Is it really worth it to become a DVC member?

[Nahanni]

For instance: points. Nick made a big deal of saying that the points system was a hedge against inflation, since we would lock in at X$/pt. and it would give us, say, 150 points per year over the length of the contract. It didn't occur to me until later to question if those points decrease in relative value. For instance, 150 pts now gets me, say, seven nights a year. Is there a point in the future when that same point value will only get me four nights? Or one?

Not to be overly simplistic but the same number of points will be worth about the same number of nights at the same time period each year. DVC can adjust point requirement to try to even demand (e.g. they increased weeknights and decreased weekends). Also, if you change the time of year you vacation, your point requirement may go up or down.

Pardon the stupidity!

Another thing he didn't explain very well (probably intentionally) was the resale market. I don't really understand this. If Disney has the right of first refusal and can veto sales that are too cheap...doesn't it follow that resale would invariably be more expensive? And yet I hear it's much cheaper. What am I missing?
Pardon the stupidity!

Cheaper is a relative term. DVC resales are cheaper than buying DVC direct because members are looking to get away from the commitment. Ironicaly, it is in their interest to tell you the strength of resale value while trying to keep you from looking at it for your purchase (think used car vs new car - except you don't get a new DVC unit, it's still used). ROFR may have "supported" the resale market through the economic downturn as they refuse (buyback) really attractive offers (i.e. no fire sale to date) or contracts they know they can sell at full price (e.g. waitlist, BCV, etc).

 

[Dean]

I have recently looked into becoming a DVC member, but the website just confuses me. Im hoping that by coming here, i can get some clarification. Is it just like have a timeshare, or is it different? How does the payment situation work? Any info and insight would be greatly appreciated!

As noted, it is a timeshare. DVC is worth it ONLY if you plan at least 7 months out, can afford it without financing, will use the points exclusively at DVC resorts and value staying on property enough to justify the extra costs. If you vary much from this template, buying DVC is almost certainly NOT a good choice for you.

 

[Sandisw]

I'll be honest, I had next to no interest in DVC when we went down last week. At the end of a week in OKW, and especially after I found out that DVC could take you all over the planet, I was intrigued enough to hear the spiel.

The salesman did a masterful job of selling DVC to us. Of course, I had no intention of signing anything right away, but we were pretty much sold on the benefits.

It was only afterwards (isn't that always the way) that I started wondering if I got the whole story, and I resolved to come here and find out.

For instance: points. Nick made a big deal of saying that the points system was a hedge against inflation, since we would lock in at X$/pt. and it would give us, say, 150 points per year over the length of the contract. It didn't occur to me until later to question if those points decrease in relative value. For instance, 150 pts now gets me, say, seven nights a year. Is there a point in the future when that same point value will only get me four nights? Or one?

Another thing he didn't explain very well (probably intentionally) was the resale market. I don't really understand this. If Disney has the right of first refusal and can veto sales that are too cheap...doesn't it follow that resale would invariably be more expensive? And yet I hear it's much cheaper. What am I missing?

Pardon the stupidity!

The points for a resort are fixed for life so your 150 points will get you about the same # of nights throughout the life of the contract.

However, it is important to know though that the year is broken in to seasons and they can adjust what time periods are in what seasons and change things a bit througout the chart.

But if something goes up a point, something else has to go down so it has to balance in the end.

We travel in Magic season (2nd highest season) so we figured we were pretty safe in knowing that what we should always be able to get the same number of nights as we do now. And, if we can ever travel during one of the lower points seasons, we will get more out of it.

My suggestion, if you begin to consider it, is to look over the points charts as a whole, and look to see what a your trip might cost in the higher seasons and not just the lower ones in case your dates ever change seasons.

With DVC, you don't have to stay a minimum number of nights so there are ways to stretch your points.

Some people bought not really understanding this or bought based on just going Sun through Friday as weekday nights had been less.

Points adjustments to the charts in the last two years made weekday night a few more points and weekend nights a little less so some were caught short. We actually benefited from this shift as we can now include weekends and travel on less expensive airfare days.

