Lots Of Questions About Dvc

[Disney8704]

OK I totally do not get DVC and I even been through the whole DVC tour last time I was down there.

I know its like so much per month but what are the annual fees and I know that your montly payment varies, but what are you paying? Just wondering to get some sort of an idea how much it will be and weither or not if we can actually afford it.

Once you pay the entire $15,000 or whatever it is off do you have to pay anymore after that?

How long do you have to pay off the DVC? Like 1 yr, 5 yrs, etc.

You are locked into those rates forever right? Meaning one yr your montly payments wont be $200 a month and then the following year be like $300 a month.

What resorts can you stay at on disney world property?

Can you do the dining plan with DVC?

Can you use DVC for the disney cruise line?

Whats the max amount of time you can book your vacation?

I read somewhere you get discounts throughout disney world. Like stores and restraunts. What kind of discount do you get?

If you book a trip using DVC and have to cancel, do you get your points back?

When booking your trip, say you can use them at the AKL, can you request what view you want and will you be staying in conceriege or regular rooms? And when it comes to the view, like at the AKL does it cost more in points to have a savannah view then a standard or pool view?

Does your DVC ever expire?

Do points ever expire?

Does the DVC just cover the hotel cost or does it include packages?

I think thats all the ?s I have for now, if I have any more I will post.

 

[bwvBound]

Great questions - all of them! Indeed, owning any timeshare is a decision to be studied and carefully evaluated. The most satisifed timeshare owners are those who are willing to do the research, who can comprehend the details, and who are willing plan ahead. It seems you are on a good start with your investigation.

That said, please allow me to switch to my "professional trainer" mode and ask you to try to find some of your own answers. Dig through the materials you received at the sales presentation, run searches through this forum, read every link in the FAQ, request the brochure from this forum's sponsor (The Timeshare Store) and read, read, read!

As you find answers, use this group to "test out" your understanding. You'll come away with a stronger grasp on the program, its features and its limitations -- and you won't scare off the group with a laundry list of questions all at once. (Smile)

If some of the questions can't be easily answered in the existing materials -- try posting them individually. A conversation focused on one specific topic will be much easier to follow!

 

[spiceycat]

the monthly fees don't vary (okay jan and Dec do - but by pennies).

once you have paid the mortgage off ($15,000) the only thing is the annual fees (maintence fees, property tax, insurance, etc)

your mortgage can be 1, 3, 5, 7 or 10 years

what ever your monthly payment on the mortgage is - it will be until you pay it off.

the dvc resorts are OKW, SSR, BWV, BCV, and VWL - you can stay at any WDW resorts (expect the values) on points. however you are better off staying in a DVC resorts - they require less points.

for 2006 yes you can do the dinning with DVC. It is a better deal because you don't have to buy the tickets to get it. For 2007 no decision has been made.

yes, you can use DVC points for the cruise. but again your best use of the points is with DVC resorts.

the maxium amount before hand you can book is 11 months.

discounts there are several. but don't get DVC based on the discounts - they are small only 10 to 20%. the best one right now is the annual pass discount.

if you have to cancel - and you cancel 31 or more days before check in - then the points go back to your account.

if you cancel 30 days or less - then the points go into a holding account - they have different rules and must be used only for reservations 60 days in advance. they must also be used in that year.

with AKL and all the deluxe resort you are guaranteed the view that your points are buying. the nicer the room/view the more expensive the points. So yes it takes more points to get a savannah view than a standard view.

DVC will expire - 2042 for OKW, BWV, BCV, VWL, HH, VB; 2054 - SSR

if you don't use your points or bank them they will expire at the end of that use year.

use year refers to the month that you will get your points each year.

 

[Got Quattro?]

There are 2 ways to look at it. (this is how I justify buying DVC)

#1 - Total cost of the package. (my numbers are rounded for easy math)

150 points @ 95 a point = $12, 750
The lease is for 35 years x $750 maintenace a year = $26,250
Ad $1,500 for finacing + closing cost (if any)

the cost of your vacation home is $12,750 + $26,250 + 1500 = $40,500

150 points x 35 years = 5,250 points to use over lease

So, take total cost of $40,500 and divide by total points of 5,250 and you find that each point costs you $7.71 (which is high from rounding)

A week at DVC goes for 102 - 130....so 130 points x $7.71 = $1,002

Every time you go to disney for a week it costs you about $1,000 for the room. Compare that to what it costs to stay at a deluxe resort at a minimum of $200 and you are saving $400-$700 every time you vacation.

Even with deals it can be hard to come close to a week @ or below $1,000
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#2

Do the math on the fly.....

say you finance for 7 years and it costs you $225 a month x 12 month = $2,700 + $750 maintenace = $3,450

Your first 7 years it will cost you $3,500 to vacation for a week.

After 7 years, it will cost your $750 to vacation a week for the next 28 years.

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Keep in mind 150 points can be stretch out to 2 weeks a year very easy as well.

And, with inflation and how disney keeps raising room rates, soon it will be $2,000 for a good deal at a deluxe for a week.

With DVC at any time if you want to get out, you can sell and get what the market will bear. So $10,000 can be brought back pretty easy in the first few years.
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Again, it's been a while since I crunched all the numbers. my examples are a little on the high side.

 

[bwvBound]

I can't help but want to respond to a few of these ... one by one.

I know its like so much per month but what are the annual fees and I know that your montly payment varies, but what are you paying? Just wondering to get some sort of an idea how much it will be and weither or not if we can actually afford it.

Once you pay the entire $15,000 or whatever it is off do you have to pay anymore after that?

How long do you have to pay off the DVC? Like 1 yr, 5 yrs, etc.

You are locked into those rates forever right? Meaning one yr your montly payments wont be $200 a month and then the following year be like $300 a month.

About the money ...

That there are two costs directly related to DVC ownership and several more indirectly related.

• Purchase:: The purchase price is the number you reference at/near $15,000. It is a one time cost based on the number of DVC points you purchase, which resort you purchase, and how you purchase (retail or resale). The purchase may be financed.
• Dues: Dues are an annual expense throughout your ownership. Dues are calculated based on the number of points owned per resort. Each resort uses a different dues figure -- but expect to pay approx $4-$5 per point. The dues rate adjusts each year (expect increases).
• Indirect costs: Travel expenses (air, rental car, driving expenses, toll roads, etc), park passes, food, shopping, travel insurance, etc.

Financing:
Financing is often available on the purchase figure. Considerations:

• Retail or resale? How you buy may figure into the financing question. Disney certainly offers financing if you are buying retail directly through them. Some resale vendors, including this board's sponsors, will help direct you to lending institutions offering timeshare loans. If you are buying from an individual seller - you'll have to find your own financing if needed.
• Sources for financing: Look around and know your options before you negotiate the loan. Gather rates and terms on low-interest balance transfer offers from credit cards (<5%?), home equity loan or line of credit, credit union options in addition to the seller's options. Look to pay off the loan with the least amount of interest paid over the loan period.
• Disney's financing: If buying and financing directly from DVC, they will offer you loans with varying terms. In general, the rate and payment will be "fixed" (not changing from month to month or year to year) and it will allow for early pay-off with no penalties. They offer different loan periods and will help you select one that fits your needs (anywhere from 1 to 10 years, I think?).

I know I've kept the answers fairly "broad brush" (generalized) -- and I hope you understand that the number of variables makes it difficult to provide a fully detailed and comprehensive answer. Hope it helps!