Owning vs. Year to Year stays in cash..I need help!!!

[dankevork]

Hello All,

Forgive my ignorance and if this question has already been posed. I am one of the DH that really want to do buy into the DVC, however the sensible part of my brain keeps getting in the way. I am trying to justify buying in, but then look at things like saving for retirement and saving for college for the 3 children and think that my money could be better saved in those areas. On the other hand, they are only children for a short time and would love to have many Disney experiences with our family.

My main question is whether it is worth the price to buy membership and here is where I am torn. Obviously the initial investment is significant...probably around 15000 to 20000, which is a big chunk. Additionally, I see the yearly dues at probably around 1000. If we were going to Disney for 1 week a year and staying in a MOD resort, our price would probably be around 1200. I may be rambling on, but does anyone see where my dilemma is? Our dues every year would probably be the same price as what a hotel stay would be, and there would not be the huge initial investment.

I am aware that the DVC resorts are more on the Deluxe resort level, so I understand that is where one of the discrepancies is...Also, I understand that the points remain the same value for 50 years (where prices will go up in that time). Are those the only two benefits, or am I missing something.

I am already losing hair at an early age at a rapid enough pace...I don't need to lose it faster by pulling it out over these questions. TIA for any help...I NEED IT>

 

[doubletrouble_vb]

Clearly retirement and the kids college education should come first.

That said you have to determine DVC's value for yourself. I've been a studio user and when Disney added the fridge to the moderates (never mind the coffee maker) AND created the suites over at all stars there went the specific value of DVC units for me.

If you dont really care enough about space to pay extra for it, dont really care about deluxe's, are willing to take your chances on discounts, renting points or flat out dont mind staying in an offsite condo, timeshare, or house...the DVC value really isn't there.

Right now I'm selling because I can't get to Disney all that often for the next year or three. I can bank the maintenance fees and use that to pay cash to go during the low seasons on an AAA rate...or rent points...or use it to buy back in later if I'm still interested.

The shorthand answer is if you stay deluxe then DVC will probably be a good option. In the past I'dve put moderates in that category too but what with the price of points and maintenance fees I'm not so sure

Oh sorry there is one other option that might make it a more convincing financial argument...if you would have to rent more than one room when you go or have to get a suite.

 

[dankevork]

Clearly retirement and the kids college education should come first.
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Already saving for these and this would be money over and above, not taking away from the children (hope I didn't sound that dumb in my question )...Just always feel like I should be saving more

 

[casper]

I was a similar to you in many ways about a year ago. I had enough money set aside to pay cash for a DVC membership. The money was saved up for a new car. However, I wasn't (and still not) needing a new car. And so, a couple of months I agonized over spending the money on DVC or keeping it for when I decided to purchase a new car. Did I mention I was agonizing over it? I really truly was. I went through all the figures, knowing that I could spend time in the MOD just fine (had the prior year at Carribean Beach and last year at POR). And furthermore, I don't really like spending money.

I bought into DVC. Why? For me, I knew I wouldn't go every year like I needed to go (that's another story) without it. It was a big investment and I will probably never break even in cost when compared to a mod or value. But now I know I will be going. And I find a lot of peace with that. Oh! And I should mention that as I agonized over it, they offered the Friends and Family promotion which put the point cost at a very acceptable level for me.

My advice to you is not to rush into your decision. Take time to think it out. But if you keep losing sleep over it (like I was) then you just might be ready to buy. It felt so good to finally sign the Mickey's and date the Palm Trees. And I have not regreated my decision one bit. Money is just money. Living life and experiencing great things is better (if you can afford it). My vacations have now included my parents and my brother and his family. Without DVC this would have never happened.

Now if you can get yourself down there as you need or want, and staying in a MOD or Value is just fine, then I wouldn't buy DVC. Of course, the cost factor for the future is always up for grabs.

Good luck with your decision. This isn't a "right" or "wrong" decision. It really comes down to what you really want to do.

