Trying to find the value in DVC

[CoachG]

We just got back from another great Disney trip and of course I'm thinking about a trip in 2011. I got to wondering if DVC would be a good fit for our family but in looking at the price of the points it seems like it would take 15-20 years for it to be "worth it" and that's assuming we would be paying rack rate somewhere.

We're about to be a family of 6 and while we love staying at the Poly now obviously we'll be outgrowing the regular rooms there so we'll eventually have to be looking into either a family suite or two rooms at a moderate or something. However we would have to take a 2BR villa based on the occupancy limits and the point usage for those all seem to be in the mid 200s to low 300s range for a week stay. That's alot of points to be purchasing upfront

We like to go every year (at least right now - who knows when the kids get older) so its not like we could buy a smaller amount and just bank points for every other year.

Is DVC just not meant for a larger family? Am I missing something? We typically travel during "dream season" - should we buy into HHI and hope to be able to use the points when we like to travel? Can we book two studios instead of a 2BR?

All I know about DVC is what I've been researching online - if there's some way this makes sense for the type and size of travelers we are please let me know.

p.s. - is there a chance there could be a Poly DVC ever?

 

[DVCGeek]

p.s. - is there a chance there could be a Poly DVC ever?

There are tons of rumors and loads who want that; so there is a chance, but I would NOT count on it.

You could do 2 studios, but most people wouldn't want to split up the family (1 adult & 2 kids in each?) so it sounds like a 2 bedroom would be a better bet. When calculating point needs, don't forget that charts could change for the seasons you want, although since dream is middle of the road that might be fairly stable, especially for full weeks (The recent 2010 and 2011 changes have been weekdays going up and weekends down). I'd always try and buy a few more points than you think you'll need; I like to get enough to cover my target stays even if a 'maximum reallocation' were to occur (using banking and borrowing where needed since I won at 4 resorts but only do 2 Disney trips per year so I alternate some locations).

How much do you usually pay for your room(s)? Your breakeven time sounds rather long, but it isn't necessarily incorrect. Also, don't forget that after the purchase you have to factor in your annual dues each year to the ongoing price.

Statisticly, hotel costs are likely to go up faster than dues because at the resorts the entire price often inceases by a few percent, while with dues they can only go up by the amount of cost increases, and the purchase price was one time (i.e. 3% of entire hotel bill will be larger than 3% of dues only) so in the long run DVC may become a better and better deal.

I figured that DW & I can stay in most DVC studios for between an effective cost of $90 to $140 per night, depending on which contract we use, destination resort, season, view, etc. We stayed in values on several trips, and DW wanted to start upgrading our stays. We decided DVC would be competitive with Mods depending on what discounts were, and definately cheaper than deluxes, so we bought in. Love it so far, and we enjoy bringing relative on some trips and have more group travel ideas in the works.

I personally would NOT buy in HHI or Vero if you want to only stay @ WDW; buy where you want to stay (or at least wouldn't mind staying) and make a reservation there @ 11 months if possible, then change to someplace else if you want to try for variety @ 7 months... If you can't make reservations more than 7 months in advance most of the time, a timeshare might not be a good fit for you since you may not get the rooms or resorts you want.

Good luck with your decision & I hope that helps!

 

[lugnut33]

I have some points I want to use for an Oct. trip. I don't want to blow a ton of money, so between DVC, some old park passes with a day and waterparks still on them, and just hanging around the beautiful resort we can get away for 5 days. I don't have to throw a lot of money into a room or a rental car.

For me, I find value in that kind of option.

 

[jlewisinsyr]

Right now you're renting 2 rooms right, or a suite at the Poly? How much is that costing you, I would think a quite a bit (factor out discounts, as they are not guaranteed long term).

