Thinking About Becoming a Member..skeptical

[milenkod]

Just got back from Disneyland this week and asked about the DVC on the last day of our trip. Never heard of it and was curious so I went to the presentation. I quickly figured out this is simply Disney's version of a time share..or is it? If I plan to vacation elsewhere (non-Disney resorts) am I foolish to go forth with this?

I have a family of six (3 girls 6 and under; newborn son, wife and myself) so this sounds like a decent deal until the kids grow out of anything-Disney. However, my wife and I have had a timeshare before that we spent a considerable amount of money, used it for 5 years and then 'gave-up' on it after a storm destroyed it and had to be re-built. Needless to say the resort MF exceeded the cost of paying for a like resort out-of-pocket. So economically, we walked away in default.

So my dilemma is that going though Disney, it's quite expensive and the financing interest rate is ridiculous. Is there any cheaper alternatives like buying out a member that is in default? I guess "first right of refusal" comes into play but I'm not exactly clear how that all works out....nor if I find myself just not using it and want to sell, how am I affected in that scenario?

Thanks.

 

[Mickey'sApprentice]

Just got back from Disneyland this week and asked about the DVC on the last day of our trip. Never heard of it and was curious so I went to the presentation. I quickly figured out this is simply Disney's version of a time share..or is it? If I plan to vacation elsewhere (non-Disney resorts) am I foolish to go forth with this?

I have a family of six (3 girls 6 and under; newborn son, wife and myself) so this sounds like a decent deal until the kids grow out of anything-Disney. However, my wife and I have had a timeshare before that we spent a considerable amount of money, used it for 5 years and then 'gave-up' on it after a storm destroyed it and had to be re-built. Needless to say the resort MF exceeded the cost of paying for a like resort out-of-pocket. So economically, we walked away in default.

So my dilemma is that going though Disney, it's quite expensive and the financing interest rate is ridiculous. Is there any cheaper alternatives like buying out a member that is in default? I guess "first right of refusal" comes into play but I'm not exactly clear how that all works out....nor if I find myself just not using it and want to sell, how am I affected in that scenario?

Thanks.

Welcome to the DIS!

Yes, DVC is a timeshare. However, it is different from an "old fashioned" timeshare. The DVC system is very flexible as you receive points to do with as you like as opposed to having a set unit for a set week.

The great thing about DVC is that you can go for however many days, whenever you want and stay in accommodations ranging from a studio to a 3 bedroom villa that sleeps 12.

DVC is by far most cost effective when you stay at one of the DVC resorts, preferably on weeknights. Many suggest that you should never use your DVC points to stay at anything but a DVC resort. I personally believe that it is ok to use DVC points for the other options ON OCCASSION as you might have points you need to use while also wanting to vacation elsewhere, but should not purchase DVC thinking that you will primarily use it for other locations. We have chosen to purchase a small contract through resale so that IF we choose not to go to Disney for a year or so, we can bank or borrow our points as needed so that we can go somewhere else in the off year.

As far as the family growing out of Disney...this is possible, but not usually the case. Dh and I are a couple in our late 30s without kids, and absolutely love Disney. Plus, even though DVC should never be considered an investment, DVC resale prices have historically kept pace so that owners getting out in 5 years don't take a real bath. (That is one way that Disney is not at all like other timeshares.)

[DVC has not been doing great as far as keeping its value lately, but we are in a poor economy right now, but most would still come out ahead if they calculated the value of the rooms that they have stayed in.]

You've had a timeshare before so you already know this...a 2 bedroom seems like it would be a Godsend for your family.

If you enjoy going to WDW instead of Disneyland I would consider either purchasing resale or a 100 pt. contract for AKV that Disney is currently selling. That will get your feet wet, and allow you to reserve a 2 bedroom about every other year.

There is a lot to learn so hang out on the DVC forums and visit the links to the Timeshare Store at the top of this thread. That will show you the resale prices and the point charts.

 

[chalee94]

DVC can be a great deal if you love staying onsite at wdw in a nicer room than at the value hotels, and can avoid overdoing the weekend nights (as they are much more expensive.)

disneyland is a different situation - not sure i'd recommend buying in there unless you really wanted to use it to stay at the grand californian at least every other year or something.

you can trade out but it's not the best use of pts to do so.

you can get slightly cheaper pts buying resale but it's not like other timeshares where the value retreats 70% or more after you buy in. (OTOH, if you don't like it and want to sell, there is a fairly well established market for reselling your contract.)

 

[JimMIA]

I quickly figured out this is simply Disney's version of a time share..or is it?

Yes, it is.

If I plan to vacation elsewhere (non-Disney resorts) am I foolish to go forth with this?

