Tell Me the DOWN side of this

[klfosborne]

Ok, we are big Disney people, we go at least every year and stay at a Deluxe resort. This week we took the DVC tour and we loved it! Here is what we want to do: buy 320 points at BLT, financing it for a couple of years. Guide said we could bank 2009 points and get $14 off per point because we were getting at least 320 points. We plan on buying an AP because we will probably go a few times a year. The guide showed us how we could stay next summer in the BLT for 4 days and then do a 3 day cruise for 280 points. Also, it seemed to be pretty easy to change to other places around the world /country for the $95 fee. Is this true?

So this all sounds grand and we are loving it but I don't want to be naive. I have read a fair amount on the boards but I would like to know the negatives or down sides that the DVC is not telling us. We really would like to do this before our annual Sept trip so we can change it to use our points. So tell me everything I need to know that I didn't mention please!

 

[klfosborne]

Oh and I do know about the annual dues and how they go up every year as well.

 

[Dean]

Ok, we are big Disney people, we go at least every year and stay at a DD resort. This week we took the DVC tour and we loved it! Here is what we want to do: buy 320 points at BLT, financing it for a couple of years. Guide said we could bank 2009 points and get $14 off per point because we were getting at least 320 points. We plan on buying an AP because we will probably go a few times a year. The guide showed us how we could stay next summer in the BLT for 4 days and then do a 3 day cruise for 280 points. Also, it seemed to be pretty easy to change to other places around the world /country for the $95 fee. Is this true?

So this all sounds grand and we are loving it but I don't want to be naive. I have read a fair amount on the boards but I would like to know the negatives or down sides that the DVC is not telling us. We really would like to do this before our annual Sept trip so we can change it to use our points. So tell me everything I need to know that I didn't mention please!

Owning DVC will likely cost you significantly more than most of the Disney Village hotels when you take into account the up front costs and yearly fees. It's currently easy to trade for cruises and other direct cash equivalent exchanges but it's a VERY poor value overall and one that could be eliminated at any time. Timeshare exchanges also tend to be over priced and are not at all simple and definitely are not guaranteed, not to mention quite a bit of education and risk that go into them.

DVC will represent an upgrade from what you're experiencing I would think but if you proceed but at a cost and yearly obligation. I'd only buy enough points for your DVC stays and not just to get the discount. IF you want BLT most trips, you should likely buy there, otherwise resale is the way to go at about 60-70% of the cost of retail. You should also consider other timeshares and in your case, specifically look at Wyndham's Bonnet Creek.

 

[disneynutz]

Think back to the warm fuzzy feeling that you experienced during your presentation. Now forget it and realize that this is a business transaction that may or may not save you money. That is the only reason to buy a DVC membership.

You need to decide which resort is your favorite, look at your current and future travel plans, do the numbers and determine if DVC is right for you and your family.

Take your time and have fun on your buying adventure.

Bill

 

[bookwormde]

Just remember that your finance fees will be almost as much as you can rent points for, not to mention the actual purchase cost and maintinance fees.

bookwormde

 

[Disneypubgal]

to get what you really want you need to plan ahead... just because you buy pts... does not mean you are guaranteed a room...if you are a last minute traveler you could be shut out of first choice (or any for that matter depending upon time of year) or need to do split stays...Also keep in mind DVC has different peak times than regular WDW travel...time frames with low point value are very busy DVC times!!

Agree with other posters... travel outside of Disney resorts is not the best use of pts... just my opinion!!

 

[klfosborne]

to get what you really want you need to plan ahead... just because you buy pts... does not mean you are guaranteed a room...if you are a last minute traveler you could be shut out of first choice (or any for that matter depending upon time of year) or need to do split stays...Also keep in mind DVC has different peak times than regular WDW travel...time frames with low point value are very busy DVC times!!

Agree with other posters... travel outside of Disney resorts is not the best use of pts... just my opinion!!

