Why are DVC members paying so much?

[Galahad]

If your decision to buy into DVC is strictly financial and it is just another time share from which to choose, you will likely feel that you are over charged. If, as many have stated, you view it as a pre-paid vacation rather than an "investment" you are likely to be more pleased with a decision to buy. Comparing the price to off site accomodations is not relavent because getting the deluxe accomodations in the heart of things is a big part of the motivation to buy into DVC. The fact that it is a no-lose for Disney doesn't make it an no-win for the DVC member. We are all well aware that part of the bargain is Disney's desire to have us on site as often as possible spending money. The point is, most of us have concluded that we would be on site spending money with or without the DVC and that overtime we will spend less as members that as non-members. The argument about investing the money instead of buying the membership has a couple of problems. First, if you evaluate every dollar you spend against what it could make if invested you must have a pretty dreary life. Second, we have 410 points that we spent around $26,000 for that works out to $600 or so a year over the life of the membership plus the dues/taxes. Accomodation rates will likely go up at a rate not far from whatever I might make on that money over the course of that time. Again, assuming that we bought into DVC becuase we WILL go every year. Assuming that I invested the $26,000 at 6% and left it sit for 45 years it would be about $358,000 at the end that time. If we take to roughly $4000 stated above for the cost of a 1br for 10 days now during off-peak, and assume a modest 3% increase each year (probably way too low) it would total about $370,000 over the same period of time. Now I know these are rough numbers, but if your goal is a quality, on site, WDW vaction over the years it really isn't a bad deal at all.

 

[Richyams]

My amatorized cost goes down every year. This year my vacation cast under $400 a night for a three bedroom Grand Villa at OKW. This room has a rack rate of $1200-1800 per night depending on season.

Or you can think of it this way....My original cost for 430 points was about $23,000, add to that my first two years of dues, $2,500, then I went on two twelve night vacations in the Grand Villa at OKW during my first two years of membership. At that time the rack rate was aroung $1,100 per night, plus the 10% room tax, and I actually broke even the second year.

Now my vacations are only costing me dues. I get a three bedroom Grand Villa for slightly over $100 per night....makes me feel giddy knowing what a great bargain I got with DVC.

Creeping socialism was seen hundreds of years ago when James Madison said: "I believe there are more instances of the abridgement of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations."

 

[MikeBW]

Hey Isjp,

If you think DVC is such a bad deal, don't join.
You would probably be using pool towels in your room anyways, so stay away!

 

[Richyams]

Lol.....and sneeking 5 into a one bedroom!!!!!!

Creeping socialism was seen hundreds of years ago when James Madison said: "I believe there are more instances of the abridgement of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations."

 

[Island_Lauri]

When we purchased, we used Disney financing. Without getting into too many details, we are paying about $160 a month for our contract and $60 a month in dues - about $220.00 a month or $2600.00 a year.

This year we are staying at the BWV for 1 week during February--5 nights in a one bedroom and 2 nights in a studio. We have also scheduled a few nights in September at a Beach Cottage and are taking both of our parents with us for a very special vacation with the grandchildren.

We look at our payments like a vacation club or a Christmas club -- similiar to putting money in the bank each month. But putting $2600 in the bank would not get us the accommodations we are getting this year and it sure beats coming back from Disney with major credit card bills. I realize that this doesn't take into account the 3% interest we could be earning on our "vacation club" bank account but neither does it take into account the tax deductability of financing our "vacation home".

Of course, once our financing is paid in full, we will only be paying annual dues and still be able to stay in deluxe accommodations til we are in our 80's.

 

[Gary OKW'94]

We love our paid off "Piece of the Magic". Enough said.

 

[DisMN]

Galahad said:
The fact that it is a no-lose for Disney doesn't
make it an no-win for the DVC member.
======================

I agree. Not only that but I wouldn't WANT to buy a timeshare from a company that people viewed as an easy mark. That type of company would no doubt NOT last long and I would at that point own NOTHING! I LIKE the fact that Disney looks at DVC as a no-lose situation for itself. It's a sign of a good, well run business!

Another reason we like to stay on-site is that we don't enjoy driving around. We take a vacation in the true sense of the word. No driving, no hassles, no parking...etc.....a nice relaxed vacation! DVC offers us the chance to stay in EPCOTs backyard, and the ability to to as much or as little as we want on our vacations with the added benefit to us of no driving

 

[rhk43]

I could have saved lots of money if I slept in the Orlando bus terminal, and walked to the resorts. Instead, because I work hard for a living, I treat myself to the DVC and the many member benefits and great rooms!! I like to spoil myself and my wife, I see nothing wrong with that. Too many people when they go to Disney look at the $$ figure. Its not a big concern of mine. Enjoy the posts, its been fun!!!

 

[DebbieB]

And who said this board needs more excitement?

