Newbie - need to know how DVC works

[dcibrando]

Newbie - need to know how DVC works and the costs involved. I ordered the video but still not 100% sure of it all.

I'm 26.. full time job... love disney.. this will be my first trip this summer just me and my girlfriend without the fam. Probably be starting my own family in the next few years

Please give me the DVC for dummies session for those who are involved. - tks!

 

[Tink10]

Dcibrando....

We just recently bought in & are thrilled. We bought 150 points at Saratoga Spring at $85 a point and the total cost was $12750 (That was after the $10 off per point going on right now) Since buying our points at Saratoga, we've bought another 100 points at Boardwalk Villas. We bought 25 via resale at $78 a point & then another 75 points through Disney at $89 a point.

To buy through Disney, you must buy a minimum of 150 points to start off with. If you buy a resale, you can buy less. Disney offers easy financing.The interest rate is 9.75% for 10 years. With resales, you must either pay outright or find your own financing. It is less expensive to purchase a resale, but it takes longer to close the sale.

We've been to WDW 17 times and really wish we had bought in sooner. Because you've never visited WDW, you may want to "rent" points from an existing member, then, while on vacation, take the DVC tour to see the resort rooms....

By renting points and staying at a DVC resort, you'll get a good feel of the DVC rooms etc.

You can rent points over on the rent/trade board....

I Hope this helps!!

 

[tjkraz]

Quick version:

You buy a set number of points from DVC. Annually you receive that same number of points to use toward your vacations. A single room will cost you "X" points per night depending upon the size of the room, resort, day of the week and even the date. Smaller rooms cost less points than larger rooms...slower seasons cost less points than busy seasons (Christmas, Spring Break).

The minimum number of points that you can buy is 150 direct from Disney. That will cost you about $14,000. Disney will finance the purchase, but you'll need a down payment of at least 10%. Interest rate is about 10%.

You can also buy contracts on the resale market..even in increments of less than 150 points. Buying a resale will usually save some money over buying from DVC, but you need to pay cash or secure your own loan to pay for the purchase.

After the initial purchase you are also responsible for annual dues. Dues run about $4 per point, per year. So, on 150 points you would have to pay about $600 per year in dues. Those payments can be spread out over the entire year in monthly increments.

DVC accommodations are on par wtih Disney's Deluxe resorts. If you frequently stay in Disney's Value resorts, you'll never be able to justify the cost of DVC. If you stay in moderate accommodations, you'll probably find that you break-even on your costs in the long-term, but DVC allows you to have much better accommodations. If you pay cash to stay in Deluxe resorts, you'll probably find that you will break even on the initial DVC investment in about 6-8 years. Then you get 30-40 more years' of vacations for a fraction of the cost.

Note that DVC contracts do expire at a given date. Contracts at Saratoga Springs (the newest DVC resort) run through January 31, 2054. Contracts at all of the other DVC resorts expire on January 31, 2042. Some people seem to have an issue with the ending date of the contract. But the reality is that a) DVC may save you a bundle of money on your accommodations over the next several decades, and b) There is no other timeshare option on Disney property that DOESN'T have an expiration date.

Hope that helps.

 

[Blackunicorn]

You can exchange your points for stays at places like Disneyland in California, or the Broadmoor in Colorado. These places will cost more points-wise than staying at a DVC property. You can also use your points for a Disney cruise, which also costs a lot, points-wise. Some people feel that this is not a good value for their points, and some people feel that it's worth it for the convenience of having their vacation paid for. This is something that all DVC members have a different opinion on, so you'll have to decide for yourself if it's worth it.

You can bank one year's points into the next year, but those points MUST be used by the end of the year that you bank them into. You can borrow points from the next year, in effect giving you three year's points to use all at once, if you so desire. Some people do this and visit once every three years.

You have something called a use year--this means your points are not by calendar year. For example, my use year is February. I get my annual allotment of points in February. If I vacation in January 2006, I am still using 2005 points, unless I borrow against 2006 points which I will receive in February. I can't use 2007 points for that vacation.