So, as long as you go in understanding that small shifts can happen and plan for this, you will not be disappointed.

Good luck!

 

[chalee94]

...and especially after I found out that DVC could take you all over the planet...

just salesman talk.

DVC is a relatively good deal compared to onsite wdw prices. for non-disney trips, there are much cheaper and better ways to travel.

For instance, 150 pts now gets me, say, seven nights a year. Is there a point in the future when that same point value will only get me four nights? Or one?

no worries about that.

BUT DVC can reallocate the points...so that while 150 pts might still get you 7 nights generally speaking, things can definitely change. early december is a very popular time for DVCers due to low pts and holiday decorations - so if you always travel in early december, there is a risk that DVC will move early december to a more expensive season...which might mean you could only afford 5-6 nights instead of 7.

as sandi stated, the total pts will not change...DVC might make february stays cheaper to offset making early december more expensive, for example. whether that would be a dealbreaker for you is an individual matter...but the risk is there.

If Disney has the right of first refusal and can veto sales that are too cheap...doesn't it follow that resale would invariably be more expensive? And yet I hear it's much cheaper. What am I missing?

ROFR doesn't allow DVC to "veto" resales...it means they have the option of stepping into the shoes of the buyer and taking a resale contract away from the original buyer.

BUT they need cash to pay for all the resales they buy AND they need to be sure they can turn around and find a retail buyer for the contracts they pick up. it wouldn't make sense for DVC to steal a resale from a buyer at $100 if they can only sell it retail at $110...too much trouble for too little return. picking up an $80 resale with a $30 margin to $110 would be more incentive.

but in this economy where retail sales have dried up and they can foreclose on more contracts than they can resell, they tend to let most of the resales go...for whatever price unless it's completely ridiculous or for something like BCV where demand is still pretty strong.

 

[disneynutz]

Disney hasn't been picking up very many contracts through ROFR this year because foreclosures and defaults have increased. Why buy back a contract when you can get them for free?

Bill

 

[Deb & Bill]

Quote:
Originally Posted by Ken_Breadbox
...and especially after I found out that DVC could take you all over the planet...

just salesman talk.

...

Exactly. Charles is right. Don't fall for the 500+ vacation places talk because 1 - it's not that easy to get exactly what you want and when you want it and 2 - it might not be available in the future - DVC can change that if they like.

 

[Ken_Breadbox]

just salesman talk.

DVC is a relatively good deal compared to onsite wdw prices. for non-disney trips, there are much cheaper and better ways to travel.



no worries about that.

BUT DVC can reallocate the points...so that while 150 pts might still get you 7 nights generally speaking, things can definitely change. early december is a very popular time for DVCers due to low pts and holiday decorations - so if you always travel in early december, there is a risk that DVC will move early december to a more expensive season...which might mean you could only afford 5-6 nights instead of 7.

as sandi stated, the total pts will not change...DVC might make february stays cheaper to offset making early december more expensive, for example. whether that would be a dealbreaker for you is an individual matter...but the risk is there.



ROFR doesn't allow DVC to "veto" resales...it means they have the option of stepping into the shoes of the buyer and taking a resale contract away from the original buyer.

BUT they need cash to pay for all the resales they buy AND they need to be sure they can turn around and find a retail buyer for the contracts they pick up. it wouldn't make sense for DVC to steal a resale from a buyer at $100 if they can only sell it retail at $110...too much trouble for too little return. picking up an $80 resale with a $30 margin to $110 would be more incentive.

but in this economy where retail sales have dried up and they can foreclose on more contracts than they can resell, they tend to let most of the resales go...for whatever price unless it's completely ridiculous or for something like BCV where demand is still pretty strong.

Thank you very much for this. It's exactly what I was looking for. Unfortunately, our vacation habits and wishes don't line up well with DVC.It's good to hear that from somebody: I sure as heck wasn't going to hear it from Disney.

