When do you start to save money?

[artemis908]

I know the joining is an investment, but when do you start to actually save money? We are go on vacation every year type of people. Though I can see that changing once we have kids. That makes me wonder if joining DVC might be right for us. I am just wondering about really when it would begin to feel it's worth it and what happens if lets say one of us loses our jobs. My mother and I had considered purchasing in the past, we did a tour of the DVC resorts and it was very, very nice. The DVC people were also great and not pushy.

I'd love to hear from anyone on their thoughts or experiences and really what in the end made them decide DVC was right for them.

 

[RobDoc]

I know the joining is an investment, but when do you start to actually save money? We are go on vacation every year type of people. Though I can see that changing once we have kids. That makes me wonder if joining DVC might be right for us. I am just wondering about really when it would begin to feel it's worth it and what happens if lets say one of us loses our jobs. My mother and I had considered purchasing in the past, we did a tour of the DVC resorts and it was very, very nice. The DVC people were also great and not pushy.

I'd love to hear from anyone on their thoughts or experiences and really what in the end made them decide DVC was right for them.

We purchased in June, 1993 and I tracked all costs of DVC and compared that to what we would have spent for the same vacations had we reserved directly thru Disney. We were able to take several trips each year and also got free park passes (that was the purchase incentive at the time we bought) thru the end of 1999. By late 1997, a little more than 4 years, we reached a break even point and felt we were $$ ahead the following year. At this point, we view our annual maintenance fees to be out only real expense for our Disney accommodations.

During those first couple of years we also added on and purchased resales and we reached a break even on all of our points within 7 years. We have now spent over 2 years (700+ nights) staying on property using DVC accommodations. We were able to sell one of our contracts 3 years ago for $20 per point more than we paid, but would not suggest that is a likely scenario going forward. For almost 15 years, DVC significantly aided the resale market with an active ROFR program, but that has basically stopped and resale prices have started to reach their "real" level although that is still far above most other timeshares.

DVC was the best "investment" in our family experiences we could have made and our children and grandchildren would agree.

In fact, we just arrived at OKW (currently enjoying TS Debby) and our grandkids will arrive in about an hour to join us for this week.

We hope you have a similar family experience!

 

[wishicouldgomoreofte]

I know the joining is an investment, but when do you start to actually save money? We are go on vacation every year type of people. Though I can see that changing once we have kids. That makes me wonder if joining DVC might be right for us. I am just wondering about really when it would begin to feel it's worth it and what happens if lets say one of us loses our jobs. My mother and I had considered purchasing in the past, we did a tour of the DVC resorts and it was very, very nice. The DVC people were also great and not pushy.

I'd love to hear from anyone on their thoughts or experiences and really what in the end made them decide DVC was right for them.

You don't. You spend more.
Also, the joining is not an investment at all.
Do not expect to sell some day for more than you paid, or even to break even.

 

[wdw4rfam]

We found it wasn't for us. We go every year, NEVER paid rack, and figured this out many times. We will be staying deluxe from now on, and refigured it with a friend that is a DVC MEMBER. It is just not a good deal for us. We have got free dining all but 2 trips. I think the way I figured, you have to be pretty certain you will ALWAYS get a villa, and never get a discount to come out ahead. This is not just my opinion, I had a DVC Sales rep go over it with me and agree it wouldn't benefit me if I was looking at cost alone.

 

[Dean]

I know the joining is an investment, but when do you start to actually save money? We are go on vacation every year type of people. Though I can see that changing once we have kids. That makes me wonder if joining DVC might be right for us. I am just wondering about really when it would begin to feel it's worth it and what happens if lets say one of us loses our jobs. My mother and I had considered purchasing in the past, we did a tour of the DVC resorts and it was very, very nice. The DVC people were also great and not pushy.

I'd love to hear from anyone on their thoughts or experiences and really what in the end made them decide DVC was right for them.

As noted, I don't think most people save money because of the psychology that goes with such a set up. On paper, those that would have stayed on property in deluxe's all of the trips will likely start saving in the 10-12 year out range assuming dues and room charges follow a pattern and one considers applicable discounts for cash options. That assumes they either get a studio or a 2 BR compared to 2 deluxe hotel rooms. Most will not see a savings if a 1 BR is the choice though they may still enjoy additional value at a controlled cost.

