Prove to me and DW that DVC membership is a good bu

[Laz]

My wife and I own a week in Myrtle Beach. We go to MB every year and we own a 2 bedroom with a lockout. We bank the lockout and have gone to places like Hawaii and Aruba for minimal cost. My DW considers this a good buy. We also are big time cruisers (10 cruises)

We go to WDW almost every year (we have not gone for a couple of years, but are going in April, 2005). We usually stay in a moderate or Swan/Dolphin. I usually do my homework so as to get the best rates/package for the time we are going. We are a family of 3 (14 yr old DD). Obviously she is starting to think we are "boring" and wants to start taking friends with her.

Up to this point, we have not considered a DVC membership. While I am begining to see the value, DW does not. Can any of you owners give me some financial proof to back up your savings by becoming a DVC member? Also, what happens when DVC ends in 2042??? Do you lose everything?

 

[JimC]

DVC is a prepaid vacation plan where its best value is within the DVC resorts. When we did the analysis it worked out to staying in a one bedroom villa for the price of a moderate.

The program is best for those who go at least every other year. Some have made it work once every three years with careful use of banking and borrowing rules. It is also best if you can plan vacations at least seven months in advance and possibly as much as 11 months out at certain times of the year.

At 2042, the contracts expire, except for SSR which will have an additional 12 years to go at that time. What DVC will do with the resorts or our contracts -- extend, resell, eliminate -- is a subject of much interest.

 

[Coach Rick]

Being a seasoned timeshare owner as you and your DW are, I am sure you already know the fininacial answer to that. In 2 and a half weeks we will be going with 11 of my family members, and using a 2BR., and two studios for 8 days. I will be almost realizing my initial investment with that one trip. As far as 2042, well by that time I am not sure I will care much to travel, and I will have long since realized my savings, and much more than the financial is the peace of mind having such a wonderful property to stay at. I also own 2 weeks at two other resorts, which have thier own niche so to speak, but DVC is special. I doubt very much my mom would have ever been able to see WDW if it had not been for DVC, but alas, everyones needs are different, so only you can answer the question if it is worth while for you. My only regret has been that I didn't buy in 92 like I wanted, but couldn't afford at that time. Good luck with your quest, and hope to see you at "home" one day!!

 

[Dean]

Whether DVC is good for you depends on how you will use it. If you go for a full week or so OR can avoid weekends, it's a slam dunk Yes in your situation, even with teh discount chasing you're doing. If you are going long weekends, it'll never make sense. You've got to work out the details and figure it out for your exact situation.

In general, A DVC studio for 7 nights will be around the same cost long term as a moderate. DVC will be much cheaper for Sunday to Friday stays. If you get a larger unit, you'll spend more on the room (by using more points) but less on other items like groceries.

You cheapest option would be to trade for off site timeshares but you've obviously decided already not to go that route. Just don't buy DVC with the idea of using the points for the cruise, too expensive and doesn't make sense to buy with that intention.

 

[Laz]

One thing that is worrying DW is the 2042 expiration. Our MB timeshare is a deeded, week ownership that does not expire. True, nothing is forever, but it does make you feel more like an owner.

We rule out staying offsite because if were going to do WDW, were going to do it all the way which includes staying onsite.

So, what it comes down to is me getting my calculator and pencil out and doing some number crunching.

Two more questions. How much is the yearly maintenance fee and by how much does it go up every year? The second question is I was wondering if the amount of require points to stay at a certain place in a certain room(villa, studio, etc.) increases every year?

 

[rocketriter]

Maintenance runs approximately $4/point/year, give or take. Do a search on this board and you'll find a complete run-down.

The number of points to stay in a room/place does not go up from year to year. DVC is allowed to make adjustments to their points structure (I know of only one time they've done this), but they must do so in a "balanced" fashion. In other words, if a certain range of dates goes up in points, then another range of dates must go down to balance.

 

[LeftCoaster]

Originally posted by Laz

Two more questions. How much is the yearly maintenance fee and by how much does it go up every year? The second question is I was wondering if the amount of require points to stay at a certain place in a certain room(villa, studio, etc.) increases every year?

