Is DVC right for me?

[hiddenmickey67]

Hello all! I've been thinking a lot about DVC lately. Allow me to share my traveling habits and pose a few questions to see if DVC is right for me.

First, please note that next year I was planning a splurge trip (say in the 6-10k range), as a reward for a years-long weight loss success treat to myself. Which is why I'm considering a (small contract) DVC contract at this time. I'm already planning to spend that money next year anyway... whether it's a one-time trip elsewhere or something more lasting like DVC.

-Being on the West Coast, we've grown up going to Disneyland usually every year or two. It's like home, it's cheaper, it's easier. However, after visiting WDW for the first time last year, we've fallen in love with the place. Since it's across the country, obviously the costs (tickets, flights, hotels, etc.) are going to add a lot more to the overall cost, and since we see it as a splurge and there's so much to do, we often stay 10-12 nights to get the most out of it. If we did DVC, we'd just need a studio, and I'd do it only resale.

-If I didn't have DVC, I see myself staying at a moderate like French Quarter. I like the compact size, ease of transportation, and the price. I wouldn't stay at a Deluxe other than a 1-3 night splurge, and even that is a big IF.

-This is when we'd normally travel: late-March thru early-April (on or around spring break) or the first half of May.

-My favorite resorts are Polynesian and Grand Floridian (location, theme, quality of rooms). I love Beach Club, Wilderness, Boardwalk, and Animal Kingdom as hotels, though they're not as convenient. But I'm willing to consider them all if the price is right.

-Ideally I'd love to buy a small contract, say, 60-80 points. This keeps my upfront costs lower, and since I'm able to borrow from previous and a future years, I can travel once every 3 years (keeping other travel costs down vs. having to go every year to get my money's worth), and have banked enough points for those 10-12 nights at, say, AK. The only downside I could see, is that I couldn't travel immediately, as (depending on what years the contract offers points for) I'd have to wait a year to be able to bank/borrow points for a prior and future year.

OR, I could pay more upfront (say, 100-125 points), and travel sooner, since I have more points to bank and only need to borrow from a future year. However, this would lock me in to traveling at least every 2 years (vs 3 the other way), which means in the long run we're paying more in tickets/flights/etc. While ideally I'd love to travel every 2 years, every 3 gives some cushion and keeps costs low.

We love to travel to other places, but in general, don't mind visiting WDW every few years if finances allowed. When all is said and done, those 12 days at WDW, all expenses included, can cost us around $6-7k, limiting the amount of money available for other trips.

With that said, a few questions:

-Would DVC be right for me?

-Just to confirm, you can both bank and borrow points, thereby using 3 yrs worth of points in 1 year, right?

-Can price per night ever increase? I.e. if it costs me, say, 15 pts/nt to stay at AKL, will it still be 15 for that respective season 30 years down the line?

-Is a small contract a good deal? (Also, are they easy to sell later?).

-Theme/rooms aside, are any DVC resorts better than others? Is there speculation that certain resorts will decline in value down the line? Could Disney ever up the number of points needed each night, thereby making 100 pts/yr pointless in 20 yrs time? Could they pull some legal stunt and basically rebrand your resort and change/raise prices?

-Do resale DVC members get discounts on annual passes?

Any other thoughts/advice would be appreciated. If you think I could see something different, I'd be open to hearing that as well.

 

[crvetter]

-If I didn't have DVC, I see myself staying at a moderate like French Quarter. I like the compact size, ease of transportation, and the price. I wouldn't stay at a Deluxe other than a 1-3 night splurge, and even that is a big IF.

Do you want to upgrade your accommodations or do you think DVC would save you money over POFQ? You might want to run the numbers to see if there is any savings or costs to owning DVC vs staying at POFQ.

This is when we'd normally travel: late-March thru early-April (on or around spring break) or the first half of May.

This is generally considered to be an easier time to book at DVC because it is outside the busy DVC time Fall to Mid-January.

-My favorite resorts are Polynesian and Grand Floridian (location, theme, quality of rooms). I love Beach Club, Wilderness, Boardwalk, and Animal Kingdom as hotels, though they're not as convenient. But I'm willing to consider them all if the price is right.

This really depends what parks you like and the price you want to pay. Beach and Boardwalk are the most convenient for Studios and Epcot. Wilderness is about the same convenience as Polynesian and Grand Floridian to MK. Bay Lake Tower is the most convenient for MK because of the ability to walk. Animal Kingdom is the most convenient to Animal Kingdom and offers the the unique ability of seeing animals outside your window.

