Requesting clarification on DVC

[supermanfan]

I am trying to understand the benefits of doing the DVC: I will be using the wilderness lodge 1 bedroom at Christmas for my example.

One time payment for 235 points ($98 pp) = $23030
Over 49 years that means we are paying $470 for 1 week.

Plus lets say $5 point maint. fee = $1175.

Equals = $1645 for 1 week

Rack Room rate would be $2279 roughly. Saving $634 a year for the hotel.

The savings are there sure, but you miss out on the following:
The dining plan
Discount booking offers that save you roughly $500 - $600

So the cost is roughly the same. What is the advantage? Sure I could get a deluxe resort but for a cheaper price I could get a moderate resort with 2 beds. Who stays at the hotel any way?

I must be missing something as to why buy the DVC if so many people are doing it. Can someone help show me the advantages.

 

[crux]

The maintenance fees are approx $4 per point, which does bring the cost down a bit, plus at Christmas there are probably very few discounts on offer - so the difference is approx $850 per year. BUT this difference will grow by the rate of inflation for 49 years. I.e. the maintenace fees will go up by 3-5% from $950 (approx) for 49 years, but the rack rate will also go up from $2279 by 3-5% per year. Although $850 may not be a 'very large' saving, when you multiply it by 49 years it's $41,650 even without inflation.

Ian

 

[supermanfan]

That is true but you still are missing out on the dining plan. Yes you can plan for it and even save money by dining on your own especially if you have a kitchen. When you go on vacation the last thing you want to deal with is a hassle. The dining plan eliminates that for you.

 

[calypso*a*go-go]

The other thing to keep in mind is there is no guaranty the free Dining (or even the Dining Plan itself) will be offered on a continued basis. However, the weekly point amounts to stay in a DVC resort will be the same throughout the length of the contract. It may not matter so much right now, but what about five or ten years down the road?

 

[Lynne M]

I am trying to understand the benefits of doing the DVC: I will be using the wilderness lodge 1 bedroom at Christmas for my example.

One time payment for 235 points ($98 pp) = $23030
Over 49 years that means we are paying $470 for 1 week.

Plus lets say $5 point maint. fee = $1175.

Equals = $1645 for 1 week

Rack Room rate would be $2279 roughly. Saving $634 a year for the hotel.

The savings are there sure, but you miss out on the following:
The dining plan
Discount booking offers that save you roughly $500 - $600

So the cost is roughly the same. What is the advantage? Sure I could get a deluxe resort but for a cheaper price I could get a moderate resort with 2 beds. Who stays at the hotel any way?

I must be missing something as to why buy the DVC if so many people are doing it. Can someone help show me the advantages.

A couple of comments....

First, you don't have to give up the dining plan if you buy into DVC. DVC members can get the same plan that's offered in the packages, for the same price.

Second, you simply can't compare a moderate room with two double beds to a DVC 1-bedroom villa. In a 1-bedroom, you get a full kitchen, a huge bathroom with a jacuzzi, a king bed in the master bedroom and a nice big living room with a sofabed. Oh, and your own washer and dryer. Honestly, I've lived in apartments that were smaller and not nearly as nice.

So, what you're really getting is deluxe and better accomodations for the price of a moderate.

Now, you mentioned that for you, the room is just a place to sleep. If that's true, and you really do have no interest in the fancier accomodations, then DVC probably isn't going to be worth the money for you.

 

[calypso*a*go-go]

Just wanted to clarify...are you talking about the free dining plan, or just the ability to purchase the plan? DVC members can buy the plan when staying at a DVC resort with no ticket purchase required. Many (myself included) feel we have the best of both worlds.

 

[tjkraz]

I am trying to understand the benefits of doing the DVC: I will be using the wilderness lodge 1 bedroom at Christmas for my example.

One time payment for 235 points ($98 pp) = $23030
Over 49 years that means we are paying $470 for 1 week.

Current price is $86 per point.

Plus lets say $5 point maint. fee = $1175.

If you're referring to SSR (which I gather from the 49 years you quoted), it's actually $3.98 per point in today's dollars.

Rack Room rate would be $2279 roughly.

Does that include the 12.5% county tax? DVC members only pay property tax, which is part of the annual dues.