 

[ToddyLu]

Have you looked at Resales. You could get a lot of points at SSR for about $64 a point. DH and I decided since we have been 9 times for the last eight years that it was becoming our annual getaway. We bought in last year and financed direct through Disney so our up front cost is not crazy. You will see a lot of posters state that no way would they finance DVC...yet many finance cars and houses. We went through alot in 2005 and decided life was too short. Our first trip home we were able to get 2 studios SV at AKV, one for us, another for MIL. Loved it. Just having a fridge and microwave for snacks was awesome.

My brother has five children ages 2-16, he will always need 2 bedrooms and I think DVC would work for him. You have to decide if Disney memories are important right now and worth the money....for us they are priceless.

Have you checked resales and thought about financing??

 

[ToddyLu]

Start out with 100 points at SSR resale or something and see how it works out...heck start with 50 points resale...just to get your foot in the door and then you get the DVC perks like the AP discount and % of merchandise in select stores on property. Then you can add every couple of years until you have what you need and can do a split stay or something. Gee if I had a family your size and preferred deluxe accomodations like Poly, I would be all over DVC just so I could have the kitchen and washer/dryer right there.

 

[YoMickey]

I had a friend who is a CPA and an awesome numbers guy over the other night with his wife and kids. He and his family are huge Disney fans and have gone down the last 3-4 years. I told him about DVC, he had heard of it, and seen it, but never really looked into it.

So after dinner, the kids were playing video games and the wives were in the kitchen chatting we sat down with my laptop and proceeded to crunch numbers in EXCEL based on annual dues, my initial investment and the current cost of a standard room at the Beach Club Resort, because that is where we have points and that is where we will always stay. We assumed a 4.2% annual increase in dues and a 3% annual increase in room rates.

We also assumed a 17 year window...don't know why, just didn't take it out to 2/1/2042. You have to assume you are going to go every year.

This is what we got for lodging only:
Total 17 year NPV, net present value, to spend 1 week at the beach club
$60,423.48 versus an NPV of $29979.12 to initially buy and pay dues for DVC.

NPV is the present value in today's dollar of what you would have in your pocket if you chose not to do the option. SO in this case you would need twice as much in hand to book with cash versus points.

Also keep in mind: IT IS NOT AN INVESTMENT, IT IS PREPAID VACATION. DVC offers an economical way to stay at DELUXE resorts. The numbers do not make sense if you are comparing DVC to Value resorts.

I hope this helps. Give me some time, I will modify the spreadsheet for a 2 bedroom and post results if you'd like. PM me.

YOMICKEY

 

[delmar411]

I find it hard to believe it would take you 15-20yrs to break even on 300pts.

300pts x $110per point = $33,000 (resale you could get 500pts for that same $33k or 300pts for 20k)
/15yrs or /20yrs
= $2200 or $1650 7nights per year on room only

You are really only paying $1650-2200 for 7nights at the Poly every single year? That's a 30-40% discount off rack rate every year.

DVC is certainly for large families. We are a family of 6 and get the 2bedrooms each time. I'm not willing to pay CRO prices for the villas and I'm not staying in suites esp not those family suites at the All Stars. Being piled in top of each other is not my idea of a vacation! LOL

 

[dmoore22]

Here is a nice link to a DVC primer at Mouseplanet.com: http://www.mouseplanet.com/8739/A_Disney_Vacation_Club_Primer

When we first bought into DVC all of our kids were still at home, all 6 of them. No matter where we stayed the least we could get by with was two rooms and the hotel police required that there be at least one adult in each room, even if the rooms where adjacent and the doors open. So much for any adult quiet time. At Disney our budget only allowed for 5 days in a Value Resort once every few years. We did become intrigued with the idea of DVC after overhearing a fellow talking about DVC while we were riding on one of the Disney buses. We did take the tour but still weren't convinced. To make a long story longer there was a death in the family that forced us to face our own mortality. Then, when my uncle came down with vascular dementia and my aunt told us how they had saved for years for retirement and now could not enjoy it we decided it was time to enjoy while we were still healthy enough and young enough to.

