Why be a DVC member???

[KAT4DISNEY]

sajetto - are we siblings? At the very least our parents are!

 

[Ka-chow!]

Your right Ka-chow.....
I (as the original poster) am looking for rational reasons to buy into DVC.

I feel that it would be worth it to somone who lives close who can take advantage of the annual pass and doesn't need to buy airline tickets. Then it would be VERY WORTH IT!!

I'm still considering it though, but only because our best friends bought in.......call me confused!!! I don't want them having all the fun without us

Lukenick: Hey, Disney is still open for business and you can get into a dvc resort with or without DVC.

If you noticed, nobody argued a good case about the risks of higher fuel and transportation costs except hoping that it will go back down. I really hope it does too. But I think it's naive to think that future gas prices or availability is irrelevant to somebody's decision to purchase, like you said, especially if they live far away from Disney.

BTW: Kevin Yee at miceage.com recently wrote an excellent blog about the cost cutting steps that Disney is thinking about given gas prices are softening reservations. If Disney is worried, shouldn't we be?

http://miceage.micechat.com/kevinyee/ky061008a.htm

It's ultimately an emotional decision if you want it and think its worth the benefits and risks. For me, it's "not now", but I'm open to having change my mind changed.

Thanks to those who 'fessed up to say that they just wanted it.

 

[DVC Mike]

An investment is buying something or depositing money with the hope to generate interest or get a higher return in the future.

I agree with Ka-chow in that DVC is not an investment.

I have discretionary income. I could use that to buy a new car, a new HDTV, or whatever.

In my case, I use it to vacation at WDW. Instead of booking a deluxe resort at WDW multiple times a year, I've found it better to spend my discretionary income for DVC. For me, it does make better financial sense than how I was previously spending my discretionary income. Thus, for me, DVC makes financial sense.

 

[Ka-chow!]

Well said, DVC Mike.

 

[javamom]

Can someone convince me why its so great to be a DVC owner??? I'm considering but don't know much about its advantages as opposed to a regular timeshare. I don't own any timeshares or any vacation clubs so please advise me. please educate me!!
Thanks

Wow, who knew these very innocently asked questions would generate such passionate posts?! I will chime in again.

To the OP:
To answer your questions, DVC is the Disney Vacation Club, it is uniquely designed for folks that like to vacation at Disney, and it allows you to do so in very flexible ways. I also like the fact that you can use that flexibility to tailor your vacation needs over the years.

We will continue to vacation at Disney every year or every other year depending upon OUR schedule. I am sure that the day will come that we will use our points to trade out to do something else. Again, we have that flexibility.

I do not own any other timeshares, nor have I in the past. I do have friends that have other timeshares in which they have to go at certain times. That works for them, mostly. Even they get annoyed with that. I prefer more flexibility.

So, as I stated before, ask yourself if you are going to be vacationing at Disney anyway? If you are, then mentally, you have already spent the money. It's up to you to decide how.

For us, it really hit home, when we added up the cost of just 2 trips to Disney staying at either a moderate or value (depending upon the party size). What we paid for those 2 trips would have paid for half of the points that we bought though the resale market.

If you want to crunch numbers, go for it. We did. Check out the DVC points charts for the hypothetical vacation/s that you want to take. Figure out how many annual points you would need to buy (remember that you can borrow and bank to combine points as necessary for your travel plans, as they change). Figure out the cost of those points, depending upon whether you buy from Disney or from resale. Compare that to what you would pay for the Disney hotel room of your choice for the same number of nights. Now multiply that out over the term of the contract. For more fun, add a 4% increase to both figures, per year, over the life of the contract, for increases in hotel rates vs maint fees. It's not literally 4%, but it's a good figure for comparison sake.

There are also threads here on the DIS that can show you what the annual increases/decrease (yes I said decrease too) in maint fees have been over the years.

Which brings me back to my earlier statement that in end, for me, it was really about whether hotel rates will continue to increase higher than maint fees and that we would get much more comfortable accommodations. The money was already going to be spent.

Aside from the financial aspects of being an owner, I enjoy my vacations more because I know that there will be more and that they are already just a phone call away. I enjoy knowing that I have other options available and lots of places to try out.