Why is not a good use of my points? So basically DVC is a poor investment is what I am understanding from everybody but not so clear at to why it is?

 

[Sandisw]

DVC works best for those that want to use it to stay at DVC resorts in WDW. Trading out for cruises and things once in a while is fine, but you lose some of the value when doing this in comparison to DVC.

What some suggest is buying only enough DVC points to cover the stays you would do at WDW and using the money saved to either buy another timeshare whose trading is better, or just pay cash.

Having said that, owning points and using them for what you want is doable. I have never used mine for anything but DVC and won't plan on it regularly. However, if one year I want to do the cruise and use my points that way, I will. While I might be able to rent out the points and pay cash for the cruise and save money, that is not why I bought DVC. I bought it to cover my vacations.

If you main purpose is to do DVC resorts, then it can be a wonderful deal. If you main purpose is to trade out then take time to make sure you understand what other options are available for that.

I think everyone has different views on what and how to use points and as long as you are comfortable with what you are getting, I say use them to cover what you want.

I do know that you get more off per point by buying 320, but that is a lot to start with if you have not spent time researching DVC and the product. If you really want to stay at BLT when you go to WDW, then buy there (we did). But, if you would be perfectly content with any of the other DVC resorts, consider those and resale before making a committment.

If you do go ahead and buy through Disney, be sure to ask your guide to break up those 320 points into several smaller contracts. For example, maybe 100, 100, and 120. This way, if you buy and realize that you don't want/need that many points, you can sell off some of the points. If everything is in one big contract, it is all or nothing.

Good luck!!

 

[Disneypubgal]

Why is not a good use of my points? So basically DVC is a poor investment is what I am understanding from everybody but not so clear at to why it is?

DVC should not be viewed as an investment!! Unless you bought years ago you will not see a financial return for your purchase... What you will see is that you are getting a great room at a great rate at a Disney resort and that as long as you plan ahead you will most likely get what you want. I have traded twice out into the World Passport collection both time thru interval....and was fortunate in terms of experience and value... please keep in mind that you will probably get more bang for your buck renting your points out and paying cash for a vacation elsewhere than you will trading into the World Passport Collection (and this is just my opinion)... you will also have a whole lot more flexibility... BTW, I have been a member since 1997 and have added on 4 times after my initial purchase and my membership and we travel to Disney property 3-4 times per year... but it is a lot of money and I think everyone should go into this type of purchase eyes wide open...and not be in for any surprises, unless of course they are magical ones!!

 

[CarolAnnC]

Why is not a good use of my points? So basically DVC is a poor investment is what I am understanding from everybody but not so clear at to why it is?

Actually, purchasing DVC should not be looked at as an "investment". It is basically a way to prepay your vacations, and upgrade your experience to a DVC Villa with all the amenities that come along with it versus the Downtown Disney area resorts.

Now, that being said I have found my DVC points (both my Disney direct and my resale purchases) to have appreciated in value from when I bought them starting in 1997. But, I would not look at DVC as a way to invest monies.

As far as trading out, I started my DVC ownership with 270 points. I would not have considered trading out to other places such as the Disney Cruise Line until I had added on considerably more points. I primarily used my initial points for WDW vacationing.

Now that we are at about 1100 points, I don't hesitate to trade out if I want to. But in your case, I would recommend sticking with the DVC Resorts initially. You can always cruise on cash.

 

[Dean]

Why is not a good use of my points? So basically DVC is a poor investment is what I am understanding from everybody but not so clear at to why it is?

If you value staying on property and want a modest savings for an upgraded room with other amenities, DVC can be a great option but at a high price and significant commitment both up front and yearly.

I think you need to look at whether DVC itself is a good choice for you, likely it is in some capacity given you're track record of staying somewhat on property, assuming you can plan at least 7 months in advance. Then IF DVC makes sense for you then you must decide what home resort, how many points and how you're going to acquire those points. As I stated, it is my opinion that buying points with the idea of using them for anything other than at DVC resorts is an extremely poor choice. I summarized my thoughts on the two general types of non DVC usage in my first post, I'll be happy to expand on any specific area if you'd like.