 

[peabody58]

Saving money is in the eyes of the beholder. If I hadn't bought into DVC, I highly doubt I'd be planning multiple WDW trips and buying AP vouchers for future years - hence I haven't saved any money as compared to my old vacation patterns. I track all my travel expences, and estimate that at year 6 or 7, our costs will be a break even. I am confident I can recoup 50% of my purchase price on the resale market when we are too old to keep going to DVC. So it's nice to know there will be a little money to bury us!

Now from a totally different percpective. Since buying into DVC, our quality of life has increased 10 fold. After decades of hit and miss vacationing, DW and I (recent empty nesters) are really enjoying ourselves, and the options DVC provides. Our new found vacation patterns have encouraged us to take better care of ourrselves, which should ultimately lead to a longer and more enjoyable life.

Sure we could have accomplished the same results with lots of therapy and gym fees, but this way just seem like so much more fun.

DVC is not for everyone, but for those who discover the formula that works for them, DVC can be a god send. The trick is to find what works for you and your family, enjoy life and pay it forward.

 

[permavac]

We did not save money by buying DVC. We used to stay at the Values and Moderates. By buying DVC, we have upgraded our accommodations so we don't mind that we are paying more. DVC is the only way we would "splurge" for the Deluxe Villas - they are just too much OOP per night for me to ever consider staying there paying cash (even at the discounted rates but I did pay them once when we needed to add a couple of nights to a BWV points trip).

As wishicouldgomoreoft pointed out - DVC is not an investment. It is a timeshare and is basically just a way to pre-pay the bulk of your on-site Disney vacations for the next 30-50 years. You pay thousands of dollars now and then every year "only" have to pay the maintenance fees, the cost of which varies depending upon your home resort and the number of points you get. The MFs alone could be more than what you spend per year on a hotel room so it pays to do your homework before considering a timeshare.

I know that DVC itself is the one trying to give people the impression that they will be "saving money" by buying DVC but I don't know if that is true for the majority of people who have actually bought it. As Dean pointed out, the people who really "save" money are those who plan on staying at a Deluxe Villa every time and even those savings are not realized until well down the road.

Terri

 

[Dean]

Saving money is in the eyes of the beholder.

I would disagree, I think saving money is an accounting issue and compared to what one would likely have spent without DVC. Value and perceived value would fit more into your statement as I'd look at it.

 

[JimC]

Like Doc, we have tracked our DVC vs alternative discounted cash options. We joined in 2002, after the free pass program. We stayed at a mix of resorts and seasons before DVC. After DVC, my wife and I stayed at 1 bedroom villas for the two of us and two bedrooms when my Mom joined us. Our break even was eight years for our resale contracts and ten for the direct purchase contracts.

 

[crisi]

Another who hasn't saved a dime - but spent more. Its been a good value - taking friends and family who we'd never pay for their rooms, having the kids in a separate room rather than stacking us all into a single hotel rooms. But savings - nope.

It was still a good decision as it had benefits beyond saving money. But we didn't need to finance, have two fairly solid incomes and a significant cushion. If we'd loose a job, DVC wouldn't be a huge worry (we might not use our points, we might decide to rent our points, and at this point, we might choose to sell as our kids have gotten older)

 

[Sandisw]

When we decided to buy, we compared what we were paying for a hotel room at the CR to what we could get for about the same yearly costs by owning DVC and realized that we could get much larger rooms for around the same if not less yearly costs, so we bought in.

When we figured it all out, we would break even, based on the typical discounts were were getting at the time, in about 7 years.

What we love about it is that we can bring family and friends with us and I don't think I would have done that without DVC.

What I also love is not having to worry about discounts, waiting for pin codes, etc. I can book and not worry about it any longer!

The downside is that owning DVC makes me want to visit Disney more often and in 2012 I will be visiting at least 3 times, more than our typical once a year trip we did prior to owning DVC!!!!

Good luck!

 

[ELMC]

I know the joining is an investment, but when do you start to actually save money? We are go on vacation every year type of people. Though I can see that changing once we have kids. That makes me wonder if joining DVC might be right for us. I am just wondering about really when it would begin to feel it's worth it and what happens if lets say one of us loses our jobs. My mother and I had considered purchasing in the past, we did a tour of the DVC resorts and it was very, very nice. The DVC people were also great and not pushy.

