When will DVC cost $400pp

DVC Doctor

Member since 2001
DVC Gold
Joined
Mar 19, 2014
Looking at historical DVC prices:

1991 = $51
2007 = $100 = 16 years to double from $50
2012 = $150
2020 = $200 = 14 years to double from $100

My guess, based on the past 30 years - In 2034, the price will be $400 for a new DVC resort
 

Cyberc1978

DIS Veteran
Joined
Jul 19, 2016
It all depends on the economy at the time.

If we have a recession then the prices will not increase much if at all.

OTOH if the economy is booming and most is making a $100K a year then the prices will sky rocket.
 

CLE2WDW

Earning My Ears
Joined
Sep 12, 2019
Just like anything else in the world it will revolve around supply and demand. At some point in the not so distant future Disney will begin offering new contracts at the resort contracts that expire in 2042. This could potentially flood the market and level off pricing.
 
  • Sandisw

    Moderator
    Moderator
    Joined
    Nov 15, 2008
    I have a feeling that it might be a tough move to high. When I bought in the marketing was save 70% where now it’s 50%.

    New point charts with the newer resorts that come online might allow them to take longer?
     

    DVC Doctor

    Member since 2001
    DVC Gold
    Joined
    Mar 19, 2014
    DVC trend:
    higher buy-in price + higher annual dues + higher points per room cost = $mega bucks

    DVC ownership used to be a slam dunk great deal (especially for pre-2010 members) and it is still a good deal, but harder to justify.

    When you add in interest (assuming you need to finance) to buy, it is impossible for me to justify the cost over other options.
     

    Dizzydizney

    Mouseketeer
    Joined
    Jun 29, 2019
    Glad I have enough points in 3 desirable resorts to see me thru my 80’s....two of them will probably outlive me. Our children can decide to keep, sell or sell to buy a newer resort. When we first bought in 1997, it was still a very large expense for us (paid off the balance in a year) but we lived within our means. Still the best thing we ever did.

    If the economy remains strong, I can see your numbers being close to reality.
     

    DVC Doctor

    Member since 2001
    DVC Gold
    Joined
    Mar 19, 2014
    Historical DVC annual prices (blended rate)

    1991 = $2.50
    2009 = $5.00 = 20x years to double from $2.50
    2020 = $7.00 = 11x years to double from $5.00

    My guess, based on the past 30 years --- In 2034, the annual dues will average around $12
     

    SecondEventuality

    Mouseketeer
    Joined
    Jun 28, 2019
    When you add in interest (assuming you need to finance) to buy, it is impossible for me to justify the cost over other options.
    Have to agree with you there and it is the part that consistently boggles my mind - when you factor in the financing, especially at the high rate that DVD charges with 9.99%, you might as well just book the rooms through Disney with the usual 25% discount and call it a day? I don't get how Disney gets away with such a high interest rate, so easily. The only thing I can think of is what our guide said, that it's a legacy to pass down to your kids. So the "gifting" aspect, regardless of how much said gift ends up costing folks, is what draws them in? A HELOC/Home Equity Loan is a great financing option, but even at ~4%, you're still paying something that needs to be factored into the whole picture.

    Just taking a look at the Exhibit A - Blanket Satisfaction of Mortgages statement, 44 out of 300 listed are from 2019. If I'm understanding it correctly, then the other 256 were financed through Disney for x length of time. The earliest date of mortgage I see is from 2008, so this doc can not possibly be complete in any way, but interesting nonetheless.
     
    Last edited:

    Sandisw

    Moderator
    Moderator
    Joined
    Nov 15, 2008
    Have to agree with you there and it is the part that consistently boggles my mind - when you factor in the financing, especially at the high rate that DVD charges with 9.99%, you might as well just book the rooms through Disney with the usual 25% discount and call it a day? I don't get how Disney gets away with such a high interest rate, so easily. The only thing I can think of is what our guide said, that it's a legacy to pass down to your kids. So the "gifting" aspect, regardless of how much said gift ends up costing folks, is what draws them in? A HELOC/Home Equity Loan is a great financing option, but even at ~4%, you're still paying something that needs to be factored into the whole picture.

