When luxury is worth it: Glad I bought DVC 15 years ago!

[mysevendwarfs]

So glad we joined in 2001. It made sense when we were a family of 6 plus my parents. It is even better now that our family is larger. DVC allows us to be on property with a full kitchen (more$ saved). We have also enjoyed great stays at HHI. Last trip we used our points for a grand Villa at AK. It was awesome. I can't imagine I would have ever made a cash reservation for these great accommodations. We love DVC!

 

[E-P-C-O-T]

I appreciate and share your enthusiasm!! We have been members for 5 years and our only regret is not buying any sooner
We are always amazed on the amount of $$$ we pay for our dues vs our type of accomodations. We have taken 12 DVC trips, I'm pretty sure that we have broken even a this point.

I understand that DVC is not for every family, but, it is PERFECT for mine!

 

[galen.craft]

I agree DVC is quite helpful. You had purchased quite a time ago and are reaping the fruits for the same. Good for you!!! Wish I had done that

 

[Tiger926]

My Financial guru hubby did the numbers 13 yrs ago and we used our stay at a moderate to do the numbers. We broke even long ago. We have made 28 trips in the last 13 years. And for us and the ability to be able to cook in our room for almost every meal helpe slash the cost dramatically. So, DVC had added value to be able to eat in.

We also just recently sold one of the 3 contracts that we owned and sold it for more then we paid. So, we lost nothing on the orginal investment.

Yup, this is what I keep reminding people on the DIS about, repeatedly. The numbers shake out to be moderate stay numbers. If we hadn't paid so much CDN exchange for our first contract (32%), we would be less than our former moderate stays. It's really important for people to know this. You do have to have that cash for the initial buy-in though, but still, for each of our trips, we compare to our former moderate vacations.

The other kicker is the thousands saved in food. We made the mistake for the first 6 years of splurging on food, as we were staying in studios, in order to go more often, so we needed to buy food. We didn't just buy food, we ate 2-3 TS meals per day with DP, DxDP or DDE/TIW. We way overspent, and highly regret that now, as that is not the way we normally vacationed. We had a false sense of savings with buying DVC, and so we used that up in food, and extra vacations that we never took before.

Now that we have come to our senses, we only stay in 1 bedrooms by banking or borrowing, if necessary. We use the full kitchen for almost all meals, but since we go for 2 weeks each summer, we have some lunches thrown in. We are saving huge money each trip now, by eating at least 2 meals per day in our villa. There are several days where we eat all meals in our villa! We love it! This is a true cost savings to owing DVC!

Great reminder for people, that they can slash their food budget, and thus their vacation costs, as that was by far, the biggest part of our vacation budget.

One more cost savings tip - plan your vacations out at least 51 weeks apart, and you can buy an AP, which then cuts your ticket costs in half too!

Tiger

 

[n2mm]

OP, I feel your excitment too. We only joined 6 years ago, but I got the call when they built OKW (1994??) offering us an upgrade from our then reservation at Dixie Landing to stay at OKW, but we turned it down. To this day I always wondered if I would've joined then. When we bought in 2005 my DH was a CM so we got a small discount on our initial purchase. Joining DVC fit us perfectly because we visit WDW 4-5 trips a year with each trip from 1 to 2 weeks. We can now help the kids and grandkids enjoy WDW and know this would not be in their budget to go as often as they do (at least twice a year). Buying DVC was a lifestyle choice for me. I know I can use my points for 500 other possibilities and the Disney cruise, but so far, I've been sticking to the DVC resorts. Hopefully the rumors will be true and there will be a DVC GF and DVC River Country resort in the future too. Though I've yet to stay at the treehouse! This year alone with my points I've stayed 16 days at OKW in a studio in January; 12 days in a studio in BWV (May) and got a studio for the family for 8 day also at BWV; I have 5 nights in a 1 bedroom reserved at BLT for August, plus a day at OKW for our arrival day; and in October I have a studio at BWV for 2 weeks, plus a 1 bedroom for my DD and her family in October on our week two. DVC isn't for everyone, but the ones like us that it does fit, enjoy the hell out of it!! Though I do have to say, before buying DVC most of my stays were either at a value or moderate resort. I think of all of the money I paid prior to buying DVC and to think that money could've gone toward the purchase of points that I would've used over and over again.....

