Time to sell DVC with Disney enticing "deals" ???

[bradpga]

First off, I love my DVC. I own at BWV and SSR; however, I am contemplating selling. I know that we will continue to frequent Disney World and have greatly enjoyed our membership, BUT... with all the discounts and savings that Disney is throwing out , it doesn't seem logical to keep 200 pts and pay $900 a year in dues! We go to Disney once a year. By the time I saved my $900 in dues and took advantage of FREE dining, or FREE park passes, or FREE nights (the latest promo was buy 3 nights and 3 days passes... get 2 FREE)!!! I would save a lot of money and recoup my $18,000 to by something more useful (maybe a fixed annuity)! I realize I would take a beating on my SSR purchase with sales plummeting daily, but I would break even on BWV.

What are your thoughts????
IS Disney giving too much away???
Does it not defeat the purpose of owning DVC???

ps- I could rent points and stay at DVC for cheaper than the annual dues I pay!

ONCE AGAIN>>> I LOVE DVC AND HAVE ENJOYED BEING A MEMBER!!! I THINK DVC IS A GREAT THING, BUT DISNEY IS DEFEATING THE PURPOSE WITH SWEET DEALS!!!

 

[browniemtb]

My thoughts......Disney won't continue with all these incentives. Eventually the economy will rebound and park attendance will rise and all these great promotions will dry up. DVC may not look great now, though I still think it does, but it will look even better when things turn around.......Then that $900 will get you a week stay at a great resort while others will be shelling out 3 to 4 times that for the same stay.

Keep your points especially if you think you are still going to go once a year.

 

[Steamboat Girlie]

I think it really depends on why you own DVC. For us, we need the extra bedroom. Our oldest son(age 5) has sensory issues, and needs his own room. We could never stay in a typical hotel room. He would never sleep! So for us, we bought DVC because we need suite style accomodations and we travel to WDW at least once a year. I don't think DVC makes sense for anyone who is happy staying at a value or moderate. It is frustrating seeing all the deals Disney is giving away lately. But, when you factor in that we need a 2 bedroom, the deals don't really work for us.

 

[YourEveryDayAdam]

see http://www.disboards.com/showthread.php?t=2137102 for all the numbers and analysis.

Basically: Even with 40% off coupons (which is basically the same deal, price wise, as free dining, 40% off, buy 4 get 3 free, etc.) DVC comes WWWWAAAAYYYY ahead in terms of how much money you save.

My thoughts: If you love your DVC, and think you will continue to go to Disney every year or every other year without it, then it doesn't make any sense to sell it. Now if you are sick of disney and can't see going again for years and years, then it probably does make sense to sell it now and resell it later.

If you just want to take a year or two off from Disney, then rent out the points to pay for the dues (plus a little something extra).

 

[nunzia]

I think it can certainly look that way in the short term, but if you think things will turn around for the economy while you'll still be wanting to visit Disney, those deals could all go away as quickly as they came, and then you'd certainly miss the pre pay factor of DVC vacations. Maybe it would be a good idea for you to rent your points for awhile to pay MF and pay out of pocket for trips a couple times to see if you would like that over the long haul. I for one am glad I don't have to scramble looking for deals or codes. I know just what my Disney trips will cost way in advance and can plan that way. It's very nice to know that I can upgrade my tickets to AP during my free (paid for with DP) Concierge stay at the GC for around 70.00 (after using DVC discount and my Birthday Fun Card), then know that my next trip (Food and Wine '10 looks good) will only have the cost of getting there and eating. That's the best deal I've seen and I don't need a code.
I've thought of annuities for the future, but I have zero faith that the companies that promise that life long payout will be able to actually deliver. Annuity Bailout?

 

[dcfromva]

One thing I would suggest is possibly sellling just one contract and see how it goes before you sell the other.

 

[JimMIA]

I think Nunzia above has the right mindset. DVC is a long-term thing. If selling makes sense in the long-term (i.e. you are comfortable long-term with renting DVC from folks here on the DIS), then sell.

But if you are only looking at temporary promotions Disney is offering, that's a real dumb bet. I think they'll be offering pretty good promotions for a couple of years until the economy comes back, but after that?

Plus, you have to remember that lodging is only one of many costs involved in a WDW vacation.

In addition, if you look at the resales offered and the timeframe for selling, you'll realize that this is a real buyer's market right now. Prices have dropped considerably, and I think they'll stay there and probably go lower for several years. This is a tough time to sell.

 

[dcfromva]

ps- I could rent points and stay at DVC for cheaper than the annual dues I pay!

