Purchasing ?'s

[ajksmom]

Good Morning everyone!
Last fall I had posted with some questions on purchasing DVC. As my DH was facing 2 surgeries we put off our purchase until they were done. Well with one done(and successful) and the other one scheduled for Wed. we find ourselves back to the actual purchase...
We are looking at 150 points at SSR.
How do you determine your "break even point"? I see some who claim for them it's 5 yrs, for us it's looking like 10+.
What are the current incentives for SSR? When do they expire?

Thank you for all of your help

 

[Pa@okw95]

For most mortals the break-even point does not happen. The selling of these points as a savings of some kind with a break even point is a myth. I will give you an example of a break even situation. If every year on the same week you went to WDW over they years and stayed in a deluxe resort for that week at rack rates you might be able to figure a break even point. That is by comparing cost of your delux to the cost of a DVC keeping in mind that you are comparing apples to oranges in some cases. The problem with the above case is it is rare that anyone goes to WDW every year and stays in a delux, but the big difference is how many times you will go to WDW when you are a DVC member. For years before I was a member we stayed in a deluxe (Disney Inn) every year, then I joined DVC, not for a savings or break even, it was never sold as a savings at the time, BUT< and it is a big but I started to go to WDW 3 times a year instead of once. Where is the savings. There isn't any. We have annual dues that run over $1000 per year now. WDW is an expense no matter how you cut the mustard in most cases.

 

[dianeschlicht]

Depends on where you were used to staying before DVC and who often you go, and how often you will go when you own points. Pa's point is well taken, since we do indeed travel to WDW more frequently since we purchased DVC than we did prior to purchase.

If you like to stay in deluxes and are used to spending $3000-$5000 per trip, DVC will make all the sense in the world to you! If you are used to staying at All Stars, maybe not so much. DVC is best used for a deluxe style trip. In that case, your presumed break even is less time than if you are used to staying in values. We purchased back when DVC was $62.50 a point. We had just returned from one of those $4,000 stays, so we figured we would be even in about 5-6 years. Of course, that does not count maintenance, but for initial cost purposes, I choose not to consider that. For about a $24,000 investment and around $1100 maintenance each year, we have about 20-30 days at WDW annually. Given that, I feel we "broke even" somewhere between years 6 and 7.

 

[bobbiwoz]

I absolutely agree with Pa on this one. When we first looked at DVC ('96), we figured out the general cost of the remaining years and figured that we would never spend that much money on Disney vacations, we were wrong. A break-even point seemed ludicrous to us then, but there is one. Our "probelm" in figuring it out is that we don't only take ourselves. We are at a different time in our lives now, the years between having dependent offspring and retirement days. This was our time to purchase. We have enjoyed and shared our DVC, but it's more of an expense than a savings in our view. Yes, it is also a legacy for our sons. We asked them if we should make provisions to sell and divide the money, (we are making new wills) and DyoungerS said, "No mom, we would keep it to remember the times we had with you and how much you loved it." Sniff.

Don't know the current incentives. I think there has been an expected price increase, to $98 points on June 5th, but I've heard that from a broker who sells resales.

Bobbi

 

[quentina]

We are probably the odd ball couple who didn't consider this when buying. I am addicted to WDW...All I cared about was being able to go yearly. With that in mind, I bought without even considering dollars and cents. Did I break even...I am not sure. However, I do enjoy my week in Florida and my week at HH every year. Would I be able to do this without DVC....Definatley not. We would not be able to afford the price of these accomodations. I must say I am a 5 star resort girl and love staying at the DVC properties.

Personally, it is a decision I will never regret. I am able to take my parents on vacation with us and give them quality time with us and us with them. I still have 5 years left on my initial purchase...not sure how many on the 2 add-ons. I will probably still be paying for DVC after my house is paid for. It seems to be some sort of addiction. Many people want to win the lottery...if given a choice, I would probably want points!!

Good luck in whatever decision you make.

Kim

 

[dianeschlicht]

I guess I should have qualified my earlier post by saying that assumes you pay cash for the DVC contract, and not a loan. If we had to pay interest, I KNOW we would not have broken even that soon.

 

[ajksmom]

Thank you for the replies, especially since they're not sugar-coated. We are trying to make sure this is the correct thing for US.
For those of you who say that after purchasing DVC you start to go more often, was that your plan when you bought or does that "just happen" cuz you love WDW and you have the "points"?

 

[senecabeach]

For those of you who say that after purchasing DVC you start to go more often, was that your plan when you bought or does that "just happen" cuz you love WDW and you have the "points"?

