Is DVC ownership actually worth it in the long run?

[Monorail_Man_NJ]

To start with NO EXPERIENCE with DVC but have had a bad experience with a time share.

My bad experience was in Las Vegas and eventually came to the conclusion (atleast in the Vegas scenario) it was a scam and wound up staying cheaper just booking at Vegas hotels.

Couple questions I'd figured Id ask here from experienced DVC owners rather than be sold a song and dance act taking a tour.

1) DVC is just another word for timeshare? Or if no what is the difference?

2) When you factor in the cost per month and maintenance fees versus booking directly with Disney using a room only discount which scenario comes out cheaper?

3) Does owning at a particular resort mean anything in the long run? Or are you basically just buying points that you can use to stay anywhere?

Call me skeptical but if would save me money on 1 trip per year at approx 7 days per stay I would consider.

 

[lovin'fl]

Not a traditional timeshare. We hold value pretty well. In fact I bought 100 AKV points and resold them 2.5 years later for $15pp more than I paid.

We bought to get a villa with a master bedroom, kitchen and washer/dryer. We had three kids, now they are grown, and needed that extra living space...specifically the ability to close our bedroom door and separate from them, lol. So, yes, DVC is cheaper doing 1BR villas than trying to pay cash rates for same villas or getting two regular resort rooms. I also think DVC for studios versus cash deluxe resort rooms is cheaper....but value resort rooms may be the cheapest deal even over DVC. But there are ways to make your points stretch and be a great deal...like standard view at BWV in the lower point seasons and it takes very few points.

Your home resort allows you to book there at 11 months out and then can book at others at 7 months out. So for more in demand bookings, like my standard view BWV studios in Oct, I need to book at 11 months and therefore need to own there...which I do.

 

[Dean]

To start with NO EXPERIENCE with DVC but have had a bad experience with a time share.

My bad experience was in Las Vegas and eventually came to the conclusion (atleast in the Vegas scenario) it was a scam and wound up staying cheaper just booking at Vegas hotels.

Couple questions I'd figured Id ask here from experienced DVC owners rather than be sold a song and dance act taking a tour.

1) DVC is just another word for timeshare? Or if no what is the difference?

2) When you factor in the cost per month and maintenance fees versus booking directly with Disney using a room only discount which scenario comes out cheaper?

3) Does owning at a particular resort mean anything in the long run? Or are you basically just buying points that you can use to stay anywhere?

Call me skeptical but if would save me money on 1 trip per year at approx 7 days per stay I would consider.

DVC is just another timeshare. Many timeshares are good and many are bad. DVC is a good one among many others like Marriott, Hilton, Hyatt and the like. Timeshares are a tale of 2 issues, sales and usage. You can't just a timeshare from the sales process good or bad. DVC is a good choice if you stay on property routinely in a moderate or above, can plan 7-11 months out, can pay cash, will ONLY use at DVC resorts and you're OK with the compromises of a timeshare. In that situation a studio will save you some over a hotel room AND give you more/better options and a 2 BR will break even roughly with 2 hotel rooms and give you significantly more options. But if you're OK with staying off site a good off site timeshare will save you even more and give you non Orlando options as well. As a single choice, an off site is far better if you want one thing to do all vacation needs. If you go resale, become informed and the above criteria fit your situation, buying DVC can be a great splurge. Ultimately DVC won't save you money because you'll go more and spend the money in other ways and then some so you do have to consider value and cost both.

 

[_auroraborealis_]

Minor correct: A studio will save you money over a hotel room at the same resort, but may not be cheaper than booking, say, a Value resort with a discount to sleep 4. You will, however, be at a higher-end resort in a villa-style room, versus in a motel-like resort.

 

[kniquy]

Ultimately DVC won't save you money because you'll go more and spend the money in other ways and then some so you do have to consider value and cost both.

I always have to disagree with this thought because if you aren't spending money at Disney you will be spending it some where else.

As for OP - In addition to the above note on holding value, if you own a small portion of points bought direct from DVC then you do have some additional variable perks - so currently there are DVC dining, shopping, tour, AP discounts, member events etc. I say variable because they can and will change what "membership magic" is offered. The ideal situation which can lead to the biggest savings is to buy resale then add on a small (25pt) direct contract which opens the door to the perks. I don't know what or if other timeshares offer perks/discounts etc.

 

[supersnoop]

Yes, it’s another timeshare. But what are the problems with traditional timeshares?

Most are in places that you either wouldn’t want to return to every year for 50 years, or they’re expensive to get to. So, they go unused.

Most are in areas where lodging is widely available with lots of vacancies at the very timeshares. So, the alternative lodging offers more value. Often, maintenance fees are more expensive than those alternatives.

And they don’t hold their value. Many timeshares sell for 10% or less than their original price.

These aren’t true when it comes to DVC.

 

[KAT4DISNEY]

To start with NO EXPERIENCE with DVC but have had a bad experience with a time share.

My bad experience was in Las Vegas and eventually came to the conclusion (atleast in the Vegas scenario) it was a scam and wound up staying cheaper just booking at Vegas hotels.

Couple questions I'd figured Id ask here from experienced DVC owners rather than be sold a song and dance act taking a tour.

1) DVC is just another word for timeshare? Or if no what is the difference?

2) When you factor in the cost per month and maintenance fees versus booking directly with Disney using a room only discount which scenario comes out cheaper?

3) Does owning at a particular resort mean anything in the long run? Or are you basically just buying points that you can use to stay anywhere?

Call me skeptical but if would save me money on 1 trip per year at approx 7 days per stay I would consider.

1) Yep - DVC = timeshare.

2) Depends. You can stay onsite in a value room for less. Comparing to a moderate it becomes more break even $ wise but in a Deluxe vs a moderate. Comparing to a Deluxe it should be less than cash for a room onsite although at times depending on discounts it may not be quite so clear - but at the absolute worst at a break even level without having to worry about hunting for discounts.

3) Yes, there are times that having a particular home resort matters if you have one that you need to stay at. If your happy onsite anywhere with trying to switch if you can get in elsewhere then SSR is still generally the best buy of WDW resorts.

DVC has held value very well so far and is in demand if you want to sell. Could that change? Sure but it's a decent history and because the inherent value of a room onsite at Disney is something they can't take away I don't expect the demand to change drastically.

You want to be able to pay cash.
You want to regularly visit Disney at least every other year and plan to do so for the foreseeable future.
Skip the "Club" thought. It's a timeshare. Perks change and can be removed at anytime by DVC so don't factor that in. There are AP discounts now, dining discounts, shopping discounts but there have been times that those did not exist too so look at it only for the room value.

 

[Sepo]

1) Yep - DVC = timeshare.

2) Depends. You can stay onsite in a value room for less. Comparing to a moderate it becomes more break even $ wise but in a Deluxe vs a moderate. Comparing to a Deluxe it should be less than cash for a room onsite although at times depending on discounts it may not be quite so clear - but at the absolute worst at a break even level without having to worry about hunting for discounts.

3) Yes, there are times that having a particular home resort matters if you have one that you need to stay at. If your happy onsite anywhere with trying to switch if you can get in elsewhere then SSR is still generally the best buy of WDW resorts.

DVC has held value very well so far and is in demand if you want to sell. Could that change? Sure but it's a decent history and because the inherent value of a room onsite at Disney is something they can't take away I don't expect the demand to change drastically.

You want to be able to pay cash.
You want to regularly visit Disney at least every other year and plan to do so for the foreseeable future.
Skip the "Club" thought. It's a timeshare. Perks change and can be removed at anytime by DVC so don't factor that in. There are AP discounts now, dining discounts, shopping discounts but there have been times that those did not exist too so look at it only for the room value.

I agree with this post from KAT4DISNEY.

Another point: because of the inherent demand for Disney and its brand, you can readily rent out your unused points for 2-3X the annual dues. One popular site, a sponsor of Disboards, will pay $14 minimum per point with minimal work from you. If you want to do the legwork yourself to find a renter, you can find $16-17 a point. This is the best return for doing non-DVC vacations in off years. Much better than any other exchange that DVC offers direct.

What else... Disney also has right of first refusal which prevents significant depreciation.

And of course as all have said, it is indeed a timeshare. Just a good one.

 

[bwvBound]

My bad experience was in Las Vegas and eventually came to the conclusion (atleast in the Vegas scenario) it was a scam and wound up staying cheaper just booking at Vegas hotels.

DVC is an expensive timeshare compared to off-property options surrounding WDW. If you would be happy staying off-property ... there are less expensive accommodations, including other condo-style units.

Edited to add: Love the gif (?) in your footer. Welcome!

 

[DougEMG]

If you are comparing the same room it both cases, then owning vs. paying cash to Disney or renting from another owner will save you money in the long run. The question is how long does it take to break even. At a rough estimate it can be anywhere from 10-20 years depending on which resort you buy and if you buy resale over direct. So it could take a very long time before you see any savings. Run some numbers yourself and see how they work out.

