Perspective to buyers from a 14 year DVC owner

[eleven24]

To those considering DVC and trying to project costs, here's my history/cost of owning DVC. Purchased AKV, a 200 point contract purchased at $104/point in January, 2008.

Initial cost: $20,800 (200 pts @ $104/pt)
Annual Dues to date: $17,090
Total DVC Cost to date: $37,890

Trips taken via DVC:
2008 SSR 1BR 7 nights July ( rack rate at time of stay $2,385 - more on this below)
2009 AKV 2BR 7 nights Aug ($5,670)
2010 no trips
2011 SSR 1BR 7 nights Nov ($3,060)
2012 OKW 1BR & 2BR 7 nights Aug ($5,910)
2013 AKV 1BR 5 nights Sep ($3,689)
2014 no trips
2015 OKW 2BR 4 nights Sep ($1,950)
2016 BLT 2BR 5 nights July ($5,160)
2016 BLT 1BR 4 nights Sep ($3,600)
2017 BLT studio 4 nights Apr ($1,173)
2018 SSR 2BR 6 nights July ($4,866)
2019 BLT 1BR 3 nights June ($2,596)
2019 SSR studio 4 nights Aug ($1,095)
2020 no trips - canceled July res.
2021 BLT 1BR 5 nights Jan ($4,445)
2021 BLT 1BR 3 nights May ($3,337)

So that's 14 vacations using DVC which would have cost, if I booked the room directly without having DVC, a total of $49k. Roughly $3,500 per trip - but as you can see many of them were 3 or 4 nights (these are weekend getaways).

My rationale for buying in at DVC was we preferred the higher end resorts, so we likely would book trips at those anyway. My DVC cost, including annual dues to date, is $38k. To date I would've spent $49k on the trips I've already taken, so I'm $11k ahead.

Or am I?

When you consider the perks Disney includes when booking complete packages online, you're often getting extra days on the park admission and/or even free dining plan. That kind of negates the "savings" of owning DVC. At least from my perspective.

I think the biggest question you need to ask if considering DVC is are you typically one who prefers the higher end resorts? That is what you're buying here. For me, it's worth it. The other reason to own, which a price tag can't really be put on, is that having DVC discourages the "we'll have to plan another trip" and then before you know it you've been saying it for 2 years. I have a 19 year old off at college. I might not have done those weekend getaway trips with him if not for having points I needed to use.

From that perspective, DVC is completely worth every penny. Don't do it from the perspective of saving money. You'll break even, or maybe save a bit. Do it because you'd book those rooms anyway, and because you want the push to make those annual vacations before time slips away.

Hope these ramblings help someone else on the fence with deciding.

 

[AvidDisReader]

I have owned since 2011 and there is another big savings. The price of food both quick service and table service has sky rocketed. The last 3 times we have ordered groceries and saved a ton of money. Especially for breakfast, which you can get microwavable waffles or pancakes with some fruit--maybe some eggs. We also get ham, bread for sandwiches for lunch with chips. Now consider for a family of 3, 2 adults and one child the cheapest we could get away with is $31 for breakfast, and for lunch right around $75=$106 per day just for lunch/ breakfast. Now if on a say 7 night trip you do just 2 dinners in room and splurge the rest, the savings will be in the hundreds of dollars. Just food for thought (pun intended).

 

[Dyefrog]

Thanks for sharing your perspective. One thing I rarely hear mentioned is the equity value of your contract. I realize nobody should enter into a DVC contract thinking it's an investment but historically speaking, it appears that it holds its value much better than other timeshares. If you were to sell your contract today for roughly $100pp, you'd only be around $17k out of pocket. Had you bought resale, it would have been much less.
This as well as hedging against inflation can increase the delta of cash vs DVC. Regardless, even when considering potential lost unrealized gains if investing the purchase price instead, comparatively, I'm fine writing off the difference as a splurge factor. YOLO

 

[EM Lawrence]

To those considering DVC and trying to project costs, here's my history/cost of owning DVC. Purchased AKV, a 200 point contract purchased at $104/point in January, 2008.

