I rented dvc points for a night in the Animal Kingdom Lodge Jambo House. We rented a savannah view studio and loved it. $150 for a $450 room equivalent. The nice thing about Jambo House is that it is just the top floors of the main resort building. You could get the same room cheaper in January as it costs less points or save even more if you didn't want the view. Standard View weekday is only 11 points. I rented my points for $10/point. Basically the same as a value.
However, the experience was as different as night and day between a deluxe and a value. The night before we went to AoA for dinner. I wanted DS to see the Cars area and try the food court. While nice, it didn't have a relaxing resort feel. It had a nice huge motel feel. And it was loud and felt a little hectic.
The next day we checked into AKL. We drove up, the bellhop directed us to the close temporary parking for checkin. Everyone was smiles and relaxed. There were CMs everywhere to help you. The resort is a vacation in and of itself with spectacular theming. My husband and I decided that those little things really make it feel like a vacation rather than just a trip.
As for driving, we have no problem with driving and in most cases it's actually faster than waiting for the buses door to door. AKL is farther away. To give you an idea, Silverlake Resort is just as far and just around the corner. In reality the values and most of the moderates aren't significantly closer than staying offsite. Deluxe resorts near MK and Epcot have better location and convenience. However, we visited most of the resorts and personally, the AKL has the best theming. The other resorts have their own advantages.
As for booking, remember that you are working with an individual. PayPal is the norm for the transaction. They called and made the reservation on their lunch hour. They emailed me the confirmation number. I added it to My Disney Experience and it showed up with our reservation and all the information. I then sent payment through Paypal. While I didn't control the reservation, I could see it on
MDE and do online checkin 60 days in advance. I just gave my room requests then (I chose an Arusha View preference over having our room ready before 4pm). I would suggest reading threads about renting so you know what to expect. If you are ok with not changing plans, prepaying with no refund if your plans do change, and know that as the travel dates get closer availability becomes more limited, then you can stay deluxe for an amazing price.
Also, look for discount tickets either through
Undercover Tourist, or the links on this board like Orbitz or buying discount Disney gift cards through Target or your local grocery store to pay for tickets directly through Disney (and anything else you might buy at the parks).
It comes down to your budget and your vacation priorities. Unless one of you is military, then there are few significant discounts on tickets. You said you would buy your own food, which will help as eating out will cost more than the room if you let it. If you want a good price on a condo with full kitchen, then look off site. $239/week for a 1bedroom on skyauction at Silverlake. That includes taxes and resort fees. If you only plan to stay 2 nights, then it isn't a savings, but any more nights, and it really becomes a good deal.
Hotels are where you can really save. If you are ok with a little motel right next to Disney property, you can get a room for $35/night. You can get a similar price for a 3 star hotel on Hotwire. My only reservation to offsite hotels is that some of the older ones, even nice 4 star hotels, can have a little bit of a moldy smell to them. It's hit or miss. My dad is very sensitive, so it's a serious issue for us. However, I have not found that problem with Disney hotels. I think their consistently high occupancy rate means that the AC is basically always on and people are coming and going, so the rooms get aired out.
What's your price range? People here could give you even better advice if they knew your budget.