I would suggest you strongly research locations, transportation options, dining options, length of contract remaining, and room types/accommodations. For instance Polynesian DVC only has studios and bungalows. Thus any need for a 1/2 Bed would require you to hope to switch at 7 months.

-Ideally I'd love to buy a small contract, say, 60-80 points. This keeps my upfront costs lower, and since I'm able to borrow from previous and a future years, I can travel once every 3 years (keeping other travel costs down vs. having to go every year to get my money's worth), and have banked enough points for those 10-12 nights at, say, AK. The only downside I could see, is that I couldn't travel immediately, as (depending on what years the contract offers points for) I'd have to wait a year to be able to bank points for a prior and future year.

OR, I could pay more upfront (say, 100-125 points), and travel sooner, since I have more points to bank and only need to borrow from a future year. However, this would lock me in to traveling at least every 2 years (vs 3 the other way), which means in the long run we're paying more in tickets/flights/etc. While ideally I'd love to travel every 2 years, every 3 gives some cushion and keeps costs low.

This again is something that really your budget would dictate. Some do the 3 year of points; however, that runs risks if you have to cancel a reservation you make you will lose 2 years of points (1 year that was banked and 1 year that was borrowed) at the end of your Use Year

-Is a small contract a good deal? (Also, are they easy to sell later?).

They are generally easier to sell than larger size.

-Theme/rooms aside, are any DVC resorts better than others? Is there speculation that certain resorts will decline in value down the line? Could Disney ever up the number of points needed each night, thereby making 100 pts/yr pointless in 20 yrs time? Could they rebrand a resort during your contract and therefore change the prices?

Better resort is very subjective. However, the general desire of the resort can be gauged by the resale price divided by the years remaining on the contract. You'll generally see Beach, Boardwalk, Grand Floridian fall on the top end with Bay Lake, Polynesian up next.

The one resort that has a problem is Riviera if you buy direct in that the resale value will be less when compared to the initial value because of the resale restrictions (someone that buys it can only stay at Riviera). Also to note all the previous resorts before Riviera can only stay at the old resorts if you buy resale. So if you buy Polynesian resale you can't stay at Riviera but you can stay at Grand Floridian (making reservations at 7 months if a studio is available). I would also suggest you look closely at the true availability of a resort/room is at 7 months if you intend to switch frequently.

They can't rebrand the resort until the expiration of the resort. But at that point you wouldn't own the resort anymore.

They can arrange points among season and recently they have shown a desire to reallocate among room types. However, generally speaking they have to decrease the points in room/day combination if they raise the points for another room/day combination. However, resorts without dedicated studios and 1 bedrooms will suffer from something called a lockoff premium. Basically the total points to a resort can't change; however, because there are no dedicated studios and 1 bedrooms those can be increased without any corresponding offset in another room/day because the total points to book the resort only considers the lockoff as a 2 bedroom unit.

-Do resale DVC members get discounts on annual passes?

Only if you have 75 points direct. Though with one trip every three years for 10-12 days you won't really break even by buying an annual pass at WDW. The discount at DLR is only $20 a year.

 

[Axelskater]

-Would DVC be right for me?
If you want to stay in deluxe resorts then it is. If you want a good excuse to increase frequency of visits it is.

-Just to confirm, you can both bank and borrow points, thereby using 3 yrs worth of points in 1 year, right?
What?!!! I'm always in the hole with points. Doing the 3-year deal is risky if last minute changes happen.

-Can price per night ever increase? I.e. if it costs me, say, 15 pts/nt to stay at AKL, will it still be 15 for that respective season 30 years down the line?
Disney can reallocate points among room categories but the overall number of points allocated for the resort cannot change. Overall, you won't see a large change in points allocation but bear in mind that your yearly dues will be increasing.

-Is a small contract a good deal? (Also, are they easy to sell later?).
You will pay more per point with a small contract but it will be easier to sell.

-Theme/rooms aside, are any DVC resorts better than others? Is there speculation that certain resorts will decline in value down the line? Could Disney ever up the number of points needed each night, thereby making 100 pts/yr pointless in 20 yrs time? Could they pull some legal stunt and basically rebrand your resort and change/raise prices?
Demand for the various resorts will drive price. Lately the Epcot resorts have seen a good bump in price because of the new attractions coming on-line at Hollywood Studios and Epcot. The risk with these is their end date of 2043 which will become more of a factor when reselling. The resorts not near a park, Hilton Head, Vero, and Aulani have lagged in pricing. There are a lot of trade-offs among the various resorts and the best option depends heavily on personal preferences. Give heavy weighting to where you would like to stay. To compare different resorts strictly from a financial standpoint, take the purchase price per point divided by the number of years left for the resort and add the yearly dues.