Lastly, I alluded to the fact that one can access Orlando for pennies on the dollar with non DVC timeshares. We're talking in the $300-400 a week range for a 2 BR in many cases at resorts just as nice as DVC overall and in many ways, nicer, just not on property.

 

[gkrykewy]

Why is not a good use of my points? So basically DVC is a poor investment is what I am understanding from everybody but not so clear at to why it is?

DVC gives you the best bang for the poimts/buck when you use your points on property at DVC resorts. We were regularly spending cash to stay at Animal kingdom lodge before buying points at AKV, and so for us, it's a huge money saver.

People are saying that cruises and trades arent good value for your points because the value of the points they require is much higher than if you just booked those things cash.

 

[Deb & Bill]

When we want to go elsewhere, we google rentals in that area and rent someone else's timeshare for little money. And if we don't like the area or the lodging, we aren't stuck with it. We did use our points many years ago for the DCL, but it required a lot less points than it does now.

Dues continue to go up every year. Ultimately, you will pay more in dues than you paid to buy into DVC in the first place. We have sold off two of our contracts and made a nice profit on them - but that was at least four or five years ago when prices were holding steady on the older resorts and buy in at the newer ones was much less than what they are asking for now.

If we tried to sell our remaining contracts now, we might break even on price, but we would also have had many years of great vacations. We are planning on selling out in the very near future, but we'd like to see the prices of our resorts go up a bit before we do (if it happens ever).

The other thing you are talking about is using points for your upcoming Sept trip. Your guide could pull a few strings and get you something if what you want is not already booked, but consider that a one time thing to sweeten the deal. Once you have bought in, it's up to you to book early enough to get the lodging you want. And sometimes, you still won't get what you want or need - especially at the seven month time frame when you want to stay at a non-home resort. Booking those RCI trips aren't all that simple either.

By the way, DVC stays on points don't qualify for things like free dining or special packages. So if you are getting free dining in Sept, you won't get it with a DVC stay on points.

 

[ToddyLu]

From what I have read, it is easier to purchase a small DVC contract for DVC stays then if you want to trade out you purchase another small contract with another timeshare company that has better trade out. It is easier to use say a Whyndam (sp?) TS because you get a lot more choices and the upfront cost is much less. You might get the choce of 3,000 TS with it where as with DVC you might only get 300. The trade out power of DVC is not great compared to others.

Any trip to WDW is expensive in my book. Folks that go there on a regular basis know this. I think DVC is best for people so enthralled with the place that they choose to go there for one nice trip a year or even several trips. It was $2200 to stay at Pop for 9-10 nights on DDP in 2008. We purchased our DVC contract in 2009 and put that amount of money toward DVC as a down payment. We were already going to fly or drive so that is a wash in my opinion. Same cost for flight whether you are staying at Pop or AKV.

We would have never seen the value--and I LOVE DISNEY--in paying $3500 cash just to stay at AKV in a SV studio for the same 9-10 night trip. Add MIL's studio to that and we would have been $7000 OOP. We are still using our 2008 incentive points and have the same SV studios this year totaling another, lets say, $7000 OOP paying cash. So now we are into big bucks cash wise on rooms but with DVC it is spread out over the years of the contract. I realize everyone here knows the system, but it is hard to see it "really see it" unless you know your costs and what you are actually getting for the expensive DVC upfront cost.

DVC is a way for a fireman and a nurse (no kids) working fulltime in their 40's, travelling EVERY year to WDW for over 8 days. to pay for lodging (just lodging) at an exclusive, deluxe, resort at one of the premier vacationing spots in the world. DH is not a big traveller and Disney has everything we need to enjoy memories together, yada, yada, yada. We will ever cruise--NO--DH is paranoid about flying under foreign flags--even with Disney. Will we ever use our points to stay in NYC, no, becasue we didn't buy enough to stay at that hotel on points and still have a Disney trip EVERY year.