The maintainence fees for 2004 ran from about $3.70 per point to about $4.25 per point depending on the resort. Historically, the fees have gone up about 3.5% per year although the past few years it has gone up more mostly due to economy and insurance factors.
They CAN change the amount of points to stay in a room but, if they do that, they need to lower points somewhere else. A resort has a limit on the number of points sold.
From what I've read, there's been only one reallocation of points and that was OKW a long time ago. The only "yearly" changes are in defining of seasons. i.e. exact dates for Easter, etc.

 

[tjkraz]

This post has detailed information on the dues history at all of the DVC resorts, along with the current rates:

http://disboards.com/showthread.php?s=&threadid=469480

In response to your question regarding the ending date of ownership, my question to you would be this: what makes you so certain that you will actually WANT your other timeshare in another 40-50 years? If the property is improperly maintained, it may become an albatross from which you cannot escape. If nothing else, the DVC contracts insure that we (or our heirs) won't be owners of structures that are 50+ years old and hopelessly out of date. (Yes, this can happen, even at Disney--Golf Resort, Disney Institute...)

IMO, DVC is best viewed as a prepaid vacation, NOT an investment. The only guarantee is that you will have XXX number of points to use at your Home resort every year. The future value of the purchase, trading options, member perks...these are all unknown quantities.

Also worth noting--Saratoga Springs contracts run through 2054, while the other DVC resorts do end in 2042 as you mentioned.

 

[Dean]

Originally posted by Laz
One thing that is worrying DW is the 2042 expiration. Our MB timeshare is a deeded, week ownership that does not expire. True, nothing is forever, but it does make you feel more like an owner.

We rule out staying offsite because if were going to do WDW, were going to do it all the way which includes staying onsite.

So, what it comes down to is me getting my calculator and pencil out and doing some number crunching.

Two more questions. How much is the yearly maintenance fee and by how much does it go up every year? The second question is I was wondering if the amount of require points to stay at a certain place in a certain room(villa, studio, etc.) increases every year?

It's still 37 years. I doubt there are many timeshares I'd truly want to own at 50 years or more old anyway. But if you're going to go and spend the money anyway, it's nuts to worry about the expiration date, only how much it saves you over the next number of years. Don't forget to take taxes of 13% into account as well as the value of the money you are prepaying, competing factors to be sure. What you'll find is that the moderate will be a little cheaper with the best codes and there will be a larger difference if you include weekend points. A 1 BR is essentially double the points so double the cost but you get a full kichen and the luxury of space. But the moderate will go up at a rate of say 7% per year and DVC will only go up in maint fees. Assuming the rate of increase is the same overall for DVC dues and WDW resorts, DVC will win big in the long run.

But even if it's only a break even, DVC is by far the best way to go assuming you will go most years, not do much for long weekends and not use the other trade options if the value remains the same (nil).

 

[lsutigger2]

One other things folks haven't yet addressed is the fact that you mentioned that your daughter is now interested in bringing friends. It really is nice to be able to spread out in a larger space - 1 or 2 bedroom. You know how much teenagers enjoy their space. IMHO, it makes it a nicer/more pleasant experience for all, even when it is just me and my DH!! We never would have spent the money (or felt like we could!) to stay in a "deluxe" resort. But now we do and we love it!

You will make the best decision for you and your family.

 

[Deb & Bill]

Originally posted by Laz
...

Up to this point, we have not considered a DVC membership. While I am begining to see the value, DW does not. Can any of you owners give me some financial proof to back up your savings by becoming a DVC member? Also, what happens when DVC ends in 2042??? Do you lose everything?

I don't save money. I spend more. However, I spend less on my lodging which is better than a deluxe resort because I have several rooms, a full kitchen, washer and dryer, etc. I would not have gone to WDW 15 times if I didn't have DVC.

