Thinking about DVC

[jpkenyon]

Am thinking about purchasing into the vacation club to share time with family. We couldn't do this every year, but maybe every 2 or 3. If we don't have enough points to bank or borrow how do you know how much the balance will cost?

 

[com_op_2000]

You can rent/receive transfered points from other DVC members on the rental board. They run from @$8 (distressed points to be used quickly) to @$14.
You can get upto 24 point for $15 per point directly from DVC for a booking within your 7 month reservation window.

 

[browniemtb]

Am thinking about purchasing into the vacation club to share time with family. We couldn't do this every year, but maybe every 2 or 3. If we don't have enough points to bank or borrow how do you know how much the balance will cost?

Not sure I follow the above balance question. Like the other post said, if you run short you can do a transfer from another member or purchase up to 24 points from DVC. Cost will vary on how many points are needed. As far as DVC itself goes, if you finance, it will be a set cost per month. Dues can be paid monthly or the 1st of the year, that number can fluctuate a little.

 

[Deb & Bill]

DVC is an expensive timeshare. If you don't go at least annually or every 18 months, you are paying annual member fees for years you aren't even going. On another thread, you said you already have a timeshare that you haven't been able to trade into DVC. There are a lot of folks on these boards who do own other timeshares and they have lots of success trading into DVC. Maybe they will respond.

A PP said you could get a transfer. That all depends on the other members. Members are limited to one transfer in or out each UY. So if they want to transfer points, they probably want to transfer a lot at one time, not just a few.

You might try "renting points" to try it out first. Either find an individual member who will make you a reservation using their points or book through a broker, who matches up members with guests who want a reservation.

 

[DisneyDenis]

DVC is an expensive timeshare. If you don't go at least annually or every 18 months, you are paying annual member fees for years you aren't even going.

I disagree on this point completely. I initially bought into DVC at 100 points with Dec UY. I could easily do vacations every 3 years. Example,

(1.) 2013 100 points banked into 2014 and 2015 100 points borrowed into 2014. Including 100 points for 2014 ...
I have 300 (up to 324) points for a 2014 vacation.
(2.) 2016 100 points banked into 2017 and 2018 100 points borrowed into 2017. Including 100 points for 2017 ...
I have 300 (up to 324) points for a 2017 vacation, etc. etc.

You can see every 3 years is doable and I am only paying dues on 100 points per year.

Now cost comparison...

If I choose to go to SSR in 3 bedroom Treehouse Villa (with family/friends), it would cost 295 points during Choice Season just before Christmas (for example, checking in Dec 17, 2014 checking out Dec 24, 2014) for 7 nights.

The rack rate would be $ 8763 (including tax). Now let me go out on a limb here and also include a 30% discount which probably will not happen at that time of year (current discounts exclude 3 bedroom villas) and we get ... $6134 discounted.

100 points membership fees for 3 years at SSR: 2013 + 2014 + 2015 (estimated): $ 1500.

Anyone can clearly see there are a big savings here...DVC is well worth it - even going every 3 years.

 

[chukdotcom]

I disagree on this point completely. I initially bought into DVC at 100 points with Dec UY. I could easily do vacations every 3 years. Example,

(1.) 2013 100 points banked into 2014 and 2015 100 points borrowed into 2014. Including 100 points for 2014 ...
I have 300 (up to 324) points for a 2014 vacation.
(2.) 2016 100 points banked into 2017 and 2018 100 points borrowed into 2017. Including 100 points for 2017 ...
I have 300 (up to 324) points for a 2017 vacation, etc. etc.

You can see every 3 years is doable and I am only paying dues on 100 points per year.

Now cost comparison...

If I choose to go to SSR in 3 bedroom Treehouse Villa (with family/friends), it would cost 295 points during Choice Season just before Christmas (for example, checking in Dec 17, 2014 checking out Dec 24, 2014) for 7 nights.

The rack rate would be $ 8763 (including tax). Now let me go out on a limb here and also include a 30% discount which probably will not happen at that time of year (current discounts exclude 3 bedroom villas) and we get ... $6134 discounted.

100 points membership fees for 3 years at SSR: 2013 + 2014 + 2015 (estimated): $ 1500.

Anyone can clearly see there are a big savings here...DVC is well worth it - even going every 3 years.

Your math has some big holes in it. Having said that, I agree it is cheaper if you do that every 3 years for the life of the timeshare.