I'm not an expert in timeshare exchanges, but people whose opinions I respect would say "Yes." Not that DVC is a poor vehicle for exchanging to other resorts, but there are probably better options out there.

So my dilemma is that going though Disney, it's quite expensive and the financing interest rate is ridiculous. Is there any cheaper alternatives like buying out a member that is in default?

The less expensive option is the resale market. If you click on The Timeshare Store's link at the top of this page, you'll find many DVC listings that are priced somewhat below what Disney charges. If they take points, either by right of first refusal or default, they sell them for a high price. DVC does not offer any bargains on those points.

The downside of resale is that it takes some time (plan on 6-8 weeks and be happy if it takes less), and it can be uncertain due to ROFR. If you use a reputable and knowledgeable broker like TTS, they can give you good advice on the proper pricing level to clear ROFR.

If you need to finance, probably the least expensive option is a home equity loan. Disney's rates may seem high, but they are lower than you'll pay elsewhere. TTS has financing arrangements, but I believe the rates are a little higher than DVC's.

Also, chalee94's advice above is very sound, IMHO.

 

[JimMIA]

I would also take a look at this thread, which discusses the travails of DVC owners who have basically been thrown out in the street by AKV.

http://www.disboards.com/showthread.php?t=1912200

This particular fiasco is allegedly caused by unexpected crazy renovations to the Concierge level at AKV, but the WDW hotels have been cancelling confirmed DVC reservations (for DVC villas, not hotel rooms) with increasing frequency over the past few months.

Any prospective buyer should be aware of these issues, as well as the many benefits and financial aspects of DVC ownership.

 

[vandy]

Everyone's vacation habits are different so you will need to decide for yourself if this works for you. We are a family of six as well and decided that it was a good decision for us. Basically, I took the cost of our points purchase, added in the cost of annual dues (maint. fees) and divided by the number of years on our contract. (When we bought, the dues at SSR was $4.12 per point. I plugged in a $7 per point figure to account for dues increases). Once I figured our yearly expense, I compared that to what we would be spending at a value resort and concluded that it cost about the same for us to stay at a 2BR DVC resort as it would to book 2 rooms at a value for the same number of days. Then I also realized we would have a much larger room and the full kitchen allows us to save even more money by eating at least breakfast and lunch in our room. The kicker for me is that my DVC figure will not really change that much (since I averaged $7/pt. dues), but the cost of a regular room will continue to go up over the term of our contract. We truly are paying now for future vacations.

As far as children outgrowing Disney, that is always a possibility, but if you notice the age of our kids (on our signature line) the youngest is 14 and they all still love it. Their tastes have simply evolved and they now love rides like Rockn Roller Coaster instead of Dumbo. DTD is also more of a draw than when they were little.

Remember that you can bank one year and borrow one year, therefore you can purchase less points and pool them together every three years for a trip to Disney. By doing this, you could buy the 100 pt. contract and stay in a 2 BR for 7-9 nights at AKV (depending on time of year). This can leave two years in between trips to WDW for other vacation destinations.

Best wishes in your decision process as I know it can be daunting at times.

 

[lapeter]

We have been looking a DVC, but we do not plan our trips 11 or 7 months in advance. We usually know one to two months out and DVC really won't work for that, from what I can see.

 

[milenkod]

DVC can be a great deal if you love staying onsite at wdw in a nicer room than at the value hotels, and can avoid overdoing the weekend nights (as they are much more expensive.)

disneyland is a different situation - not sure i'd recommend buying in there unless you really wanted to use it to stay at the grand californian at least every other year or something.

in reality, we're not going anywhere near Florida as airfare from San Francisco Bay Area (where I live) for a family of 6 is a cost deal breaker for us. Our vacations for the next 5 years or so (at least) are at DisneyLand and maybe a Disney Cruise generating from the west coast. That's about it....it's got to be within driving distance for me.

you can trade out but it's not the best use of pts to do so.

you can get slightly cheaper pts buying resale but it's not like other timeshares where the value retreats 70% or more after you buy in. (OTOH, if you don't like it and want to sell, there is a fairly well established market for reselling your contract.)

Is reselling, say after five years or so, guaranteed or can I be at a total loss? What is the avg selling rate (minus fees ect.)?

 

[delmar411]

in reality, we're not going anywhere near Florida as airfare from San Francisco Bay Area (where I live) for a family of 6 is a cost deal breaker for us. Our vacations for the next 5 years or so (at least) are at DisneyLand and maybe a Disney Cruise generating from the west coast. That's about it....it's got to be within driving distance for me.


Is reselling, say after five years or so, guaranteed or can I be at a total loss? What is the avg selling rate (minus fees ect.)?

Well you could buy DVC at Disneyland. Aren't those units supposed to go on sale soon?