I enjoy being told "Welcome Home" when I check in and that Disney really is, and does feel like, our Home Away From Home.

All of the above, and so much more, is what makes it great to be a DVC owner for me.

 

[Dina]

Dina: Since the topic basically asked the pros and cons of being a DVC member, I was right in caution the thread's originator about "investment" type language. I'm not trying to upset people by pointing that out, but I don't think it warrants a personal attack that I have "issues".
.

Kachow: Please don't put words in my mouth I did not say you have "issues"--- I said you had issues with DVC (which I understand, though for me, DVC works), and you know that's a completely different thing than having "issues" in general. I don't feel that I personally attacked , but if you feel that I did-- I apologize.

 

[HGD24]

Here's why we bought into DVC when we did (in order)

- We already vacation at WDW every year or two
- We could afford it
- We enjoy the flexibility of DVC vs. owning a specific week
- We knew we would have children and would enjoy the spaciousness of the DVC rooms vs. regular resort rooms
- We knew that our family members and friends would use our DVC when we don't use it or tht they would vacation with us

 

[disneyfan2kids]

... DH and I are middle class. We took every last penny of our savings (about 8K at the time) and put 50% down on DVC. Paid off the other 50% in 1 year. Started our savings back over in the meantime. We don't have loads of money in the bank, but we do OK. Kids want for nothing, we have our "needs" and still get many of our "wants" because we don't have expensive tastes (except DVC!)

Anyway - our DVC purchase has brought me more happiness in the past 2 years than ANYTHING else I've ever purchased. Truthfully - we've had 4 of the best trips I could hope for and my kids have developed a love of all things Disney that we share daily. On a daily basis I am still ecstatic and amazed that I'm lucky enough to own DVC. Quite honestly I don't notice the maintenance fees missing monthly..if the moneys not going to there, I'd probably spend it elsewhere, so I'm just glad it's going to the AMAZING family vacations that it has gone to. Honestly - I've had enough people close to me die at a young age that I am way too well aware of how short life is...and I ABSOLUTELY know that I made the right decision with every fiber of my being.

DVC is the best money I've ever spent... hands down!!! I could care less if other people call it an "investment" or they call it the "bottomless pit of money wastefulness"... to me...it is the epitome of happy family memories. None of which I'd give up for another several thousand in my 401K.

 

[Mystery Fan]

The bottom line is if you enjoy vacationing with and want to visit him often then by all means do the math. More than not, you will find that DVC works, but everyone's situation is different. It works for my family.

Or, given the current state of the economy, oil and stock markets, maybe we should all just crawl under a rock and horde what money we have.

 

[Ka-chow!]

Not to flame, but playing my devil's advocate role (or evil Dark Lord to some ) to the best of my ability and throwing this out there to see what you think. Apologies if it has been said elsewhere.

Here's where I think that Disney is very smart (at times). Disney gets a substantial amount of money up front immediately. DVC is a great hedge for their theme parks business as most people get financially defensive and do not indulge in an expensive vacations when the economy get rough. When times are good, DVC also contractually incentivizes traffic into the parks when normal tourism slows.

Disney realized the very real psychological phenomenon that people work much, much harder in order to not "lose" X amount than they do to "earn" that same amount. Thus, to avoid feeling they have "lost" their annual points or some of the value of their initial purchase price, DVC'ers will travel down to the parks when they probably wouldn't normally, i.e. in times of high inflation, unemployment, high travel expenses, etc.

SO IN SUMMARY: If you are ok committing to yearly serving the Mouse for the next few decades no matter what catastrophe comes your way, then DVC is just right for you.

(OK I'll confess - I did totally flame with that last sentence. Just having some guilty fun needling you guys. Maybe it was that fourth cup of coffee? Please forgive. )

 

[DVCPAT]

SO IN SUMMARY: If you are ok committing to yearly serving the Mouse for the next few decades no matter what catastrophe comes your way, then DVC is just right for you.
( )

Keep in mind, you can sell at anytime. We bought in 1998 at the BWV for $57.00 per point. The minute someone convinces me we made a poor financial decision, I’ll sell it for $84.00 per point. If you vacation in WDW on a regular basis, it really is a great way to save money. Beside the financial benefits, It allows your family to be in a perpetual state of vacation planning. It’s pretty cool to get the kids involved ….we have three trips scheduled this year. I could have spent money on a vehicle that rapidly depreciates that gives you curbside recognition. We have a great time vacationing without having to justify the costs.