-Do resale DVC members get discounts on annual passes?
They did previously but no longer for newer buyers.

Any other thoughts/advice would be appreciated. If you think I could see something different, I'd be open to hearing that as well.
My first purchase was at Bay Lake for 225 points and thought that might be too many points. Now a few years later I'm at 890 points and am still using all points. DVC has helped to bring many good experiences in my life.

 

[KAT4DISNEY]

Using DVC for trips every 3 years is difficult because unless you have exactly 1/3rd of the points needed for you're stay you're going to have a few points left over that will expire before your trip 3 years later or you could be short points. Do people make it work? Yes. But DVC is better if you plan to take trips every 1-2 years.

DVC tried to increase the points required for studios for next year and it's likely they plan to try again. And they have done reallocations in past that left people short a few points to get the trip they previously had done.

Regarding when you might be able to go that just depends on how many points were in the contract you decided to purchase if you ultimately decided DVC is a good fit for you. You might find a contract with banked, current and future points - they do pop up now and then.

 

[hiddenmickey67]

Say I booked at my home resort at 11 months, then at the 7 month mark I wanted to try my luck at a different resort; could I cancel one and instantly book the other with the same phone call?

 

[crvetter]

Say I booked at my home resort at 11 months, then at the 7 month mark I wanted to try my luck at a different resort; could I cancel one and instantly book the other with the same phone call?

Correct you actually can do it all online.

 

[hiddenmickey67]

I've browsed through some posts mentioned that recessions are good times to buy. Do you think that holds true for DVC? We've got some savings and are obviously in no rush to buy in. Will deals really be that sweet, or will have the inflation in the meantime have eaten up any potential savings?

 

[Bing Showei]

Welcome to the boards and congratulations on the weight loss! Sticking with it is the hardest part and being able to do it for as long as you have is a great reason to want to celebrate!

-Would DVC be right for me?

I’m going to give what is likely to be an unpopular answer, and say no, a Disney timeshare probably isn’t right for you.

Not just for all the reasons others have outlined above around risks of 3-year visits, but because your posts seem concerned about the affordability of buying into a timeshare (for good reason). You’ve mentioned wanting to keep up-front costs low, not wanting to spend too much on travel and tickets annually, the benefits of reselling a small contract... there just seems to be a lot of concern around the expenses of buying in and keeping a timeshare.

Unlike a one-time trip that will cost you $6K-$10K, a timeshare’s costs are so much more than just the one-time buy-in. There are annual dues (that by the end will dwarf buy-in costs), travel expenses, and with Disney, park tickets, food, souvenirs, upcharge events, etc. Most members end up spending a lot more money owning than they would paying cash because they end up going a lot more.

If you (general “you”) can afford it, that’s not a problem. A Disney timeshare can add a lot of joy and happiness to your life. But if, from the start, it becomes a stretch to make the financials work, owning any timeshare can becomes a financial burden and very unmagical.

 

[denecarter]

Over the course of a year or two, prices can change quite a bit.

My OKW resale purchase in December 2017 was $72/pt... a good $20+ lower than current prices. But I had no way of knowing that at the time.

Trying to guess DVC prices and when a recession will hit is like buying into the stock market. If you’ve got the money and like the product, buy it. If you think it’s overpriced, come up with a price you’d be happy with and bide your time.

Plus, you can make an offer below asking price. I made a couple of offers on some Aulani points that didn’t work out, then I told my agent I wanted a certain number of points, not stripped because I want to go next year, and my price range. She emailed back a contract that fit the bill... and the seller had asked for $98/pt but would take $85/pt if I paid closing. Um... not stripped, price I was really wanting... sold!

 

[CarolMN]

....(snip)........-This is when we'd normally travel: late-March thru early-April (on or around spring break) or the first half of May..........(snip)........

Know that the week before Easter and the week after Easter are always Premier season - the most expensive DVC season. Be sure to keep that in mind as you look at the point charts to determine the number of points you might buy.

As you know, the date for Easter is different every year. I only mention it, because "spring break" for many people means one of the Easter weeks.

Good luck with your decision.

 

[_auroraborealis_]

It really is okay for a timeshare not to be right for you. The cost concerns you cite, as Bing points out, are a real concern relative to the plan. Dues come due annually/monthly whether you travel or not. The resale market is by no means guaranteed, especially over time. The rental market also could have issues. You have to really be comfortable with the regular, consistent costs - and the annual increase in those costs.