Does this mean you have too many points for your needs or you have found rentals for less than $4.34 per point (SSR) and less than $5.21 per point in the case of BWV?

 

[NJ Goofy]

As long as you enjoy going to Disney, then DVC is a good deal. The promotions being offered now will probably go away in a year or two.

As other have said, DVC is a long term investment. Your dues will go up with the cost of living but so will the cash room costs. About 15 years ago we paid @$200 per night for a room at GF, now that room is over $400 per night. In the long run that will only continue.

I don't have it in front of me, but I printed out a spread sheet on one of the threads that showed what a good deal DVC was, even figuring a 40% discount on current room costs.

 

[CarolA]

Deals? Really?

A "VALUE" resort at Disney has a rack rate of close to $150!

If your local store marked up the $2 can of soup to $4 and then gave you a 40% off discount what would you say? RIP OFF! That's exactly what Disney has done, those hotel rates are NOT realisitic for the quaility they provide but because they give you "deals" then you THINK "WOW" HUH?

I just checked for the first week in May.

I can get a Disney Value for $128 a night!
I can get the Marriott Fairfield for $69 a night!

Comparison...... Marriott has interior corridors, free breakfast, a REAL rewards program, free fridge, a coffeepot etc. Disney has DME and "cute" Hmm..... So if Disney gives me 40% off that great $128, I am still paying $10 a night or so more for thier hotel that seems to have fewer features!

 

[Tink-n-Belle]

Right after 9-11 I booked the Contemporary in Feb 02 for $172 a night!!!

When I tried to book that same type room (garden wing room) in 2006 it was $500 a night!

These deals will only be around for a short time (hopefully-- the economy will rebound soon).

Disney will always offer deals. Some you can take advantage of some you can't. We have school age kids, but in 10 years they will be out of school and we will be able to go whenever we want to. But for us - we have to go during peak times DVC makes perfect cents$$$.

For example, Tomorrow I'm going to DISNEY!!! Its peak season and if I had to go retail ( no buy 4 nights get 3 free during this week) it would have cost me $4700 for my 1 bedroom at the boardwalk. It only cost me $936 for my dues (I ended up getting DP and used them to stay 3 nights -2 weekend & 1 weekday nights at the BW during peak season) It only cost me like 134 points. I was able to bank the point and take a side trip to VB for a few nights in Feb. It's NOT my choice to go this week, but the girls are dancing at DTD Sunday @9:15 so I had to go this week, plus its school vacation for us.

 

[Dean]

Anything you'd gain on using deals, you'd lose and more in the lower sales price. It is a poor time to sell but it might be a good time to consider using points for other options and using deals for Disney trips at least part of the time.

 

[Tiger926]

We priced out a few vacations for some family members and compared to DVC as they asked about that (4 for 3 and Free Dining), and we discovered that it was the same cost for a week in a moderate as we pay for our 1 bedroom villa! We added in our maintenance fees and added in 7 day tickets (we normally get an AP) in order to see that it was close to if, if not almost identical in the numbers. It was a very interesting comparison for us and our family members to see. As mentioned, value rooms are a ridiculous price now, so for the price of this, we get to stay in DVC villas - cool!

Tiger

 

[PamOKW]

Tink gave you a real life example of what immediately came to my mind....we've been through this before. After 9-11 there were many deals out there and people questioned DVC when they could get 40% discounts. Well, as we know prices stabilized and until just recently were inching their way back up on a regular basis. Since 9-11 the overall prices have gone up and the price of buying into DVC has gone up. If you are planning to continue to use DVC for 10, 20, 30+ years you will see the cycles come and go.

 

[Mississippian]

Many of you are failing to count the interest/lost investment cost of owning DVC. You are stating that the only cost is the annual dues, which is not correct.

If the OP has doubts, I join in the suggestion that she consider selling one of her contracts. This leaves her able to get a 25 percent discount sometimes, discounted annual passes, able to call member services, able to accept point transfers and so on.