 

[DVC-Landbaron]

As has been pointed out countless times on this thread, a prerequisite to DVC ownership is the unacceptability of staying off-site. With that said, in my particular circumstance, 5 kids (sometimes with friends) demand economic accommodations. Even staying at the All Stars is rather expensive if you’re paying for two rooms. And living conditions are still VERY tight. Not to mention eating out of Styrofoam coolers!!!

Conversely, a two bedroom, or Grand Villa... Ahhhhh! That’s affordable MAGIC!!!

 

[CaptainMidnight]

Thank you to all who are providing numbers to support the finacial benefit of DVC.

And, to those who say that the only way to visit Disney is staying on site, I must say I whole heartedly agree. Anything less than the deluxe hotels feels like a second class visitor... and what about with little children when you need a nap break in the middle of the day, or time to splash in a pool for a little while.

Then, of course, there is something about that feeling you have walking around the parks knowing you own a piece of the place, that if you miss an attraction this time, there's no need to rush, you'll be back again.....

I don't know what the price is for that ownership feeling, but that has value for me.....

 

[DisneyCrazy]

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DebbieB wrote:

And who said this board needs more excitement?

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That would be me - I was just about to comment that this post has refreshed the DIS DVC board with something more than technical staleness (although those technical posts are need too - no offense meant to the DVC gurus that diligently answer all the newbie questions - you've helped me more than once!).

-Paul

 

[chris1gill]

For three years in a row, we will have reserved 12 night in a 1 bedroom for 252 points... so first of all your sister must be going in price season or something... those rates are higher...

Between buy in & Dues, each point costs me 5.25 - that combines initial purchase price & dues... 252 points X 5.25 = 1323... far lower than what you have quoted.... We go in September, November and December...

As for the off-site on-site debate... if you are happy off-site, DVC is not for you in the first place.... if you think Disney on-site prices are too expensive, then stay off-site, which reverts back to DVC is not for you.... We like DVC because we ALWAYS stay on-site and ALWAYS stay in a 1 bedroom villa... Considering that villa costs about 350 a night with tax, THAT is a lot of money... the 1323 we pay for 12 nights in a 1 bedroom villa at OKW or BWV standard is a drop in the bucket and I'm more than happy to pay it!!

 

[PamOKW]

Yes, there are cheaper ways to vacation at WDW on and off-site. I'll drag out my old comparison...you can buy a Yugo or you can buy a Bentley and both will get you around. It is up to you what type of vehicle you are most comfortable with and can best afford. Annual dues are the gas and maintenance for the vehicle. I love my Bentley!!

As to having to pre-plan DVC vacations well that's true of any WDW vacation. It's very rare that you could call up spur of the moment and book the resort you want at a rate you want. Actually, the pre-planning is almost a benefit as it makes you stop and think and plan your vacations into your hectic lifestyle. My brother's family had no summer vacation this year because they kept "waiting", until the summer was over (not a WDW vacation, just "a" vacation). Planning in advance is necessary for lots of vacations, any of the casinos in CT or NJ are not avaialable spur of the moment in the summer or weekends.

You can do Disney cheaper and some people don't want to do Disney. But, if you like a luxury vacation at WDW and plan to do it fairly often, DVC is an excellent way to do it.

 

[Momof2Mice]

I'm not a DVC member, but my parents are. We just decided to go to Disney in January (kind of spur of the moment, huh?). They are actually going twice in January (he booked the trips last week) and was able to get the rooms that he wanted and the dates that he wanted. He belongs at BWV. I don't know about any other pros or cons, but just thought I would throw in my 2 cents.

18 days and counting...

 

[Galahad]

Good point about the lead time issue. We have had good luck (though not 100%) getting OKW ressies at the last minute...even with just a few days lead time. It takes some thought, but you can play the ressies gave with member services just as well as you can with central reservations.

 

[DVC-Landbaron]

I’m the one that’s always complaining about the ‘Good-old-Disney-days’ of long ago. But, I do remember a time when a two year reservation window, at either the Poly or the Contemporary, was the norm. An 11 month window is very easy to manage compared with that!! I’ve never had a problem even in 1999. Just calls for a little planning.

 

[Dumbo]

I know of a DVC family who bought into the Disney Vacation Club over 5 years ago. They spent 5 wonderful summer vacations at Walt Disney World at Old Key West. They then sold their interest in the Disney Vacation Club for more money than they paid for it !! How much money did they lose on those 5 vacations?

Dumbo

 

[Dumbo]

Hey Rich,

Can't you sell you interest in the Disney Vacation Club for more money than you paid for it?

Dumbo

 

[Richyams]

I think I can sell it for more then I paid for it. My 430 points is in two contracts. One for 230 and the other for 200. So I don't have to take the large contract hit. I paid $51 for one and $53 for the other direct from Disney. Anyone who bought back in '92 or '93 paid the same as I did.

Creeping socialism was seen hundreds of years ago when James Madison said: "I believe there are more instances of the abridgement of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations."