The Annual Dues Argument

[bwbuddy5]

I'm guessing from what I've read that most of the folks who are (or were) reluctant to buy DVC, were hung up on the cost of the annual dues (I owned BW from 1998 to 2004 [had to sell to pay for my daughter's wedding!]. I've heard the argument that you could have actually booked a decent Disney resort each year for the cost of the annual dues, especially since some annual dues are above $8 per point now.

So, what's the best counter-argument to the above?

 

[tjkraz]

Annual Dues represent the operating cost of the property. It's effectively the same thing as owning your primary home, yet still paying significant dollars for utilities, taxes, repairs and all other forms of upkeep.

Unless you choose to believe that Disney is operating its hotels at a loss, your theory simply does not hold up. Depending upon the up-front cost paid, it will take a number of years to break even on the initial investment. But Disney does not sell its hotel rooms for less than its own overhead costs.

Many people consider renting points to be a more cost-effective way to stay at Disney accommodations. And there are lesser Disney hotels available for a fraction of the Deluxe / DVC cost. But you won't find Disney pricing hotel nights at or under the DVC dues cost.

 

[pmaurer74]

I agree with the post above, our dues are about $1200 per year, we can get a 1 bedroom villa for 6 nights I think depending upon the season. a 1 bedroom villa I think is several thousand dollars. I could get into a value resort or maybe a moderate resort for $1200 for 6 nights. I know this does not take into account the initial buy in cost but I am hoping the DVC will retain most of its value for awhile and that we will get most of our money back if we sell. (I know this is not guaranteed but I am hoping). We bought a DVC because the prices are getting very high for deluxe and it seems the dale out there are not as good or harder to come by for discounts so now at least I know I have a place to stay and with the upcoming changes at HS I am glad I have a place to stay for upcoming years. Also we will have larger accommodations instead of staying in studios like we currently do. With the maintenance fees being deducted every month it will not be so bad or we could use out Disney Visa rewards to pay the bill when it comes.

 

[bwbuddy5]

I agree with both of you, and hated selling, but let me be devil's advocate, and change my question since you suggested it:

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

 

[erionm]

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

When you use your membership to book the room, you are in complete control of the reservation. You can make any changes yourself including (but not limited to) chaning dates, cancel the reservation, adding/removing dining plans, DME, etc.

When you rent, the owner you rent from has complete control of the reservation until you arrive at the resort. The owner you rent from is the only one that can make any changes to the actual reservation, plus you would need to deal with that owner for dining plans, DME, etc.

In all cases, you make your own ADRs, FP+ selections, customize MagicBands, etc.

 

[supersnoop]

I'm guessing from what I've read that most of the folks who are (or were) reluctant to buy DVC, were hung up on the cost of the annual dues (I owned BW from 1998 to 2004 [had to sell to pay for my daughter's wedding!]. I've heard the argument that you could have actually booked a decent Disney resort each year for the cost of the annual dues, especially since some annual dues are above $8 per point now.

First of all, only Vero Beach is "above $8." All the others are $6.52 or less. The most expensive on-site option is $6.26.

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

The advantage over renting? About $6 to $9 per point. How quickly does that make up the initial purchase price?

If you visit every other year, or even every third year, you can still make DVC work. But, remember, it's a timeshare. If you don't want to be tied to Disney, there may be additional value in renting (or less value in owning).

 

[bwbuddy5]

When you use your membership to book the room, you are in complete control of the reservation. You can make any changes yourself including (but not limited to) chaning dates, cancel the reservation, adding/removing dining plans, DME, etc.

When you rent, the owner you rent from has complete control of the reservation until you arrive at the resort. The owner you rent from is the only one that can make any changes to the actual reservation, plus you would need to deal with that owner for dining plans, DME, etc.

In all cases, you make your own ADRs, FP+ selections, customize MagicBands, etc.

Agreed, big advantages.

If I choose to buy, but can't go to a Disney property every year, how confident can I be that I can get my points rented? (forget banking and borrowing for sake of this question)

 

[DVC Mike]

I agree with both of you, and hated selling, but let me be devil's advocate, and change my question since you suggested it:

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

Described in this post:

Why buy DVC if I can keep on renting points?

.

 

[Dean]

I agree with both of you, and hated selling, but let me be devil's advocate, and change my question since you suggested it:

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

Owning is potentially cheaper than renting if you can pay cash, plan well in advance, AT LEAST 7 months out and will go to DVC only resorts at least around EOY. The same can be said compared to chasing discount codes. But ultimately it depends on the choices made including room type, time of year, resort used AND resort owned. The cheapest long term way to own and stay is to buy SSR and stay at OKW. The best value $$ may vary more but still will include buying cheaper points (SSR is generally the cheapest long term). Whatever savings there is will be made on the upfront decisions of number of points, resale vs retail and home resort. Whether those savings and any inherent potential aggravations is worth it depends. For example, one might buy SSR and get VGF most of the time but not all of the time and it will be a lot of aggravation. Renting is best when one doesn't meet those criteria. Off property is also cheaper and better for many.