 

[stopher1]

I have stayed at various properties, both Disney and not in and around WDW and its' environs many, many times while in Central FL on business trips, and I get emails from many of them still. Yesterday, I believe it was yesterday, I received one from the Downtown Disney Hotels grouping, and there was an offer from the Best Western there down at the end of Hotel Plaza Blvd. It's a nice hotel, nothing too fancy, but not bare bones either - and certainly more to it than the values are, but nowhere near as themed as the mods. They were offering $69 per night right now. The Doubletree Suites across the street was offering $99/nt, and the Royal Plaza next door to the Doubletree was at $89/nt. Just for kicks I clicked on the links. The rate info for the Best Western said it was valid through the end of this year (can't remember the other 2 dates expirations right now) - but when I played with dates as I often do to get a pulse for the deals, I didn't really see anything at that price beyond August. After that point I was seeing double to triple that amount per night. Each one was hedging their bets that the tourism travel will pick up again sooner rather than later. Now obviously any of them they can change their pricing downward again down the road if they need to fill some beds, but the reality is that the current economic conditions we are facing aren't going to last forever. Things will rebound, even if not to the same level we were at a year or so ago. Deals come and they go. I remember finding some very smokin' deals shortly after 9/11 all over the country as various destinations were trying to lure tourists back into traveling. The same thing is happening now. Disney won't give away the farm for longer than they feel they need to. And ultimately for them there's nothing altruistic about it - they're just trying to keep profits from turning into losses, and if they have to "give away" a few things in order to do so they will.

I don't have a need to make another business trip to FL at this point in time so I really don't need those deals right now, but that could change easily in the next month or two so I keep getting the emails, and checking them out - but in the end, when we (the family) go to WDW for WDW's sake or to Central FL for a pleasure trip - I will use my DVC and enjoy the fact that my cost is much less for a larger and more enjoyable accomodation. If it's just me on a trip, a value works fine, but when the family is involved, cramming into those tiny rooms just for the sake of "getting a deal" just won't cut it. I know that there might be those that disagree with me, but I don't want to pay twice if I don't have to (dues and the "deal" price), although if I were to find a "good enough" deal for an all-suites type of hotel (like the DTD Doubletree) or similar, then maybe I'd rent out my points that particular year and do that - but it would have to be really good for me to give up my AKV savannah. But perhaps that's just me...

 

[bradpga]

thanks for all the input. Like I said... We love Disney and owning DVC. It just seemed like a good idea to sell; however, as stated, now is certainly not the time to sell. If I did, I would take a serious loss! I may sell my small BWV contract (break even). I must admit, seeing all the "deals" spurred the thought but hopefully those will be short term and the economy WILL turn around.

 

[gkrykewy]

Look at it this way.

There are two possible future outcomes:

1. Economy recovers sooner or later, Disney doesn't need aggressive incentives for cash guests any longer, and hotel rates resume high rates of annual inflation. DVC = happy you.

2. Economy never recovers. On one hand, there would be aggressive incentives for awhile, continuing to make you jealous of the free dining hordes. After awhile, though, Disney would be endangered as a firm, along with most other large corporations. Eventually Disney World becomes a community of shanty towns with subsistence farming conducted out of the Land pavilion at EPCOT. In short, DVC devaluation is the least of your problems, unless it means you can't barter your membership for three oranges and a machete.

Keep the DVC!

 

[Lynne M]

Tink gave you a real life example of what immediately came to my mind....we've been through this before. After 9-11 there were many deals out there and people questioned DVC when they could get 40% discounts. Well, as we know prices stabilized and until just recently were inching their way back up on a regular basis. Since 9-11 the overall prices have gone up and the price of buying into DVC has gone up. If you are planning to continue to use DVC for 10, 20, 30+ years you will see the cycles come and go.

That's exactly what I was thinking - we've been here before.

Immediately after 9/11, while tourism was in the tank there were some amazing deals out there. When tourism rebounded, the deals went away, and some of the folks who'd made their first trips to WDW right after 9/11 and thought those big discounts were the norm were in absolute shock at the 'real' rates. There was even a period of a few months where there weren't any AP discounts. People were outraged.

My point is, these deals, like the economy, are cyclical. The economy will rebound, and the deals will go away.

BTW, I bought DVC because I wanted to stay in deluxe-level accommodations. I've yet to see any deal, 4/3, free dining, or anything else, that saves me more money on my DVC villa (or a comparable deluxe room) than using my points does. Not even close.

 

[nunzia]

Many of you are failing to count the interest/lost investment cost of owning DVC. You are stating that the only cost is the annual dues, which is not correct.

If the OP has doubts, I join in the suggestion that she consider selling one of her contracts. This leaves her able to get a 25 percent discount sometimes, discounted annual passes, able to call member services, able to accept point transfers and so on.

I'll go along with the idea that interest is lost (although my best interest bearing account just dropped to 1 point something) but unless you can guarantee that investment then that point doesn't work right now. My investments may be beginning to creep up again, but I am still way in the red, so if you are looking at it that way, DVC wasn't a bad 'investment'. When I bought my first DVC contract, I sold most of my Ebay stock to do so..when it was high, so I guess I actually 'made' money on that. I do know I'm much happier having my OKW points than my Ebay stock.