IMHO...Loving "All Things Disney" is certainly the criteria for my ownership in the DVC. Knowing I "own" a piece of this "Magic" draws my desire to visit as much as possible.

Staying in "style" in my lil' condo rather than a "hotel room" (for big bucks) is a huge plus and the flexibility of the point system is terrific!!
No ...its not the Poly..in the Hawaii longhouse facing the castle...but its also not $350+ a night either

My greatest satisfaction is being able to take my extended family, who in some cases couldn't afford to go. For the first time ever (in 34 yrs that Ive been going) ...in May '06...I am taking 3 little "KIDS" to WDW (2, 5 and 7)..along with other family members...who have never been to WDW!!
I am sooooo very excited about this blow out trip and convinced I could "NEVER" afford a GV any other way!!


Good Luck in whatever you decide!!

 

[DeeCee735]

I go along with Kim on this one. For us it had nothing to do with break-even. We took our kids when they were 6, fell totally in love with all of it. DH still wouldn't take the plunge, til one trip when we stayed off-site. That did the trick - we were in a supposed 5 star II resort. Place was a dump, off 192, traffic was comparable to NY, what a bummer. Spoke to a sales guide that trip and by the time we got home we were BW owners! We did it cause it's our favorite place, everytime I think of booking a vacation someplace else, we always come back to "lets go to Disney!". So, for us it made perfect sense to buy our timeshare here, never thought of a break even, but I suppose we did by the end of the first 4 years which included the time we did the land/sea vacation - all on points. I only purchased 185 (at the time - tee hee), but since we bought an Oct use year in May, I got the prior year's points, which we banked, then used current years & borrowed into the following year and did the land/sea trip. The stay after that was for 6 nights in a one bedroom with a BW view. Since then we stay only in one bedrooms, usually a standard view. Considering the land/sea would have cost us (if I remember correctly) close to $6,000 if we paid cash, and each 6 night stay would probably be like $3000 - I'd say, yep, we broke even after 4 trips. We did not finance so there was no interest in our purchase, and dues I won't even consider, cause you have them with all timeshares.

We really don't travel more often than we normally would due to work, school and not having the time. And yes, we mostly stayed in a deluxe resort before this, maybe with a night or two in a moderate to check out differences. Loved em all by the way!

Good luck with your decision - our only regret was not having the funds to buy more points at initial purchase, because our add-on was alot more per point than our initial purchase, we had no idea they'd just keep going up!

 

[stingmom]

Since researching the pros and cons of DVC, we have mapped out different planning strategies and believe we will break even somewhere around 5+ years. The reason I say that, even with the maint. dues, is based on the WDW Resort room rates that increase annually. The pts needed to "rent" through DVC will never go up, therefore a studio at OWK during "Magic" season will always "cost" 11 pts. until the timeshare expires. We are going to buy a smaller amount through resale and it will fit our needs much better than 150 pts right now. Another "bonus" is that we can always let visiting family use our pts if we can't go (GASP!) and then they have a nice place to stay for free.

 

[cdpa4d]

I have a side-note to all these posts. Has anyone considered the savings you get with AP discounts at the deluxe resorts. I have not and will never pay $350 a night at the Poly. We just came back from the Poly and we paid $250 per night with the AP discount. Those are the numbers we should be using to figure out a break-even point. Those are the numbers I've been using as I am trying to figure out if we should join.

I paid $1650 for 6 nights at the Poly AP rate, no DVC points at all.
It would take 272 DVC points to stay 6 nights at the Poly
Maintenance on 272 points is $1041 per year.
Purchasing 272 points would cost $23,664.
$1650 - $1041 = approximately $600 .

That is a savings of $600 per year without considering the $23,664 purchase.
$600 savings divided by 23,664 is 39. So it would take 39 years to make up the difference in price.

Can someone get me two Advil!
ADP

 

[senecabeach]

I paid $1650 for 6 nights at the Poly AP rate, no DVC points at all
It would take 272 DVC points to stay 6 nights at the Poly
Maintenance on 272 points is $1041 per year.
Purchasing 272 points would cost $23,664.
$1650 - $1041 = approximately $600 .

That is a savings of $600 per year without considering the $23,664 purchase.
$600 savings divided by 23,664 is 39. So it would take 39 years to make up the difference in price.

Can someone get me two Advil!

cdpa4d......

Please share with me your advil.

You are comparing apples to oranges!!!!!!

DVC points are NOT meant to be used at resorts!!
You cannot use a resort, Poly (hotel room) stay vs. a DVC, (condo) when examining the points you would require for a vacation.

