To DVC or not...

[galligan4]

Hi Everyone - my DH and I have been thinking about becoming a DVC member for years now. We go almost every year and have two children 5 & 7. We always go when there is free dining. So we are looking for a way to calculate whether it makes sense or not. I know that there are a lot of variables but a starting point would be great. Does anyone have any suggestions? Even a chart of points and what you can get for them during different times of the year would be helpful.

thank you!

 

[damien]

http://www.wdwinfo.com/disney-vacation-club/DVCpoints.shtml

There is so much involved in the DVC decision. DVC owners can tell you it's the greatest thing they've ever done, while non-DVC owners will tell you stay away. There is no right or wrong answer. It's whatever works best for you. You need to understand how it works, how many points you would need, how much you would be paying in dues, etc. It's very complicated and detailed. Best bet is to speak with a DVC agent directly.

 

[SSR]

http://www.wdwinfo.com/disney-vacation-club/DVCpoints.shtml

There is so much involved in the DVC decision. DVC owners can tell you it's the greatest thing they've ever done, while non-DVC owners will tell you stay away. There is no right or wrong answer. It's whatever works best for you. You need to understand how it works, how many points you would need, how much you would be paying in dues, etc. It's very complicated and detailed. Best bet is to speak with a DVC agent directly.

I agree with everything except the last sentence. Your best bet is to visit the DVC Operations forum on the DISboards and live there for a couple of weeks.

Your next best bet is to then shop for DVC on the resale market as Disney's direct prices are significantly higher. (By this point, you will have studied up and know the key difference in benefits you lose by buying resale - for many of us, that's not a big reason/difference at all).

Finally, play around with one of the online spreadsheets to crunch the numbers. E.g. http://www.mouseplanet.com/7290/The_DVC_Spreadsheet_Details

Buying 200 points at SSR on the resale market was the best thing we ever did (2 years ago) (as I look forward to our 2 BR Kidani villa, savannah view next week...)

 

[SSR]

P.S. There is no free dining offered when you book a vacation through DVC.

 

[momofmikey]

I'll give my opinion We also go every year. We usually stay at values, although now we're limited to POR as our cheapest option b/c we're a party of 5. We always get free dining as well. In talking to friends who have DVC, and finding out how much their annual dues are alone, it never seemed to make sense for us. Now if you're a family that wants to do deluxe every trip, I'm sure it would maybe make a little more sense, but for us, who are always looking for the deals and who are happy at POR and don't spend a crazy amount of time at the resort, I would never spend the money. Good luck with your decision!

 

[damien]

I will say this - I think a huge part of buying into DVC is whether you can pay for the cost up front. If you can do that comfortably, then that's a huge plus, for 2 big reasons:

1.You avoid finance charges, which will eat up the majority of money you would be saving.

2.This is just my opinion - If you need to finance over 10 years (which is what we would have to do), it's probably not a good idea. For us, we know that more than likely, we'll spend more money not being DVC members. However, to us, vacations are a luxury. We're lucky we can take one every year, but God forbid we end up in a financial pickle, we can always just skip a year or 2, and not be obligated to pay anything. Of course, you can always attempt to sell DVC at any time, but obviously, it's no guarantee and can be kind of a pain.

 

[Lynne M]

I'm going to move this over to the DVC-Operations board. You'll find lots of owners there who'll be glad to explain how they determined that DVC was right for them, and help you figure out if it's a good fit for your family.

A link to point charts can be found at the top of the DVC forums' pages.

 

[chalee94]

Hi Everyone - my DH and I have been thinking about becoming a DVC member for years now. We go almost every year and have two children 5 & 7. We always go when there is free dining.

as others have said, no free dining on points stays. not ever.

