people who either need the money to pay their dues, people who bought in early so their cost basis is next to nothing, or people who are sick of going to Disney.

Like most financial decisions, this is a personal choice and on this board there is a hugh emotional attachment to DVC. As I am sure you have read for many people buying DVC is equivalent to "making it". If you decide to do it just make sure you have all your ducks in a row.....

 

[quentina]

So, I keep trying to do the math and figure it out, but there are so many factors, I keep giving up! So, I'm throwing it out to the Budget Board! Is DVC a good deal or not? I know you can buy points through resale and sure, I'd love to stay in Deluxe-type accommodations for every trip, and get a discount on AP's, but I don't want to make my trips more expensive than they are now, KWIM? So, what do you guys think about DVC? Do we have some owners here on the Bidget Board?

You "neighbor" says absolutley. There is nothing better than DVC. Yes, it was a huge investment however; we have used it (2-3 times per year). We visit HHI every summer, WDW (leaving on the 4th) and doing the cruise in September along with 4 days at WDW.

We have owned since 2001. It is the best money I have spent. My kids have gotten to do amazing things since we bought in.

 

[Justsyd2]

We haven't bought into DVC yet, but we really want to. There are many great things about the plan:

You don't have to vacation just at Disney

You can vacation for the next 50 years pretty much prepaid, except for dues.

You get discounts on AP's, tours, golf, etc, and you can add the DDP to your stays.

If you divided the purchase fee and the dues by the membership time it comes out to about $600.00 per year. Where else can you get rooms for two weeks for that price at that caliber of property?

 

[janette]

We have the advantage of buying in 2000 & 2001 so our price per point was much lower but if you do a resale it probably isn't too bad. We love DVC and only regret is not doing it sooner. These are the points I think important for the financial part.

Don't look at it as an investment, it isn't and shouldn't be considered like real estate property that is. You have to be willing to put money into something that will in all likelihood lose value. I don't know that to date Disney has lost value from what people paid but realistically I think it will eventually.

If you are happy with off-site or value resorts it is cheaper to do WDW that way and there is no up front financial investment.

With DVC we stay in accommodations that I'd never pay cash for; we are going in June and staying in a 2bdrm at BCV for 8 nights. Cash price when I do it on the Disney website is $7,605. Our contract cost about 2x that and we can go every year.

DVC works very well for people that go to Disney often; we've never traded out and have only rented a very few points. Once I rented points that year and used the $$ to pay for our hotel in Barbados. Kind of my own trade off.

We use the AP discount and it is wonderful; it isn't guaranteed but I hope they keep it. We tend to do multiple vacations in one year and than take a year off. DVC banking/borrowing and the AP discount make this a very cost effective option.

 

[Green Tea]

I can not see a way it makes any sense financially. You are still paying for the points. Then you have an annual fee. And while it says you can travel to a lot of different places, it seems that isn't a very wise use of points. I just don't see the math making any financial sense.

Your deluxe hotel room is covered, right. But it isn't free; you paid how many thousands initially for that? If you put that initial outlay into something bearing interest, then throw in the $800 or so odd dollars of maintenance fees for the year, you can still stay in the deluxe hotel.

 

[Disneycrazymom]

Is it better ti try to buy a contract from someone? Or directly from Disney?

 

[disneyfan2kids]

Best purchase I've ever made. EVER. I've created fantastic memories with my family that I/they will never forget. I wish I'd done it years earlier.

We put half down...and financed half over a year. Bit the bullet...had (what amounted to) a double car payment every month for a year. And then we were done. (Except dues, which are really minimal in the grand scheme of things.)

We do (usually) 2 week long vacations per year with kids...and one long weekend with just hubby and me.

DVC rocks!

