thinking about joining DVC, need advice...

[Outrageous Crew]

We have been avid Disney Cruise Line fans, having gone on our annual cruise for the past six years. On this last cruise, we took a look at joining DVC.
Mainly to have other options besides cruising for enjoying Disney and other properties.... here is my question. It seems that the $600 annual membership fee is abit steep... we would initially buy in with 150 points at $85 a point.
When would we enventually break even and start feeling like joining DVC was a "deal?"
Thanks in advance...
Tresha

 

[Deep-Thots]

Well, that depends on the type of accomodations you usually stay in when you're at WDW. In general, though, for those who stay in moderate-deluxe accomodations, the break-even point is 5-8 years.

YMMV.

 

[tjkraz]

As Deep-Thots said, it's usually well under a decade. But that's with the caveat that the vast majority of your points are used for stays at DVC resorts. DVC points can be traded for things like Disney Cruises, non-DVC resort stay, and even dozens of non-Disney hotels around the world. But using points for non-DVC options does not return nearly the value as using them at DVC resorts.

 

[MrTerrorChair]

My DW and I bought in 2001 at 160 pts and added on 50 in 2003. That was around a total of 18 G. We have used our points for 4 days at WDW, a 4 day cruise for 3 in an interior stateroom, and a 7 day cruise for three with a verandah. According to our calculations, had we paid the money for those vacations, the total cost would be very close to our investment in DVC. 3 vacations and already paid for!!

 

[tamu91]

The break point truly depends on your own vacation style. We bought DVC because we wanted to stay on-site in a deluxe resort, as a treat to our families. If not for DVC, would we stay on-site in a deluxe resort on every trip. Not likely. And I think most people calculate the break-even-point based on rack rates but there are plenty of discounts available such as AP codes, postcard rates, etc. so decide based on your personal needs.
DVC is, no doubt, a great deal for us Otherwise, we would not be members but we all have our personal reasons for buying DVC.
Here is the bottom line. If you visit WDW at least once a year and prefer staying on-site, it makes sense to consider DVC if you're financially able.

 

[pkitty]

I agree with TAMU91 and with regards to the steep annual fees. These fee's are broken down and made available to you. Very transparent. They may seem a little high at first, but when you figure in everything I wonder how they can do it for this amount. Other's are not much cheaper and if your getting a good deal on the annual fee it show's. ( house keeping, upkeep on the pool and garden care etc). WOW! when it comes to protecting your investment Disney is the best!

 

[SoCalKDG]

My DW and I bought in 2001 at 160 pts and added on 50 in 2003. That was around a total of 18 G. We have used our points for 4 days at WDW, a 4 day cruise for 3 in an interior stateroom, and a 7 day cruise for three with a verandah. According to our calculations, had we paid the money for those vacations, the total cost would be very close to our investment in DVC. 3 vacations and already paid for!!

I'm a bit confused on your calculations. A 7 day cruise with verandah runs approx. $4000 in high season, 4 day cruise runs $1750, and 4 days at WDW would be approx. $800. Total of $6550. You spent $18,000, plus another $2000 in dues, for a total of $20,0000. What am I missing?

To the topic at hand. If you go every year and would stay at moderate or above, then you could see a breakeven around 8-10 years. I base this on Deluxes at $175 and Moderates at $125. I'm not one to use rack rates since everyone on the disboards will show you how to get discounts. Occasionally skipping weekends can see your break even happen even sooner.

What was more important for us is my wife really likes suites. Those aren't cheap on Disney property(not even that cheap off site either).

When you toss in the fact that you could sell you DVC after 10 years and get a substantial amount back, that makes the decision a little easier.

 

[Deep-Thots]

I'm a bit confused on your calculations. A 7 day cruise with verandah runs approx. $4000 in high season, 4 day cruise runs $1750, and 4 days at WDW would be approx. $800. Total of $6550. You spent $18,000, plus another $2000 in dues, for a total of $20,0000. What am I missing?

Since I don't "do" cruises and am unfamiliar with costs, etc., I can't comment on that portion of the post. But if they purchased DVC in 2001, they paid around $70 ppt ("official" prices, sans "buybacks", were $71 and $72 ppt at the time). That means they have paid somewhere around $14K for DVC thus far (including MF). Again, I don't know about the cruise costs and how they factor in here. But, ITTH.

 

[tjkraz]

Since I don't "do" cruises and am unfamiliar with costs, etc., I can't comment on that portion of the post. But if they purchased DVC in 2001, they paid around $70 ppt ("official" prices, sans "buybacks", were $71 and $72 ppt at the time). That means they have paid somewhere around $14K for DVC thus far (including MF).

Actually the $18K figure came right from MrTerrorChair's post.

I don't think he's trying to deceive anyone, but I trust I wasn't the only one with raised eyebrows after reading that post. Sorry, but there's just no way that a 4-night DVC stay plus a couple of cruises would have cost $18,000 cash. I think SoCalKDG is on the right track.

Even using points for DVC rooms only, lowest season, weekday stays and comparing to Rack Rates, you'll be lucky to break-even in 5 years. Using points for things like cruises will extend that break-even point dramatically.

 

[Deep-Thots]

Actually the $18K figure came right from MrTerrorChair's post.

Oops. My bad. I had a bit of a brain belch and forgot about the 50 point add-on. My figures were for the original 160 points only. With the add-on, the amount invested is indeed closer to $18K ($20K with MF).