Is DVC Budget Board approved?

[Lucky4me]

At this point in the DVC game, you can't look at it as a financial investment.
You most likely will never make any money if you buy now and sell later.
If you have the extra cash laying around, like to vacation in a nice villa inside Disney World every year or two and would enjoy being part of a Disney 'club', then DVC is for you.
Even if we did have the money, I'd invest the initial cash into something else and rent points from current owners for what I wanted.
Renters get the same perks owners do while staying at DVC properties. If I change my mind in a few years and don't want to go to Disney World anymore, I'm not tied in. As far as trading into other places around the country or world, there are other timeshare resales priced much lower to do the same thing.

This is how I see it, ymmv

 

[1osfan]

I would like to throw my two cents in here. My DW and I have been kicking this idea around for a few months and as a math teacher, I have spent quite a bit of time crunching the numbers.

We took our first trip to WDW this past summer after years of debating and worrying about the cost. The 4/3 deal and the ages of our kids convinced us that the time was right. By the time it was all said and done, we stayed at POP for 9 nights and included the DDP. We loved the trip so much, we have booked our second trip for June returning to POP for 11 nights. While there, we spoke briefly to the DVC rep and then visited the DVC location to talk about Bay Lake Tower at a Chicago mall last month.

We would love to buy into DVC, but...

* the initial cost is more than $19,000 minimum. If you can pay that up front, great. If not, you need to find financing yourself or pay DVC's rate of 10.75% for 5 or 10 years. This is for preferred financing. Standard financing is over 14%.

* If you use their preferred financing, you are paying $224.69 per month for 10 years. That means you're paying about $2700 per year for the next 10m years. (This is based on a 10% down payment.)

* On top of that cost, you are going to pay dues of $50.34 per month. That is the current number but I am told that it increases.

* Let's say you can afford to pay cash for the initial $19,000+ today and you don't have to finance this and pay interest. Then, you are still paying $600+ per year for every year that you own this. I don't know anything about how much the dues change over the years, but I'm told that they do increase. This purchase is a 50 year commitment so you are going to pay $30,000+ in dues during that time. You're now up to about $50,000 total.

* Now, you own this for 50 years and it will cost about $1000 per year if it is averaged over that time.

* DW and I are both teachers so we can only travel at certain times of the year. The 160 points that we would get per year would not be enough to stay for a week during spring break or the week of Christmas. The only other time we can go (and our preferred time) is summer. For 137 points, we could stay for a week in a standard view studio (a studio only sleeps 4) and for 153 points, we could stay for a week in a Bay Lake view studio. For the yearly 160 points, we would not be able to stay for a week in a Magic Kingdom view in a studio (183 points) or for a week given any view in a one, two, or three bedroom room (starting at 272 points).

* As I said, we stayed 9 nights last summer and we're staying 11 nights this summer. Staying 7 nights would be a step down for us.

* Now, if you don't go every year, you could use 320 points every other year and stay in a bigger room, or with a better view, or for a longer trip; but now your $1000 per year has become $2000 per trip.

* All of this and we've only talked about the hotel cost. You still need to pay to get there, for park tickets, and for food.

I would love to stay at Bay Lake instead of POP, but in the end, I could not justify spending $50,000+ for our hotel rooms alone when we still had to pay for everything else - no chance of a deal, no free dining, no 4/3, no % off.

In a few years, maybe our finances will be different. Maybe the cost/value won't look so bad. Maybe our next couple of trips will change my mind. Only time will tell, but for now, we put our money toward the other parts of our trip and we are comfortable staying at a value resort.

 

[disneymom3]

Something to consider...dh and I have longed to buy DVC for years but when we have crunched the numbers, it has not been a good deal for us. This last fall, DVC started to trade on the RCI timeshare system. DH's parents own two RCI weeks. We are staying in two weeks at a 2BR villa at the Beach Club. In April, DHs parents are in a one BR there. Now, not a permanent solution, who knows if DVC will change systems in the future, but for right now, we are getting one heck of a deal.

Now, you do have to have what RCI considers red time in order to even see the DVC resorts show on your availablity, but if you are looking at a time share, you might want to look cheaper and trade into DVC.

 

[pearlieq]

I think DVC can be right for some people, but the conditions are pretty narrow. Many, many people are members who "shouldn't" be, from a financial or practical statement.