I'd love to hear from anyone on their thoughts or experiences and really what in the end made them decide DVC was right for them.

Personally, we decided to buy DVC because we typically vacation in 1 or 2 BR villas wherever we go. Purchasing DVC was the best way to do this and be on property. So for us, it came down to the math. Using numbers as they are now, we anticipate that we will break even in year 6 on our BWV purchase vs. renting points from a point broker. But that's us. If you are a value resort type of person who gets the free dining plan, DVC will never save you money. As others have pointed out, purchasing DVC will most likely only save you money if you are already staying in DVC level accommodations.

A couple of things for you to think about, based on what you said above. First off, be careful with the terms you choose when discussing DVC. There is no real "club", you're not actually "joining" anything, there are no "guides" to help you and this is definitely not an "investment". I don't say this to offend people who use these terms, so I apologize in advance if anyone takes offense to what I'm saying. My point is simply that we need to be careful what words we use to discuss this topic, because specific words are chosen to create certain images that may or may not be accurate representations of what things are.

If you decide to buy a DVC contract then you are making a purchase and not joining a club. And you're not making an investment, you are prepaying for your next 30-50 vacations with a large payment up front and smaller payments in the future. Eventually, the hope is that over time the total amount spent is less than if you did not purchase DVC (and this is typically the case).

Also, if you are worried about possibly losing a source of income and how that would affect your DVC ownership, you are definitely wise to factor that into your decision making process. I don't know your financial situation and I'm not going to ask, but if you're stretching to make this purchase and you don't have other financial bases in place, it could be problematic in the future should anything unexpected happen (and it usually does).

Good luck in making your decision!

 

[kyle051777]

Just to start out we bought resale, but I remember one of the phrases our DVC tour guide used was "Do you want to upgrade your vacations." It looks like we did just not direct.

We have been DVC members for less than a year (Aug 2012) and have been to disneyland 3 or 4 times and disneyworld 2 times. We live in AZ. Anyways, we LOVE it. We use to stay in budget hotels spending anywhere from $30- $100 per night. Always we were wondering what we were going to end up with. Bugs crawling all over, moldy bathrooms etc.

For us we definitely spend more but for us it is worth it. Basically you have to run the numbers and see if it makes sense.

Good luck with your decision.
Kyle

 

[DisWitt]

I have a perspective not yet shared. My DW and I love traveling and before kids would go somewhere every 3-4 months. 6 years later, and as life gets busier and busier, without DVC we might never take a vacation. Literally, as DVC will tell you, this was an investment in FUTURE vacationing for our family. Now, whether we like it or not, we have vacation plans 7-11 months from now. And next year, dangnabbit, we WILL go on vacation and LIKE IT! It is so comforting for us and (now) our two kids, to KNOW that there is a fantastic vacation in our not-too-distant future. Before DVC, we had to watch for deals (which is like clipping coupons, which I hate), go last-minute, and feel like someone else was always getting a better deal than us. Now, we know we got a great deal on really luxurious accomodations.

We NEVER would have spent the $1000+/night on a 2br ocean view suite in Hawaii.... We never would have afforded it. But, amortizing our buy-in and MF's, that suite for the week at Aulani "cost" about $2k. AND we took our in-laws and treated them! Nothing is better than impressing the in-laws (that was worth the buy-in right there). Same thing at VGC before Christmas last year: I called CR for a regular room (too small for us) and was quoted over $300 for ONE night! Then, just for kicks, I asked about a 1-br suite... Over $1000! Yikes! We wait-listed for a 1-br villa and got it. A total splurge we couldn't have afforded otherwise. And we made one of our favorite family memories thanks to DVC. And now it's an annual tradition.

Any time share is not an investment in the classic sense of the word. But I think most people here and at other TS's will tell you that no matter the high MF's, the planning ahead, and all of the other stuff that comes along, the "investment" is in future (and past) family times that you will be FORCED to spend together... And you WILL go on vacation dangit, and you WILL be forced to have a good time... And that's an investment I'll make every time.