 

[Laxmom]

Not to flame, but playing my devil's advocate role (or evil Dark Lord to some ) to the best of my ability and throwing this out there to see what you think. Apologies if it has been said elsewhere.

Here's where I think that Disney is very smart (at times). Disney gets a substantial amount of money up front immediately. DVC is a great hedge for their theme parks business as most people get financially defensive and do not indulge in an expensive vacations when the economy get rough. When times are good, DVC also contractually incentivizes traffic into the parks when normal tourism slows.

Disney realized the very real psychological phenomenon that people work much, much harder in order to not "lose" X amount than they do to "earn" that same amount. Thus, to avoid feeling they have "lost" their annual points or some of the value of their initial purchase price, DVC'ers will travel down to the parks when they probably wouldn't normally, i.e. in times of high inflation, unemployment, high travel expenses, etc.

SO IN SUMMARY: If you are ok committing to yearly serving the Mouse for the next few decades no matter what catastrophe comes your way, then DVC is just right for you.

(OK I'll confess - I did totally flame with that last sentence. Just having some guilty fun needling you guys. Maybe it was that fourth cup of coffee? Please forgive. )

That statement can be said about any timeshare, not just Disney. Many of your statements can be said about any timeshare company and DVC is still a timeshare company. And it doesn't have to be every year as you state. If you go every three you still make out ahead in prepaying your lodging with DVC. There is so much to do in Orlando, it isn't even necessary to visit the parks on every trip. We have been to Orlando 3 times since our last WDW trip and haven't visited WDW in any of them. For us, if you take a vacation, any vacation, you should at least explore timeshare as an option. It isn't for everyone but if you educate yourself on how to maximize your ownership, it can be a valuable tool. That being said, it is important to do your research before you buy any vacation property.

 

[DeeCee735]

I have no problem with DVC members referring to their DVC outlay as an "investment" in their family. I think most of us understand that what they're trying to say is not that they see themselves harvesting financial dividends and monetary income from the transaction, but that they see themselves harvesting intangible dividends and emotional income from the experiences and time spent with their families at a place they love. There's nothing wrong with that particular justification. It's just as valid of a reason to purchase DVC as saying "because I want it".

If certain individuals feel that this is just a rationalization people use to (a)convince themselves that they're not buying DVC simply because they want it or (b) because they want to feel as if they are getting something specific out of what amounts to little more than buying part of a hotel room in Florida into which they continue to throw money for 50 years, then that's fine too. Why should it matter to you what someone's motivation is to make a purchase? I guess it makes some people feel good to do what they think is a "service" to the unenlightened, deluded members of the DVC population who need a "wake up call" about the nature of their membership. I find that amusing.

To the OP, I'll say that my reasons for purchasing DVC were entirely intangible. I love WDW. I've loved it since I was a little kid. When I found out such a thing as DVC existed I was ready to sign a contract on the spot. I told myself how having DVC would force me to vacation, how my family would have great experiences and memories for 50 years, yadda yadda yadda, but at the end of the day, I just thought it was awesome that I could buy 50 years worth of vacations at nice resorts and feel like I own part of Disney (beyond mere stock ownership). I liked being locked in to going somewhere that I was going to go anyway, but now I will go more. I don't own any other timeshares and I don't think I ever will. I'd never even considered it until DVC. I just can't think of any other place in the world that I'd want to go to repetitively the way I want to go to WDW.

Make fun of me if you want, but it's my money and I can spend it however I want to. I don't really care how much DVC has cost me or how much it will cost me or what the opportunity cost of my $15,000 + MFs is. Irrelevant. I'm blissfully aware that I could have done something more fiscally responsible with my money. Don't care.

Uh....it's a free country, we buy what we like, whether it's a car, a vacation destination or a diamond ring, oh and noyb

I LUV MY DVC!

 

[Ka-chow!]