Why it works for us:

1.) We did not finance.
2.) We take multiple trips to WDW each year.
3.) We are flexible about when we go and often plan far in advance.
4.) I have expensive tastes when it comes to hotels. I am no longer willing to vacation at a value resort (Or a Mod. Or a Studio. )
5.) We have disposable income left AFTER meeting all of our other financial obligations, including savings and investments.

Because of the vacation accomodations I prefer (which is my choice and a luxury, not a need), DVC offers me the room I want at a cheaper price.

Factoring in my purchase price and annual dues, my points cost me approximately $5.87 each. My Bay Lake view 1 Bedroom this Feb will cost me 34 points per night, or $199.58/night.

$200/night is cheaper than I've ever gotten a room at a monorail resort. And my room will have a view, a washer and dryer, 2 bathrooms, a living room, and 300 extra square feet. Disney charges $480 + tax/night for the same room, and a 1 bedroom suite at the Contemporary goes for $1,220 + tax/night.

I'm satisfied with my purchase for my needs, but everyone's mileage will vary greatly.

 

[Tiger926]

I've been reading the math calculations here, and so here are some of my thoughts:

1. Dues - We have a certain max increase for dues. In the almost 6 years that we've been members, my dues have increased LESS than hotel room rates have increased.

2. Initial Buy-In - This is the big one. It does require a lot of money up front. We financed a bit as hubby's a banker, and we got like 1-2% interest, so it allowed us to pay it off quickly. Even so, with a bit of interest, you are still going to save over the 50 year life of your contract.

3. Points - Different seasons, room sizes and travel patterns dictate how many points your family might need. We started in studio with 1 child, and since are now in 1 bedrooms as we have 2 children. Each point, is then charged a maintenance fee on it, so you should keep a budget for yourself, and then add your points accordingly as maintenance fees are yearly (in U.S. you can pay monthly) charged in January.

4. Value - For the cost of what we paid in moderates for 8-9 nights, we now stay for 13nights/14 days in 1 bedroom villas with full kitchens, laundry, bath (2 in Kidani and BLT), balconies, bedroom, etc. Plus, we get discounts on Annual Passes, shopping, etc. Now, although these discounts can't be counted on, while we have them, we use them! Something else to consider is that with a full kitchen, or kitchenette in studio, you will save on food/drinks/snacks. With staying in Values, Moderates and Deluxes (excepting suites, but they cost more than DVC), you can't cook in your room at all.

5. Discounts - Disney uses these as marketing ploys, not as rewards. So, when these discounts dry up, and they will, us DVC members will still see savings with our membership.

Basically, I notice that people do the numbers in a way that suits them it seems, in order to talk themselves out of DVC in many cases. We took our initial buy-in, divide by number of years on contract, and add yearly dues to come up with our vacation total. We only travelled to Disney 1x per year, for approx. 7-9 nights, so this is how we compared. This year for 13 nights/14 days Animal Kingdom, our total is approx. $2300.00. Sure we still add on Dining Plan, but we don't have to, and tickets, but you need those anyway. We get a discounted DVC AP and schedule 2 trips a year on it, right before our expiry date - more savings here! Anyway, our same room is like $600.00-700.00/night. This works out to less than $200.00/night - I just checked Mods the other day, and in the summer when I go, they range from $180-$205/night. I am a teacher, so I can only travel during a few times of the year, so most times, I am not eligible for discounts anyway.

There is lots to consider as DVC is a large purchase - make sure when you crunch the numbers you are doing so correctly. If you normally stay in Value resorts with free dining for like 6-7 nights per year, then DVC is more than likely not for you, as it will cost more. But, if you travel to WDW each year and stay in Mods or Deluxes, then you should consider it.

Best of luck in your decision, Tiger

 

[nunzia]

I would like to throw my two cents in here. My DW and I have been kicking this idea around for a few months and as a math teacher, I have spent quite a bit of time crunching the numbers.

We took our first trip to WDW this past summer after years of debating and worrying about the cost. The 4/3 deal and the ages of our kids convinced us that the time was right. By the time it was all said and done, we stayed at POP for 9 nights and included the DDP. We loved the trip so much, we have booked our second trip for June returning to POP for 11 nights. While there, we spoke briefly to the DVC rep and then visited the DVC location to talk about Bay Lake Tower at a Chicago mall last month.

