So, Whats the real cost?

[Simba's Girl]

We are seriously looking into becoming a DVC members. I see that if you buy points directly from Disney they are about $75 per point and dues are $4 per point. How much are taxes? Is that included in your loan? We probably will go through Disney directly for the loan. What kinds of discounts are available as DVC members & are they *worth* it? I did check out the FAQ, but I wanted you all's $.02.

We definatly will be going in 03, but looking at the cost has made me reconsider this option. ('specially since we'll have to pay for both my DDs then)

Heather

 

[caverill]

The taxes about part of the maintenance fee.

Since you are using points for your stay at a DVC resort, you will not have to pay the Hotel tax. I believe it is about 11%, which of course, would need to be added on to any room rate you get.

Most people find that DVC pays for itself after 5 or 6 years, depending on the size room you book and the time of year you go.

Most members will tell you the following...

- Buy where you would like to stay most often (due to the 11 month reservation window at your home resort).

- You need to plan on using your points at least once every three years (using the banking and borrowing features). This won't be a problem once you join .

- Your points are best used to stay at DVC resorts, although you can use them all over the world.

- DVC is a pre-paid vacation plan, not an investment.

If you are planning to visit WDW anyway and will be staying at a Deluxe resort, joining DVC will pay for itself faster.

 

[jel0511]

One thing further, DVC is currently selling at $84 a point. The last time Disney sold at $75 a point was before June 02. Unless you're interested in Magical Beginnings, in which you'd sell back your first years points. I believe this is only available with Vero Beach and not Beach Club. As everyone will tell you, buy where you want to stay.

 

[eva]

That's right, DVC is now selling for $84 a point, $79 if you are using MB. I guess that is if you are buying at BCV. And as stated before be sure to buy where you want to stay the 7 - 11 month booking windows make a difference. Also, be sure that you are aware that dues can go up each year as much as 15%. They have never gone up that much, but they can. I would think that if you figured 3-4% each year, you would probably be about right. Sometimes it will be higher, but the increase is often around 1 or 2% and sometimes they even go down. There is no sales tax on the purchase, and the property taxes are included in the yearly dues. Caverill is right, DVC will not necessarily save you money if you stay in moderates or the All Stars. But for about the same price as a trip each year at a moderate, you can stay in a lot better accommodations. It's like an investment on future vacations at WDW.

 

[wdeversole]

Not sure what your situation is but be sure to check on other options besides Disney financing - like home equity loans.

 

[JimC]

Buying resale is an option that is attractive if you want to pay less for the points and/or want a larger selection of DVC properties to buy into. However, you may need to be more flexible on use year and the number of points you are buying. There is a company who lends for timeshare resales but I have not used them.

I have bought direct from Disney and a resale (The Timeshare Store) and got great service each time.

 

[walter]

At the top of this web page is The Time Share Store site. I suggest that you look at this site, for some of the resales are at $65-67/pt. It dooes not hurt to look at this option.

 

[brucec32]

First, I have a question about points. I saw a chart of 2003 point costs for various resorts at various times. My question is: Can DVC raise the point costs for a stay at a resort over time? This would effectively devalue one's investment in the program. Or are they fixed for the duration?

Second, I have a comment/question about borrowing for a DVC membership. Is borrowing $10,000 or more for a luxury like a vacation rental really a wise thing to do? Some might argue that you should have the money saved already if you're to the point where you feel you can afford the luxury of a visit to WDW once a year or more. I don't think it's a bad idea, necessarily, and it seems to really save money in many cases, but people seem so financially unconservative nowadays, it makes me wonder how things have changed in the 90's to now. I hear a lot of sad stories about over-extended families getting in trouble when a job loss or illness or even divorce happens. At least you can sell this "timeshare" pretty easily. My point is, if you're having to borrow a mere $10K or so, maybe you have other more pressing financial needs, like an emergency fund, a fully funded IRA, 401K, college funds, etc. My wife works in the corporate world and we see a lot of stressed out unhappy people dragging into work every day because they can't quit and go do something they like better, they're too strapped. Is spending like this part of the problem?

Not to rain on anyone's parade. But I went to WDW 2 times as a kid, and I didn't feel neglected or deprived. In my business, I see families who actually have to wait for a paycheck to be deposited before they can pay my bill using luxury services we never dreamed of 20 years ago. I wonder what a mess their lives would quickly become if they missed even a single paycheck. People just seem to live so "on the edge" these days.

 

[Simba's Girl]

First off, thanks everyone for your replies. I agree mabe its not the best idea if we would be going to a moderate or a value resort each year-but what is your estimation of the Break Even Point? (ie; how many days for 4 people(our family size) at say a moderate?). Also thanks for correcting me about the points cost.