 

[dankevork]

Casper have you been spending time in my head, thinking exactly the same way I am??? I hate spending money in the same way. I am glad to see someone who agonized over this decision in the exact same way that I did. Awesome advice....Still agonizing, but awesome advice nonetheless

 

[Mickey'sApprentice]

Dankevork:

DH and I looked into DVC in 2002 and couldn't justify needing 150 points or paying the maintenance fees.

When we realized that we could purchase fewer than 150 points resale, could bank and borrow the points, and purchase for less money, it made a lot more sense.

With 100 points, our maintenance fees run about $500/year, and we can stay in a studio for a whole week in off-season with that many points. We would only be able to stay at a very inexpensive off-property for that price. It probably works out cheaper than the moderates with the buy-in figured added in.

However, we didn't think about the added transportation, ticket, food, and souvenir cost. Disney can be really expensive even after your room is paid for.

The most important thing, IMO is that you are sure that you want to go to WDW or HH or VB at least every other year, and would only want to exchange out maybe every 5 years. If so, then it makes sense. Good Luck with your decision.

We've been to HH once and WDW once since buying in and are very happy.

 

[Granny]

My main question is whether it is worth the price to buy membership and here is where I am torn. Obviously the initial investment is significant...probably around 15000 to 20000, which is a big chunk. Additionally, I see the yearly dues at probably around 1000. If we were going to Disney for 1 week a year and staying in a MOD resort, our price would probably be around 1200. I may be rambling on, but does anyone see where my dilemma is? Our dues every year would probably be the same price as what a hotel stay would be, and there would not be the huge initial investment.

A couple of aspects to consider.

• Resort cash room rates have risen substantially faster than DVC dues the past few years. So what's roughly the same now might be quite different in a few years, and really different in several more.
• My guess is that you didn't include the 11% (or more) tax on top of that moderate room rate. With DVC there are no additional charges to use DVC resort rooms.
• You may have noticed that room discounts and codes are drying up quite a bit. With DVC, you never have to go code hunting again or worry if you got the best deal for the room you are staying in.
  

Of course, if money is the main concern you could always stay off-site at really nice accommodations for even less money. But DVC isn't always about saving money...it is also about upgrading the vacation accommodations.

It may or may not be worth it to you. Nothing wrong with going through the information and deciding against a purchase. The main thing is...make sure you understand what DVC provides, how it works, and what it does not provide or guarantee (such as perks). Keep asking questions...there are many fine people here who will give candid responses and opinions.

Good luck in your decision process.

 

[benjaminb13]

I hear you,
You forgot to mention airfare- approx 1500 a year for a family of 4- making it 2500 for MFs and air plus the 20000. whew

 

[mikesmom]

Another point you might consider:
I notice you have 3 kids. As they get a little older, a vacation with all of you in one room may not be much of a vacation - as well as greatly limiting your room choices as soon as that little one hits 3 years old. We started considering DVC when DS was 16. DH had already decided that a vaction sharing sleeping and bathroom space with a teenager had it's drawbacks. We consistently were doing 2 rooms or a suite-like hotel offsite before we found DVC so that we all enjoyed our vacation. I can't imagine sharing the space with 3 teens.
DVC rooms (1 bdrm and up) will give you more space to spread out, a kitchen for all the drinks and snacks kids consume (we found that a big savings, frankly) and a washer/dryer in room so you don't have to drag quite so many clothes.

Certainly don't risk retirement or college money, but you could see a BIG improvement in quality of vacations.

 

[Ratpack]

We actually thought about it for a couple years before buying in. OP, I see you have three kids, believe me the extra room will come in handy in the coming years. We have three kids as well and stay at the Poly for enough room to be comfortable. The minimum point buy in gave us 1 week each year at AKV in a 2 BR which is a lot of space. However, we bought more than the min and now can take 2-3 trips a year and still have room for our growing kids ages 9, 4 & 1. I ran the calculations for us and staying at the Poly in the cheapest room category would have run us over $200,000 for the next 50 years. AKV even with dues each year will run us about $80,000 over 50 years. That equates to about $1600 per year for 2-3 trips a year in a 2 BR villa. Comparing the costs now may not be a seller for DVC, but calculate the cost over the next 50 years with 3-5% cost increases at the resorts each year will give you a more accurate picture of what makes DVC a good idea for those of us that go every year.

