The Real Cost

[tacomaranch]

While examining a DVC purchase I think I have looked at every single aspect. I wanted to share that to purchase at DVC SSR with 200 points, close and an estimated fees at 5. per year.

It would cost over $65,000.00 if kept until it expires. The reality of DVC.

 

[I'mNoPrince]

So thats about $ 1350 per year .

I'll take that for the next 45 years anyday.

If you take that 200 points and break it to 5 day weekday studio trips that could be 4 trips at about $350 a trip or $70 a night .

You will not be able to touch that at all in the next 10 years even off-sight if things keep pace with what they are now.

Plus you have to add in if you do decide to sell people that bought other DVC resorts that were in their second year are getting more on Resale then what they paid to begin with.

Just my $.02

 

[TAKitty]

While examining a DVC purchase I think I have looked at every single aspect. I wanted to share that to purchase at DVC SSR with 200 points, close and an estimated fees at 5. per year.

It would cost over $65,000.00 if kept until it expires. The reality of DVC.

I think DVC is unique because you can add up how much your trips would cost over the years. How many people add up their other expenses in this way? I am sure if one added up the amount of money spent on coffee, dry cleaning, auto insurance, other trips etc. that they would be shocked by the amount.

 

[rinkwide]

Geraldo, is that you?

 

[RAD]

Without DVC I couldn't afford a BWV Grand Villa for four nights next December (rack rake about $7K) to take some family down for the holidays. Or to get two 2BR's and three studios at BWV four 5 nights for a big birthday celebration (when I figured it out the room charges would be about $14K). So to borrow the line from MasterCard, priceless.

 

[tacomaranch]

Oh, I never said that we are not going to buy. We have Jerry at Timeshare Store, my life savings, and hope.

It was just me number crunching. I explained to DH that we could get a room today in a mod for around $100 per nite, 5 nites, twice a year. There is the 1K per year. Price of rooms going up......well, it still makes sense to buy a contract or direct.

 

[tacomaranch]

Emberneville is that you?

 

[drakethib]

yeah but staying in a mod (nothing against them, Riverside is and will always be one of my favorite resorts) compared to a DVC Studio, you get much more with a Studio IMHO.

Stay in a one bedroom and you will never go back.

I guess you can stay in The Plaza or a Motel 6, they both give you a clean place to stay, but one offers so muhc more.

Just my 2 cents.

 

[Lynne M]

It's absolutely true, you can stay in a moderate for less than the cost of buying into DVC.

But, I bought DVC because I didn't want to stay at moderates. I'm a deluxe resort girl, through and through. Now I stay in deluxes for about the cost of staying in a moderate.

Seriously, if your primary reason for looking into DVC is saving money, and you're perfectly happy at a moderate, then DVC isn't going to make much financial sense. The break-even point will be a long time coming. DVC is about getting better accomodations.

 

[starbox]

While examining a DVC purchase I think I have looked at every single aspect.

One aspect I did not really anticipate:
When we purchased DVC, I figured that I could get a few more days of vacation for roughly the same amount of $$ I was already spending for WDW packages.

The way I see it, owning DVC could have sent me in one of two directions:

1) I could have started using the points to stay in larger, and thus, more luxurious units and used the kitchens to eat-in the unit more. I also could have figured that I did not "need" to spend quite as many days in the parks each vacation and done other things some of the time. (Friends of ours are going to Orlando for a week and only spending 2 days in the parks - they asked for planning help and I actually put together a very nice plan that involved relatively inexpensive - but still Disney - activities).

This plan would have saved money in the long run, no doubt.

But it is also not my personality. I've gone in the opposite direction and done plan "b".
2) Purchased annual passes. Planned a few additional trips to "maximize" the use of them (this saves money, right?). Decided that frequent trips mean we ought to do special things, like lunch with an imagineeer and tours. Decided to start trying more signature dining, since we've hit most of the regular TS places. Invited family memebers to travel with us to share the joy of Disney!

In reality, DVC has motivated us to spend much more $$ at Disney. I'm very glad that I did not buy in anticipating a way to save money.

 

[Pennyguy23]

Well I am young and today I decided I was going to purchase into the DVC. I have been putting numbers together for a few days now and I know it will save me a little money but give me better accomadations rather then a mod hotel. Since I first really hear about DVC, I mean actually really paid attention to it was when we went on the disney 7 day cruise when they were on the west cost about a 1 1/2 ago. But it was just to much. Then I found the TSS website and found a perfect package for us. We just got married, bought a house, and went to the poly for a 10day honeymoon in July so you can imagine how much money we have. But we spend about 4,000$ a year one a couple disney Vactions so, really why rent when you can own?

163.00 x 7 = 1141$ CB for 7 nights
7 nights at SSR studio 800$

I choose SSR.

 

[greenban]

yeah but staying in a mod (nothing against them, Riverside is and will always be one of my favorite resorts) compared to a DVC Studio, you get much more with a Studio IMHO.


I guess you can stay in The Plaza or a Motel 6, they both give you a clean place to stay, but one offers so muhc more.

Just my 2 cents.

Stay in a one bedroom and you will never go back.

Right on Brother!

Once in a 1BR or above you cannot go back!

That is the 'true' cost of DVC......Geraldo!

-Tony

 

[Disney Doll]

I've gone in the opposite direction and done plan "b".
2) Purchased annual passes. Planned a few additional trips to "maximize" the use of them (this saves money, right?). Decided that frequent trips mean we ought to do special things, like lunch with an imagineeer and tours. Decided to start trying more signature dining, since we've hit most of the regular TS places. Invited family memebers to travel with us to share the joy of Disney!