 

[HHSTigerFan]

Dave Ramsey, Clark Howard, and practically every financial adviser out there would disagree with this premise.

Those guys don't like timeshares because they say their is no resale value to them, which has not been the case with DVC to this point.

 

[nunzia]

DVC is most certainly not a good fit for everyone and I have even talked a couple people out of it. However..it is a GREAT fit for us and only wish VGC had been built earlier since we are DLR resort folks and will always use it more there. Yes..big initial outlay, but it cost less than a couple POS vehicles I've had that lose value and have ongoing costs as well. I'd rather drive my Ford Focus around and have DVC for my one big splurge in life..which is vacations. I put money in a special account monthly, which costs less than our satellite TV costs, which covers MF and APs if we need them that year. We love to gift at least the room portion to our 3 kids, significant others and 9 grandkids, as well as other family members and friends. We are not wealthy by any stretch of the imagination, coming in under the national average, but we live frugally (except for vacations as previously stated) and truly love Disney and all the options DVC brings to the table. We bought our points in several small contracts so we can sell some if travel habits change and still not give up all of our ownership.
On the budget boards these discussions always tend to get judgemental..don't know why..If people want to spend tons of money on cars, or purses or funny looking boots and that's what gives them joy and they can afford it then good for them, so please don't call people who make other choices and have found DVC a good value for THEM (not you) unwise or naive, etc.

 

[acomasdiaz]

OP ~ I'll admit I'm a little jealous (in the good way)! We bought into DVC 5 years ago and we absolutely love it! Just wish we would have bought into it 15 years ago instead.

DH is a finance director and did many a spreadsheets before we bought. He would have never agreed to buy or even add on as we have if he didn't think it made financial sense for us.

We stayed at all of the DVC resorts in FL and have definitely had a wonderful experience with it in the past five years. We have treated family many a times, for example we got a Grand Villa at Animal Kingdom Lodge last year for my DS's birthday and it was incredible. We're doing the Grand Villa at Old Key West this year. Definitely, all worth it for us.

 

[hsmamato2]

I'm not jealous.... I've done trips using both ways,Paying for onsite hotels,and DVC options...I LOVE both! I do wish we had bought OKW at the outset....it was such a good deal way back when... but we didn't and now,for us,it isn't,it's just too much $$$......but it is an awesome option,if you can afford it..... I can't believe how much the points are now.....

 

[jodifla]

I'm not jealous.... I've done trips using both ways,Paying for onsite hotels,and DVC options...I LOVE both! I do wish we had bought OKW at the outset....it was such a good deal way back when... but we didn't and now,for us,it isn't,it's just too much $$$......but it is an awesome option,if you can afford it..... I can't believe how much the points are now.....

That's the thing for me. We bought at a really good time, largely because we didn't let people talk us out of it! We didn't overthink it.

We took a good, hard look at the numbers, the points we'd need, and how we travel, and how we wanted to travel in the future with kids and possibly less income, and jumped in. For us, it was the equivalent of a car payment....so we just didn't buy a new car until it was paid off. It was pretty painless.

 

[jtopicz1]

I think the key thing to remember is to stick with what works for you.

A Timeshare should never be considered an "investment". 99% of the time, you will never be able to sell your timeshare for more than you paid for it (although DVC seems to hold value a bit better and some people apparently are able to break even).

That said, a DVC Timeshare is not a "stupid" purchase if it makes you happy. But, as the OP stated, you should always consider it a luxury item, not an investment. Some people get happiness out of buying a $200 pair of shoes, and if they can afford it and it makes them happy, good for them! Same can be said for a DVC Timeshare.

It all boils down to how you choose to vacation. If you have gone to Disney at least once a year for as long as you can remember and have no plans to ever change that habit, DVC will probably work for you. Others, who may often switch their vacation spot of choice, may wish to just contribute what they would of paid for DVC plus the maint. fees into a vacation savings account. Neither one is a wrong answer - if it makes YOU happy!

That said, I would NEVER buy a timeshare. Not because I don't see why people like them, or because I think they are a bad purchase - the concept just doesn't work for us. We tend to vacation a lot of different places, have no children, and enjoy trying local foods from wherever we travel (so cooking in wouldn't happen) - but that's just how we prefer to travel.

