Please clarify

[amyecpa]

Ok. I just returned from my very first trip to WDW so I am very much a newbie. Please be patient. My questions is this....

What is the advantage to buying DVC when you can just rent points (reservations)? I guess I'm not getting it. Help.

Thanks in Advance,
Amye

 

[ELMC]

Ok. I just returned from my very first trip to WDW so I am very much a newbie. Please be patient. My questions is this....

What is the advantage to buying DVC when you can just rent points (reservations)? I guess I'm not getting it. Help.

Thanks in Advance,
Amye

Good question. It's a complicated answer, but I'll give a simple overview. The first advantage is that you are in control of your own reservations and there is no chance of getting scammed. Secondly, depending on what you pay for your contract, the long term cost of purchasing is less than the long term cost of renting. (The crossover point is about 7 years if you buy resale, about 14 years if you buy direct). Start crunching the numbers and you'll see how it shapes out.

Hopefully this thread helps:

http://www.disboards.com/showthread.php?t=2867777&highlight=spreadsheet

 

[chalee94]

What is the advantage to buying DVC when you can just rent points (reservations)? I guess I'm not getting it.

if you want to go to wdw every few years with no on-going obligation, renting DVC is a great option (if you are cool with not having control of the reservation and having to contact the member if changes are needed with limited options if you need to cancel.)

if you are sure you want to go to wdw at least every other year (or possibly multiple trips per year) for an extended period of time (at least a decade or so), then buying a resale contract of your own will probably make more sense from a financial perspective. you'd have to do the math yourself (with your own time-value-of-money rate) but my pts cost me less than $8 per pt as an owner...others have bought in even more cheaply...

 

[amyecpa]

Thanks, that helps.

 

[disneynutz]

You need to also understand that owning locks you into expensive WDW vacations for years to come. Since you are a WDW newbie, you might want to try renting for awhile until you decide if WDW is for you.

Bill

 

[AllieV]

ELMC has it right. About 8 or 10 years ago we discovered we could rent. It was not as well known then and trust wasn't there and it was really hard to find someone, but I found a good person. I did the math and thought, geez I could rent for years and years and come out ahead. I did not count on the professional rental sites price fixing the industry and skyrocketing my vacations costs. Among other reasons, that's why I'm buying now.

 

[Dean]

Ok. I just returned from my very first trip to WDW so I am very much a newbie. Please be patient. My questions is this....

What is the advantage to buying DVC when you can just rent points (reservations)? I guess I'm not getting it. Help.

Thanks in Advance,
Amye

IF DVC makes sense for you long term, owning will be cheaper and give you for more control. If you can't afford DVC or won't use it routinely enough to justify owning, renting is a viable options. IF you an be flexible enough to work within distressed points, renting may be cheaper than owning.

 

[malamida]

thanks for the info.......

 

[Brian Noble]

What is the advantage to buying DVC when you can just rent points (reservations)? I guess I'm not getting it.

Over the long term, a *resale* purchase will generally work out to be less expensive than owning under almost any reasonable assumptions about cost of capital/etc. A developer purchase is less clear, especially in light of the fact that rental rates have remained relatively stable over the years, while purchase cost and dues have gone up.