In reality, DVC has motivated us to spend much more $$ at Disney. I'm very glad that I did not buy in anticipating a way to save money.

I'm a "Plan B" girl myself!!

 

[Caskbill]

It's not realistic to try to project the cost of something over several decades.

It wasn't that long ago that a cup of coffee was a nickel, and it won't be too long in the future when it'll be $10.00

The factor often missed is salaries are also changing. If someone made 0.50/hour when coffee was 5 cents, that would be the same as coffee costing $1.00 for someone making $10/hour.

The thing about DVC is the purchase price is in 'today's dollars', but the value for staying in the rooms in the future will be in 'tomorrow's dollars.

Eventually everyone is staying at DVC for only the cost of the dues. So just looking at dues, of about $4.00 point today, and a Studio that takes 10 points, the 'cost' is about $40. Compare that to another resort let's say at $100/night plus tax, or $112.50/night. The 'savings' is $62.50/night.

Now if dues go up 3% a year, and the cost of the other resort also goes up 3% a year, then in 10 years dues will be $5.37/point, so that same 10 point room 'costs' $53.70 in dues. That $100/night room goes up to $134.39, or $151.19 tax included.

So the cost of the DVC room increased by $13.70/night, while the cost of the non-DVC room increased by $38.69.
That's the real advantage to DVC. The payback on the inflation factor.

If the non-DVC room started at $200/night, then in 10 years it'd be $302.38 (tax included), while the DVC room is $53.70.

The above of course excludes the original purchase, but let's say it takes 7-10 years for the purchase price to 'pay-back'. Then for the 2nd 10 year period, the above 'example' is absolutely true. And if you went longer, the savings is only greater.

The other way to use DVC of course is not the apples to apples of comparing a Studio to a regular resort room, but rather comparing things like a 1-B/R. In this case the savings are not as great, or possibly no savings at all. But OTHO, you're staying in a 1-B/R for the same cost someone else is paying for a regular hotel room.

 

[LisaS]

The other way to use DVC of course is not the apples to apples of comparing a Studio to a regular resort room, but rather comparing things like a 1-B/R. In this case the savings are not as great, or possibly no savings at all. But OTHO, you're staying in a 1-B/R for the same cost someone else is paying for a regular hotel room.

I compared the cost of a preferred view studio and 1BR at BWV with the cost of a lake-view room at YC (with an AP discounted rate, plus tax) in May (Dream Season). According to my calculations, the studio is about 1/3 the cost of the room at YC and a 1BR is about 2/3 the cost. So you can stay in a 1BR and still be saving money over the cost of a deluxe hotel room. If you include one weekend night in your stay, you still save money: the average cost for the 1BR is about 70% of the cost of the room at YC. Again, that was with an AP discount at YC, so I wasn't comparing DVC to rack rate, but to discounted room rates and DVC still came out ahead! Granted, the comparison would be different with a non-lakeview room but we always paid for lakeview when we stayed at YC, so that was the appropriate comparison for my situation.

My cost/point included dues and my initial purchase cost amortized over the remaining life of my contract. Since I bought in just last year, my cost/point is higher than for those who bought in earlier or who purchased less expensive resorts. So you early birds are getting an even better deal!

 

[Cruelladeville]

For those of us who bought several years ago, the cost of a studio would run about $30 per night or so. I would expect that those of you who are buying now will also be saying "WOW" in a few years, because you will be noticing the same savings. Besides this, the beauty is that if you need to sell, you can, and still break even, making your trips virtually free.

 

[mom2dzb]

But it is also not my personality. I've gone in the opposite direction and done plan "b".
2) Purchased annual passes. Planned a few additional trips to "maximize" the use of them (this saves money, right?). Decided that frequent trips mean we ought to do special things, like lunch with an imagineeer and tours. Decided to start trying more signature dining, since we've hit most of the regular TS places. Invited family memebers to travel with us to share the joy of Disney!

In reality, DVC has motivated us to spend much more $$ at Disney. I'm very glad that I did not buy in anticipating a way to save money.

Starbox . . . you've captured my train of thought completely. I've only just purchased my 200 point contract. I'm very afraid of what my point count will be in 5 years . . . to maximize the value of my annual passes and to not offend my family by saying "we've only got enough points to bring so-and-so."

 

[owtrbnks]

When we purchased DVC, I figured that I could get a few more days of vacation for roughly the same amount of $$ I was already spending for WDW packages.

I've gone in the opposite direction and done plan "b".
2) Purchased annual passes. Planned a few additional trips to "maximize" the use of them (this saves money, right?). Decided that frequent trips mean we ought to do special things, like lunch with an imagineeer and tours. Decided to start trying more signature dining, since we've hit most of the regular TS places. Invited family memebers to travel with us to share the joy of Disney!

In reality, DVC has motivated us to spend much more $$ at Disney.

Yeah - we thought about how much we'd "save" on future vacations too! (WDW 6x in 2005, 6x in 2006)
Fall 2005 - Bought at SSR
Spring 2006 - Had to get AP's
Winter 2006 - Passed ROFR on HH Contract (today)
Can't wait til summer when we can "save" more $

 

[joelub]

you also save the Hotel Tax ,about 11%

 

[kimberh]

Tax up to 12.5% I am hoping for great future value savings. We did not buy in the 90's. We waited until 2006 and now I have 3 properties.