 

[lisaviolet]

As noted, it is a timeshare. DVC is worth it ONLY if you plan at least 7 months out, can afford it without financing, will use the points exclusively at DVC resorts and value staying on property enough to justify the extra costs. If you vary much from this template, buying DVC is almost certainly NOT a good choice for you.

Yes I know - I have no idea what the future holds especially with more non-WDW resorts coming on board - however, I've owned for five years. Have made at least 14 reservations and only two of them have been in the 7-11 booking window.

And four have been in the very prestigious under seven day booking window.

And some mighty fine bookings.

OP - good luck to you. I LOVE my ownership. But every single situation is unique. For me, I dreamt and waited for ten years. You'll often hear " I would have bought sooner". Not me. Wanted it badly. Knew from the first time I received the information in 1995. Sat at BW and OKW and daydreamed every single trip. I could have financed but I wanted to own it outright. And it ended up to be a very intelligent decision - for me - with some changes I didn't see coming.

 

[Dean]

Yes I know - I have no idea what the future holds especially with more non-WDW resorts coming on board - however, I've owned for five years. Have made at least 14 reservations and only two of them have been in the 7-11 booking window.

And four have been in the very prestigious under seven day booking window.

And some mighty fine bookings.

OP - good luck to you. I LOVE my ownership. But every single situation is unique. For me, I dreamt and waited for ten years. You'll often hear " I would have bought sooner". Not me. Wanted it badly. Knew from the first time I received the information in 1995. Sat at BW and OKW and daydreamed every single trip. I could have financed but I wanted to own it outright. And it ended up to be a very intelligent decision - for me - with some changes I didn't see coming.

The 7 month window is becoming increasingly difficult. Not being able to plan increases risk and likely decreases value over time. In general one should not buy if they know they can't plan well in advance even if it has worked out for some in the past.

 

[shalom]

As noted, it is a timeshare. DVC is worth it ONLY if you plan at least 7 months out, can afford it without financing, will use the points exclusively at DVC resorts and value staying on property enough to justify the extra costs. If you vary much from this template, buying DVC is almost certainly NOT a good choice for you.

Excellent summary. I will add that the last time I looked, buying into DVC is better financially than renting DVC only if you go every year. If you go every other year or less often than that, renting points is the better financial deal for staying in a DVC unit.

Even if you go every year but don't mind staying offsite sometimes, DVC is not a good value. You can buy a timeshare somewhere else and trade into Orlando very easily - for that matter, Sheraton Vistana and other 2 BR Timeshares are regularly available through RCI's "Last Call" for $285 for a week, which is obviously way less than DVC. Trading into DVC with another timeshare is a bit trickier but still quite doable for less than owning costs, assuming get something with the trading power and you're able to go when DVC deposits with RCI.

DVC makes the most sense if you go every year and "must" stay onsite and/or "must" have a particular DVC resort. It's never the best financial deal but of course there are other reasons to own.

 

[Dean]

Excellent summary. I will add that the last time I looked, buying into DVC is better financially than renting DVC only if you go every year. If you go every other year or less often than that, renting points is the better financial deal for staying in a DVC unit.

Even if you go every year but don't mind staying offsite sometimes, DVC is not a good value. You can buy a timeshare somewhere else and trade into Orlando very easily - for that matter, Sheraton Vistana and other 2 BR Timeshares are regularly available through RCI's "Last Call" for $285 for a week, which is obviously way less than DVC. Trading into DVC with another timeshare is a bit trickier but still quite doable for less than owning costs, assuming get something with the trading power and you're able to go when DVC deposits with RCI.

DVC makes the most sense if you go every year and "must" stay onsite and/or "must" have a particular DVC resort. It's never the best financial deal but of course there are other reasons to own.

Even every 2 or possibly 3 years works from a numbers standpoint if you use points only at DVC resorts.

Everyone's situation is different, all we can do is provide info and experience.

 

[lisaviolet]

The 7 month window is becoming increasingly difficult. Not being able to plan increases risk and likely decreases value over time. In general one should not buy if they know they can't plan well in advance even if it has worked out for some in the past.

Obviously I disagree.