DVC owners can tell you it's the greatest thing they've ever done...Best bet is to speak with a DVC agent directly.

disagree completely. DVC "guides" are there to sell DVC, not look out for you. they will often spin the downsides of DVC to get a sale. some DVC owners are still high on the pixie dust, but many have owned long enough to see the positives and negatives.

but DVC is complicated so take your time doing your research. and the DIS is the best place to look for information.

here's the basic scoop: DVC works best for people who:

1) go to disney at least every other year
2) prefer to stay onsite at deluxes (or at least moderates)
3) can plan their vacations 10 or 11 months in advance
4) can limit Fri-Sat stays since weekend point costs are a little higher
5) intend to use DVC primarily for staying at a DVC resort at disney (rather than trading out for other timeshares or cruises, etc.)
6) need or prefer larger accommodations than a basic hotel room

OTOH, there are lots of good reasons to balk at buying DVC:

1) thousands of $ upfront plus annual fees require a certain level of financial ability and commitment (and you still need to pay for tickets and travel, etc.)
2) commitment to wdw/fear of wdw burnout (sorta - while you can trade out if you buy direct, the best value is staying at the DVC resorts)
3) DVC not as deluxe as deluxe hotels in some senses (limited housekeeping, sofabeds, no room service at some DVC resorts)
4) you prefer stays on weekends as weekend point costs are higher
5) financing a depreciating (sooner or later) luxury purchase is generally a poor idea
6) you are happy with value hotels/offsite
7) amenities like a kitchen and washer/dryer have no value for you
8) you don't/can't plan vacations 6+ months in advance
9) you enjoy hunting for deals/bargains for each trip

If you’ll be upset when other people can pay cash for a room and get a discount or get “free” dining thrown in, then DVC is not for you.

also be aware that if you think you might keep DVC for 6-8 years and then sell it down the road, it may have little to no value as DVC has begun cutting perks that transfer when you sell your contract. resale contracts no longer qualify to trade for cruises and wdw hotels like the GF...(but those trades tend to be a poor value anyway.)

remember that it's not a "membership" so much as a long-term real estate lease commitment with continuing costs. while you can stay in studios that are similar to hotel rooms (only OKW has 2 queen beds, though, and all the rest have 1 queen + 1 pullout sofabed), DVC is a better value if you want to spread out and get a 1BR villa or larger...

 

[damien]

disagree completely. DVC "guides" are there to sell DVC, not look out for you. they will often spin the downsides of DVC to get a sale.

I think it depends on who you talk to. It's like buying a car. Some are there just to get sales and will do anything they have to do make one. Others know that by being honest and up front, they will get the sale and also get referrals.

I didn't find any DVC Guides to be pushy in any way or nearly as irritating as other timeshare places.

 

[JimMIA]

The first thing I think you need to know about DVC is that it is a timeshare ...not some fun club you join.

It is a big-ticket luxury purchase to begin with, and one with a significant ongoing financial committment for dues until 2042-2060, depending on your home resort.

So the first decision I would make is whether you want to own a timeshare in the first place.

The next decision is whether DVC is the best timeshare option for your family.

If you meet the criteria Charles listed above, and staying onsite at WDW is really important to you, DVC is a great timeshare. In making that decision, I would consider only the value to your family of staying in DVC resorts exclusively.

Yes, there are currently other options, but not all of those are available to resale purchasers, none of them are guaranteed, any of them can be discontinued at any time with the stroke of a pen. And they are generally not good values for your points anyway.

If you want to own a timeshare for more varied vacations, DVC is probably not the best option. There are many fine timeshare systems out there, including several which can be purchased on eBay literally for $1. And most of those offer many more resorts, much more variety and flexibility, and lower annual costs.

 

[JimMIA]

I think it depends on who you talk to. It's like buying a car. Some are there just to get sales and will do anything they have to do make one. Others know that by being honest and up front, they will get the sale and also get referrals.

I didn't find any DVC Guides to be pushy in any way or nearly as irritating as other timeshare places.

A DVC "guide" is a timeshare salesman. Some systems use high pressure and blatant lies as a pillar of their sales strategy; others do not. Sometimes the sales force is better than the resorts; other times (Wyndham, for example) the sales force is an embarrassment to an otherwise fine system.