 

[sbrotherton]

I also think it's a good deal...after we pay it off, it will be an exceptional deal. When our kids were small, I never minded staying in a smaller room. As they get bigger, their stuff gets bigger and the space seems to shrink. I did not want to be on vacation and feel like we were cramped and crowded (and end up getting on each others' nerves...we can do that at home). That's when we started staying at some of the Deluxe resorts and we got to stay so close to everything. We loved not having to take a bus everywhere. It felt so much more relaxing to take a boat or stroll to a park and the kids loved it. Once you go Deluxe, it's hard to go back. The first time we stayed in a 2BR at the Boardwalk, I was convinced buying in was the right decision for us. Normally, I ended up picking up after the kids the entire trip and aggravated tripping over shoes and "stuff" left laying everywhere. I really am not a neatnik, but there was just too much in those small rooms. Not fun for me to nag and not fun for everyone to listen to. I told the kids on our first day in the 2BR that they could hang their clothes from the ceiling fan for all I cared because I had no intention of going in there. Add the convenience of a kitchen and a laundry and I am in heaven. We booked our upcoming May trip in a 2BR at BLT. For the length of time that we are going, with passes and food, one trip would run us over $10,000. One trip. The deals Disney has been running lately have been great, but I'm still loving my DVC.

 

[SandrA9810]

It also depends on the size of your family. If you already have a big family, then you're going to need the accomdations that the villas provide. And even at 35-40% off for regular guests, DVC is probably paying 1/2 of that or even less.
My aunt had an incling to want to stay on property her last trip here (she usually gets a 3/3 condo off 192). It was going to cost like thousands even with a cast discount, but if I bought points from some one it would've cut the cost in half from that. But it was still more than what she could afford.

If you like traveling with friends or have a family that can't do values anymore due to space, it's definatly worth looking into. Especially now because prices are going to constantly go up. When we looked into it, buying for the Grand Californian would be the most cost effective. It means that we'd only get the 7month booking window at WDW, but those would probably be spur of the moment stays anyways. Going to california would be a much bigger deal with longer planning time, so having the 11month booking window for there would be a better situation.

It really depends on what kind of vacationing you're looking at doing for the next 20 years. After that you can pass it off to the kids and say hey "we want some points back for our trip" whenever you want to visit. At the same time, it's a 50 year contract, so just think about how memorable your trips can be when there's grand kids in the picture, and then you're really going to need the extra space.

Just remember, prices go up every year, so really the sooner the better. Or else you'll be kicking yourself if you buy after the price goes up.
The tours (we had a really fun one for the BLT preview) are very very low pressure. They realize you're on vacation and didn't bring a few extra grand to buy into it. But they do keep up with phone calls and promos in the mail. I got one recently, if we bought into the grand californian, we'd get 4 annual passes to WDW and 4 to DL (that really made me wish I was rich).

 

[fkj2]

It depends.

I was an early purchaser--1992. Relative to the purchase date, DVC was, and is, a good deal. I like staying in deluxe resorts. If I had to pay for a deluxe resort every time I vacationed at WDW, I'd go less frequently.

You can't really compare the deals you can get at a value resort with DVC. I've travelled with friends/family and stayed in a grand villa, which accommodates up to 12 people. We were all together, and not "down the hall" from each other. Other times, I've traveled solo and stayed in a one-bedroom, but I do so like soaking in the hot tub after a tiring day at the parks.

The economy looks to remain slow for a while Disney may have to offer 4/3 nights for a while. But the minute the economy turns, those offers will be done. Renting is an option if you plan ahead. Resales are available that may be more cost effective. The thing to decide is if DVC is right for you and at what time it's right for you.

 

[donnajean17]

Something else to think about... when you buy into DVC you are pre-paid yes, but just for your accomidations. So adding say the regular dining plan and PH passes to your vacation will cost you additional $$$ each time you go....

 

[shelly3girls]

I can not see a way it makes any sense financially. You are still paying for the points. Then you have an annual fee. And while it says you can travel to a lot of different places, it seems that isn't a very wise use of points. I just don't see the math making any financial sense.

Your deluxe hotel room is covered, right. But it isn't free; you paid how many thousands initially for that? If you put that initial outlay into something bearing interest, then throw in the $800 or so odd dollars of maintenance fees for the year, you can still stay in the deluxe hotel.

