"Pays for itself in 5-7 years"

[dolphinea]

"Pays for itself in 5 - 7 years"

This is the wonderful promise from my new DVC sales video, but there are of course no hard figures in the video.

I understand that the above is based on rack rates for the DVC units vs. staying on points, and that's a whole issue in itself.

But do you think that statement includes your annual dues along with your purchase price?

And if you sometimes use your points to trade out to a non-DVC resort and to the Concierge collection, the cruise, etc., do you think that statement would still hold true?

~Amanda

 

[gonzalj1]

I can't speak to the finances but I can say that our DVC membership paid for itself on the first visit.

Seeing the look on my DW's face when we walked into the OKW 2BR was worth all the money in the world.

Then being able to take my 3 DNephews to WDW for the first time was just icing on the cake.

Now we're planning on taking DS, DBIL and Dneice soon.

It just keeps getting better.

Paid for itself a million times already!

 

[TIdoublegaER]

I think this statemnt pretty much holds true. We have been members for 3 years and we are on the down side of our breakeven - even with our 3 add-ons! There are several different methods for calculating the breakeven. We do figure in our annual dues. I think we have calculated that we will breakeven at 6 years.

 

[Maistre Gracey]

That figure can be supported by some here. It will take me a little longer to break even, as I will be using points for the Disney Collection from time to time.

It should be noted that because of DVC, we are vacationing more often. That obviously will cost us some money for food, transportation ect...
HOLY, MOLY! I had better not take that into account, or we will never come out on top!

Good luck!

 

[JimC]

We calculated nine years.

But we used a blend of:
25% regular season, DC discount, upgraded view, moderate
25% regular season, AP discount, upgraded view, deluxe
25% peak season, upgraded view, moderate
25% peak season, upgraded view, deluxe

This was almost exactly our historical travel and lodging pattern. We stayed on weekends and average trip was 4 days until two years ago when we started staying 5 days per trip. Averaged one trip each year during 1990s, increased to two trips per year in 2000.

Comparison was to a blend of:
26% adventure season, OKW, 1 bedroom
37% magic season, OKW, 1 bedroom
37% choice season, BCV, 1 bedrrom

We bought enough points for three trips per year 2 at 8 days and 1 at 6 days.

 

[anniet]

Originally posted by Maistre Gracey
It should be noted that because of DVC, we are vacationing more often. That obviously will cost us some money for food, transportation ect...
HOLY, MOLY! I had better not take that into account, or we will never come out on top!

No fair taking that into account!

With the beer you drink, your break even point would be light years away!!!!!!!!

 

[timC]

"Pays for itself in 5 - 7 years"

I'd need to hear what context put around this statement. Alone, it's misleading...

In my case, we're now spending more time vacationing at a place we love to go. The ability to do it in a world-class resort facility is, as they say...priceless.

But honestly, our vacationing costs are not going down. Rather, our standards have gone up...way up. We spend more money on higher quality dining, more tickets, etc. Without DVC we'd be doing moderates, taking fewer trips, or not take the time off at all. With DVC, vacationing has now become a much bigger priority

I couldn't begin to think how to honestly access a B/E point, give the tangibles and untangibles.

Bottom line... I paid a lot of money, but have no regrets.

 

[Maistre Gracey]

Originally posted by anniet
No fair taking that into account!

With the beer you drink, your break even point would be light years away!!!!!!!!

Who, me? (picture a smiley with a halo and wings)

PS- love your sig!

 

[Maistre Gracey]

Originally posted by timC
"Pays for itself in 5 - 7 years"

I'd need to hear what context put around this statement. Alone, it's misleading...

In my case, we're now spending more time vacationing at a place we love to go. The ability to do it in a world-class resort facility is, as they say...priceless.

But honestly, our vacationing costs are not going down. Rather, our standards have gone up...way up. We spend more money on higher quality dining, more tickets, etc. Without DVC we'd be doing moderates, taking fewer trips, or not take the time off at all. With DVC, vacationing has now become a much bigger priority

I couldn't begin to think how to honestly access a B/E point, give the tangibles and untangibles.

Bottom line... I paid a lot of money, but have no regrets.

Nicely said!

 

[ncligs]

Originally posted by Maistre Gracey
Who, me? (picture a smiley with a halo and wings)

...........

 

[Dean]

It is true to a certain extent but as you pointed out, it assumes rack rates and ignores interest paid on a loan or investment income on the monies you would have spent on DVC. You also correctly point out that every situation is different and that is very important.