DVC is one of the systems which doesn't use high pressure, and is a little disappointed when their sales personnel lie.

However, they're still timeshare salesman. Their job is to present their product in the best possible light, minimize objections, and close sales. It is not their duty to advise a prospective purchaser of other options or downsides to their product. It's the duty of the prudent consumer to look for those aspects of a prospective purchase.

 

[ccgirl]

Hi Everyone - my DH and I have been thinking about becoming a DVC member for years now. We go almost every year and have two children 5 & 7. We always go when there is free dining. So we are looking for a way to calculate whether it makes sense or not. I know that there are a lot of variables but a starting point would be great. Does anyone have any suggestions? Even a chart of points and what you can get for them during different times of the year would be helpful.

thank you!

As others have said, you do NOT get free dining with DVC. You can, however, purchase the dining plan with a DVC stay. Do your research. IMHO, I found the taxes and maintenance of DVC to be very high. In order to stay when we want and in the size of accommodation we want, we would need at least 250 points. I believe it was around $1200 a year for the maintenance/taxes alone. Instead, I bought a timeshare off site and trade either into Disney or outside of Disney. If you do not mind value resorts you can usually get them for around $700 a week. Again, less than the cost of the miantenance/taxes never mind the total cost of the timeshare. It really does require a lot of homework to see if it is right for you. We also like to go other places other than Disney.

 

[JimMIA]

If you do not mind value resorts you can usually get them for around $700 a night.

I assume that's a typo and you meant to say $700 per week.

You can usually get a 2 BR deluxe at Wyndham Bonnet Creek for around $700 per week. And WBC is several steps above a Disney value resort -- some even consider the 2BR's and larger better than DVC.

 

[moericus]

I think the two biggest factors are:

Can you afford to buy DVC without financing? If you have to completely finance it, than the math hardly ever works in your favor.

Would you like to spend more time at the resort? Values will give you the bare essentials and that is enough for most people. DVC will help you get better pools, community halls, living room areas, kitchens, internet, in-room laundry, etc...

And if your answers are yes? RESALE!

 

[ccgirl]

I assume that's a typo and you meant to say $700 per week.

You can usually get a 2 BR deluxe at Wyndham Bonnet Creek for around $700 per week. And WBC is several steps above a Disney value resort -- some even consider the 2BR's and larger better than DVC.

Oops...definite typo. That's what I meant. I am going to correct that now. Also correct on WBC but you cannot get the dining plan obviously. Since the poster specified "free dining" I just stuck with on site places. Personally, I would rather stay off site and get bigger/better accommodations for much less money but others would rather stay on site.

 

[mdsd8700]

Excellent advice from everyone, DVC is huge commitment; of time to Disney and of course money. We have been going to Disney every year for 14 years but it still took nearly 10 years to decide to buy it. There were many factors that lead to our final decision that DVC was right for us both financial and emotional. We eventually had the cash to pay for our points, only wanted to stay on site in deluxe hotels and most of all we knew for certain that my DH and I would enjoy our Disney trips for nearly the next 50 years even if our kids didn't want to join us anymore.

Do lots of research as already mentioned. That way you can be completely sure your decision works for your family. DVC isn't going anywhere if and when you ever decide you would like to join.

Good luck with your decision!

 

[Mtnman44]

Op,

In addition to all the advice and information you have already been given, I would also like to give you one more fact. I feel confident that all the strategies, financial worksheets, etc can all be boiled down to this for 99% of DVC owners:

Buying DVC will not save you money based on what you are spending now or would likely spend in the future. However, DVC may be a good option for upgrading your WDW vacation accomodations for significantly less than such accomodations would otherwise cost. However, DVC ownership will not cause you to spend less overall for your WDW vacations.

 

[DisneyMotherOf2]

Good luck with your decision!