Initial cost: $20,800 (200 pts @ $104/pt)
Annual Dues to date: $17,090
Total DVC Cost to date: $37,890

Trips taken via DVC:
2008 SSR 1BR 7 nights July ( rack rate at time of stay $2,385 - more on this below)
2009 AKV 2BR 7 nights Aug ($5,670)
2010 no trips
2011 SSR 1BR 7 nights Nov ($3,060)
2012 OKW 1BR & 2BR 7 nights Aug ($5,910)
2013 AKV 1BR 5 nights Sep ($3,689)
2014 no trips
2015 OKW 2BR 4 nights Sep ($1,950)
2016 BLT 2BR 5 nights July ($5,160)
2016 BLT 1BR 4 nights Sep ($3,600)
2017 BLT studio 4 nights Apr ($1,173)
2018 SSR 2BR 6 nights July ($4,866)
2019 BLT 1BR 3 nights June ($2,596)
2019 SSR studio 4 nights Aug ($1,095)
2020 no trips - canceled July res.
2021 BLT 1BR 5 nights Jan ($4,445)
2021 BLT 1BR 3 nights May ($3,337)

So that's 14 vacations using DVC which would have cost, if I booked the room directly without having DVC, a total of $49k. Roughly $3,500 per trip - but as you can see many of them were 3 or 4 nights (these are weekend getaways).

My rationale for buying in at DVC was we preferred the higher end resorts, so we likely would book trips at those anyway. My DVC cost, including annual dues to date, is $38k. To date I would've spent $49k on the trips I've already taken, so I'm $11k ahead.

Or am I?

When you consider the perks Disney includes when booking complete packages online, you're often getting extra days on the park admission and/or even free dining plan. That kind of negates the "savings" of owning DVC. At least from my perspective.

I think the biggest question you need to ask if considering DVC is are you typically one who prefers the higher end resorts? That is what you're buying here. For me, it's worth it. The other reason to own, which a price tag can't really be put on, is that having DVC discourages the "we'll have to plan another trip" and then before you know it you've been saying it for 2 years. I have a 19 year old off at college. I might not have done those weekend getaway trips with him if not for having points I needed to use.

From that perspective, DVC is completely worth every penny. Don't do it from the perspective of saving money. You'll break even, or maybe save a bit. Do it because you'd book those rooms anyway, and because you want the push to make those annual vacations before time slips away.

Hope these ramblings help someone else on the fence with deciding.

Those rack rate rooms can often be had with a 20-30% discount. Did you factor that in to your prices, or just use straight rack rates?

 

[Nabas]

Initial cost: $20,800 (200 pts @ $104/pt)
Annual Dues to date: $17,090
Total DVC Cost to date: $37,890

Great post!

Please let me know if the following math is right:

200 points per year X 13 years = 2600 points

$37,890 / 2600 points = $14.57 per point (so far - this will continue to decrease over time)

Is that right?

 

[Nabas]

Thanks for sharing your perspective. One thing I rarely hear mentioned is the equity value of your contract. I realize nobody should enter into a DVC contract thinking it's an investment but historically speaking, it appears that it holds its value much better than other timeshares. If you were to sell your contract today for roughly $100pp, you'd only be around $17k out of pocket. Had you bought resale, it would have been much less.
This as well as hedging against inflation can increase the delta of cash vs DVC. Regardless, even when considering potential lost unrealized gains if investing the purchase price instead, comparatively, I'm fine writing off the difference as a splurge factor. YOLO

The OP mentioned paying $104/point.

He could sell that for $150/point today! Take away 10% for closing costs and that's still $135/point.

Pretty good!

 

[Travel60]

Great post. Since you mentioned a college-aged son, I'll give you a glimpse of your future trips...we now have SIL and soon to be DIL and GRANDKIDS. Cruises and 3 BR stays with the whole crowd are priceless. We all love Hilton Head...my grand daughter, when playing dolls and house, has been known to pack her little roller bag and declare "bye, mommy and daddy, I'm going to Hilton Head". We've also done Orlando resorts with family....sometimes without going to a park.

We first bought 24 years ago and have added on several times, recently adding 400 more to total 1200. Our average price per point is pretty low but that's irrelevant because we have no intention of selling.

 

[sethschroeder]

so I'm $11k ahead.

Or am I?

AKV, a 200 point

You are more than $11k because those 200 points could be sold for like $22k after fees if you wanted to cash out.