    Just taking a look at the Exhibit A - Blanket Satisfaction of Mortgages statement, 44 out of 300 listed are from 2019. If I'm understanding it correctly, then the other 256 were financed through Disney for x length of time. The earliest date of mortgage I see is from 2008, so this doc can not possibly be complete in any way, but interesting nonetheless.
    Unless it has changed, Disney doesn’t report your debt to a credit agency. So, this could contribute to the ease of financing?

    Plus, if someone has a Disney Visa can get some of it for 6 months no interest.

    Makes it easier for them to sell with just” Look, your monthly payment is only XYZ!”

    .
     

    SecondEventuality

    Mouseketeer
    Joined
    Jun 28, 2019
    Unless it has changed, Disney doesn’t report your debt to a credit agency. So, this could contribute to the ease of financing?

    Plus, if someone has a Disney Visa can get some of it for 6 months no interest.

    Makes it easier for them to sell with just” Look, your monthly payment is only XYZ!”

    .
    No, I believe you are right, I do recall our guide mentioning that it isn't reported, but I failed to remember it since it didn't really affect us.

    Yes, the Disney Visa was very nice to use for the down payment + annual passes, agreed there! Plus, we also had a bunch of rewards to use, too! Nice bonus!

    Haha, the "x amount per month" always is a head-scratcher, even with buying cars! Sure it's *only* $200 a month (but for your first payment we are taking $120 of it and putting it towards interest bc we want our money, shush, don't tell anyone and we hope you don't notice! LOL!!)
     

    DVC Doctor

    Member since 2001
    DVC Gold
    Joined
    Mar 19, 2014
    Correct me if I am wrong, BUT even if you bought DVC from Disney and...

    100 point contract @ $180
    Financed $18,000 @10% over 10 years

    $237.87 per month payment

    Total Principal Paid over 10 years = $18,000
    Total Interest Paid over the 10 years = $10,544.56
    Total price of DVC ownership = $28,544 / 100 points = $285 per point

    $10,544.56 / 1,000 points (100pts x 10 years) = $10.54 per point in interest

    Adding $10.54pp financing to $8pp dues = $18.54pp.......ouch!

    Note:
    Interest costs on a timeshare purchase are KILLER
     
    Last edited:

    Wakey

    DIS Veteran
    Joined
    Dec 22, 2015
    Disney doesn’t report to credit agencies for a very good reason - it doesn’t turn anyone away, and it has zero risk as it retains total control of the asset it is lending on.
    What a business model to offer finance on that basis at 10%. It must be extraordinarily profitable to be selling DVC to people taking their finance.
    Does anyone know- is more commission / bonus earnt by the salespeople if they sell a finance package?
     

    SecondEventuality

    Mouseketeer
    Joined
    Jun 28, 2019
    Correct me if I am wrong, BUT even if you bought DVC from Disney and...

    100 point contract @ $180
    Financed $18,000 @10% over 10 years

    $237.87 per month payment

    Total Principal Paid over 10 years = $18,000
    Total Interest Paid over the 10 years = $10,544.56
    Total price of DVC ownership = $28,544 / 100 points = $285 per point

    $10,544.56 / 1,000 points (100pts x 10 years) = $10.54 per point in interest

    Adding $10.54pp financing to $8pp dues = $18.54pp.......ouch!

    Note:
    Interest costs on a timeshare purchase are KILLER
    The only technical detail missing is that you need to put either 10 or 20% down some other way (this portion is not financed through DVD) so that factor can either be an even higher finance charge (if one is putting this down payment on a high-interest credit card) or lower if paying with cash. It all depends.
     

    Brianstl

    DIS Veteran
    Joined
    Sep 8, 2019
    Looking at historical DVC prices:

    1991 = $51
    2007 = $100 = 16 years to double from $50
    2012 = $150
    2020 = $200 = 14 years to double from $100

    My guess, based on the past 30 years - In 2034, the price will be $400 for a new DVC resort
    I think it will be a long long time before it $400 pp. With the exception of a few resorts, it makes more financial sense right now to rent points than even buy resale. The emotional pull is propping up prices right now. That emotional pull and pixie dust can only push prices so how.
     

    Connect

    Disney News and Updates



    SUBSCRIBE TO OUR DAILY EMAIL
    Subscribe and never miss out on Disney News, Deals and Updates.






    Subscribe to the DVCstore.com
    mailing list!

    BUY DVC


    SELL DVC


    DVC POINT CHARTS


    DIS PODCASTS


    Top