 

[SSR]

Op,

In addition to all the advice and information you have already been given, I would also like to give you one more fact. I feel confident that all the strategies, financial worksheets, etc can all be boiled down to this for 99% of DVC owners:

Buying DVC will not save you money based on what you are spending now or would likely spend in the future. However, DVC may be a good option for upgrading your WDW vacation accomodations for significantly less than such accomodations would otherwise cost. However, DVC ownership will not cause you to spend less overall for your WDW vacations.

Can you explain what you mean by this? I'm not sure I understand. Doesn't there come a point somewhere between now and 2054 (for example, when a SSR contract expires) where the owner has "broken even" (and thereafter "get ahead") by having prepaid and locked into 200 points, regardless of what a week at SSR "costs" in even discounted dollars in, say, 2048?

My memory is that, even assuming the loss of investment power of the initial capital and the increasing maintenance fees, that if that SSR owner goes to WDW every year on their 200 points, after 8-10 years, they'll "break even" on what they would have otherwise spent for the same exact accommodations at a discounted (not rack rate).

Unless, of course, I totally missed your point, which is possible...

 

[Mtnman44]

What I was trying to convey, in the context of the OPs situation, is that using Disney Value Hotels, etc and using discounts or "free" dining and then making the leap to DVC ownership is highly unlikely to result in saving any money. I do believe it can be a great way to upgrade your accomodations for a fraction of the "normal" costs. This is where you "break even" comes into play. To determine a break even point, we need some assumed costs to compare against the DVC costs to calculate when you have saved enough to recoup the DVC costs. So what costs do we use? DVC cash rack rates? Discounts? Value or Moderate Rates? How do we calculate the Free Dining option which the OP is used to which would now be gone by using DVC? I don't believe there ever is a break even point when comparing to a Values resort, esp with coupons or free dining in the equation. If we use the DVC rack rates or discount rates to compare our costs, then I believe that is a mistake since we never would have paid for those villas anyway without DVC. Instead, we have upgraded and spent more by using DVC - all the while thinking about how much money we have saved. That is the Disney marketing magic right there. DVC gets us to spend more by offering a pretty decent pre payment discount. It is good salesmanship on their part and for those that want upgraded accomodations, it is a pretty good deal for us as well. Note: we haven't even factored in the opportunity costs of paying the lump sum purchase price up front.

However, most of my comments were indented to address the more practical, real life results of DVC ownership. Namely, you end up traveling to WDW a lot more than you normally would have (be honest), especially over a long time frame such as 20 or 30 years. DVC marketing makes us think about how much money we are saving. "Man those suckers at Disney are idiots, look how much money we are screwing them out of!" The reality is, that for most of us, we end up traveling to WDW more frequently, staying longer, and spending more money at WDW with DVC than we probably otherwise would have. Disney does not operate the DVC program to help us spend less money at Disney. This is a Fact.

In Summary, I guess my main point to the OP was: make a DVC purchase desicion based on whether or not the upgraded accomodations and experience is worth it to you, but don't look at DVC as a way to make your WDW vacations cheaper than they presently are.

Edit to Add: I think that the extra low prices of the some resale contracts these days could swing things more in the direction of actually saving money, but how much is difficult to stay. A lot depends on an individual's resort, travel time and frequency, and stay length preferences.

Can you explain what you mean by this? I'm not sure I understand. Doesn't there come a point somewhere between now and 2054 (for example, when a SSR contract expires) where the owner has "broken even" (and thereafter "get ahead") by having prepaid and locked into 200 points, regardless of what a week at SSR "costs" in even discounted dollars in, say, 2048?

My memory is that, even assuming the loss of investment power of the initial capital and the increasing maintenance fees, that if that SSR owner goes to WDW every year on their 200 points, after 8-10 years, they'll "break even" on what they would have otherwise spent for the same exact accommodations at a discounted (not rack rate).

Unless, of course, I totally missed your point, which is possible...