Purchasing vs Renting?

[Drrazorback]

Hello everyone...Im new here but have been reviewing the DVC for around 2-3 months...

It looks fun, but when I sit down and put a pencil to it, I cant seem to wrap my head around paying $10,000-$20,000 for something that Im THEN going to have to pay annual dues of around $500-$1000 per year!

I just reserved a 6 night stay at the Wilderness Lodge from 9/21-9/27 of this year and barely made the reservations yesterday to get the free dining plan...Including park passes, the total is around $2800! Not too bad I didnt think...

But if we go to Disney World just every other year, Im looking at around $1500 per year to pay for our stay! Around the same as the annual dues, only I have no ONGOING commitment which I like!

What am I missing here? Please help me see where the "deal" is...

Thanks!

 

[princesscinderella]

Hello everyone...Im new here but have been reviewing the DVC for around 2-3 months...

It looks fun, but when I sit down and put a pencil to it, I cant seem to wrap my head around paying $10,000-$20,000 for something that Im THEN going to have to pay annual dues of around $500-$1000 per year!

I just reserved a 6 night stay at the Wilderness Lodge from 9/21-9/27 of this year and barely made the reservations yesterday to get the free dining plan...Including park passes, the total is around $2800! Not too bad I didnt think...

But if we go to Disney World just every other year, Im looking at around $1500 per year to pay for our stay! Around the same as the annual dues, only I have no ONGOING commitment which I like!

What am I missing here? Please help me see where the "deal" is...

Thanks!

One of the big differences is the size of the accommodations. You are getting a regular hotel room for 6 nights. With my annual dues of $1400 I can get a two bedroom villa for 8 nights. I can get a week at aulani in a one bed room at peak time which was $10000 last I checked if I was reserving through Disney. We are a family of 5 and a regular hotel room is just not comfortable for us and is not conducive to a relaxing vacation.

 

[disneynutz]

Hello everyone...Im new here but have been reviewing the DVC for around 2-3 months...

It looks fun, but when I sit down and put a pencil to it, I cant seem to wrap my head around paying $10,000-$20,000 for something that Im THEN going to have to pay annual dues of around $500-$1000 per year!

I just reserved a 6 night stay at the Wilderness Lodge from 9/21-9/27 of this year and barely made the reservations yesterday to get the free dining plan...Including park passes, the total is around $2800! Not too bad I didnt think...

But if we go to Disney World just every other year, Im looking at around $1500 per year to pay for our stay! Around the same as the annual dues, only I have no ONGOING commitment which I like!

What am I missing here? Please help me see where the "deal" is...

Thanks!

I wouldn't call it fun, it's a cash cow for Disney and a potential cost savings for you if you already plan to vacation at WDW every 2 years and you want a larger room.

Bill

 

[Missyrose]

I can only give you my own story on how I came to the decision to buy. After spending almost $1,400 on four nights at Contemporary in October, I looked into renting DVC points for our next trip (which we ultimately did), but while on these DVC boards and on the "other" ones, I started to read about the resale market for DVC.

What I learned was DVC was a way to prepay for vacations and upgrade accommodations, more so than an actual cost savings. Basically, I figured out that with a 150-point contract at Boardwalk, I could stay at Disney for 10-12 nights a year (in mostly studios or the occasional 1 bedroom). My total buy-in was about $8,500 (including MFs and closing).

So to figure out how much the cost of my DVC rooms would be per year I did this equation:

$8500 divided by the total number of points left on the contract (150 points x 30 years) = $1.78

$1.78 + $5.62 (MF) = 7.39 x 150 (points per year) = $1109

So for the total cost of $1,100 a year, I get to stay at Disney 10-12 nights, about what a value resort would cost for that many nights.

Just for reference, my six-night point rental ran me about $1,000, so for $100 more per year, I liked the idea of being charge of my reservations.

DVC isn't for everyone. You have to know you're going to want to visit Disney every 1-3 years for many years to come. And to get the best use out of the membership, you have to be able to plan far in advance (7-11 months).

Lots of good info to read on these boards. Keep reading and feel free to ask questions, lots of knowledgeable people here with excellent answers.

 

[permavac]

It is tough to make the numbers work in your situation. If you know you will be going during a "value" season every year and can get a "promotion" every time (like free dining or some other discounted package) to stay deluxe then DVC probably won't save you any money. If you don't usually choose deluxe and usually stay value/moderate, then DVC will definitely end up costing you more money.

I am not an expert, so someone please correct me if I'm wrong - I believe that the "deal" comes into play when you stay during non-discounted times and start "upgrading". If you were to try to stay in June of this year and wanted a one or two bedroom villa, the cost to rent that through Disney would be very high (even the studios are expensive). Owning DVC can save you money there.

A good suggestion is to always run the numbers for yourself - knowing the types of accommodations you usually choose, the time of year you go, etc. If you don't see a savings, then there's your answer...

Terri

 

[Deb & Bill]

If you are satisfied with booking directly from Disney and getting their freebies when they offer them, then DVC will not be for you.