Is it better to be able to every time? Absolutely. But should you not buy if you can't/don't want to? In my opinion - no.

 

[OrangeCountyCommuter]

Obviously I disagree.

Is it better to be able to every time? Absolutely. But should you not buy if you can't/don't want to? In my opinion - no.

I agree with you. I rarely book more then 10 months in advance and normally more like 6-8 weeks. I do realize it's a risk, but it works for me.

 

[mch04049]

Disney hasn't been picking up very many contracts through ROFR this year because foreclosures and defaults have increased. Why buy back a contract when you can get them for free?

Bill

It wouldn't be for free because there a lot of legal costs associated with forclosures. But I agree they will be getting a whole lot of them back this way in the next year or so. I don't see things getting any better in the near future.

 

[CarmenPeteron]

We have been members for 10 years and our DVC membership paid for itself after 6 years. It did force us to go on vacation every year and we have had some great family trips! Disney is not your typical timeshare. The product they offer is very high quality! If you have cash I would recommend that you buy resale since you will save yourself a lot of money.

 

[Deb & Bill]

Obviously I disagree.

Is it better to be able to every time? Absolutely. But should you not buy if you can't/don't want to? In my opinion - no.

If the size, type and location of the resort, plus the time of year is extremely important to you, do not buy DVC if you can only book a few weeks or a couple of months out. You will be constantly disappointed.

But if you can move your trip around, don't mind moving every couple of days and don't mind where you stay, you might be okay with short term booking.

 

[Dean]

If the size, type and location of the resort, plus the time of year is extremely important to you, do not buy DVC if you can only book a few weeks or a couple of months out. You will be constantly disappointed.

But if you can move your trip around, don't mind moving every couple of days and don't mind where you stay, you might be okay with short term booking.

Exactly. That's why I wasn't absolute in my first post as well as why I acknowledged in a later post that one's specific situation plays a roll in any decisions. I'll further quality that I feel this is clearly a situation where past performance doesn't translate to future options. Availability issues are clearly different than they were 5 years ago. They next 5 years should be far more defining than the last 5 have been in that regard. That one has made it work in the past does not make shorter notice reservations a good option going forward. However, 2 months out consistently is far different than 6.5 months out. As you point out, the inherent flexibility of a given person plays a major roll in someone's decision making who isn't the ideal DVC candidate.

 

[lisaviolet]

If the size, type and location of the resort, plus the time of year is extremely important to you, do not buy DVC if you can only book a few weeks or a couple of months out. You will be constantly disappointed.
But if you can move your trip around, don't mind moving every couple of days and don't mind where you stay, you might be okay with short term booking.[/

Never been disappointed in five years - never - once again that could change And never had to deal with any of the other bolded items besides being open to more than one resort ( picking outside my home - meaning before I call). Not to strictly argue your points - posted for others out there.

Dean - I clearly said in my first post that I don't know what the future holds - and that with more and more non-WDW resorts coming on board obviously things might change. So I am not totally basing everything on the last five years or on my situation only. That would kind of make me stupid, eh? Insert sighing and winking icon. I wouldn't be so silly as to think that way.

Not arguing that planning brings more rewards. I understand that obviously. Or that the future might make not planning less desirable. In fact, probably will.

And that there are some personalities that need that assurance.

But - in general with the exception of those who own at a highly desired home resort and need to have it - should one refrain from buying because you can't or won't plan long term for the majority of your reservations? Even with what the future looks like. Still at a big nope.

Strongly disagree with the not buying.

 

[aksivers]

We have been 3 times in the last 13 months, staying onsite all three times. We were also considering but are still unsure. I just see the amount we spend on staying on-site and think it has to save us some money???

 

[Deb & Bill]

We have been 3 times in the last 13 months, staying onsite all three times. We were also considering but are still unsure. I just see the amount we spend on staying on-site and think it has to save us some money???

If you stay in a value resort, you will never save money with DVC. In fact, most of the times you probably won't really save money with DVC because you still have to get there, you still have to have tickets, you still have to eat. Those costs add up.