 

[disneynutz]

DVC has some good and some not so good elements. One of the good is that you can buy a contract resale at your favorite resort, give DVC a try, learn the system for yourself, and if it doesn't work out sell for almost what you paid.

Bill

 

[chalee94]

What else... Disney also has right of first refusal which prevents significant depreciation.

I disagree with this. ROFR does nothing to "prevent depreciation." ROFR is simply a tool that allows Disney to hassle resale buyers into buying direct and to pick up cheap inventory at their discretion.

Back in the Great Recession, Disney realized the economic train wreck was coming earlier than most and dropped out of the ROFR business for a couple of years (presumably caring not a whit about owners' resale value.) Despite the job losses, high gas prices and general uncertainty, DVC values still held up decently (for the most part) because as Kat said, the real value of DVC comes from the demand for onsite stays at wdw.

Lots of people do confuse correlation with causation where ROFR is concerned...

 

[smiths02]

To start with NO EXPERIENCE with DVC but have had a bad experience with a time share.

My bad experience was in Las Vegas and eventually came to the conclusion (atleast in the Vegas scenario) it was a scam and wound up staying cheaper just booking at Vegas hotels.

Couple questions I'd figured Id ask here from experienced DVC owners rather than be sold a song and dance act taking a tour.

1) DVC is just another word for timeshare? Or if no what is the difference?

2) When you factor in the cost per month and maintenance fees versus booking directly with Disney using a room only discount which scenario comes out cheaper?

3) Does owning at a particular resort mean anything in the long run? Or are you basically just buying points that you can use to stay anywhere?

Call me skeptical but if would save me money on 1 trip per year at approx 7 days per stay I would consider.

As to point #2...it would depend on if you want the same room, as others have pointed out. Also, though, you are not considering that you can rent points from owners to stay in DVC rooms that might be even cheaper than cash through Disney with a discount. (The break even may be longer if you are willing to rent or willing to stay at Disney in less expensive rooms)

 

[chalee94]

To start with NO EXPERIENCE with DVC but have had a bad experience with a time share.

My bad experience was in Las Vegas and eventually came to the conclusion (atleast in the Vegas scenario) it was a scam and wound up staying cheaper just booking at Vegas hotels.

Couple questions I'd figured Id ask here from experienced DVC owners rather than be sold a song and dance act taking a tour.

Not necessarily a scam but if you spend thousands without doing a lot of due diligence first, you are taking a giant risk. You should have spent a few months on TUG before buying in Vegas. Spending a few months on the DISboards to investigate DVC is a smart move.

(I have 2 timeshares - happy with both - have never done a single timeshare tour - did a lot of homework in both cases.)

1) DVC works for a lot of Disney fans, but it's still a timeshare. Some buy in and are frustrated with the planning and limitations (they want real beds instead of sofabeds and daily housekeeping) and decide to sell.

2) Based on my resale costs at OKW and the relatively low dues and point costs, I'm pretty close to beating out the value hotels in cost.

3) Buy where you want to stay if you have strong preferences. Buy where you don't mind staying if you're just happy to be onsite.

 

[_auroraborealis_]

Agreed. It cannot be emphasized enough that if you like to plan 5 months out or last minute weekends, DVC will be frustrating much of the year.

 

[kydisneyfans]

We bought AK via resale in 2013, it worked out to 160 points for $10,000 flat, that included closing costs, etc. We paid cash.
Current dues are very close to $1,000 a year, maybe a few dollars above that.
We have 40 more use years on the contract. We started with roughly 45.
It's roughly $225 a year, plus dues of around $1,000(goes up $50 a year give or take)

For $1,225, I get the following:

5-6 nights in a 2 BR per year, a week or so in a 1 br, and 10 days in a studio.
That varies by resort and by time of year.

A basic room at AKL is nearly $400 a night give or take. Cash price for 10 nights is around $4,000. Could go lower with promos, could go higher seasonally. Don't forget occupancy tax.
I'm paying $1,225.

If I don't use the points, I can easily get $14 per point x 160 points = $2,240. $2,240 is a great return on a $1,225 investment.

That doesn't include the perks, some of which are beneficial, some of which are not. The AP discount is huge for us this year.

We bought at the tail end of the price decline. We would buy more points in a minute if we could get more at a comparable cost. It's been a huge benefit for our Disney trips, plus there is an easy way to make some $$ on the points if we don't make a trip. Our only regret is we didn't buy in when the points were even cheaper.

 

[Monorail_Man_NJ]

I always stay on Disney property I much prefer that than staying nearby. Have done that a few times (rented a house in Kissimmee and couple hotels on I DRIVE). I generally visit family for first couple of days then head to Disney.