For your schedule of travel and cost concerns, traveling on a Disney discount or renting points may be a better fit. And that is okay.

 

[hiddenmickey67]

Welcome to the boards and congratulations on the weight loss! Sticking with it is the hardest part and being able to do it for as long as you have is a great reason to want to celebrate!

I’m going to give what is likely to be an unpopular answer, and say no, a Disney timeshare probably isn’t right for you.

Not just for all the reasons others have outlined above around risks of 3-year visits, but because your posts seem concerned about the affordability of buying into a timeshare (for good reason). You’ve mentioned wanting to keep up-front costs low, not wanting to spend too much on travel and tickets annually, the benefits of reselling a small contract... there just seems to be a lot of concern around the expenses of buying in and keeping a timeshare.

Unlike a one-time trip that will cost you $6K-$10K, a timeshare’s costs are so much more than just the one-time buy-in. There are annual dues (that by the end will dwarf buy-in costs), travel expenses, and with Disney, park tickets, food, souvenirs, upcharge events, etc. Most members end up spending a lot more money owning than they would paying cash because they end up going a lot more.

If you (general “you”) can afford it, that’s not a problem. A Disney timeshare can add a lot of joy and happiness to your life. But if, from the start, it becomes a stretch to make the financials work, owning any timeshare can becomes a financial burden and very unmagical.

Thank you for the kind words!

And I appreciate the honesty! You bring up a lot of good points.

 

[CraigInPA]

Echoing the concerns of previous replies, a once-every-3-year-plan is not, generally, a good idea. However, an every-other-year plan is generally quite successful for those who do it. If you decide to not go in one of the "on" years, just rent a year's worth of points out. There is, currently, a strong rental market for DVC points. I'd also add that you're more likely to find a 100 or 125 point contract in the resale market than a 75 or 80.

 

[hiddenmickey67]

I've been reading that guests who purchased DVC long ago (thereby enjoying not only cheaper rates, but more incentives and higher resale/renting value) would probably never purchase today given the prices and restrictions in place.

I can understand the high prices argument, but what restrictions are in place nowadays that weren't there before (either direct through Disney or through resale)? I know some discounts, lounge access, and tickets to special events are some perks taken away. Anything else?

Is this just another trend of Disney continuing to take little things away when people finally have a way to actually save money? Declining value and rising prices?

 

[skier_pete]

So a lot of good answers so far - I wanted to quote a specific answer.

-Can price per night ever increase? I.e. if it costs me, say, 15 pts/nt to stay at AKL, will it still be 15 for that respective season 30 years down the line?

So two parts to this answer - historically this has not been the case - if you go in early May then the point amount stays the same. The exception to this is the two weeks around Easter, which move every year. These two weeks are always the highest point value. So a year like this year where Easter is at the end of April, the end of April would be very expensive. However, last year when Easter was late March, late April would have been a lot less per week.

The other caveat to this is that Disney recently made a move to try and increase points at studios and many 1-bedrooms across all resorts. It was reversed due in part to customer complaints and in part due to questionable legality - but they have stated to those of us that complained that they are still likely to do it in the future. If they try this again, a week's stay would likely go up 7- 10 points for most studios. (I am assuming you are looking at studios.)

In addition - you must remember that there are two pieces of expense - the up-front buy-in, which can run you $100-$200 a point, but then there are still annual maintenance fees of $6.5- 7.5 / point and these go up by on average 4-5% every year, so be sure to factor that in.

We personally were people that only stayed in moderates, but went every year. When we bought in in 2014 it was only $74/ point for our AKV contract and it would take about 9 years to break even. What I didn't really factor in was resale value as I planned (and still plan) to hold my contract until it expires and is worthless - but my $74/ point contract is now worth about $110 / point and I could sell it for $5,760 more than I bought it. If I sold today versus what I would've paid at moderates, I would like be ahead already in 5 years.

My advice would be to purchase a small (75-100 point) resale contract. With only going once every 2-3 years, the benefits of a direct contract are almost non-existant for you. Buy at a resort you like with a longer end date (avoid the ones that run out leases in 2042 - BCV, BWV, WLV @ Boulder Ridge and OKW). If you really intend to go in late-april early may you may be OK to buy at a less expensive resort like AK or SSR, but remember that studios fill fast at 7 months advance booking, but typically at that time of year you can get into places like the Poly, Boardwalk, WL and Bay Lake at 7 months advance booking pretty easily. However, always pick a home resort that you would be happy to stay at if nothing else is available for your travel dates. If you have your heart set on the Grand Floridian - then consider whether the extra $5000 up-front is worth it to you to guarantee a stay there.