thinking of buying--PLEASE HELP!!

[panfan]

I really need help deciding what to do. We currently have not bought in DVC however we think about it every year. Our history is that we end up going to WDW every year staying at different resorts. Our problem is that we are restaurant owners and many times cant make plans to go untill a couple of months before. Also i am concerned with the yearly fees. It seems that it is about the same as what we normally spend on the hotel so what are the advantages of buying?? PLEASE HELP!! It is something that we think about every year. Maybe i just dont have all the facts correct.

 

[CarolMN]

DVC is not cheap and it is not a good economic value for everyone.

DVC works best for those that can plan 11 months in advance, travel to WDW every year and usually stay in an on-site deluxe hotel. It can also work for those who travel every other year and stay in moderate hotels, but the "payback" period will obviously be longer.

You may want to reconsider DVC if you can only make plans about 30 days in advance. At 60 days before arrival, DVC often allows CRO to rent rooms from the DVC point inventory for cash. Availability is frequently limited 60 days or less from arrival.

That said, many posters report success in getting rooms on short notice. If you don't think you will ever be able to plan more than 7 months in advance, it wouldn't matter whcih DVC resort you purchased because you won't be able to take advantage of the home resort booking window, anyway.

If you have spending approximately the amount of annual fees for hotel rooms and have been happy with the accomodations, DVC is probably not for you. One of the advantages of DVC is the accomodations - larger with many more amenities than the typical hotel room.

My advice is to call DVC and get the video. Read the FAQ at the top of the forum (if you haven't already). Ask more questions as you think about purchasing. Don't rush the decision - from what you've posted, DVC may not be right for your family, but that's JMHO.

Best wishes!

 

[panfan]

please-- why won't anyone else help me with this??

 

[poj7]

Carol gave you excellent advice. What specific questions do you have?

 

[chris1gill]

You didn't say how many nights you usually go for?

if you usually go for a week a year & stay in the deluxe resorts, you'll definitely come out ahead with DVC... Many people do plan ahead, but we've been lucky even with just a few months advance notice... you can always go on the waitlists & hope that one works out for your dates as well....

Other than that, agree with everything already said!

 

[Chuck S]

It's not that we don't want to help, but Carol has given such complete and accurate answers.

We bought in 1992, and it has enabled us to go to WDW twice per year.

If you enjoy staying On-site in wonderful accomodations, it can save you money, especially if you normally stay at "Deluxe" resorts. The saving won't be as dramatic if you usually stay in a moderate, but the accomodations will be much more comfortable.

If you're really happy staying at All Stars or a similar resort, you don't enjoy spending any time in your room (as in it is a place to shower and sleep, then go, go, go)...and it fulfills your comfort levels, I doubt DVC would be a savings for you. Also, if you like resort hopping (staying at different resorts every visit), it may not be cost effective for non-DVC resorts like AK, Poly and Contemporary.

 

[Happy Birthday Cat]

Carol has given a great answer but I will expand on one point. DVC works best for those who can plan in advance. DVC busy times are sometimes not the same as busy times at regular WDW hotels. That can really throw someone off who plans for quick trips and can lead to disappointment.

HBC

 

[Simba's Mom]

I have just one thing that may help with cost of dues vs. staying in a hotel. We just bought DVC and are currently in the first year of a 5 year mortgage that we're paying on in addition to our dues. The other evening I sat down and calculated how much we paid for our vacations this year in mortgage and dues vs. how much we would have paid if we'd made cash ressies. We paid about $4500, over $3000 of which was mortgage. If we'd paid cash the same vacations would have cost about the same (within $200). Without the mortgage, we would have paid about $1250.
These figures sound unbelievable, but I double-checked my work. [I guess we math teachers have strangle ideas of "fun" things to do for the evening!]

 

[jimmytammy]

Ill add my 2 cents worth from a different view. I can sympathise with you about owning your own business and being able to vacation when you want. That said, what I found immediately gratifying about DVC is it will force me to vacation and it actually gives me flexibility to do so in our typically slower times of yr. By planning 11 mos ahead I can be well prepared to make sure things are in order before I leave.

Life is short, enjoy it! This might be a way for you to know when you will close your restaurant for a week and let the help have some days also, or get someone reliable to manage while your gone. Point im trying to make is my FIL passed away at 51 with Lou Gehrigs disease and im 38 now and im not gonna let nothing by me if I can help it, that includes much deserved vacations. Granted I work extra hrs doing sidework to pay for those trips, and sometimes I question is it worth it, then I think about all the smiles that DVC and WDW create for my family and I say YES, its worth every bit of it.

Dont get old and let life pass you by. Just my observation.