 

[DougEMG]

Here's my main requirements:

• stay on site in a deluxe room
• go every year till I drop dead

Owning DVC allows me to do that in the cheapest way possible.

Note - I'm aware of owing other timeshares and trading in, but I like to go for 4+ weeks at a time and don't want the hassle of not being able to get what I want when I want it.

 

[zavandor]

I agree with both of you, and hated selling, but let me be devil's advocate, and change my question since you suggested it:

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

When I was reserching DVC, I evaluated renting vs owning, nut for me it's just too stressful not being in complete control of my reservation. So I bought.

 

[kamik86]

Here's my main requirements:

• stay on site in a deluxe room
• go every year till I drop dead

Owning DVC allows me to do that in the cheapest way possible.

Note - I'm aware of owing other timeshares and trading in, but I like to go for 4+ weeks at a time and don't want the hassle of not being able to get what I want when I want it.

Hmm my DVC contract ends when I'll be 71... I sure hope I don't drop dead before hand...

 

[DougEMG]

Hmm my DVC contract ends when I'll be 71... I sure hope I don't drop dead before hand...

I'll be 94 and if still alive that would be a big bonus!

 

[kamik86]

When I first bought DVC I thought I would go every year... I did for several years but then we started wanting to go other places. I still have DVC though... because I found I can rent out the points and still keep DVC in case I want to go again in the future. If I wasn't too lazy to do the work on finding a renter myself I might be able to get more per point but with David's service I am still getting significantly more money then I pay in annual dues. Which then pay for large parts of my other vacations.

 

[Dean]

When I first bought DVC I thought I would go every year... I did for several years but then we started wanting to go other places. I still have DVC though... because I found I can rent out the points and still keep DVC in case I want to go again in the future. If I wasn't too lazy to do the work on finding a renter myself I might be able to get more per point but with David's service I am still getting significantly more money then I pay in annual dues. Which then pay for large parts of my other vacations.

This is a very important point. People often make emotional decisions and decisions with limited experience and information but even for the most seasoned among us, things change from every direction including Disney, our preferences and our life situations. That is why I say that even the most hard core evaluation is near best case scenario.

 

[Raenstoirm]

I agree with both of you, and hated selling, but let me be devil's advocate, and change my question since you suggested it:

What's the advantage of owning DVC rather than just renting points, especially if you don't visit every year?

We plan on buying a larger contract eventually (but BCV is so expensive right now!) so I bought a small contract at BWV. I figure we can bank/borrow for a decent trip every few years, and then pay for transfers when we are out of points. We go during slow seasons and aren't so picky about resorts so it should work well. MY plan is to buy a very large transfer this year and bank half the points and use it for two years worth of trips. The large "purchase" will make it easier to find someone who wants to do the transfer. We don't close till thanksgiving (if we are lucky) though so that is just the current plan and might change.

 

[Jane'sGirl]

New to the Board, but DVC member since I was 22 in 2008. I have had to justify why we "keep" the DVC to my hubby (it was a package deal when he married me- I came with DVC). Since I got a pretty fair price on my points initially and paid it up front, the only costs of keeping it are maintenance fees. We don't go every year. Because I was so young when I bought in, maintenance fees have been a struggle to pay on a couple occasions. In the past while I was in getting my Masters and living on my savings, I allowed close friends and family to use my points for the cost of the maintenance fee to cover my cost and give them a little "gift". Then the last 2 years when we sold my urban condo and bought a suburban house while I was on Maternity leave (I took a total of 3 years off). This time we decided to take the risk and rent the points through a 3rd party to keep ourselves from dipping into savings or needing a line of credit. We found it easy and relatively hassle free to rent out points through a 3rd party and more than cover the maintenance fees/initial cost of the points for the year. Both renting through the 3rd party or "give" family the points for the cost of maintenance so they can enjoy a magical trip to Disney they couldn't otherwise afford were good choices for us. When we do go to Disney, using DVC is a great deal- we always stay in at least a 1BR so we benefit from the Washer/Dryer meaning no Baggage fees for flying, we use the kitchen for approx 2 meals each day and we have SPACE to actually relax and enjoy our vacation, not to mention great resort amenities so we never get more than a 3 or 4 day pass, and no need to rent a car or pay airport transfers. Our plan going forward is to use the Disney points every 3 years- either bank/borrow up for a BIG Disney thing (like the whole extended family and 2 2BRs) or rent a year or 2 out to help off-set the costs of other vacations (because I enjoy all kinds of travel, not just Disney and want my kids to see many different places, not just Disney). A large portion of our travel cost is prepaid, either way.

 

[bwbuddy5]

Jane'sGirl, that's a great post, I think a lot of DVC or potential DVC folks have struggled with the same situation. I'm contemplating buying just to have the nice villas when I want to go, and renting in other years to offset the annual dues.