Also what does MB stand for? (pardon my ignorance)

Bruce32
Your reply is the specific reason why I want to know. I HATE debt, however we will be able to handle this one specifically. On a personal note my husband and I have worked very very hard to eliminate most of our debt (with the exception of 1 car payment), and should be closing on a *brand new* home at the end of next month. We have made tremendous sacrafices for this and I am very proud and I don't want to screw it up, but I would like to have a vacation now and then...

Heather

 

[Dreamfinder2]

Heather, if you don't mind me weighing in ... for us it's worth it. We have two contracts; we paid cash for one and are financing the other, but, like you, the only debt we have is a mortgage payment and a auto lease. Going into debt to finance vacations may not seem the brightest thing to do, but we look on it as "anyway" money, money we'd be using to vacation with anyway, so I don't feel guilty.

While it's a buyer's market for hotels in the Orlando area - even at WDW, with some discounts you can find - the overall trend in Disney hotels has been about an 8% increase a year. Your cost is locked in with the DVC. My research showed that, for us, we'd break even in about eight years, and we typically stayed in moderates. We've bought throug Disney and through the Timeshare Store, and both were simple and painless and hitch-free.

MB (Magical Beginnings) is a buyback program Disney offers - you sell back your first year's points for a set amount per point, and can apply that to your overall cost or down payment. I don't think it helps that much.

Bruce, your points are fixed. They can be "redistributed" over the course of a year, i.e., the cost for a day or week during one season might go up, but it would have to be offset somewhere else by a decrease. It's only happened once that I'm aware of, at OKW. You won't lose points or point values, and viewed over 40 years, it made pretty good sense to us.

 

[JimC]

I agree with brucec32's comments/concerns. Several years ago we made the decision to build a home rather than purchase DVC as we could not do both. Vacations are not something we borrow money for; but that is something for each to decide.

ON the question of points, DVC property points remain fixed in total. I believe they made an adjustment early in the program, but they had to reduce points elsewhere to keep the program equal. The non DVC Dinsey resorts, DCL and the exchange programs are negotiated I believe annually. Those points can and do change each year and I believe it has been mostly up.

 

[Simba's Girl]

Dreamfinder2: I asked for everyone's $.02thanks. Its great to get feedback from different people w/ different points of view...

I did look into what it would cost us for 10 days at a moderate and that's why I'm considering this option. I'm like the energizer bunny I want to keep going and going and going...so perhaps it is worth it.

We'll see after we close on our house

 

[anniet]

Originally posted by Simba's Girl
I'm like the energizer bunny I want to keep going and going and going...so perhaps it is worth it.

We've been going to Orlando every January since 1991. We have spent most of our time in accomodations off Disney property, but we definitely notice a difference between accomodations off property vs. on property. We found a place right outside Disney about 5 or 6 years ago that had a full kitchen and only cost us $49 per night. It was brand new at that time. The accomodations have been getting shabbier each year, while the price keeps going up each year, now at $79 per night---still a value, but as I said the upkeep is not very good.

We KNOW that we will be continuing this January vacation (two weeks every year) for a VERY LONG TIME to come, so we bought DVC last March.

The break even point has been heavily debated on this board, simply because it's difficult to know what to compare it to. If I compared it to the accomodations I had been using, I would have a very long time period before I broke even, but I can't compare the accomodations (in my opinion) since DVC is a far better quality accomodation.---If I compare it to the current rack rates Disney charges for cash customers for the same accomodations, I figure the break even point to be about 6 years. But then again, I would never pay the cash rates Disney asks for these rooms because I couldn't afford to AND continue to go every year for two weeks!

I financed about $7500 from Disney for 10 years, which I expect to have paid off in about 4. (Disney loves to get money early and there's not penalty for it) Normally, I wouldn't borrow money for vacations either, but I'm looking at this as prepaying for vacations I will be taking for the next 40 years. In the long run I will have upgraded my vacations, for far less than I would have had to spend if I decided to pay as I go.

The only thing I would have done differently----I either would have purchased DVC sooner or I would have gone through a resale. Unfortunately I didn't know about the resale markent until AFTER I purchased. Oh well, at leastI know it's available if I ever want to add on!

Good luck on the purchase of your new home or home(S) as the case might be!

 

[Simba's Girl]

Anniet

Thanks your reply was very thorough. With 2 young kids, I actually would have a very hard time considering anything off property. I love the convienience of everything when you stay on site. I am guessing that our BE point will be at least 7 years but that's 7 years of vacations & that's pretty good especially since the hotels are increasing every year.

Thanks agian

Heather

Where on the South Shore are you? We are currently in Kingston! (I know my profile is wrong) Our new house is in Warren though...