Just becasue they say it is easy to get a room...some of those places you have to reserve WAY in advance and when you pay the $95 fee to DVD to start the process of finding a reservation when and where you want it--then don't get it--they keep your $95.

I know I am still learnig about all this on a daily basis and I come to the DIS almost on a daily basis for at least a couple of hours.

 

[Hmom03]

DVC is a decent investment if you plan to use your points to stay at DVC resorts. You will probably find that the it would be a better value to pay for you stays at other places and buy less points.

Why is not a good use of my points? So basically DVC is a poor investment is what I am understanding from everybody but not so clear at to why it is?

 

[blondietink]

The only downfall that we can see is wanting to go more than once per year, which adds travel costs. Other than that, we love it!

 

[Chic]

If you plan to use your points to stay in DVC resorts in Disney World or Disneyland, and if you plan to continue doing so for many years, DVC is a fabulous money saver. A room at the Contemporary costs less than $40 a night back in the 1970's. That same room now costs about $400 a night. We bought into DVC back in July 2007 and have already broken even with our purchase. The amazing thing is our contracts are good until the year 2054 so, aside from maintenance fees, our hotel rooms are free for the next 44 years. No matter how much room rates increase over the years, I'm covered. I will still be paying maintenance fees but I can assure you that the fees will be MUCH less than paying room rates. Our home resort is Saratoga Springs and we could currently sell our contracts for around $62-$65 a point. Guess what, we do not want to sell our contracts!

 

[mousermerf]

You know, there is also the possibility that Disney will oversaturate the market with properties and make it nearly impossible to sell your points. Lord knows they build a new hotel nearly every year but park attendance is not trending up at the same rate - it has to end at some point.

And so you're stuck with it - which if you want to goto Disney World for forever, fine, but realistically, are you going to want to?

Have long have you "loved" Disney? Have you seen everything? Been most everywhere? If you go back 10 years did you even care about WDW? Now what about 10 years in the future which is just a fraction of a contract?

So let's hop forward 10 years. They've finished expansion at Magic Kingdom 7 years ago (2013) and they're just starting an expansion at Epcot in 2019. Aside from maybe 1 or 2 other small rides that's pretty much the extent of what they have planned for the next decade.

Can you be happy going to WDW every year with the same offerings for that long?

 

[gkrykewy]

You know, there is also the possibility that Disney will oversaturate the market with properties and make it nearly impossible to sell your points. Lord knows they build a new hotel nearly every year but park attendance is not trending up at the same rate - it has to end at some point.

And so you're stuck with it - which if you want to goto Disney World for forever, fine, but realistically, are you going to want to?

Have long have you "loved" Disney? Have you seen everything? Been most everywhere? If you go back 10 years did you even care about WDW? Now what about 10 years in the future which is just a fraction of a contract?

So let's hop forward 10 years. They've finished expansion at Magic Kingdom 7 years ago (2013) and they're just starting an expansion at Epcot in 2019. Aside from maybe 1 or 2 other small rides that's pretty much the extent of what they have planned for the next decade.

Can you be happy going to WDW every year with the same offerings for that long?

You had me at expansion to EPCOT!

 

[DenLo]

If you buy 320 points in one BLT contract and then later decide you want to sell part of your points to buy into another resort, you can't. Once a contract is set it stays at that point value.

Many DVC members buy smaller contracts - you can split your contract three ways, two 100 pt. contracts and one 120 point, or better yet divide the 120 into two 60 point contracts. That way if at a later you decide to sell a portion of your points you can. Another resort might catch your interest, but all of your money is tied up in BLT. Or the kids out grow the MK and prefer staying at AKV or BCV or BWV.