The savings are there sure, but you miss out on the following:
The dining plan

DVC members can book the dining plan.

Discount booking offers that save you roughly $500 - $600

Discount rates are inconsistent and you need to play the "code game" chasing around the discount rates and, in many cases, trying to book within hours of the rate being offered in order to get a room at your desired resort.

There are only 72 One Bedroom Villas at VWL, and about 95% of them are part of DVC member inventory and not accessible to cash guests. What sort of odds do you think you have of being able to consistently book one at a discounted rate?

What happens if you have airfare and vacation time scheduled and discount codes don't materialize (or are less than you had planned?)

I'd also be curious to hear what dates you are using as the basis for your comparison. The closest I could come to your stated cash rate for the VWL 1B was 5 nights (@ $400 ea) plus tax = $2250 during Value season. The number of DVC points required for that same period is nowhere near 240.

 

[DebbieB]

If your attitude is you don't care where you stay, it's just a room, then DVC is probably not for you. I bought DVC for the luxury of the 1 bedroom, not just for a place to stay.

 

[helenabear]

I ran numbers at one time. I was a faithful visitor of the Swan resort for the longest time. Then the discounts stopped being as good and we did have a spreadsheet. Which, believe it or not, I still have.

Your numbers are a bit high for the maintenance, and I'm not sure how accurate your numbers are for the discounts.

I'm not even doing apples to apples, but the Swan now runs about $200/night. That is with a AAA or AP discount and with tax. If I do 7 nights there, I am already at $1400. If I do at least 10 nights a year (which is a usual minimm) That is $2000.
I pay in the neighborhood of $1200/yr for DVC (granted I bought resale a few years ago).

Now if you want to do apples to apples, I just looked up my rate for the upcoming trip. A 1 bedroom at Boardwalk for 7 nights is $3662.91. If you get 40% off that room (not completely likely now), you are still looking at $2191.70 for a week. A savings of roughtly $1000

I double checked the VWL for Christmas week (7 nights which is a DVC week) and it will cost $3600 for a STUDIO. You'd probably tack on about $900 (they were sold out of all else) and you can't tell me that it is cheaper to do it even with a discount based on your numbers. Not sure where you came up with $2200ish for rack rate, unless you were doing the standard lodge. In that case you are not comparing apples to apples.

The dining plan can be bought for DVC owners. I have never done it as it is a waste of money for me. I never have gone during the free dining either so I never would miss out on that (they offer during a time I would not want to travel)

So I believe your numbers are a bit faulty there to begin with. There are savings, and I look at this as an investment as well. Points are now up at least $10 since I bought.

 

[dianeschlicht]

Elaine gave a very good analysis, but I wanted to emphasise the fact that your DVC cost will NOT change much over the 35-45 years, but the cost of that "hotel" room at one of the other WDW resorts will go up exponentially. Again, apples to apples....A 1,2, or 3 bedroom villa has NO comparison to a hotel room ANYWHERE in my book. That hotel room doesn't have a Jacuzzi in the bathroom, a washer and dryer in the room, a full kitchen, a living room etc, etc. etc...

 

[Parkhopper13]

I would like to throw in my 2 cents. I agree with all the responses on this board. You cannot forget to account for inflation. That alone makes DVC very valuable because you are only paying inflation on your maint. costs...not total lodging costs.

Also I think you need to tweak your numbers. You can't compare a 1 bedroom at DVC against a standard hotel room and call it an apples to apples comparison. If you stayed Christmas week at VWL it would only cost 181 points/year for a studio, a much better comparison to a standard hotel room. The maint. annually is only $834 currently at the current price of $4.61/point.

Now, one thing that many people fail to consider in their calcs. is that once you break-even (8-12 years, depending on time value of money and other factors) you save money every year on your vacations. That savings amount grows annually because of inflation. If you average a savings of $2000 a year ( a conservative number, but enough to demonstrate my point) starting at year 15, that money can be invested and conservatively earn 6%. After 33 years (the rest of the DVC contract), your money grows to over $190,000. This future savings more than offsets your initial investment.

I personally would not count on any appreciation in value of points. It might come...but it should not be counted on. The annual savings alone is more than enough to make up for the costs of DVC.