 

[Deep-Thots]

If you go to this website, you will see that Brian Bennett has done a financial analysis regarding DVC membership. You might find it helpful in making your decision.

http://www.mouseplanet.com/dtp/dvc/1_Forward/forward.htm

 

[rinkwide]

Originally posted by Laz
...give me some financial proof to back up your savings...

My knee-jerk reaction is to shout DON'T BUY! Dumping $15,000 in to DVC is no way to save money.

That said, I can't resist taking a crack. In the 18 months before we joined I spent over $12,000 for three weeks of deluxe accomodations at WDW. Had I known then what I know know, all of that would have been put toward a DVC membership and we'd be practically "home free" on maintenence alone.

 

[Caskbill]

Consider this: There are currently something like over 80,000 DVC members. If you check the agents for DVC resales you'll only find a few dozen up for sale.

Those who purchased DVC in the mid 90's could actually sell their contracts today for more than they paid, even though there's fewer years left than when they purchased.

Compare that to any other timeshare you'd like.

 

[Deep-Thots]

Originally posted by Caskbill

Those who purchased DVC in the mid 90's could actually sell their contracts today for more than they paid,

Yes, but given the consumer price index, etc., the price per point of current, new (i.e., SSR) DVC sales is about where you'd expect them to be.

Relatively speaking, if you buy now from DVD, you're paying about $2.00 more per point than those who purchased at OKW way back when. The price has, all in all, remained fairly steady.

Regarding the second part of your quote, CaskBill (which I accidentally deleted) it will be interesting to see what happens to the price of the non-SSR resales as the end-of-deed time for them approaches. I'd guess that a lot of that will be depedent upon DVD's willingness to keep those prices artificially inflated.

 

[CarolMN]

Originally posted by Deep-Thots
Yes, but given the consumer price index, etc., the price per point of current, new (i.e., SSR) DVC sales is about where you'd expect them to be..........(snip).................

I thought Caskbill's point was to compare DVC resale prices to those of other timeshares, not the CPI or the current price of DVC memerships direct from Disney.

DVC is one of the few timeshare options that doesn't lose 50% or more of its value as soon as it's purchased.

Of course, we don't know how long that will be the case - as 2042 approaches, the contracts may have less value on the resale market.

Best wishes -

 

[Deep-Thots]

Originally posted by CarolMN
I thought Caskbill's point was to compare DVC resale prices to those of other timeshares, not the CPI or the current price of DVC memerships direct from Disney.

DVC is one of the few timeshare options that doesn't lose 50% or more of its value as soon as it's purchased.

Of course, we don't know how long that will be the case - as 2042 approaches, the contracts may have less value on the resale market.

Best wishes -

Not having even the remotest interest in them, I honestly don't know about other timeshares and their subsequent resale values. [It seems to me that both Hilton and Marriott offer point-based similar programs, though. How do they compare, resale-value-wise, to DVC?]
However, I'm guessing that you are probably correct in assuming that DVC memberships, unlike "typical" timeshares, maintain their values over time. [As I mentioned, too, it will be interesting to see what happens as the non-SSR deeds near their expiration.]

I was merely pointing out that the assumption that someone who purchased OKW points back in 1992 could now make money on the resale of those points was, really, economically-speaking, not true.

TTFN.

 

[Desperado]

"Prove to me and DW that DVC membership is a good buy"

Uhhhh, why? If you don't want to purchase, then by all means don't. I do not see any reason to try to talk you into something you don't want, or that you already have an alternative for. Enjoy your timeshare.

 

[SSRex]

It sells itself, you either understand it and want it or you don't. If you don't that's fine. I have nothing to prove to anyone else. I'm happy I bought it. You may or may not be, that's for you to decide

 

[alsipd]

If you don't feel the Disney Magic you will not be happy with a Disney Vacation Club purchase. I know others who don't understand why I, a grown man, love to be at Disney two or three times a year.

To quote the DVC song "If you believe in magic, if you really do; if you believe in magic, you belong".

It is not about return on investment...... it is about the most magical place on earth and being a part of something that is bigger than anything material.

If you don't get my message, DVC may not be for you!