We bought in around the time the dot-come bubble burst. With parts of our portfolio losing value (our retirement investments) we figured we might as well spend it while it's still worth something. We actually sold some of our shares of our stock in Disney, which had gone through several splits, to make this purchase. We found a very nice resale that included a year's worth of banked points. The seller was an overseas owner that really wanted to unload quickly. Then we found an add-on with a similar scenario. An overseas seller who was willing to cover our 1st years MFs. Since we had been saving our $$$ with the intention of enjoying our retirement we did not look at this purchase as an investment for the purpose of making money at a latter date but an investment in R&R for the present. We did find some unanticipated residual benefits. These may, or may not be relevant, or important, to your situation.

1) We ended up spending about the same per trip as before joining DVC. However, since we have 6 children, we could never get by with anything least than 2 rooms. Having worked our way up from absolutely nothing to a state of extreme poverty the moderates, deluxe, and home-away-from-home units were definitely out of our budget, even with the promos and discounts offered at that time.

2. Even though our costs were about the same per stay we were now staying longer in a two bedroom as opposed to two separate rooms at a value/moderate.

3. My DW and I could now have our space together in the master suite as opposed to being split up since, when staying in the values/moderates, it was required that there be one adult in each room.

4. The jacuzzi

5. Dining costs dropped since we had a full kitchen and could enjoy a full breakfast in the room, or on the balcony, before going to the parks, or returning to the room for lunch, dinner or whatever. We even bar-be-qued with the grills available at the quiet pools.

6. Park admissions dropped because we staggered and alternated the times of our visits to get multiple trips out of our APs. That way we purchased an AP every other year which is cheaper than a renewal every year.

7. Since we itemize our taxes we gained another deduction, albeit, a small one. Part of the MF goes to property taxes. There are other deductions available depending upon how you finance the purchase.

8. My DW is now very happy. When she is happy all is right in the world. Prior to DVC I seldom went on a vacation, much less planned a vacation. With all our kids it made my brain hurt thinking about the logistics and costs and tripping over each other in a motel room. Prior to DVC the trips where spontaneous and on short notice. Now we do have to plan in advance which my DW loves. I can't make excuses anymore that hold any water.

9. Plus that magic feeling when you hear "WELCOME HOME!" upon your arrival.

As much as we've enjoyed staying in a Value/Moderate we find it would be difficult to go back after staying at DVC. I realize other posters have indicated they have had issues regarding their rooms and maintenance. We have not experienced any of those issues. We've been very happy and feel that we continue to get the bang for the buck. We can vouch for the advantages DVC provides for large families. We actually expected that we would probably sell as the kids moved out and the need for large accomodations diminished. To the contrary. We do stay in smaller accomodations with longer stays and multiple trips. We are a couple of years away from full retirement and the grandchildren coming with us.

As far as the perks, they do come and go. However when we lose one it is replaced with another. It seems to balance out. Now that I think about it they are actually more generous than they were when we first bought into DVC.

 

[ToddyLu]

This is definitely the place to be if you want convincing that DVC is for you!!

 

[YoMickey]

I just grabbed some numbers.

$4095 per room at Poly for April 2nd to April 9th

The comparison needs to use rates for times when you are going to go.

Beach Club villas for the same week is 462 points for a 2 bedroom.

My above calculation used 350 point purchase at AKV and $4900 for the lodging. When you throw rate discounts and free dining in there it makes it tough but still more economical to go DVC.

 

[whitfamily]

I know with our financing and dues this year (first year of DVC) we paid $3600 and got $3900 worth of rooms. This next year we're paying about $3650 in dues and financing and getting $4500 worth of rooms.

If we didn't have DVC we'd probably stay in moderates, which wouldn't be a positive ROI right now. But, if you're staying at Poly already you'll see that savings immediately.

