Real Cost of Membership

[CGregoryJr]

Has anyone spent some time attempting to equate the initial & recurring cost of DVC membership to a per night room charge? My back of the napkin analysis for OKW would suggest it approximates $135 to $140 per night. I've assumed the points would be purchased from the resale market, 28 points per evening for usage (that's how our family will use it, not necessarily true for everyone - 1BR), a nominal discounted cost of capital and no appreciation or depreciation on the value of points (definitely a conservative long-term assumption given Disney's 14 price increases since inception and a resale market purchase at the outset).

A 1BR villa for $135-$140 per night versus a hotel room? I know there are those that still question the value of this program but for my family this is as close to a no-brainer as you can get. Especially if you love WDW and the other Orlando attractions as much as my clan does. After 7 years of scurrying past the DVC booths and refusing to acknowledge DVC'S existence within WDW ("after all, it's a timeshare for goodness sake; those people must be idiots"), I've seen the light. This forum and several of its participants have been particularly helpful.

 

[RoutemanDan]

Welcome to the club! You won't regret it.

 

[ZerasPride]

We are enjoying our membership so much! I just wish we would have bought in years ago and that we would have initially purchased a few more points. We have already gone to Hilton Head (and treated part of my family to a villa), spent a few days at OKW and have planned for a Hilton Head trip next fall and a Disney cruise (cruising paying cash) and we have been members for exactly one year. We just love it! Hope to welcome you home soon.

 

[Disney On The Bayou]

2002

Jan. 3 nights @ OKW Studio
Feb. 3 nights @ OKW Studio
May 2 nights @OKW @ bedroom (Just the guys Golf Only Trip!!!!)
June 6 nights @ VWL 2 Bedroom (Invited brother's family of 4)
July 2 Nights @ Vero Studio
Nov. 2 nights @ OKW Grand Villa!!! (Another Golf Only Trip)
and next Week!!!!!!!!!

4 nights @ VWL 1 Bedroom and then the Magic (cruise) for 3 nights.

Banked the first years points (Joined in Sept 2001) borrowed some, purchased more and rented a few.

Bought 200 pts to start.... 3 add-ons later... 405!!!!!!!

Previously I had only been to WDW 4 times!!

40 years to go. Welcome, you will not be sorry!!!!!!

 

[WDWguruDH]

We did the math the same way and came with identical figures.
With closing costs and everything, we got them at $63.75 a point, 41 years and current dues at $4.10 a point, thus:
63.75/41 = 1.55
1.55 + 4.10 = 5.65
5.65 * 28 = 158.20 a night
But that is without tax, figure a 17% rate to keep apples to apples and you get $135.21 a night hotel rate for a 1 bedroom.
Even using the current selling price of $84 a point, you still get a rate of $173.60, or $148 figuring in tax.
You are lucky if you can even get a moderate at that rate, thus the 1 bedroom is an amazing deal...that is why we have done two add-ons.
Dues will go up, but closer to inflation than the average rate hike on the resort rooms, thus the gap will continue to widen.

 

[vernon]

Different maths, similar figures (which is what counts ) . As you say $135 a night for a 1 bedroom is a steal if you're a regular visitor.

 

[joepoe]

And the cost per night will not increase very much over 40 years unless there is a huge maint fee increase, while other non-DVC rooms may well do so.

 

[zillow]

The real cost of membership seems to be my sanity as I now obsess constanly over what I'm doing with my points for the next several years...

 

[d-r]

I think that the big part is the cost per night in the next 20years or so. Right now, most anyone can get a rate of $99 per night at the moderates or $109-$119 a night at wilderness lodge or animal kindgom lodge, before taxes of course. With those rooms you don't get a fridge or microwave, but you get regular housekeeping, just a regular hotel room, not as large as a one-bedroom of course. But I think the important point is what the cost will be 10 or 20 years from now for the hotel room, when all we are paying is dues each year. I don't know what the dues will be like in 30-35 years, but for the foreseeable future it is a great deal.
DR

 

[Richyams]

I figure that since I broke even so long ago, and if you count the free passes, they actually paid me to join, I can count my dues as the only cost.

That makes my GV cost way less than $150 per night.

 

[Chadm]

Hey Disney on the Bayou, where are you from? My wife and I are from Cut Off and we live in New Orleans now. We bought into the DVC just 6 months ago and already have taken one trip (BCV & OKW) and we're planning 2 more (BWV in April)(VWL in November) for next year. We are planning on taking the cruise in 2004 and going to Disneyland Paris for our 5 year anniversary in 2005.

 

[Patabel]

My only regret was waiting so long to become a member.....

 

[Goofy's Mum]

Not only is it worth it - but a one-bedroom is usually bigger than our apartment! What a treat ! And no cats to have to share with!!

 

[JimC]

Our average cost per point is $5.21. At that level a one bedroom costs less than a moderate. Should have done it years ago when we first looked and the free passes were included. But it is still a good deal for us and Disney. This may be one of the most profitable business units in the company at the moment.

 

[tiggerguy2000]

First i like to say welcome home!!!!!!!!!!!!!
I also thought a timeshare was for fools and my wife booked us a few times to go and check it out. Most times they offer you something to get you in and when you say no for the 30th time they become mean and give you the booby prize which most times is not what you thought it was going to be. Back in 1999 i came down to orlando on a promo thru Embassy suites and stayed 4 days/ 3 nights for $129.00 but had to sit thru another timeshare hard sell. I went over to the Hilton grand vacation resort next to sea world and we had a wonderful time hanging around all day taking advantage of everything. At the end of the day i was a member and got the price down from $15,000 to $11,000 but something was bothering me!!!!!!!!

It was not disney and if i was going to own a timeshare i wanted disney so when i got home i cancelled my membership and thought hard,do i want a timeshare monthly payment? The next summer when we stayed at the beach club for 7 nights at my discount rate of $2.400 I allready had my mind set on becoming a DVC Member before going. I became a member in 2000 with 200 points at the Wilderness Lodge Villas but wanted the Beach Club as our home resort but they were not selling them yet. In 2002 we added a 2nd home resort at the Beach Club with 150 points. Our familyis so happy that we joined and love being members with 350 points. My thought when buying was, what a gift to give my children so someday they could bring there children.

tiggerguy2000 ºoº