One suggestion to people considering DVC (or any other timeshare): Sit down and compare ACTUAL costs. Comparing to rack rate is NOT a fair comparison, unless you travel at a time that rack rate is what you waould really have to pay. Also consider what you would pay if you rented points (or bought a stay from an owner) without actually being an owner yourself. If you do choose to buy DVC, always check resale first - it's almost always a better value!

Those are just my thoughts. I enjoy traveling and will spend any amount of money I can to see places I want to see. We plan to visit Thailand soon, and have recently returned from the Caribbean and Japan. People often ask why I would want to spend so much money traveling. The answer is simple - it makes me HAPPY. You work too hard in life to not have something to make you happy about and to look forward to. Some people drink, some people gamble, some people collect expensive cars - we travel! Nobody is necessarily "wrong".

 

[bumbershoot]

However on this next trip watch we make the emotional decison to buy BLT.

If you would only use the points to stay at Disney Villas, and if you're not totally hooked on BLT already, look into resale instead. Or see if they are selling any of the older resorts direct, if you want to buy through Disney. Take it from me...no need to buy Bay Lake (which we did) if you are happy staying at the other places (turns out we are).

I'm more along the lines of 'what if'... what if suddenly I lost my job? How on earth would I be able to afford to pay on a vacation I won't be taken (if I'd financed?) and what if I get sick and can not go back to work? saying I did pay it out right up front... how much of that money would I get back in the end?

A recent poster on the DVC boards said that they had had a job loss situation 2 or 3 years ago, had had to stop paying on the loan. They were in a much better place now, contacted DVC, and just had to pay the back money they owed, and they were good to go. Having Disney as your lender can make things easier.

If you paid it up front, no, you wouldn't be able to turn around and sell it for what you spent. But if you had a few years in there of taking vacations that you loved (and since you stay at other peoples' DVC places you obviously do like it), you have to deduct the enjoyment and vacations you got from the asking price.

Well, not all of us have friends who will give us a 2 bedroom at OKW to be able to go that cheap. So, you are getting the benefit of a friends generosity and at the same time questioning someone for owning DVC. I don't get it.

Dave Ramsey, Clark Howard, and practically every financial adviser out there would disagree with this premise.

If jodi were saying that she was smart 15 years ago to make such a financial *investment* that she hopes will yield riches, money-wise, beyond her wildest dreams, you'd be right about what they would say.

But she didn't say that. She made a decision to pre-pay vacations, and it's panned out. I'm sure if the gurus looked at her numbers they'd agree; I don't think jodi is lying to us...

IF you would normally 1) Go to Disney every year and 2) Stay in Deluxe accommodations. Very few people fall into that category, but most DVC owners I know use the "pays for itself" rationalization.



Keep in mind DVC only covers one portion of your vacation expense ... the hotel room. I rent DVC points each time I go, and the hotel room cost represents ~20% of the total trip cost.

We delayed buying for almost 2 years. In that time we went to Disneyland multiple times. We started adding up even what it was costing us to stay offsite, let alone those AP stays at PPH. It was getting up there!

For my wallet, I am totally comfortable saying "even though we wouldn't have taken this trip, look at the value of it compared to what we are spending on DVC (even taking into account the fact that we financed". So the 4 nights at DLH concierge level (when it was allowed) on incentive points (before we had any Bay Lake points to spend) absolutely goes into the "bank" compared to what we have spent. The 4 nights we spent on the hotel side of the Grand Californian (when it was allowed), even though I don't much like the Grand, goes into that column as well, because it was a basically decent place to stay and it let me know that I don't really like the hotel (info is always worth spending a little money, for me).

Now we add in our amazing trip last December and our surely to be amazing trip this coming September, with a total of 4 nights hosting extended family in a way we NEVER could have done before DVC, and honestly it's nearly paid off to us, emotionally.


Owners don't forget that there are other costs. How could we? We're paying them, after all.



Jodi, I'm jealous. I didn't even know, 15 years ago, what a Disney fan I would become. So I didn't even know DVC existed!

 

[yahoomom]

I have been contemplating the purchase of DVC for many years. Came very close in 2001 but with the events of 9/11 decided to hold off. I now recently came in to some money, under $50,000.00 and I am thinking maybe now is a good time. If I buy the basic plan about how much do you think it would cost, also how much a month do you put out for the fee. I just want a ballpark idea. So sorry I did not purchase years ago.