 

[ELMC]

I have a perspective not yet shared. My DW and I love traveling and before kids would go somewhere every 3-4 months. 6 years later, and as life gets busier and busier, without DVC we might never take a vacation. Literally, as DVC will tell you, this was an investment in FUTURE vacationing for our family. Now, whether we like it or not, we have vacation plans 7-11 months from now. And next year, dangnabbit, we WILL go on vacation and LIKE IT! It is so comforting for us and (now) our two kids, to KNOW that there is a fantastic vacation in our not-too-distant future. Before DVC, we had to watch for deals (which is like clipping coupons, which I hate), go last-minute, and feel like someone else was always getting a better deal than us. Now, we know we got a great deal on really luxurious accomodations.

We NEVER would have spent the $1000+/night on a 2br ocean view suite in Hawaii.... We never would have afforded it. But, amortizing our buy-in and MF's, that suite for the week at Aulani "cost" about $2k. AND we took our in-laws and treated them! Nothing is better than impressing the in-laws (that was worth the buy-in right there). Same thing at VGC before Christmas last year: I called CR for a regular room (too small for us) and was quoted over $300 for ONE night! Then, just for kicks, I asked about a 1-br suite... Over $1000! Yikes! We wait-listed for a 1-br villa and got it. A total splurge we couldn't have afforded otherwise. And we made one of our favorite family memories thanks to DVC. And now it's an annual tradition.

Any time share is not an investment in the classic sense of the word. But I think most people here and at other TS's will tell you that no matter the high MF's, the planning ahead, and all of the other stuff that comes along, the "investment" is in future (and past) family times that you will be FORCED to spend together... And you WILL go on vacation dangit, and you WILL be forced to have a good time... And that's an investment I'll make every time.

Excellent point. With DVC (or any other timeshare for that matter) it's not a question of if we will go on vacation, but rather a question of when and where. And those busiest times when we are least likely to take a vacation are usually when they are most needed and appreciated.

 

[Lynne M]

I know the joining is an investment, but when do you start to actually save money?

DVC is most definitely not an investment. It's not like buying a vacation home or a condo, where there's some chance that the value will increase over time. The value of a timeshare is in its use. The resale value of your contract will drop the minute you buy it, and will generally continue to decrease as you approach the end date of the contract.

I am just wondering about really when it would begin to feel it's worth it and what happens if lets say one of us loses our jobs.

Whether it's 'worth it' is purely subjective, and whether you'll save money compared to your current stays depends on what kind of lodging you're staying in now.

If you're staying in deluxe resorts or deluxe villas on cash reservations, you'll pretty definitely spend less on your lodging through DVC than you would through Disney. If you're currently staying in moderates...well, you'll probably break even at some point, but it'll take a long time. If you're comparing DVC's cost to value resort stays...you'll probably never save money, but you will be staying in much nicer accommodations.

DVC makes sense if you see yourself staying in DVC resorts at least every couple of years for the next several decades, and if you want the villa-style accommodations.

Regarding what happens if you lose your job...assuming you don't take out a loan for the purchase price, you would still owe annual maintenance fees. If those go unpaid, Disney will foreclose and you'll lose the DVC contract.

 

[CMOORE185]

I think this economy has made it harder on sales to claim you will save money by purchasing DVC. They used to talk about how prices for rooms will increase at a much higher rate than the cost of your DVC, meaning as the years go by it becomes a better and better deal for you. The problem is the economy has made it harder to claim this as the deals have gotten better for cash guests.

 

[tjkraz]

You don't. You spend more.

It is true that a DVC owner will probably end up giving The Walt Disney Company more of their dollars than a non-owner. But that owner is still getting greater value from their dollars than the typical cash guest.

If the DVC locations are places that you visit regularly and/or wish to visit more frequently, DVC is probably the most cost-effective way to do it.

Yes, you may end up giving TWDC 2x as much money as you do now over an extended period. But it's possible to get 3-4x more value than a cash guest over a similar period.

As noted, I don't think most people save money because of the psychology that goes with such a set up. On paper, those that would have stayed on property in deluxe's all of the trips will likely start saving in the 10-12 year out range assuming dues and room charges follow a pattern and one considers applicable discounts for cash options. That assumes they either get a studio or a 2 BR compared to 2 deluxe hotel rooms. Most will not see a savings if a 1 BR is the choice though they may still enjoy additional value at a controlled cost.