 

[dizneeluvr]

I'll comment on the dues cost being about the same as a vacation. We come out way ahead! Just last week we spent 6 nights in a 1 bdrm at HH. The cost of that room would be what our dues are for the year. IN ADDITION to that trip, we also spent a full week at WDW in January and will spend 4 nights at Big Cedar this summer. So once that initial investment is paid off--you will more then recoup your dues ((IMHO)

My biggest regret about DVC is that we didn't do it 2 years sooner!!!!

Good luck with your decision!

 

[SamSam]

Another consideration.......resort room rates have risen dramatically in the last 10 years; imagine what they will be in 10 more years! Dues, on the other hand have been fairly stable so when you consider a longer time period, DVC makes even more sense.

 

[panfan]

thankyou to everyone. The reply's you gave me were very helpful. We usually can only stay for four to five nights at a time and we always stay at a delux resort. Maybe if we end up buying we can start going 2 times a year. we just cant ever get mmore than 4 or 5 days off at a time. With two small boys disney is the answer i think. (we have been going every year since we have been married 13 years) Too bad we didnt buy OKW when we looked into it years ago!!

Thanks again!

 

[Dean]

If you can only plan a couple of months ahead and only go for 4 or 5 nights you should not buy. I'd double that advice if you go mostly weekends.

 

[Nink]

I would hate to be the one to tell you definitely not to buy. Several things to consider:

1. The purchase can be handed down to your kids.

2. Being in the food business, perhaps most of your trips would begin on Sunday and run through Thursday. Thinking that the weekends would be the busiest for you. That way you would acutally use less points on each trip.

3. If you are going every year now, why not continue to stay in the deluxe resorts and know that you have a "home" to come to.

4. Maybe you would want to start with a small resale purchase and build later. There are other threads here that address this smaller purchase plan.

5. Does it really matter if it is three days or five days? Hey, you have time to spend at Disney, and any time is great!

6. The fees equal about the cost of staying at a Moderate hotel for 6 days and 5 nights. But, we all pay taxes on our homes and businesses each year and don't think twice about it.

7. There may even be times where your family can go and you may have to come later. This way you know that they are secure and in a place that you are familiar with.

8. You can always book at the 11 month and change as your business life changes. Alter the reservations to fit your needs.

I could probably rattle on for hours. I which I had done DVC long ago. I am a member as of this last November 2002. I can't wait to take advantage of my points and I have vacation planned all the way through 2004.

Good luck with you endeavor.

 

[brucec32]

I think it's helpfull to crystalize what costs and variables are involved. Once you do that, you can just do the math and see if it makes sense.

1. your cost of funds. For some, it's the INTEREST(not payment) on the loan to get the membership. For others, like me, it would be the cost of lost income from the cash you use to pay for it. For the forseeable future, I can't make more than about 3% after taxes on the money, so my cost of money is low. But paying 10% on a loan or 18% on a credit card raises this cost way up.

2. Dues. Easy to calculate. The more points, the more dues you pay.

3. What your needs/wants in a room are.

4. How flexible you are on planning and even if you want to go back to WDW every year or two at all.

For MY needs ( a studio for a couple in the off season) the costs work out to much less than paying cash, about $1000 for 150 points, each year. That's only about 3 nights if paying cash, ($321/night with tax) but I could stretch it to 18 nights at OKW if I made multiple trips on Sun-Thurs only. That's just $55 a night! Bigger places, holiday or weekend trips, will affect the numbers.

Just do your own math based on your own situation. With 150 points, I can stay for FREE if I take one 5 night trip a year in early December, assuming principal value of points stays constant, which I realize it may not.

Cost of money (opportunity cost of $11250 @ 3% = $337) and dues (about $562) equals $900/year.

5 nights @ 8 points/night for OKW studio in early Dec. = 40 points.

Sell/rent 110 points @ $10/ea = $1100 income.

Profit $200/yr

It could vary, but you get the idea. In other cases (staying in 2 bedrooms over Christmas) it could cost way way more. But if you can stay during low point cost periods, it's cheap. Sales commissions on resale and other factors may apply.

 

[brucec32]

Originally posted by Dean
If you can only plan a couple of months ahead and only go for 4 or 5 nights you should not buy. I'd double that advice if you go mostly weekends.

I agree about weekends and planning times, but why not for 4-5 night trips? That would allow Sun-Thurs night cheaper points stays.

 

[Dean]

Originally posted by brucec32
I agree about weekends and planning times, but why not for 4-5 night trips? That would allow Sun-Thurs night cheaper points stays.

It was the combination of late planning and shorter trips I was warning about, not just the shorter trips. Those days book up first and would be harder to get on short notice.