We used to have 500 points but we sold off 175 of them because we hated paying so much in dues each year. We were going two and three times a year, buying annual passes, food, souveniers, etc. Plus paying for gas and a hotel each way (we always drive). We were spending way too much on Disney.

Now we go about once a year (this year we are going in Oct and Jan, but we won't have very many points in our 2013 use year, so we probably won't go then). We enjoy going to Disney, but we also do other trips.

We paid from $50 a point to about $72 a point for our points. I'd never pay $150 a point direct from Disney. That's outrageous. But in the end, you will spend a lot more on your dues than on your initial investment.

Our dues run us about $1500 a year that we pay monthly, so it's not a big impact on our disposable income.

 

[Caren90]

OP, the deal is you are not really getting "free dining" since you are paying a much higher rate for accommodations.

In your case, I would rent points from an owner at $10-$12 per point to get the deluxe accommodations. After a couple of years of doing this, if your plan is to visit Disney every year or so, then you may want to look into DVC as an owner. Renting points doesn't tie you down to a long term commitment but it will give you a sense of what ownership is like.

That is what we did at first and then became owners after a lot of thought.

Stephen

 

[k3chantal]

I think you need to look at DVC as 'pre-paying' your vacations. And....I only think you should buy DVC if you can buy it outright. If you have to finance it; suddenly, in my mind, it doesn't make sense. Unlike a house, there really isn't anything tangible here (in fact it immediately depreciates like a car). You are basically paying for the opportunity to reserve deluxe accommodations at what should be your favorite place to visit.

We bought because we would never treat ourselves on a yearly basis to deluxe accommodations if we were paying cash yearly, we absolutely love Disney, and we like that Disney allows you to trade your points in a variety of different ways SO if you do need a break from everything Disney (gasp) you can have an opportunity to explore different venues (gasp again; I am sure to be hung by a tree because I dare to mention this; many will spend pages arguing it's not the best 'value' to spend your points this way) But alas, it can be done.

Because we have paid for our timeshare in full, I can look at the cost of this year's vacation accommodations as the cost of my yearly dues. So for $1500.00 spent this year, I am staying at the Animal Kingdom Lodge in a two bedroom savanna view villa for seven days and also in the same 12 month window have been on a seven day Disney Wonder cruise. Probably need to mention that I am out of points until 2014 too.

DVC is not about saving money though. Since it places you in deluxe accommodations, the opportunities to spend more because you can stay longer or are closer to more, expensive dining is there. And you probably will be tempted to go to DW more often; increasing the costs of traveling too especially if you need to fly.

Before we were members, staying at a moderate hotel and looking for a great package deal was really important and I worked on keeping cost down. There are not many options to keep your ticket prices down generally when you are a member (if you don't want to purchase AP's) and it is easy to start making all of your choices deluxe.

That said, I have no regrets about our purchase. We have had some pretty amazing vacations that we would never have treated ourselves too.

Good for you; you are about a hundred steps in front of me as you consider DVC because you have found Disboards and are exploring before buying.

 

[ELMC]

IF you plan on going every year and IF you typically stay in deluxe accommodations and IF you purchase resale there is a good chance that you will realize a cost savings after approximately 6-8 years. Said another way, the first 6-8 years will be more expensive than if you rented DVC points or booked directly using some sort of discount (because you have to factor in your purchase price). However, after that break even point, your annual vacations become much less expensive by owning DVC and your contract will theoretically have some value to it if you decided to resell.

So buying DVC is not for savings per se, more like a long term efficient use of your vacation dollar if certain circumstances exist.

I would suggest you read a lot more of the threads on here until you are motivated enough to create your own spreadsheet comparing all of your options in order to decide what is best for you and your family. Good luck!

 

[jarestel]

If the idea of larger, multi-room accommodations is appealing, DVC might make sense, but be prepared to pay for it. However, for many vacationers, a simple hotel room with two beds is sufficient. DVC is not the lowest cost option for WDW vacations, so it's important to keep in mind what your goals are. And as you stated in your original post, with DVC, you have an ongoing commitment. That's something to consider as well.

DVC makes the most sense for people who plan to visit WDW regularly over the years, are willing to pay for larger accommodations, and who realize they won't be able to take advantage of the promotions that the WDW resorts offer from time to time.

Good luck!

 

[Deb & Bill]

...DVC makes the most sense for people who ...realize they won't be able to take advantage of the promotions that the WDW resorts offer from time to time.

Good luck!

DVC members can always take advantage of the promotions, but they can't use DVC points to do that. Some are crazy enough to pay for a trip to get two nights free (or whatever the promotion is).

 

[Missyrose]

DVC members can always take advantage of the promotions, but they can't use DVC points to do that. Some are crazy enough to pay for a trip to get two nights free (or whatever the promotion is).

I see posts from DVC members who have basically said "I ran out of points for the year, so I booked a trip at POR with an AP discount." And I'm always envious and wish I had enough vacation days to outlast my points. (And the disposable income to go with it!)