Agree. There are two broad ways to look at DVC. The first is as a savings vehicle. The only way that really works is if you are a regular cash guest who frequents Deluxe resorts. Buying into DVC and using points almost exclusively for Studio stays (closest unit to a Deluxe hotel room), you will end up saving money in the long run. Potentially a LOT of money.

But what most people seem to do is use DVC to buy-up to a better class of resort (from Value or Moderate to DVC/Deluxe) or buy-up to a larger room (from standard hotel room to One or Two Bedroom villa.) In these scenarios you may end up spending the same money or more money, but the improvement in quality and/or quantity is easily discernible.

DVC is most definitely not an investment.

It's not an investment in the sense of a tangible asset which will increase in value. However, most owners I know view the DVC purchase as an investment in their family or an investment in their future well being (i.e. the "prepaid vacation" aspect.)

 

[crisi]

I have a perspective not yet shared. My DW and I love traveling and before kids would go somewhere every 3-4 months. 6 years later, and as life gets busier and busier, without DVC we might never take a vacation. Literally, as DVC will tell you, this was an investment in FUTURE vacationing for our family. Now, whether we like it or not, we have vacation plans 7-11 months from now. And next year, dangnabbit, we WILL go on vacation and LIKE IT! It is so comforting for us and (now) our two kids, to KNOW that there is a fantastic vacation in our not-too-distant future. Before DVC, we had to watch for deals (which is like clipping coupons, which I hate), go last-minute, and feel like someone else was always getting a better deal than us. Now, we know we got a great deal on really luxurious accomodations.

........

Any time share is not an investment in the classic sense of the word. But I think most people here and at other TS's will tell you that no matter the high MF's, the planning ahead, and all of the other stuff that comes along, the "investment" is in future (and past) family times that you will be FORCED to spend together... And you WILL go on vacation dangit, and you WILL be forced to have a good time... And that's an investment I'll make every time.

That is a double edged sword, however. Mine current story is emotional, not financial, but a forced vacation may not be the best thing.

Two weeks ago my husband's brother passed, and high on the list of things we don't want to deal with right now are a vacation...scheduled for August. There are other things taking our time and emotional energy right now. And, yes, we could rent out the vacation, but that still leaves the emotional imprint, plus it creates the situation we are hoping to avoid....an "unfair" impact on our kids.


I really never thought I'd be in this spot...we are in a good place not to have those sorts of financial challenges that can make an enforced vacation an unwise decision..I never thought that the challenge in an enforced vacation might end up being emotional. And yet, twice now, during ownership, it has been. Both a trip that was taken as filler for a trip we were supposed to take with my sister, but she was going though chemo and that trip was postponed, now this.

You aren't really forced to have a good time on trips like that. The first one was stressful and sad and the worst trip to Disney I've ever had...I expect this one to be worse on my husband and me.

 

[Lucia_27]

We didn't look at our purchase as an investment in the traditional sense, but as a way to pre-pay for our vacations for the next 30 years. These were some of the factors that played into the decision for us:

- We will never use the dining plan, so the free dining offers did nothing for us. The dining plan just does not suit how we like to eat on vacation.
- We realized that for a trip of 4 or more days, we prefer a villa with more space and a kitchen than a traditional hotel room. We stayed at OKW in a 1BD twice for 8 days, then at the Poly for 5 days. Loved the Poly, but we didn't like being on top of each other. We are a loving family, but need our space!
- We like the ability to eat breakfast and lunch in the room, which makes a villa useful for us.
- We know we typically have a 7 day trip and a 3 day trip for F&W each year. We'd love to fit more trips in (we are only 70 minutes away by car).
- I knew that we'd never pay rack rate for a 1BD villa. I hated the anxiety of waiting for a PIN or discount code in order to plan our trip.
- We want to be able to share our accomodations with friends and family, which we wouldn't be able to do without DVC.

So are we saving money after x years? Assuming CRO doesn't offer 35% off Deluxe Villas every year, yes will will eventually. But that wasn't really our driving factor for making the decision to buy DVC. Lot's of other things went into it...