 

[gchiker]

There is one more item to consider in this analysis. A DVC owner does not pay sales/hotel tax when staying at DVC. That alone must be a savings of 6-15% (I'm not sure what the exact number is). That alone is a considerable savings over time.

 

[Dumbo]

I am trying to understand the benefits of doing the DVC: I will be using the wilderness lodge 1 bedroom at Christmas for my example.


Rack Room rate would be $2279 roughly. Saving $634 a year for the hotel.

What will the rack room rate be 10 years from now? 20 years from now. How about 30 years from now?

Dumbo

 

[Dumbo]

When the Contemporary Resort opened in 1971, tower rooms were $29.00 a night. What are they now?

Dumbo

 

[MIDisFan]

I'm not sure were anyone came up with a room rack rate of $2279 Christmas week for a 1 Bedroom WLV. When I checked Disney website it is over $600 per night the week of christmas. Am I missing something?

 

[supermanfan]

I appreciate all the good information. It helps me look at this much broader. I believe it is a good value, but I am also afraid that if we were to join it could get rather (I hate to say it) boring if we continue to go back to Disney every year or even every other year. Although for 49 years it would allow us to have a family vacation place that we could enjoy well into when we have grand children.

 

[crisi]

I appreciate all the good information. It helps me look at this much broader. I believe it is a good value, but I am also afraid that if we were to join it could get rather (I hate to say it) boring if we continue to go back to Disney every year or even every other year. Although for 49 years it would allow us to have a family vacation place that we could enjoy well into when we have grand children.

This is really a decision for people who either:

1) Choose Disney as a lifestyle - for a lot of people here, this is a hobby, its been a hobby for twenty years or longer - and it won't get any more "boring" than annual trips to Colorado to ski or Canada to fish or Vegas to do whatever do.

2) Have a plan that involves at least six or seven trips to WDW over the short term (ten -12 years or so) and then will resell. You'll just about break even over that period and then the resale money you make (price has held gone up but eventually - DVC being a limited lease - must start going down) is gravy.

The third piece of the puzzle is affordability. DVC is a large financial committment to a luxury purchase. For a lot of us, this isn't about saving money - we can do that staying at the All-Stars, its about enforced vacations at a Disney at a pace we choose in a room that has a little more to it that a room at the All-Stars.

 

[DVC Grammy]

As others have said, DVC only makes sense if it's a lifestyle that you want, not if you're only an occasional visitor. Many of us DVCers take either extended trips annually (more than 4-5 days), or multiple trips, 'cause we love WDW. Many of us prefer the feeling of the DVC resorts versus that of the Values, which today are probably more cost-effective than spending for DVC.
(If the POLY and the CR had stayed $99 per night, maybe there wouldn't be so many DVCers !)
But for those who are die-hard WDW visitors, and like the level of of the DVC resorts, buying in was the right thing to do.
(I've been told I have a "Disnease" )

 

[senecabeach]

DVC Grammy......

How right you are

My recollection of the Poly in the Tonga (now..Hawaii Conscierge) Longhouse in 1971 and for a few yrs. afterwards were R E A D Y...
.... .... $42. per night, per ROOM, NOT each/double occupancy)

Now....racked @.............

Quoted for X-mas from the Official WDW site:

""This vacation offer is the best match based on your request.
Disney's Polynesian Resort Total: $6,470.72†
Take the Virtual Tour Arriving on 12/20/06 for 7 nights
2 Adults

Resort Category: Deluxe
Room Type: Concierge Lagoon View Room
Includes Disney's Magical Express!
Room Type Price
Concierge Lagoon View Room included ""

GASP !!!!!!!!!

GEEEZZZEEE I can buy 68 more pts. at $95./per for that price

Thank You DVC.....for SUPERIOR accomodations into my old age!!!!

 

[Viki]

This is really a decision for people who either:

1) Choose Disney as a lifestyle - for a lot of people here, this is a hobby, its been a hobby for twenty years or longer - and it won't get any more "boring" than annual trips to Colorado to ski or Canada to fish or Vegas to do whatever do.

That is exactly right! I have never heard it phrased better: this is my hobby. It's interesting enough to provide ongoing entertainment on even a daily basis, while still silly enough not to be taxing!