DVC is meant to be a "home away from home", with all the ammenities..living room..kitchen..bedroom (s)..eating area..jacuzzi..balcony..etc. and an affordable way to visit Disney.
Staying at the DVC IS the advantage..not using precious points for "hotel" stays.

Some examples in the now..Dream Season:
Your example of 272 points at a DVC=
BCV-studio-16 nights
BCV-1brm-7 nights
OKW-studio-20 nights
OKW-1brm-10 nights
SSR-studio-18 nights
SSR-1brm-9 nights

IMHO...this certainly is a better utilization of 272 points!! And remember..we are talking of the "middle (Dream)" season, May. Other seasons cost more and others less!!

I have yearly stayed @ the Poly since '71 and..way back then..it cost me $42. per night to stay at the (now consierge) Hawaii longhouse..now we are talking $350+, for a hotel room...not me!
$250. even with the AP..is to me also outrageous..oh yea..for the same hotel room!! And...those hotel rooms aren't gona get any cheaper!!

I bought my 200 point, BCV 2 yrs. ago for $74. per pt., with the then ($2,000. off)incentive, my cost was $12,800. Since the interest rates from the banks were terrible...this was certainly a better investment!!!
My mtc. fees are automatically withdrawn from my checking account monthly ..$70....big whoop!!

Amazing how the increase in "value" of my DVC is better than my financial portfolio!!

Hope I've helped you???

 

[shelleyz]

When we just bought into SSR we didnt really consider the break even point. We have been 3 times in 1 1/2 years. Our first trip was in October 2003. We won't have to pay for a hotel anymore. Yes we do have to pay for tickets, aifare, and food but we would be doing that anyway every year for vacation. I like knowing that we will be able to make memories together. We have a DS4 and a DS6. We also like knowing we can stay in a much nicer place . The 3 times we have been we stayed at All Star Sports twice and Pop Century once. When we saw SSR we just knew we would rather stay there anytime. We can now stay in a 1 bedroom with the 4 of us and have much more room, nicer atmosphere, less hustle and bustle. Also if we want we can bring family along, who can stay with us for free. For us it just seemed like the right thing to do.

 

[mikesmom]

I'm not even sure where we broke even - DH the economist could probably build us a spreadsheet. Here's a short version of our thinking at the time-

• 
  - as a single mom I went every year with DS, stayed offsite at lowest cost I could find that I thought was safe (sometimes really bad places)
• After I remarried (DS was 11) we tended to go 2 out of 3 years and still stayed offsite but in better places (wanted separate bedrooms)
• we were spending vacation money on WDW almost every year anyway, and every year the hotel prices went up (this was pre-9/11)
• to the hotel price we had to add Florida tourism tax (12% maybe?)
• then add daily parking
• add 3 meals a day with one person an adolescent (ALWAYS hungry)

Anyway, once we added all that stuff up and assumed hotel prices would keep going up (they have paused, but it looks like the increases are back), DH figured we would be ahead of the game in 5-6 years.

The real kicker was the first trip to BWV in a 1 bedroom (DS was then 15). We dropped to 1 meal a day in the parks. The rest of the meals and snacks came out of our BWV kitchen. The price of that food was the same as if we'd stayed home. The quality of our vacation improved dramatically. Remember we had never even stayed onsite! DH is a great believer in the cost of time and not having to drive back and forth in Orlando's perpetual rush hour saved us at least an hour or more a day. Being able to take a break in our room (and also to let DS stay in the parks when we did) was heaven.

So did we break even? Again, I would have to check DH's spreadsheet, but frankly, who cares. Our only regret is that we didn't do it sooner

 

[cdpa4d]

Thanks senecabeach. That does help. It is tough to figure out. I'm the kind of person who likes to figure out better deals.

We have a 1 bedroom villa for one week at Vistana Resort, but we love to stay on-site now. DVC makes a lot of sense to us, but I am not sure about the Vistana property. I may just hold on to it because we can't get much for it. Vistana is pretty nice, but IMHO has dropped in quality the past 4 to 5 years.

The benefits of staying on-site are great. We love being part of the Magic.

ADP

 

[Dean]

This is a personal decision. Some will never break even and others will in maybe 7-10 years. You must compare to what YOU would spend and how often you would go if you didn't own DVC. Compared to long weekends or staying off site, one will likely never break e even. If one can so Sunday to Friday in a studio compared to a moderate or deluxe OR a 2 BR compared to 2 rooms at another resort, it will likely be between 12-17 years for some folks. DVC WILL NOT save most people money, what it will do is allow you to have nicer and more frequent vacations for a controlled cost.