 

[rsinj]

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[lsutigger2]

Other posters have made some really good points. For my dh and I, owning DVC has increased the quality of the vacations we take. We've just begun sharing our trips with others and that has been wonderful as well.

Another suggestion, which might help you make a decision, is to visit the model rooms at Saratoga Springs Resort next time you are at WDW (if you haven't already done so).

If a picture is worth a thousand words, then to actually see the models is worth $1000's!

Good Luck with your decision!

 

[RLRDA]

I bought into DVC. Why? For me, I knew I wouldn't go every year like I needed to go (that's another story) without it. It was a big investment and I will probably never break even in cost when compared to a mod or value. But now I know I will be going. And I find a lot of peace with that. Oh! And I should mention that as I agonized over it, they offered the Friends and Family promotion which put the point cost at a very acceptable level for me.

My advice to you is not to rush into your decision. Take time to think it out. But if you keep losing sleep over it (like I was) then you just might be ready to buy. It felt so good to finally sign the Mickey's and date the Palm Trees. And I have not regreated my decision one bit. Money is just money. Living life and experiencing great things is better (if you can afford it). My vacations have now included my parents and my brother and his family. Without DVC this would have never happened.

Couldn't agree more (especially with the sentence I underlined). It's a corny saying but, "You can't take it with you". Your family will always remember the time you spent together as a family (at Disney or anywhere else).

I see by the OP's signature that he has 3 little ones so Values and Mods won't necessarily work unless he gets more than one room. I think some Deluxes will accomodate 5 in a room. For me anyway, once I saw the space in the DVC villas, there was no turning back. I know you don't spend tons of time in the room but we find ourselves spending more time there now, enjoying the resort & pool. It's not a "commando" WDW vacation as in years past, maybe because we know we'll be returning sooner rather than later.

It is a big decision, but, like most everything else it doesn't have to be permanent. If you join and find out it's not for you and your family....sell it in a few years. There's plenty of information here to answer many of your questions. GOOD LUCK with your decision....most people you'd ask here do not regret "taking the DVC plunge".

 

[javamom]

We agonized over this same decision too, just recently. We are a family of 5 also.

We went to POR in December, and took the DVC tour at that time. Thought that the DVC was a great idea, but not something that we could "afford."

However, when Summer came this year we booked yet another trip back to WDW at POR. It became clear to us, that we were going to be another family that was going to return to Disney at least every other year, if not yearly. Between what we invested in 2 trips during 2006, we could have half-paid for the points we would have purchased for a lifetime of trips. Which is probably why most DVC members seem to say "wish we would have bought sooner."

As we sat there and crunched the numbers, we realized that even if we financed the whole thing for 10 years (worst case scenario - and that is not what we ended up doing) and allowed for trending increases for both moderate rates and MF, that we would end up paying the moderate rate. For that same money we would get larger accommodations (stop tripping over each other) and could get a few nice discounts to go with it on other things.

So, for us, the agonizing was over. It was the making of the travel commitment that was key. Once we realized that we were going anyway, we might as well apply those today-dollars to tomorrow-stays now.

Yes there are others costs involved in travel. Whether we bought DVC or not, we still would have to pay for flights, food, and extras. Again, this was money that we were already willing to spend either way.

So we decided what was the maximum amount that we could afford to spend, and then found a resale contract that we liked. Might also add that by buying the resale contract, we were able to get more points than we had thought we would be able to get!!

Now we are members and are taking our first trip "Home"

We will continue to use our DVC. If we ever decide that we don't need it, or its not worth it for some unforseeable reason. We can sell it, no big deal.

So, I guess what I am saying is this: don't agonize, enjoy!