DVC is something which you can leave to your children in your will, if you want to.

My recommendation is to take the tour. I think talking to a live person really helps to clear up a lot of questions. However, I've also heard that some of the guides have wrong information--for example, a friend of mine was told that Disneyland (California) tickets were included in the cost of the room if you used your points to stay at the DL hotel. Member services says this is not true. (But the tickets are included in the room if you go to Disneyland Paris.) So if anything seems too good to be true, make sure to check it out--these boards are a WEALTH of knowledge from experienced DVCers.

 

[sleepydog25]

The system is actually a simple concept on the surface. You are essentially buying into a timeshare, but unlike traditional timeshares, you are not locked into any particular week of the year. Rather, you can take a vacation whenever you wish at any of the Disney resorts for as long or short as you would like, depending upon availibility and the number of points you own. Your portion of this timeshare is expressed as annual points, thus why Tink10 gave you the example of 150 points, the minimum new buy-in at SSR. So, when you make reservations for a trip at a given resort, it will cost you a certain number of points each night with peak seasons and certain resorts costing more.

How many points you buy determines your final cost--150 is simply the minimum. That statement begs the question: "How many points are enough for me?" Only you can determine that based on your travel habits, intentions, and finances. Other factors that weigh on the decision are when you travel (peak times use more points), how long you stay, and what sort of arrangements will you need (studio, 1BR, 2BR, or 3BR grand villa).

Another question that arises is "Is DVC a good option for me?" Again, it all depends upon a few factors, not the least of which is will you travel to WDW (or its travel partners) at least once every other year? If you can make the WDW trip just once every two years, most people would tell you that in the long run the DVC will pay for itself and then some. However, do not look at DVC as an investment, merely as prepaying vacation accomodations for the next 50 years. In case it's not obvious (it wasn't to me at first), DVC membership allows you to not have to worry about paying for accomodations at a Disney resort every time you visit. You are paying up front. DVC membership does not include food, park tickets, or other attractions such as night club admissions. They usually offer a 10% discount on an AP ticket, but unless you visit WDW more than a couple of times a year, they're not cost effective. You do get free valet parking at your resort, though that's not much of a benny in my opinion.

The resort into which you buy is considered your home resort which allows you to book a room 11 months in advance; if you choose to stay in a resort that is not your home resort, you have to wait until the 7-month point. For some people, they consider it best to buy where you want to stay most often. For example, if you love the charm of VWL and plan to stay there every time you visit, it might be worthwhile to buy a resale into VWL so that you get that 11-month out window vice 7-month. If you are flexible with your travel plans and enjoy all the resorts (such as my DW and I), then the 11-month out advantage shouldn't be a huge selling point. Besides, SSR is what the DVC offers right now; resales can take much longer, especially the more popular ones such as VWL or BCV.

One last item of importance is the banking and borrowing of points. Without going into too much detail, just realize that you can borrow points from a year ahead, or you can skip a trip one year and bank those points to save until the next year. In fact, you could bank one year's points, borrow the next year's, and add both of those to your current year for a huge family gathering if you wanted. Each option carries some restrictions, but they're fairly easy to follow. Furthermore, you can rent your points to someone else, give the points as a gift, or even pass them along to your children or other relatives in a will (keeping in mind everything expires in 2054).

Tink10's figures and comments were correct re: financing, point costs, and other economic considerations. The only missing element is that you also have to pay maintenance fees each year, currently around $3.50-$4.00 per point (e.g., 150 points x $4 = $600). Even once you pay off your loan, say in 10 years, you will still have to pay the yearly fees that have been rising over the years, though usually no more than inflation. Well, hopefully, I've given you some insight into the basic fundamentals of DVC ownership. Only you can decide if it makes good financial sense for your situation. For more detailed info, I would strongly suggest you contact DVC and speak to a guide. Better yet, if you can wait to go on a tour while at WDW, it's great to see everything first hand. The guides don't use high pressure sales tactics at all--it's just a very informative session. Good luck on your decision.