 

[lucyem]

I do not have the paper in front of me and cannot remember exactly. When we took the DVC tour last month I was given a comparison of buying BLT at Disney vs paying out of pocket. It worked into an approximate 9 year break even.

 

[dbs1228]

Okay I do bookkeeping for a living (run numbers) and we have had investments in the market for years. We had gone to DVC presentation in 2005 and decided it was not worth the investment i.e. interest on our money vs. paying for points outright and did the whole what it cost for a 10 night stay at Ft Wilderness cabins (we wanted the home away from home experience) etc... We determined it was not "worth it" for us and we felt we were going to out grow our trips to Disney since our kids were heading into high school.

Well... with 2 off to college and 1 in high school (5 years later)we took another tour with DVC and realized we have spent over 30,000.00 in the past 12 - 15 years of going to Disney and we are still paying. (and yes the cabins have gone from 212.00 a night up to 330.00 a night over the years) We are still looking forward to our trips to Disney and the kids still talk about going.

The short version we bought DVC finally in Feb. and came home and now have 2 resale contracts we are waiting on! The most exciting part for me is trying new resorts (and a king size bed)! I look forward to spending time with our children, friends and hopefully grandchildren at Disney someday. I do not look at DVC as an financial investment anymore but rather an investment in our future vacations and to me life is all about the next vacation! Yes I am one of those "I should have done this sooner"

 

[Dean]

We just got back from another great Disney trip and of course I'm thinking about a trip in 2011. I got to wondering if DVC would be a good fit for our family but in looking at the price of the points it seems like it would take 15-20 years for it to be "worth it" and that's assuming we would be paying rack rate somewhere.

We're about to be a family of 6 and while we love staying at the Poly now obviously we'll be outgrowing the regular rooms there so we'll eventually have to be looking into either a family suite or two rooms at a moderate or something. However we would have to take a 2BR villa based on the occupancy limits and the point usage for those all seem to be in the mid 200s to low 300s range for a week stay. That's alot of points to be purchasing upfront

We like to go every year (at least right now - who knows when the kids get older) so its not like we could buy a smaller amount and just bank points for every other year.

Is DVC just not meant for a larger family? Am I missing something? We typically travel during "dream season" - should we buy into HHI and hope to be able to use the points when we like to travel? Can we book two studios instead of a 2BR?

All I know about DVC is what I've been researching online - if there's some way this makes sense for the type and size of travelers we are please let me know.

p.s. - is there a chance there could be a Poly DVC ever?

For a family of 6 used to staying in deluxe resorts, it's hard to imagine DVC not being a good fit financially if you're go at least every other year if used for DVC resorts only. In the past I would have qualified as not long weekends but the recent changes make that a non issue at present. While I would suggest that most people over estimate when their break even point is, I think 15-20 years is likely a bit long if you make reasonable assumptions. You should be between 10 and 15 years for most situations, maybe less if you go with a cheaper option. You might push 15 or more years if you buy retail though. You might buy a smaller contract and "try it out" then hold out for a possible Poly option for later.

 

[Gregowa]

My DH and I bought DVC 2 years ago and our only regret is that we did not buy sooner. We are in our mid 50's with about 10 years until we retire. Our children are grown with young families of their own. We love Disney and since WDW is only a 6 hour car trip for us, we found ourselves making the trip 2 - 3 times a year. Thus far we have spent less and gotten more vacation value with DVC in comparison to our prior "package" trips. We never get tired of spending time there and are always sad to be going home at the end of our trips. We sometimes take our children and grandchildren with us and it is these trips that make memories that currently span 3 generations. Even though DH and I will probably not be around to travel to Disney in 48 more years when our contract ends; our children, grandchildren, and great grandchildren will be. Passing on to them our DVC membership, the legacy of our love for Disney and the memories made though DVC vacations for 50 years is priceless compared to the cost we paid for points and the yearly dues. Life moves quickly and sometimes daily living consumes us. We never know what tomorrow will bring, but we do know that as long as we are able to go, we have the respite of our DVC vacations waiting with the words Welcome Home!