Current discounts prices a deluxe room about $2300 for a week. When I break down my DVC purchase and include interest lost and annual fees, I am still paying less. In addition I am staying in a large 2 bedroom villa instead of cramming my family of 5 into one room. We also have the benefit of bringing our close friends who are a family of 3 for no extra cost. So for less than the cost of a deluxe hotel we have a large villa. If you travel during peak season then DVC can really be a great deal! We often go at Christmas when rates are outrageous. I never imagined we would but now that the kids are older we are very limited to when we can travel.

DVC isn't for everyone but if you travel deluxe (possibly moderate) at least every other year then it may be for you. I am a firm believer that DVC is a luxury and should only be purchased if you have the cash. We have traveled with friends to WDW, Vero Beach, and Hilton Head. We are looking forward to the DVC is Hawaii to open!

 

[minnie1928]

We bought into DVC about a month after doing the tour. I too am an accountant so I wanted to run the numbers to make sure this was a good investment for us. At the time, the travel market was doing much better so the discounts were fewer and rather far between. So, while they are currently offering some great discounts for the hotel rooms that may not always be the case. That is what pushed us over the edge to buy at the time that we did.

In the years that we've had it, we've been able to take family and friends on trips that we would've never done otherwise and made some really great memories.

 

[bumbershoot]

1. If you have to finance the purchase price, it is not a good deal.

...fixing it...."if you have to or want to finance the purchase price, it is not as good of a deal."

That's better.

And if your option is to save up, so you don't pay that interest, that is a long time without a vacation OR a slower time saving up b/c you're also paying for those vacations. Finally we got to the point where we decided "what the heck" on financing, because we were *spending the money* for disney(land) vacations anyway. Figured it should go towards something more than a random hotel room!



Comparing it to staying at values with free dining might work now, but in the future they could end free dining, raise the price of values, etc. So it might not continue to be a good (on the side of value+free dining) comparison.

 

[brymolmom]

I've done the math for my family and have come up with 'no - not worth it'. I am a bargain shopper and go when and where the deals are. We would be styaing in much more luxurious places, but also paying more ultimately for it. So, the basic rule of thumb, IMO - is that if you go 2 or more times a year and stay at AT LEAST MODERATE (iffy to be a good deal) but most likely DELUXES (def. a good deal) - then it very well might be worth it for your family.

If you go during all the best promotions and don't mind staying in basic accomodations (oh and have 4 or fewer in your family) - then you're likely going to be paying more for the DVC luxuries.

 

[nunzia]

I am as frugal as they come and we decided it is worth it for us. I have no regrets at all. As our kids have grown and our family now includes 8 grandkids we will travel more, not less, to Disney. You can probably go cheaper, now, but who knows what he future will hold. When I see what we paid in the mid 90's to stay the Beach Club, what a bargain! It seemed outlandish at the time. I can only imagine how rates will be in in another 10 or so years, and discounts may disappear and eager DVC rentals may too. Only you can decide if it's worth it for you, and overall, so far, DVC has been selling at pretty decent rates if you change your mind. I think Disney says you end up coming out ahead after about 7 vacations. Sounds about right...wish I'd bought it 7 vacations earlier.
Yes, you can buy resale for a savings but you really need to buy where you want to stay. I paid cash for my small OKW contract to get in the system then a large down on my VGC points which I hope to have paid off this year. I still don't have the 'minimum' of points, and am resisting an add on. My annual fees are right at 500.00 and even when they go up, I can see years and years of vacations..forced vacations..ahead for 500 for the room portion of the trip. When I go in May it's almost 'free' One free train ticket, stay in the Villas, SR for 100 Disney card, and my health care plan pays you for walking so 300 there. I got APs using my birthday card to upgrade on laxt trip so nothing for passes so saved on that, so really..this trip is costing nothing out of pocket except the rest of the train tix. Again, only you can decide and there is much more to factor in instead of just $$$.