We would love to buy into DVC, but...

* the initial cost is more than $19,000 minimum. If you can pay that up front, great. If not, you need to find financing yourself or pay DVC's rate of 10.75% for 5 or 10 years. This is for preferred financing. Standard financing is over 14%.

* If you use their preferred financing, you are paying $224.69 per month for 10 years. That means you're paying about $2700 per year for the next 10m years. (This is based on a 10% down payment.)

* On top of that cost, you are going to pay dues of $50.34 per month. That is the current number but I am told that it increases.

* Let's say you can afford to pay cash for the initial $19,000+ today and you don't have to finance this and pay interest. Then, you are still paying $600+ per year for every year that you own this. I don't know anything about how much the dues change over the years, but I'm told that they do increase. This purchase is a 50 year commitment so you are going to pay $30,000+ in dues during that time. You're now up to about $50,000 total.

* Now, you own this for 50 years and it will cost about $1000 per year if it is averaged over that time.

* DW and I are both teachers so we can only travel at certain times of the year. The 160 points that we would get per year would not be enough to stay for a week during spring break or the week of Christmas. The only other time we can go (and our preferred time) is summer. For 137 points, we could stay for a week in a standard view studio (a studio only sleeps 4) and for 153 points, we could stay for a week in a Bay Lake view studio. For the yearly 160 points, we would not be able to stay for a week in a Magic Kingdom view in a studio (183 points) or for a week given any view in a one, two, or three bedroom room (starting at 272 points).

* As I said, we stayed 9 nights last summer and we're staying 11 nights this summer. Staying 7 nights would be a step down for us.

* Now, if you don't go every year, you could use 320 points every other year and stay in a bigger room, or with a better view, or for a longer trip; but now your $1000 per year has become $2000 per trip.

* All of this and we've only talked about the hotel cost. You still need to pay to get there, for park tickets, and for food.

I would love to stay at Bay Lake instead of POP, but in the end, I could not justify spending $50,000+ for our hotel rooms alone when we still had to pay for everything else - no chance of a deal, no free dining, no 4/3, no % off.

In a few years, maybe our finances will be different. Maybe the cost/value won't look so bad. Maybe our next couple of trips will change my mind. Only time will tell, but for now, we put our money toward the other parts of our trip and we are comfortable staying at a value resort.

Those are all good points but you are comparing extremes..POP vs BLT. Naturally you have to include not just the cost, but what you are getting. With discounts, I thought BLT was more in the realm of 16K. An easy way to buy at MUCH lower prices is through resale. At OKW you can stay for a week in the summer for 106 points. You can get resale at OKW for around $80 and you do not need to buy the Disney minimum. I'm not saying DVC is for everyone, or even most..it's a big personal decision..but there are many ways to look at it, not all of them financial.

 

[Purseval]

DVC is not an investment, it is an obligation. You prepay for vacations and they guarantee you a spot. Other than that it has virtually no value. For now Disney props up the price with ROFR because it is still worth it for them to buy back the points and resell them full price to some other family, as soon as that doesn't become profitable DVC values will sink like a stone, just like every other timeshare.

If you like to take high-end WDW vacations every year anyway then it might make sense to buy in. Other than that you can rent from an owner, figure $10/point. That would be about $3000 for a week in a 2br during magical season, expensive but you only have to pay it once. If you would pay it year in and year out for the next generation or 2 then DVC may be for you.

 

[crisi]

Joining the "It Depends."

I think Mary has one of the best financial analysises of the situation out on Mousesavers.

We've owned for almost ten years now. I will say that I think 90% of DVC owners DO NOT save money on DVC. We stay in bigger (or better) units - moving from a studio at POR to a one or two bedroom at BCVs. We go more often. We treat friends. Since we don't have a hotel bill, we are spend more on dining or Cirque tickets. And the vast majority of us are happy anyway. For us, just having the kids in a seperate room while we vacation is worth any added expense. Its expensive nookie, but its nookie on vacation.

I'd guess 10% of owners DO save money. They don't change their travel patterns, were staying Deluxe to start with, use DVC wisely. They make good use of the mini kitchen or full kitchen in a one or two bedroom. They are patient on their purchase and are willing to purchase resale.