How many people would actually pay rack rates repeatedly for DVC? Not many unless they had more money than brains anyway. I'd recommend one compare to their own situation, what would they spend, where would they stay, how ofter a trip, how large a family and would they eat in the room enough to make the kitchen worthwhile.

Overall though I think it's more like 10-12 years at the best for most people if they look at all the variables and are honest about the entire picture.

 

[Laurajean1014]

I figured (based on how and when we travel since 95 - inception year for us), we will use DVC for 1175 over 47 years. Divide that into what we paid and common charges (I do not count interest because for us it is tax deductable). It comes out to $41.22 per night.

Comfort Inn or DVC??? Hmmmm, let me think that one over!

 

[Richyams]

We came out even on our first trip. $14,000 for 230 points, had two years worth for our first trip, GV for twelve nights. Rack rate was over $1100. Add in the free passes and we more than broke even during that first trip.

During that first trip, we added 200 points so that we would have enough for the GV every year. Another twelve night trip the second year and we broke even on our add on.

By my calculations, break even time is about one year.

 

[DeeP]

timC,
I agree 100%.

 

[Maistre Gracey]

Originally posted by ncligs

...........

Tooo funny! I should have known!

 

[Lisa P.]

I agree with Dean... probably more like 10-12 years for the average buyer, purchasing at today's prices, using the points for DVC resorts.

If you would have stayed at the All Stars or offsite... or if you visit DVC only on weekends, especially during Christmastime, Eastertime or school breaks... or if you would have only visited when able to get the best of discounts (like AP or excellent mousesaver codes)... or if you would repeatedly use points for non-DVC options (B&Bs, cruises, non-DVC Disney hotels)... THEN, breakeven may, in fact, never come.

These kinds of uses are not really the best way to use DVC. If you generally would stay in Disney deluxe onsite hotels or pay Disney cash prices for DVC resort stays, then becoming a member can be very beneficial. HTH.

 

[jodifla]

I think it's interesting how almost every person considering a purchase for the first time is very wrapped up in "how good a deal is this really?" and "am I getting ripped off?"

And though I see many well-thought out financial analyses that point out the benefits, what is SO hard to articulate is the emotional benefits of this purchase. You hear it over and over and over on these boards: "Its the best thing I've ever done. I only wish I'd done it sooner."

For many people, a DVC purchase is a commitment to spend time with their families, a commitment to vacation regularly, and a commitment to ENJOY life instead of simply subsisting.

And every time you walk into your beautiful rooms at DVC, you are reminded just how smart you are. And that's not something you find out in five years or 12 years. You know it from your first DVC stay.

 

[vernon]

Given the current cost and the current availability of quite aggressive discounts I think 5-7 years is very hopeful.

IMHO to make such a statement UNLESS it is quantified in some way ( i.e. in some cases break even could be as low as 5-7 years) could be considered misleading as I'm certain that it would require a reasonably unusual set of circumstances to be able to be that economical.

In my own case I think I comfortably beat 5 years, but like Rich I used two years of points up on my first trip, and we had the "free "passes which really made a huge difference.

Each person will have a completely different answer, depending on their time of year use, whether the have to finance, weekend use, room type etc etc.

 

[Dean]

Lisa's point that some may never break even is a good one. DVC is good, but it aint good enough to make me feel good about a poor financial choice. That sounds like the car salesman who tells you not to let everyone else know what you paid for the new car because you got such a "good deal".

 

[crisi]

Easy, if you do the "right" math.

Lets say the trips you are comparing are March magic season trips (which is peak season for the resorts). 11 nights. And you'll stay in a BWV standard studio Sunday through Wednesday. Thats 155 points. (I'm picking trips around 150 points because I think a lot of people buy in there).

Value those points at a rather high $7 (orginal point cost of $85 / 38 years plus dues of $4.00 gets you to somewheres around $6 a point) and your trip "costs" $1088.

The rack rate at BWI for a standard view room at that time is $394 a night. Add tax and your stay at the Inn would cost $4811.

You "save" $3726 using DVC.

So take the cost of your contract - $12750 and divide by your savings $3726 and you "break even" in 4 years.

Of course, few people who know have paid rack rates the past few years. Few DVC members get standard view BW studios (there just aren't very many of them) - and many of us have moved up to one and two bedroom units.

Same sort of trip - March, BC compared to BCV studio. Only get 8 nights for your 150 some points (148). Same point value. Cost is $1036 for that trip.

Standard view is still $394 a night, but you only are staying 8 nights - about $3500 with tax.

Savings $2464 Breakeven just over five years.

You can breakeven really fast if you stay with low point option (OKW and BWV standard view rooms) and travel when DVC points are low compared to rack rates.