 

[Jenn4615]

yahoomom... it all depends on where you buy and how many points u buy...
if you bought new at Bay lake... somewhere in the low 200 points you'd prob pay about 22 grand... and fees per month maintenance etc would be about 70 dollars... or you could pay it all the begining of the year in one lump sum...
this is just a RANGE... if you buy resale could pay substantially less if someones GOT to get rid of it... and depending on where it is.

 

[yahoomom]

THANKS!!! How would I go about buying a resale. I assume this would be buying a DVC from someone who no longer wants it for whatever reason. Is this a good idea. Is it much less money. Thanks

 

[Gretchen]

Okay-
Someone tell me if I am wrong:
If I bought DVC I would be buying points for a share in a timeshare-
I would then pay a yearly maintenance fee every year for the life of the timeshare contract, right? So, if I were to budget this out and compare if this was right for me, I would:
Add up the cost of the points/buy in contract and the yearly maint. fees and divide that by each vacation I would take? I would then add up my average hotel rate per night multiply that out to equal the vacations I would take. To Disney, of course. Then I would get a true comparison, right?
We have friends that bought in the first go 'round of the DVC and they have comp lifetime AP's. Now that was a deal!
Thanks-

 

[Gretchen]

yahoomom... it all depends on where you buy and how many points u buy...
if you bought new at Bay lake... somewhere in the low 200 points you'd prob pay about 22 grand... and fees per month maintenance etc would be about 70 dollars... or you could pay it all the begining of the year in one lump sum...
this is just a RANGE... if you buy resale could pay substantially less if someones GOT to get rid of it... and depending on where it is.

Based on the above-and using it for 20 years (I don't know how long the contract is for, but I can only see going to WDW for 20 more years) every year, my comparison number is $1940.00 per year or 277.00 per night. For a hotel room at WDW. And I would have to go every year.
Hmmm.

 

[nunzia]

THANKS!!! How would I go about buying a resale. I assume this would be buying a DVC from someone who no longer wants it for whatever reason. Is this a good idea. Is it much less money. Thanks

Resale can be a great way to go..but please be aware that Disney has recently separated direct from Disney points from resale points in certain ways. Direct from Disney points can be used for all that is offfered through DVC, but resale points (purchased after Mar 21 this year) can only be used for DVC properties and trading out to RCI. They cannot be used for the Disney Collection (like DLH at Disneyland or non DVC WDW properties), Disney Cruise, or Adventures by Disney. These are not considered good uses of points and to many would make no difference in their decision, but it is important to know that Disney is beginning to segment ownership to direct from Disney owners and resale owners.

The way I figure my value is poo pooed by many, but to me the only fair way is to figure out exactly what accomodations I am getting for what they would cost. Since I stay at VGC and villas have yet to be available fo Disney to sell, I can only go by what what was quoted to someone who asked. So, I figure out what it would have cost me to stay, and compare it to what I've spent. I'll break even in a couple more years in my way of thinking, but it really doesn't matter, because, to me, it's worth it without breaking even.

Contract at BLT is about 50 years..so figure out your 20 years use then guess what you could sell it for to figure out your true yearly cost.

 

[Beezle2]

Just had to say that we adore our DVC also! It it the very best thing I have ever bought and the only thing DH and I would fight over in a divorce We just LOVE a 1 or 2 bedroom experience and haven't ever been sorry we own. I am going to add on when I can because I have to stay at BLT with a MK view for a week someday.

 

[LSchrow]

Okay-
Someone tell me if I am wrong:
If I bought DVC I would be buying points for a share in a timeshare-
I would then pay a yearly maintenance fee every year for the life of the timeshare contract, right? So, if I were to budget this out and compare if this was right for me, I would:
Add up the cost of the points/buy in contract and the yearly maint. fees and divide that by each vacation I would take? I would then add up my average hotel rate per night multiply that out to equal the vacations I would take. To Disney, of course. Then I would get a true comparison, right?
Thanks-

what you would do (and i did before purchasing DVC) is figure out your price per point over the course of the contract, and multiply it by the points you would use.
we bought over 10 years ago, and effectively pay about 60% or more off rack rate - better than what i would get with CM discount, and i became free to get a job that pays almost double what disney was paying me

we broke even on the purchase price years ago, can still make some money by renting points, or we can sell for more than we paid. also, BWV BW view is only available on DVC points, something we enjoy waaaaaay too much to give up.

add us to those that are thrilled that we own DVC