There are PLENTY of cheaper ways to do Disney. Staying offiste. Staying value. DVC is often a good VALUE, but not necessarily a money saving one.

The other thing is that DVC is for those who have made a lifestyle choice to go to Disney every year (or every other year). If you've been once, its not a good risk. People DO get burned out on Disney, and while DVC has tended to hold its resale value in the past, it may not in the future, and it takes a while to recoup your purchase price. DVC is NOT a good deal for cruises or trading. There are cheaper timeshares. Many people buy cheaper timeshares on the resale market and have a lot of success trading into DVC (but that itself carries risk) - including my sister who owns an RCI timeshare of some sort and got a one bedroom at VAKL for this Winter.

 

[crisi]

DVC is not an investment, it is an obligation. You prepay for vacations and they guarantee you a spot. Other than that it has virtually no value. For now Disney props up the price with ROFR because it is still worth it for them to buy back the points and resell them full price to some other family, as soon as that doesn't become profitable DVC values will sink like a stone, just like every other timeshare.

If you like to take high-end WDW vacations every year anyway then it might make sense to buy in. Other than that you can rent from an owner, figure $10/point. That would be about $3000 for a week in a 2br during magical season, expensive but you only have to pay it once. If you would pay it year in and year out for the next generation or 2 then DVC may be for you.

Actually, it doesn't guarentee you a spot. DVC isn't a week based timeshare, its points based. If you decide at Thanksgiving that you want to be there for Christmas, you won't find a room. What it does is protect you from inflation over the long term. But you are also not eligible for deals (like free dining) when staying on points.

Renting is a different kettle of fish. I myself, wouldn't rent (unless I knew the owner, there are a few people here I'd rent from) or recommend renting. DVC cancellation policies are far different than CRO policies. If you don't control the points and understand the cancellation, you can be out your money. Also, the owner keeps 100% control of their points. They can cancel the reservation before you arrive and keep your money, and Disney will NOT help you. You can sue them or try and go after them for fraud, but that is a huge hassle cross state. The risk there is small, but it has happened here, and has happened with rentals from other places as well. Too much risk for me, but I'm very conservative.

 

[mom of princessx2]

Another frugal mom here that thinks it is worth it. We love, love, love Disney and can't imagine going another way than DVC.

Although we enjoyed POP, we prefer Deluxe when vacationing. Once I looked at the cost of the deluxe hotels I knew DVC was for us.

Now comparing apples to apples-what we paid for our DVC (on resale market) is what we would have spent for 3 week long visits to those same hotels (paying rack rates). Also, as our dd's get older we will be able to get a 1 bedroom.

Our plan right now is to go twice in a 12 month span and take a year off inbetween. We can get the AP (with discount) and my dh can get the golf membership for a discount.

Yes, right now there are alot of specials that Disney is throwing around but I don't think that will last forever and the cost of the hotels are still going to go up.

It is certainly not for everyone but it was a wise move for us!!

 

[chalee94]

Is DVC a good deal or not?

it can be. it has been a great deal for me - it suits how i want to vacation. i never would have stayed in a MK-view room or savanna view room at AKL had i not been paying hugely discounted prices through DVC.

but it's not a good deal if you don't use DVC at disney. while you can "trade out for other locations", that is not a good deal financially.

it's not a good deal if you are happy staying at a value or offsite. it's not a good deal if you definitely want daily mousekeeping.

it just depends on how you vacation and whether you are ok making a big commitment to the mouse...

 

[robinb]

Now is a really great time to get into DVC as the resale prices are at rock bottom. If you think you are going to WDW at least once per year *and* you enjoy deluxe accommodations then DVC is probably for you. We have been DVC owners for more than 12 years .

ETA: I *still* take advantage of free dining. We usually go in late August and book a few days at a DVC resort and then a week at a value or moderate resort with free dining.

 

[MEM]

Renters get the same perks owners do while staying at DVC properties.

Not sure exactly what you mean by "the same perks" but there are quite a few discounts they don't get. Renters, obviously, cannot buy the discounted APs, nor do they get
the various 10-15% off discounts on dining, shopping, etc. since they won't have a DVC member card to show (I'm not talking about the room key).