As far as hotels go I will not stay Value. Only Moderates and some Deluxes. I feel comfortable in the 250 - 350 a night rooms and unless an amazing deal cant justify the cost of a Grand Floridian and / or Polynesian. Port Orleans is where I stay when I do moderates. Trying YC and AKL this time around to get a feel of those resorts. My Disney stays are generally 6 nights / 7 days, once per year. Although this year I was there in January as well.

I also generally book earlier and pay as I go using WDW travel company. So in that regard it would be very similar to making a payment to DVC.

Without breaking the bank and rolling down payment into monthly payment any idea on what that might come out to a month? Unclear on points and why some are more than others. But I would probably be happy with one of the older villas BWV or BCV since they are in the EPCOT resort area. My favorite hotel in Disney is Contemporary but Im afraid BLT and Poly will be too much.

Not sure how or why some people spend more than a week at a time at Disney. To each is own. But after a week I've filled my Disney urge for a while.

 

[longboard55]

I never thought I would buy a timeshare, timeshares are for suckers. But after speaking with many who owned on the east coast(very hard to find anyone on the west coast who is an owner) we bought Grand Californian. Now my question is what is the catch, this is just too good of a deal. Of course like anything its no good if you don't want to use it. The most important part is they are very liquid. so if we change our travel habits I could easily sell and get all my money back plus commissions

 

[rer1972]

The description of your typical Disney stays (6+/- nights, moderate or deluxe resorts, and once yearly visits) does seem to fit the bill for DVC ownership. As others have mentioned, really follow through on due diligence. Visit several of the DVC resale businesses online to see what the sales and costs for purchase are likely to be. A few of them have some decent Blogs & News sites that have good info on ROFR and Cost/Value Analysis. These boards are a great source of information as well, as there are tons of veteran DVC owners to answer questions (several have posted good explanations of value and such).

 

[lovin'fl]

I always stay on Disney property I much prefer that than staying nearby. Have done that a few times (rented a house in Kissimmee and couple hotels on I DRIVE). I generally visit family for first couple of days then head to Disney.

As far as hotels go I will not stay Value. Only Moderates and some Deluxes. I feel comfortable in the 250 - 350 a night rooms and unless an amazing deal cant justify the cost of a Grand Floridian and / or Polynesian. Port Orleans is where I stay when I do moderates. Trying YC and AKL this time around to get a feel of those resorts. My Disney stays are generally 6 nights / 7 days, once per year. Although this year I was there in January as well.

I also generally book earlier and pay as I go using WDW travel company. So in that regard it would be very similar to making a payment to DVC.

Without breaking the bank and rolling down payment into monthly payment any idea on what that might come out to a month? Unclear on points and why some are more than others. But I would probably be happy with one of the older villas BWV or BCV since they are in the EPCOT resort area. My favorite hotel in Disney is Contemporary but Im afraid BLT and Poly will be too much.

Not sure how or why some people spend more than a week at a time at Disney. To each is own. But after a week I've filled my Disney urge for a while.

So you prefer the more high end resorts on property. You seem to like walking to parks since you mentioned BWV, BCV and BLT. You go for one week every year. Yes, all this is conducive to owning DVC. Newer resorts and resort with better locations go for more pp. OKW and SSR are the better deals if one doesn't care where they stay and/or they can't typically book before the 7 month window. They are cheaper buys but not great locations and OKW is shorter contract life (SSR is longer but not as long at the newer MK resorts). Also some feel the themes at those aren't anything spectacular.

Now we started with OKW and it's at the bottom of our list of where we prefer to stay but we use those at the 7 month window for others resorts and we like to bop all around. And we will stay at OKW and SSR if we can't get anywhere else or we need to save points. We added HHI because they were cheap to buy and because we like HHI. We mostly use those points at HHI but can also use them at 7 months for WDW resort if we need to. We bought and resold the AKV points...we love the theme of that resort and the points were cheaper to buy plus they had a longer contract life...but we found we could book AKV at 7 months with our OKW points so we had no need to own there and sold them for a small profit. BWV was added to book F&W trips as it is tough to get BWV or BCV then. And we went BWV over BCV so that we can save points by doing standard view. It is not always possible to get standard view ...even as an owner and mostly when trying for a studio. But when I can grab those standard view studios it really is the BEST deal going. Great location for small number of points. I have two booked coming up. Ten points per night, four nights, two studios= 80 points. DH and I in one and SIL and BIL in other. We own 255 BWV points so this didn't even put a dent. Will get a 1 BR next year.