The first 10 years are about breaking even and absorbing the upfront cost. Years 11-50 are about being way ahead.

Every trip you take or points you rent put you further ahead and that's with the "worst" value in all of DVC being taken in to account which is the 1BR Points vs Cash comparison.

 

[Nie0214]

Thanks for sharing your perspective. One thing I rarely hear mentioned is the equity value of your contract. I realize nobody should enter into a DVC contract thinking it's an investment but historically speaking, it appears that it holds its value much better than other timeshares. If you were to sell your contract today for roughly $100pp, you'd only be around $17k out of pocket. Had you bought resale, it would have been much less.
This as well as hedging against inflation can increase the delta of cash vs DVC. Regardless, even when considering potential lost unrealized gains if investing the purchase price instead, comparatively, I'm fine writing off the difference as a splurge factor. YOLO

I was coming to reply about this as well. The equity/resale value wasn’t even mentioned.

For us, not even factoring in the cash value of the rooms we’ve stayed in:

Purchased 100 BLT for $114/point in 2017.

$2,215 in dues paid through 2020 use year, bringing total money out to $14,125.

Dec 2018: 2BR 5 nights BLT
Apr 2019: Studio SSR 2 nights
Jan 2020: 2BR 5 nights OKW

Currently under contract to sell it at $163/point. Even after closing and seller fees (and gains), we stand to be shy of $15k cash back. Making all those trips free essentially.

Of course we’re using the money to buy a bigger contract at a different resort, but not too shabby.

 

[Marionnette]

The OP mentioned paying $104/point.

He could sell that for $150/point today! Take away 10% for closing costs and that's still $135/point.

Pretty good!

AKV 200-point contracts are selling for $150/point? Where?

 

[Nabas]

AKV 200-point contracts are selling for $150/point? Where?

Ugh, my mistake. For some reason, I thought it was a BLT contract.

200-point AKV is more around $120-$130 (depending on how loaded the contract is).

 

[Dyefrog]

I was coming to reply about this as well. The equity/resale value wasn’t even mentioned.

For us, not even factoring in the cash value of the rooms we’ve stayed in:

Purchased 100 BLT for $114/point in 2018.

$2,215 in dues paid through 2020 use year, bringing total money out to $14,125.

Dec 2018: 2BR 5 nights BLT
Apr 2019: Studio SSR 2 nights
Jan 2020: 2BR 5 nights OKW

Currently under contract to sell it at $163/point. Even after closing and seller fees (and gains), we stand to be shy of $15k cash back. Making all those trips free essentially.

Of course we’re using the money to buy a bigger contract at a different resort, but not too shabby.

Congrats. Now that's how you do it. Although buying back in makes it a sideways move for now. What is the resort you will be repurchasing if I may ask? I could see if you were in a 2042 expiration resort but you still had 39 years left.

 

[Dyefrog]

Ugh, my mistake. For some reason, I thought it was a BLT contract.

200-point AKV is more around $120-$130 (depending on how loaded the contract is).

Your point still stands as I was off on the low end just as much. Regardless, his real estate investment appreciated. He vacationed for a fraction of what he would have paid otherwise for lesser accommodations.
I've not researched other non-Disney timeshares but I can't think of a single person I know that bought one that wasn't trying to unload it on me or anybody that would take it for a huge loss.

 

[cruisehopeful]

Great post! Thanks for sharing that. It truly is a matter of how you use it.

 

[eleven24]

Great post!

Please let me know if the following math is right:

200 points per year X 13 years = 2600 points

$37,890 / 2600 points = $14.57 per point (so far - this will continue to decrease over time)

Is that right?

Correct. Also consider the increasing dues each year.

 

[havoc315]

To those considering DVC and trying to project costs, here's my history/cost of owning DVC. Purchased AKV, a 200 point contract purchased at $104/point in January, 2008.