We bought into DVC when AKV first opened. DH had always maintained that we "weren't DVC people". Now he is fully on-board and makes all of the arrangements. We had the cash to buy DVC and feel it is a great value since we prefer Deluxe resorts, with kitchen and laundry facilities.

 

[robinb]

Not sure exactly what you mean by "the same perks" but there are quite a few discounts they don't get. Renters, obviously, cannot buy the discounted APs, nor do they get
the various 10-15% off discounts on dining, shopping, etc. since they won't have a DVC member card to show (I'm not talking about the room key).

We bought into DVC when AKV first opened. DH had always maintained that we "weren't DVC people". Now he is fully on-board and makes all of the arrangements. We had the cash to buy DVC and feel it is a great value since we prefer Deluxe resorts, with kitchen and laundry facilities.

For every discount I have had to show my DVC card. not just my KTTW with "DVC Member" on it. In addition, renters are not supposed to receive the same perks like pool hopping. DVC is just currently lazy about differentiating between DVC members and guests (paying or not).

 

[Purseval]

Actually, it doesn't guarentee you a spot. DVC isn't a week based timeshare, its points based.

That doesn't matter. I didn't say it guaranteed you a spot whenever you felt like it. If you have points you can use them. If I'm in RCI and I want to transfer into DVC there's no guarantee I will get in, even if I try to reserve years in advance. If you want a certain date, it's available and you have your points you'll get it.

 

[clutter]

Now is a really great time to get into DVC as the resale prices are at rock bottom. If you think you are going to WDW at least once per year *and* you enjoy deluxe accommodations then DVC is probably for you. We have been DVC owners for more than 12 years .

ETA: I *still* take advantage of free dining. We usually go in late August and book a few days at a DVC resort and then a week at a value or moderate resort with free dining.

I mostly agree. If you go annually, you can save on APs and plan two yearly trips within the dates. OR, DVC may work if you only go every other or third year. You can buy 1/3 of the points you need for your vacation, and bank and borrow every third year for a vacation.

But beware of addonitis!

 

[Disneycrazymom]

What is the best way to begin researching buying a preowned contract? Do I buy from Disney directly or from another source? Thanks so much!!!

 

[crisi]

That doesn't matter. I didn't say it guaranteed you a spot whenever you felt like it. If you have points you can use them. If I'm in RCI and I want to transfer into DVC there's no guarantee I will get in, even if I try to reserve years in advance. If you want a certain date, it's available and you have your points you'll get it.

But you can't. If you have points and they are set to expire and there is no room, you can't use them and will loose them. There is NO guarantee you will be able to use your points - which is why one of my personal recommendations for "is DVC right for you" is "you have to be a planner." If you are prone to "lets go to Disney this month" - DVC is a bad deal.

Its something that causes some members, for whom DVC is a bad fit, a lot of consternation....because they THINK that if they have points, DVC should enable them to use them.

Granted, your chances of finding a room at DVC with DVC points is pretty much 99.9% - only certain reservations at certain times of year are a problem if you plan ahead, and only short term reservations have high risk. Where RCI has a lower chance, although since DVC moved to RCI, people are reporting very few issues finding SOMETHING on property if they plan ahead. As opposed to the II exchanges, which were much harder to find.

 

[crisi]

What is the best way to begin researching buying a preowned contract? Do I buy from Disney directly or from another source? Thanks so much!!!

There are a number of resellers specializing in DVC. A google search will turn them up. One of them sponsors the DVC forums and can be gotten by clicking on the banner ad at the top of the DVC forums - but there are others.

Spend some time over on the DVC board - particularly if you are buying resale. You should understand WHAT you are buying.

 

[mychicks]

We bought into DVD in 2001 and I wish we had done it earlier. For what we paid for a few stays at deluxe villas (boardwalk, beach club) we could have paid for half of our DVC membership! We paid half and financed half when we purchased.

Yes, it's an expensive up front purchase and we have annual dues. That being said, I have two trips planned for this year - 1BR at OKW and 2BR at Wilderness Lodge. Rack rate for those rooms would be over $9000! No way could we afford that. We're paying about $1500 in dues for 310 points. With a family of 5, we are limited to where we could stay and it is so much nicer to have the villa and be able to put the kids to bed and relax - instead of having to pretend to be asleep to get them to sleep!

We usually go every year and take advantage of the annual pass discount. That is a great perk and we should get three trips out of this year's passes.