 

[chipdale74]

You have to think about it as a long term investment. You "own" it for 50 years. It's paid off in 10 years (or whatever you set up). If you go to disney 1-2 (or more) times a year and stay in a deluxe, then it can be worth it.

We bought it in 2005. The first year we went five times. We purchased an annual pass (with the DVC discount) then from the pass we purchased the special dining savings card they had then. It's paid for itself in less then 7 trips so to us, it was worth it since we plan on going mostly every year. I also like the one bedroom option especially with a 3 year old. Good luck in your decision!

 

[jarestel]

DVC members can always take advantage of the promotions, but they can't use DVC points to do that. Some are crazy enough to pay for a trip to get two nights free (or whatever the promotion is).

Absolutely! But at that point they are not operating as DVC members, they are functioning as non-members. So owning DVC does nothing for them in that particular instance.

 

[dianeschlicht]

Don't forget that buying resale can be significantly less costly in the first place than buying direct from Disney. While it's true you still have the maintenance, you will have had less original outlay.

We too came to the decision to buy DVC when we noticed we were spending several thousands of dollars each trip just for a hotel room in a deluxe. Just a couple of trips could have paid for our original DVC contract. Don't forget that this is pre-paid accommodations at a location you wish to visit often. If you look at it that way and realize that what you pay out of pocket for your accommodations will be significantly less (the amount you pay in dues) over what you would pay any other way. Even if you look at the far cheaper cost of renting, the slight risk and lack of control you have over the reservation would be a significant deterent for some.

 

[dmank]

One of the big differences is the size of the accommodations. You are getting a regular hotel room for 6 nights. With my annual dues of $1400 I can get a two bedroom villa for 8 nights. I can get a week at aulani in a one bed room at peak time which was $10000 last I checked if I was reserving through Disney. We are a family of 5 and a regular hotel room is just not comfortable for us and is not conducive to a relaxing vacation.

Same for our family of five. In fact I really dislike regular hotel rooms anymore after being spoiled by DVC and my parents other timeshares!!

 

[DougEMG]

Hello everyone...Im new here but have been reviewing the DVC for around 2-3 months...

It looks fun, but when I sit down and put a pencil to it, I cant seem to wrap my head around paying $10,000-$20,000 for something that Im THEN going to have to pay annual dues of around $500-$1000 per year!

I just reserved a 6 night stay at the Wilderness Lodge from 9/21-9/27 of this year and barely made the reservations yesterday to get the free dining plan...Including park passes, the total is around $2800! Not too bad I didnt think...

But if we go to Disney World just every other year, Im looking at around $1500 per year to pay for our stay! Around the same as the annual dues, only I have no ONGOING commitment which I like!

What am I missing here? Please help me see where the "deal" is...

Thanks!

Booking a studio at VWL for that time period would take 92 points.

(1) Renting at $11/point, the room would cost you $1,012.

(2) Assuming you bought resale and it cost you $2.00/point/year buy in and MF of $5.60, gives you a cost of $699 for the room.

If you can buy your passes and food for the difference between booking with cash and booking with points, then it's worth looking into DVC. If not, don't bother with DVC.

Don't make the mistake of comparing a DVC 1 or 2 bedroom with a hotel room. Which is what it sounds like you are doing if you think you 'll have MF of $1500 a year. That works out to around 260 points which is much more than you need for a studio for 6 nights.

 

[Deb & Bill]

Booking a studio at VWL for that time period would take 92 points.

(1) Renting at $11/point, the room would cost you $1,012.

(2) Assuming you bought resale and it cost you $2.00/point/year buy in and MF of $5.60, gives you a cost of $699 for the room.

If you can buy your passes and food for the difference between booking with cash and booking with points, then it's worth looking into DVC. If not, don't bother with DVC.

Don't make the mistake of comparing a DVC 1 or 2 bedroom with a hotel room. Which is what it sounds like you are doing if you think you 'll have MF of $1500 a year. That works out to around 260 points which is much more than you need for a studio for 6 nights.

But when you own DVC why confine yourself to studios when you can have the luxury of a one or two bedroom villa? You might as well stay in a hotel room if you are going to stay in a studio. Once in a while, perhaps. As a regular thing, never.

 

[ELMC]

But when you own DVC why confine yourself to studios when you can have the luxury of a one or two bedroom villa? You might as well stay in a hotel room if you are going to stay in a studio. Once in a while, perhaps. As a regular thing, never.

Kitchenette maybe?

 

[disneynutz]

IMO the biggest DVC issue is the fact that you need to do something with your points every year or you lose them. Even though you may have paid cash for your points and you may feel that the largest cash outlay is behind you, it isn't.

The yearly cost of vacations to WDW can run a few thousand dollars even with a DVC ownership. Dues, travel, food, admission tickets, special events, hard ticket events all add to your bill and these prices go up every year and they will forever.

What if you get tired of the same vacation every year? You can sell but you need a buyer and you may sell at a loss, plus don't forget the sales commission. I am sure that the owners who Disney forecloses on and all of the resale listings never thought that they would give up their contracts someday.

Bill