Initial cost: $20,800 (200 pts @ $104/pt)
Annual Dues to date: $17,090
Total DVC Cost to date: $37,890

Trips taken via DVC:
2008 SSR 1BR 7 nights July ( rack rate at time of stay $2,385 - more on this below)
2009 AKV 2BR 7 nights Aug ($5,670)
2010 no trips
2011 SSR 1BR 7 nights Nov ($3,060)
2012 OKW 1BR & 2BR 7 nights Aug ($5,910)
2013 AKV 1BR 5 nights Sep ($3,689)
2014 no trips
2015 OKW 2BR 4 nights Sep ($1,950)
2016 BLT 2BR 5 nights July ($5,160)
2016 BLT 1BR 4 nights Sep ($3,600)
2017 BLT studio 4 nights Apr ($1,173)
2018 SSR 2BR 6 nights July ($4,866)
2019 BLT 1BR 3 nights June ($2,596)
2019 SSR studio 4 nights Aug ($1,095)
2020 no trips - canceled July res.
2021 BLT 1BR 5 nights Jan ($4,445)
2021 BLT 1BR 3 nights May ($3,337)

So that's 14 vacations using DVC which would have cost, if I booked the room directly without having DVC, a total of $49k. Roughly $3,500 per trip - but as you can see many of them were 3 or 4 nights (these are weekend getaways).

My rationale for buying in at DVC was we preferred the higher end resorts, so we likely would book trips at those anyway. My DVC cost, including annual dues to date, is $38k. To date I would've spent $49k on the trips I've already taken, so I'm $11k ahead.

Or am I?

When you consider the perks Disney includes when booking complete packages online, you're often getting extra days on the park admission and/or even free dining plan. That kind of negates the "savings" of owning DVC. At least from my perspective.

I think the biggest question you need to ask if considering DVC is are you typically one who prefers the higher end resorts? That is what you're buying here. For me, it's worth it. The other reason to own, which a price tag can't really be put on, is that having DVC discourages the "we'll have to plan another trip" and then before you know it you've been saying it for 2 years. I have a 19 year old off at college. I might not have done those weekend getaway trips with him if not for having points I needed to use.

From that perspective, DVC is completely worth every penny. Don't do it from the perspective of saving money. You'll break even, or maybe save a bit. Do it because you'd book those rooms anyway, and because you want the push to make those annual vacations before time slips away.

Hope these ramblings help someone else on the fence with deciding.

Excellent post and perspective, thank you.
I will point out 2 things: Your "direct cost" of $49k not only leaves out some "perks," but you seem to have based it on rack rates. Many travelers never or almost never pay rack rates -- Often saving 20-35% off rack rates on typical trips. So assuming a rather modest 25% rack rate discount, your $49k direct is really about $37k. So by my math, you broke even after about 14 years. (meaning further trips would be deeply discounted). This is pretty consistent with the math I did for my recent purchase -- expecting to realistically break even from a direct purchase in 12-13 years, having bought Riviera at $170 per point.

The second thing: is your statement that owning DVC discourages putting off trips: That's both a pro and a con. The pro -- It encourages you to take vacations you might not otherwise take, and family vacations are healthy! The con -- It's also "forcing" you to take trips that you don't really want to take, maybe pushing you to spend money when you shouldn't. (really shouldn't travel this year... money is really tight, Junior is starting college next year... but.. don't want to waste our DVC points, guess we will book airfaire).

 

[eleven24]

Excellent post and perspective, thank you.
I will point out 2 things: Your "direct cost" of $49k not only leaves out some "perks," but you seem to have based it on rack rates. Many travelers never or almost never pay rack rates -- Often saving 20-35% off rack rates on typical trips. So assuming a rather modest 25% rack rate discount, your $49k direct is really about $37k. So by my math, you broke even after about 14 years. (meaning further trips would be deeply discounted). This is pretty consistent with the math I did for my recent purchase -- expecting to realistically break even from a direct purchase in 12-13 years, having bought Riviera at $170 per point.

The second thing: is your statement that owning DVC discourages putting off trips: That's both a pro and a con. The pro -- It encourages you to take vacations you might not otherwise take, and family vacations are healthy! The con -- It's also "forcing" you to take trips that you don't really want to take, maybe pushing you to spend money when you shouldn't. (really shouldn't travel this year... money is really tight, Junior is starting college next year... but.. don't want to waste our DVC points, guess we will book airfaire).

Regarding the rack rate values, in some instances I've used historical data - so I assume it's correct and in others I actually checked what it would have been by attempting to book trip. But yes, there are perks not included. There are just so many variables to include here that it's just easier for me to view straight "rack" rate.

