Please explain this to me like I am 5 years old.

[Dean]

Disagree. DVC saves the consumer money in the mid- to long- term. (As you say, at best in 8-10 years if compared to staying deluxe and buy direct, or if you normally stay moderate and buy resale. Longer if you normally stay moderate and buy direct.)

What Disney likes, as any business does, is that they (1) get the money from your stay up front and (2) they lock you in to spend your future money at Disney.

As for #1, most big businesses only worry about the next quarter/year. DVC gets people to pony up 10 years worth of stays up front. Then they collect enough money to cover the resort expenses (Maintenance Fees) each year. In this way, DVC only works as long as they continue to sell DVC units. There needs to always be a new DVC resorts. However, the profit for Disney is in that up front sale.

As for #2, the hotel stay is only a portion of your vacation dollar. There's park tickets, food, merchandise. All things the DVC customer will continue to buy ad infinitum. So this is a win for Disney as well.

However, the consumer clearly benefits from this in the long run. Ask anyone that bought into DVC 10+ years ago and still owns it if they are saving money. There's not one of them that won't tell you yes. (Well, you are correct in that SOME of them are probably now staying in 1 bedrooms instead of hotel rooms, and so therefore are spending as much as they used to for nicer accommodations.)

I think what he's saying is most people are going to spend the money one way or another. I'v said many times that very few people actually save money with DVC when you look at the overall expenditures. Now it MIGHT add value if they spend that money reasonably or it might not. The sad part is that many who buy in really can't afford it, thus it's a poor choice for them no matter the math.

 

[crisi]

I think what he's saying is most people are going to spend the money one way or another. I'v said many times that very few people actually save money with DVC when you look at the overall expenditures. Now it MIGHT add value if they spend that money reasonably or it might not. The sad part is that many who buy in really can't afford it, thus it's a poor choice for them no matter the math.

THIS.

If you really can afford it, it doesn't make any difference if you "save" money or not because the amount of money you'd save - or spend over what you'd normally spend - is immaterial. My husband wants a Tesla - we'd save money on gas, but its a Tesla - we can't afford it - the price differential is material in our lives. I drive a Prius. We save money on gas - probably not as much as the price differential on the Prius - but we can afford to lose that significantly smaller amount of money. But if someone is looking at a car to save them money - buy a used Jetta diesel and skip the hybrid or electric car bought new.

The issue with "saving" with DVC isn't the cost of room nights at DVC vs. the cost of room nights through CRO, its the changes in behavior. If your behavior doesn't change - you might save money - depending on what your previous behavior was. But the moment you take an extra trip to see the Christmas decorations, or take a trip you would have skipped the year the house needed a roof because "we have points" or start looking at two bedrooms, or get your best friend and her kids a room because of her nasty divorce which you would have NEVER done with cash - you probably tip the scales the other direction.

The value in DVC however, can be in just those things - staying in a one or two bedroom. Being able to treat a friend to a vacation, cost controlling your vacation so that you can squeeze in a resort only trip even when the roof needs replacing. That doesn't necessarily make it cheaper. And if the upfront investment and annual dues aren't going to be a burden to you, that can be a really great thing. But its a really sad thing when it becomes a burden.

 

[bwvBound]

If you really can afford it, it doesn't make any difference if you "save" money or not because the amount of money you'd save - or spend over what you'd normally spend - is immaterial. My husband wants a Tesla - we'd save money on gas, but its a Tesla - we can't afford it - the price differential is material in our lives. I drive a Prius.

Coming soon! The 'affordable' Tesla ($35k ballpark): http://cars.chicagotribune.com/fuel-efficient/news/chi-tesla-confirms-affordable-model-3-for-2017/

 

[mckelvey72]

Just one thing I caution you on, if you don't have the cash to pay for a resale and you are looking at Disney and looking at financing....your cost is going to double so your ROI takes a HUGE amount longer. I don't remember the details but the contract I was looking at was about 30K (we wanted to be able to do Disney, plus Hilton Head every year as my step-daughter is in military in that area)....anywho, it all sounded great at 500.00 a month (or something close to tha) for 10 years. Sounded reasonable cause heck, my car payment is more than that.

Well, when I took a step back and realized that 500 x 12 months x 10 years = 60K!!!!!!!!!!!!!!!!!! And that didn't include the 1K a year dues. I politely thanked them and saved my money.

I think people buy thru Disney on impulse, you are there and having an amazing time and heck, what is 500 a month. Just be careful that you realize the full cost. I was 40 when I looked into it and realized my ROI time period was HUGE.

Having said that I have gone twice, have plans to go this year and then plans to go again in 3 years when my granddaughter is 3. Beyond that I may go one or two times more so in the end it was not a good investment for me.

 

[crisi]

Coming soon! The 'affordable' Tesla ($35k ballpark): http://cars.chicagotribune.com/fuel-efficient/news/chi-tesla-confirms-affordable-model-3-for-2017/

Yeah, trust me, I know. But that, of course, isn't the one he wants

 

[skier_pete]

So, I just went back through this thread, and see that the OP hasn't responded to any of the posts.

So, if you are still out there reading, JeanDeeDooDah, has any of this helped?

 

[Millionaire2K]

Maybe the cost vs. the % of our income is making us all think different about this. I paid cash for all 460 points I own. I also make the $ for a years worth of dues in about 4 days. I guess I don't see saving the $$ for interest as a big deal so I just write it off. Just saying.

The bottom line for all is: If you can afford it, ONLY you can decide if DVC is right for you.

 

[Dean]

Maybe the cost vs. the % of our income is making us all think different about this. I paid cash for all 460 points I own. I also make the $ for a years worth of dues in about 4 days. I guess I don't see saving the $$ for interest as a big deal so I just write it off. Just saying.

The bottom line for all is: If you can afford it, ONLY you can decide if DVC is right for you.

I just heard a quote on the radio today that 70% of people live paycheck to paycheck. Another quote I've heard is that it's almost impossible to out earn stupidity. The point being that there are a lot of people out there that can't afford it but should be able to. Your income is getting into the range where many would say why bother and just pay cash and not worry about it. The reality is that DVC is an in between product. One that many people can't afford and that many who can will be able to just pay cash and not miss it. It's a product with a range generally of those with incomes roughly in the $70-75K to $300K range (generalizations of course). Under that few take care enough to be able to afford it and over that they frequently wouldn't fool with it or if they did, it'd be for other reasons than just savings. As I've said a number of times, being able to make the payments is not the same as being able to afford it.

 

[bwvBound]

Yeah, trust me, I know. But that, of course, isn't the one he wants

LOL! Ah, gotcha. Maybe he'd feel differently if one just "showed up" in the driveway.

So, I just went back through this thread, and see that the OP hasn't responded to any of the posts.

So, if you are still out there reading, JeanDeeDooDah, has any of this helped?

I noticed that, too. I hope Jenna is still out there!