If you click the link in the top banner for DVC resales, it will take you to the timeshare store and you can see the prices for the resales. I believe the commission is 10%(?) for the agent.

 

[bellazachmom]

One other thing to keep in mind is that DVC currently has 2 non-theme park related properties - Hilton Head Island and Vero Beach. There are plans for a resort in Hawaii (fingers crossed here) and many members have received surveys about other possible locations. You can use your points here, especially if you out-grow Disney for a while.

 

[bellazachmom]

We have been looking a DVC, but we do not plan our trips 11 or 7 months in advance. We usually know one to two months out and DVC really won't work for that, from what I can see.

We purchased DVC in 2002 and have taken 1 or 2 trips a year since then. We are a military family and have always booked our trips about 3 months out since we can never be sure if hubby will be around or not to plan any farther in advance. We haven't always been successful in getting our first choice of resorts, but we have always gotten something in the size we needed. We have finally been able to book BCV at the 11 month mark for next year because hubby's current job is keeping him home for a little while.

 

[Mickey'sApprentice]

in reality, we're not going anywhere near Florida as airfare from San Francisco Bay Area (where I live) for a family of 6 is a cost deal breaker for us. Our vacations for the next 5 years or so (at least) are at DisneyLand and maybe a Disney Cruise generating from the west coast. That's about it....it's got to be within driving distance for me.


Is reselling, say after five years or so, guaranteed or can I be at a total loss? What is the avg selling rate (minus fees ect.)?

I agree that you should wait around until DVC at Disneyland is available. It will probably be a few years before there are any Disneyland contracts available through resale.

DVC is not one of the timeshares that you purchase, never use, and then can't get rid of. I suspect that most owners that purchased 5 years ago would make money if they sold DVC. We bought in early 2006 and prices have held study. We bought 100 BWV points for $84 - and I suspect we could nearly get that now if we needed minus the 10% commission.

There will be very few Grand Californian Villas at Disneyland, and I suspect that they will do rather well on the resale market.

 

[milenkod]

Well you could buy DVC at Disneyland. Aren't those units supposed to go on sale soon?

The villas at the Grand Californian are currently under construction (I saw them working on it while I was there). They are not expected to open until 2011 and I toured the models while at the DVC presentation....beautiful layout of the one-bedroom + studio. That is where i'd like to have my home resort as I'd use it the most.

Is there a thread on how transfers work or can I inquire about that here in this thread?

 

[milenkod]

What about other time shares trading into a Dinsey resort? If I had a competior time share and I traded into a Disney resort, could I get the same studio or would those only be reserved for DVC members?

 

[NEMO93]

We just came back from VB and had a great time. My children are 17 and 19. They had a blast playing and doing some of the activities that are offered at VB. They also surfed,boggie board in the ocean, saw a release of a sea turtle. We have been members of the DVC since 1992 and have had great vacations every year since we have been members.

 

[Grendalynn]

Sunscribbing! I am curious to know more about DVC... about how how many points would a family of 5 need to stay at WDW for a week during regular season?? Thanks!!

 

[javamom]

We have been looking a DVC, but we do not plan our trips 11 or 7 months in advance. We usually know one to two months out and DVC really won't work for that, from what I can see.

Well, like everything at Disney, the answer is yes and no. If you are not picky about which resort when you call 2 months out, you should be able to get booked somewhere. Maybe not if you are trying to book either peak Disney, or peak DVC, seasons.

 

[michellem1118]

We have been looking a DVC, but we do not plan our trips 11 or 7 months in advance. We usually know one to two months out and DVC really won't work for that, from what I can see.

I've booked trips on points at 2-3 months out with no problem, but in order for this to work, you have to be flexible with where you stay.

 

[Mickey'sApprentice]

Sunscribbing! I am curious to know more about DVC... about how how many points would a family of 5 need to stay at WDW for a week during regular season?? Thanks!!

THe best thing to do is to review the DVC Point Charts that can be found by clicking on the link at the top right hand side of this page.

However, as a for instance...you can stay in a standard 1 bedroom villa at Animal Kingdom [max occ. 5] Villas for 1 week in "peak" season (actually called magic season,) for 225 points, or 5 weekdays for 125 points. Magic season is the next to most expensive point usage time and includes most of the Summer.

We often travel at off-peak times and can stay in a studio on weeknight points and use as little as 45 points for 5 days.

 

[lapeter]

We just like the resorts by EPCOT. If it is a DVC it would have to be BCV or BWV. That's where I think we would have a problem and why it might not work for us. The other challenge is that we winter in Maui and airfare Maui to Orlando is really getting expensive and I think will continue up. My thoughts are just to rent a room or studio at one of the three resorts by EPCOT.

I've booked trips on points at 2-3 months out with no problem, but in order for this to work, you have to be flexible with where you stay.