Another real world DVC benefit is groceries delivered and making meals (at least breakfast) as opposed to buying. Also, having the washer & dryer in room allows us to pack as little as 2-3 days of clothing per person. My son and I literally go for the weekend with clothes we have on and an extra day in backpack. Nothing else.

As for forcing vacations - we wouldn't go if money was tight. As great as DVC may be, the park passes, airfare and food alone are $1-2k per person, per trip. We've been lucky enough to be able to afford to go, but I do know as owning my own business along with coaching youth sports, it's easy to keep putting off a trip due to "I'm just too busy right now". For me, I *need* that push, and am glad I had it.

Coincidentally, and probably because of DVC, my son is in college pursuing a degree in engineering with hopes of becoming a Disney Imagineer one day.

So to summarize. Bought DVC. Son will be a Disney Imagineer. I have free Disney access for life. Master plan complete.

Talk about savings.

 

[Judique]

What it cost at Boardwalk Villas, then and now.

Here is another perspective from someone who purchased in 2000.

Boardwalk Villas - per point cost $67 in 2000. Discounted to $56.95 (15%)
2000 dues = $3.94/per point.
'Some' weekday rooms - 9 points. 9 x 3.94 = $35.46/per night in dues and under $2 a night in buy in cost (I'm too lazy to do the math.) So in the year 2000, I could go to Disney and stay at BWV in a standard room for less than $40 a night.

20 years later:
2021 dues = 7.81/per point.

Standard Studios on weekdays in January - 9 points. Nightly cost in dues = $70.29
Standard Studios on weekends in January - 14 points. Nightly cost in dues = $109.34

Other than near Xmas and Easter, maybe 4-5 nights that are priced at 25 points, another 5-6 that are priced at 21 points, most standard nights are 18 points or less. Or about $140 a night.

Meanwhile, most are not going to see any Disney discounts that take a BWV studio below $300 a night.

If only we could see the future of room prices and discounts! Back in 2000, I couldn't. But, I was dealing with a situation where I could do the math and figure out that a DVC room was cheaper than a value room or a moderate room. I don't think that's happening anymore, because DVC has raised the prices in two ways = point cost and # of points for the room.

So, back then, it truly was cheaper. People 'broke even' at 5-6 years. Or sooner.

Today, different story.

 

[RivShore]

If only we could see the future of room prices and discounts! Back in 2000, I couldn't. But, I was dealing with a situation where I could do the math and figure out that a DVC room was cheaper than a value room or a moderate room. I don't think that's happening anymore, because DVC has raised the prices in two ways = point cost and # of points for the room.

So, back then, it truly was cheaper. People 'broke even' at 5-6 years. Or sooner.

Today, different story.

When I did the math about two years ago, we had a break even point of 10 to 12 years and that was actually comparing to the moderates we usually stayed at. The (pre-pandemic) cost of moderates had really spiked up, even with discounts. Those price increases are the only reason we began to consider Riviera. And with a full 50 years and our young adult kids on the deeds, who would be able to utilize it for all those years, we jumped in.

 

[Nie0214]

Congrats. Now that's how you do it. Although buying back in makes it a sideways move for now. What is the resort you will be repurchasing if I may ask? I could see if you were in a 2042 expiration resort but you still had 39 years left.

It was getting really difficult to find 100 Oct use year AKV resale. (We have 25 direct AKV for blue card.) We lost two in ROFR over the last two years, and they very rarely pop up.

We liked BLT but AKV was really where we felt home, and we wanted more points there.

Because of life changes over the last year with our parents, we had to move them closer to us to care for them... which meant the $ we built to add on 100 at AKV isn’t entirely available anymore.

We looked at the market and ended up deciding to sell the BLT for cash to get either AKV or SSR since we stay at 1BR and need more points.

We’re currently under contract for 200 SSR @ $104. We’ll probably add 35 direct AKV in the next two years so we’ll have:

- 200 SSR for longer stays and 1brs/2BRs where we bring family.

- 60 AKV for shorter stays in studios.

It’s definitely a sidestep but after owning for a few years we’ve realized we value the bigger rooms sooo much more. Studios start to feel small after you stay in a OKW 2BR!