 

[Gary Pinkos]

Hello:
We (family of 3 back then, that grew to family of 5) purchased in 1993, we have 270 points.

Paying for the points was like having a car payment for 7 years for the initial payment. One of the big differences is, now 10 years after paying off that initial payment, we still have the points (car would have been junked 10 years ago?) and those points are still being used, but if we wanted to sell.......they are worth more today than when we purchased them 17 years and over 20 WDW & two Disney cruise vacations ago.

I did't buy this as a investment, but it has been one of the wisest investments I have ever made!

My family still enjoys our Disney vacations every year or every other......sometimes twice a year.

Gary

 

[CPTJAK]

If you need/must be on DVC property than buy DVC resale of course, use the sponsor timeshare store listing to get an idea of costs.

If you do not mind being offsite than there are a ton of great options right now to buy resale (Marriott,Hilton,starwood,bluegreen,wyndham) 2 bedrooms can be purchased for springbreak timeframe for a few thousand ($5000). If you purchase Hilton you are in RCI exchange company and can usually get a DVC exchange (i.e. buy Hilton and trade it for a DVC resort and have left over points).

 

[nunzia]

My DH and I bought DVC 2 years ago and our only regret is that we did not buy sooner. We are in our mid 50's with about 10 years until we retire. Our children are grown with young families of their own. We love Disney and since WDW is only a 6 hour car trip for us, we found ourselves making the trip 2 - 3 times a year. Thus far we have spent less and gotten more vacation value with DVC in comparison to our prior "package" trips. We never get tired of spending time there and are always sad to be going home at the end of our trips. We sometimes take our children and grandchildren with us and it is these trips that make memories that currently span 3 generations. Even though DH and I will probably not be around to travel to Disney in 48 more years when our contract ends; our children, grandchildren, and great grandchildren will be. Passing on to them our DVC membership, the legacy of our love for Disney and the memories made though DVC vacations for 50 years is priceless compared to the cost we paid for points and the yearly dues. Life moves quickly and sometimes daily living consumes us. We never know what tomorrow will bring, but we do know that as long as we are able to go, we have the respite of our DVC vacations waiting with the words Welcome Home!

Amen and well said. We took plenty of budget DL trips when the kids were young (no resort at Disneyland then), and one deluxe trip to WDW and they are some of our most wonderful memories. We could not have bought in when DVC first began and since we are more west coasters it wouldn't have worked well for us. I also went to Disneyland many times with my family when I was young and I think that must have been what started my love of Disney that I've passed on to my kids and now my grandkids. We are also in our 50's and really only took the jump because VGC was built. We are hoping we can travel for 20 years of our 50 and will certainly hope the kids/grandkids will enjoy it later, but also, remember that it is not a dead end purchase. You can sell it if you find that works for you, and still have many years of wonderful vacations under your belt.
I don't see how figuring room cost for 2 rooms at the Poly could make the break even point so far down the line...it seems like DVC would be a great fit for you.

 

[Crystal_27]

We bought in 2009 and with trips we've taken and have booked through 2011 we are already over half way home to breaking even!! Now, it's worth it to mention that before DVC we would have never entertained the thought of taking a 14 night trip at Christmas (at $7,700 plus tax for just the room, I'm sure you can understand why). DVC has given us not only a way to save money on our Disney vacations, but the option of vacationing in a way that we had only previously dreamed about (that sounds so cheesy as I type it, but it's true). Before DVC, I would read people's vacation plans or trip reports of 10+ day vacations, or reports of them going 3+ times per year, and just be so awed that they could afford it. I'm certainly not making light of the fact that the initial buy-in is staggering, but if you vacation at a Deluxe, want to continue to go to Disney every year or so, and can afford the MFs and other associated expenses, you really can't go wrong with DVC.