 

[tomandrobin]

I noticed you have 3 kids in your siggy. The typical hotel room sleeps four. In a few years you are going to move up to a suite or get two connecting rooms. That was our problem a few years ago. Every vaction we took we had to pay for two hotel rooms with three teenage kids.

Second thing to consider is resale value. If you go to Disney every other year and stay at POR. You will intitially book one room, but the last two or three trips will be two connecting rooms. $1500+$1500+$3000+$3000+$3000=$12,000.

Now compare to DVC, you pay for you points ( buy enough for every other year trip). You pay your maintenance fees. 160 point buy-in (160x$94 = $15,040) plus maintenance fees (160x4.25 = $680).


At the end of ten years you sell your membership. And at the end of ten years you sell it at what you paid for it originally. Your total cost will be just the maintenance fees. $680 x 10 = $6,800 total cost.

Now my numbers are not for example only and only close estimates. None of these numbers take into account inflation. (FYI, the room rate will rise faster then the maintenance fees) This is assuming that the cost per point will remain flat. But in 15 years since DVC started, the points have not gone down in value. Nothing is guaranteed, but it is another point to consider.

Personally, I think the numbers I have shown are the worse case numbers. I believe the actual numbers will workout much better over time. And more thing to consider is with a DVC one bedroom or larger you have a full kitchen at your disposal. You can't really throw in a number on dollars saved by eating a portion of your meals at the resort, but the savings are there.

 

[Teyedoubleguhrrrr]

If it is any consolation, DH and I agonized over this for 13 years before we bought. It is a tough decision. I would make sure you do a lot of reading about the DVC program to make sure you know exactly what is being offered - not just what the sales guide tells you. (Just my 2 cents).

To help on the financial end, my lovely DH, in all his wisdom, created a set of spreadsheets that we used to look at everything - including doing the comparison to mod/deluxe resorts (using current year dollars) which allows you to compare DVC (including financing interest and maintenance fees). I went and put dummy numbers in to create a tool that some people have found helpful. It can even include financing costs if you are looking into that. In any case, PM me if you would like me to send them. It really helped us make our decision, compare resale vs Disney direct, and look at different resorts from a cost/finance basis.

Best of luck!

 

[eliza61]

it is a very agonizing decision. Any time some one ask you to plot down a large sum of money, it's hard. When I purchased I was pretty much in the same boat. I have 2 kids that I have to educate and me and the old guy would like to retire at some point before we're 90. could I always find things to do with 20 grand? Sure. Pad the retirement, pay down the mortgage, pad the college fund but in the end we felt this was equally important.

 

[tacomaranch]

I took great pride in buying and paying for the DVC by myself. I didn't ask parents or DH for the money. So I still owe the last 1/3 but it is coming down slowly.

We will have two trips using our points already this year and then I borrowed some from next year for our Dec. trip.

It has been hard from me because I had a car accident and haven't worked since. Life changed for me and so did my income. However, one thing I will keep is my DVC.

I love having a bit more than just a room in hotel. I like the welcome home, a washer and dryer. Having room to move about without tripping over a person. Mornings on the patio with a cup of Starbucks brewed in the coffee maker. Not having anyone around.

Yes, there are discounts for room, but to get DDP you have to pay full rack rate, a base ticket, etc. With DVC I get DDP just by paying for it and using our AP to the parks.

You must think of your family first and spending the college fund is not the right answer, but if you have the money and see yourself in Disney more than 7 times, a DVC would be a good choice.

BTW, DH said that if I was addicted to cocaine instead of Disney it would be cheaper!

 

[Tinkerdreams]

I am currently looking into becoming a member. We've been to Disney several times but are only able to make a trip every 4 - 5 years due to the cost. Most of the cost seems to be the hotel - we prefer mods and deluxe.

I guess I feel that if we have a membership, the hotel is taken care of year on year and we could also have family members join us on occasion. The expense would then be limited to food, park tickets and flight. This would be far less cost and would enable us to go EVERY year

But as all of you have pointed out (and I'm feeling the same right now), this is a big decision. Any advice, tips, would be greatly appreciated!!

 

[rsinj]

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