 

[HokieGCC]

There is "general acceptance" that DVC will start saving you money in the 7 to 10 year range. However, the savings is only comparing Deluxe resorts. If you would normally stay in Moderate or Value resorts DVC is a bump in price. You also need to go roughly every other year or more to make it work (generally).

Disney is the best company I have ever seen separating you from your money. You can be sure that Disney believes they get more of your money (in total) if you are in DVC than not.

 

[Deb & Bill]

I disagree on this point completely. I initially bought into DVC at 100 points with Dec UY. I could easily do vacations every 3 years. Example,

(1.) 2013 100 points banked into 2014 and 2015 100 points borrowed into 2014. Including 100 points for 2014 ...
I have 300 (up to 324) points for a 2014 vacation.
(2.) 2016 100 points banked into 2017 and 2018 100 points borrowed into 2017. Including 100 points for 2017 ...
I have 300 (up to 324) points for a 2017 vacation, etc. etc.

You can see every 3 years is doable and I am only paying dues on 100 points per year.

Now cost comparison...

If I choose to go to SSR in 3 bedroom Treehouse Villa (with family/friends), it would cost 295 points during Choice Season just before Christmas (for example, checking in Dec 17, 2014 checking out Dec 24, 2014) for 7 nights.

The rack rate would be $ 8763 (including tax). Now let me go out on a limb here and also include a 30% discount which probably will not happen at that time of year (current discounts exclude 3 bedroom villas) and we get ... $6134 discounted.

100 points membership fees for 3 years at SSR: 2013 + 2014 + 2015 (estimated): $ 1500.

Anyone can clearly see there are a big savings here...DVC is well worth it - even going every 3 years.

You can do every three years. But if you have to cancel your trip and you have difficulty rescheduling it, you might possibly lose your points. Or at least the banked and borrowed points. And you would still have to be within your banking period to save the current year points.

That's why I say every year or 18 months instead of every three years.

Also, never compare rack rate with what you are paying for your DVC. It's not a true comparison. Because people seldom pay rack rate. And most people wouldn't book for cash what they would book with DVC points except once in a blue moon.

You left out the original price of your points in your comparison.

 

[crisi]

We do every two...I'm of the opinion that every three leads to a situation where you don't have enough points, or you need to waste some. Two allows you to combine banking, current points and borrowing so points never "go to waste"

With the ability now to buy a few points, that makes it a little easier - you can short yourself a few points and still travel.

Disney also reserves the right to suspend banking and borrowing.

 

[Dean]

IMO once you get past EOY as the plan, the risks make owning unreasonable and the actual savings are a lot less because you're only saving less than half the time so less than half the money (assuming DVC saves you at all). On paper every third will work with even less savings but again, too much risk to make it reasonable. Using rack rate is not a reasonable comparison to compute savings or break even unless one would have paid that way otherwise without DVC. I'm not sure that it's generally accepted that break even is 7-10 years, for many I think it's much more and for a fair subset, they'll never break even esp for new purchases retail or using a lot for cruises or similar. IMO that's about the best most can do on paper and in reality I think very few people save money with DVC though an additional group gets added value. For some of these not only will they not break even, they will pay more over time than had they simply paid cash. Likely the largest overlooked component of cost is the Time Value of Money for the up front costs. I also do not believe that financing is reasonable due to the added costs, tendency to buy retail, interest (likely least important component) and the largest one, the risk it adds to one's situation.

 

[abner1776]

I look at it from a more practical approach forgetting about the time value of money, etc. My points cost me just under $8/pt including the original purchase price and annual maintenance fees. That cost was as low as $7 when I purchased my points and I am sure it will be closer to $9 in a few years, but $8 works for now.

For the times that I go to WDW, the point usage is around 18-20 per night so I am looking at my room cost of $140-$160 per night for a studio and I don't pay any taxes which can add another 11%.

Can I stay at a deluxe or even a moderate for $160 per night(including tax) even with the 30% discount....not from what I have seen. My DD is currently at POFQ( I ran out of points) and she is paying far more than $160 per nights..before taxes !!!

If I was planning on going to WDW every two to three years I would certainly look at how many points it would cost for that vacation and divide it by 2 or 3 and purchase that amount of points and bank and borrow as needed.

 

[jpkenyon]

Thanks everyone -- you sure have given me a lot to think about. This is definitely not a snap decision.