Keep in mind, you can sell at anytime. We bought in 1998 at the BWV for $57.00 per point. The minute someone convinces me we made a poor financial decision, I’ll sell it for $84.00 per point.

I think you have gone back to the investment argument. As someone is thinking about buying, the old caveat of "past performance is not a guarantee of future returns" applies, unless you are guaranteeing future performance.

BTW: From what I have seen on the board, DVC resale prices have been flat over the last 2-3 years, going to my argument that the DVC demand is inversely correlated to gas prices. It looks like point values have significantly slipped across the board, especially so at SSR and OKW. I'm not wishing you ill fortune, but I'll wager you won't get $84/point if gas passes $7/gallon.

 

[DVCPAT]

I think you have gone back to the investment argument. As someone is thinking about buying, the old caveat of "past performance is not a guarantee of future returns" applies, unless you are guaranteeing future performance. I'll wager you won't get near $84/point if gas passes $7/gallon.

I bought DVC for the accommodation benefits only, I never thought it would appreciate in value. We passed the break-even point long ago, so every future vacation we take, shifts the numbers in our favor. DVC sales/resales will always be linked to current room rates, not gas prices. If gas prices double, simply buy a car that gets twice the gas mileage. Car manufactures will make what people want…. People don’t want SUVs so they are retooling for smaller vehicles. Europe has been paying more than $7.00 per gallon for some time……they drive smaller cars. In 5-10 years from now, we may thank OPEC for gouging us.

 

[Ka-chow!]

I bought DVC for the accommodation benefits only, I never thought it would appreciate in value. We passed the break-even point long ago, so every future vacation we take, shifts the numbers in our favor. DVC sales/resales will always be linked to current room rates, not gas prices. If gas prices double, simply buy a car that gets twice the gas mileage. Car manufactures will make what people want…. People don’t want SUVs so they are retooling for smaller vehicles. Europe has been paying more than $7.00 per gallon for some time……they drive smaller cars. In 5-10 years from now, we may thank OPEC for gouging us.

I agree with some of your points. I don't agree with DVC price is always pegged to room rates. When sales of both are good, they will both go up in price. As you probably know, Disney currently maintains a "price integrity" policy to not discount rack room rates, no matter what the economics are or what it does to their financial sheet. They didn't discount even though tourists stayed away from the parks almost to the point of tumbleweeds going through them in the months after 9-11. Instead, they currently give positive incentives like "free dining" to help the attendance.

I don't think its that easy for a typical family to sell a SUV and get a small car. SUV's are now selling so poorly that GM stock is in the 9's. Ouch! The used SUV market is really bad. Two years ago, I fortunately dumped my SUV when the resale value was good and bought a Camry Hybrid. Sometimes, I time thing well.

And I don't think oil prices are an OPEC issue so much as a fundamental worldwide demand issue. But I agree with your basic point, in the long term, we probably need the pain in order to get serious about needing less Middle Eastern oil.

 

[DVC Mike]

I think you have gone back to the investment argument. As someone is thinking about buying, the old caveat of "past performance is not a guarantee of future returns" applies, unless you are guaranteeing future performance.

BTW: From what I have seen on the board, DVC resale prices have been flat over the last 2-3 years, going to my argument that the DVC demand is inversely correlated to gas prices. It looks like point values have significantly slipped across the board, especially so at SSR and OKW. I'm not wishing you ill fortune, but I'll wager you won't get $84/point if gas passes $7/gallon.

As with any timeshare, you should purchase with the idea that it won't be worth anything when you get around to selling it. You should determine it's overall value to you (both financially and otherwise) based upon the upfront purchase cost and annual dues versus paying hotel rates over the life of the contract. For me, it was and still is worth it. I love being a DVC member!

Historically, DVC hasn't functioned like other timeshares due to both DVC's exercising their ROFR and the continuing demand to vacation at WDW. We don't know what the future holds, and if travel costs continue to go up, making WDW more expensive to visit and locking more families out of regular vacations to WDW, the resale value of our DVC contracts could go down.

 

[ms.mightyduck]

Kachow, I'm curious about your claim that Disney does not discount rack rates. I frequently get postcards offering discounts, they post discounts regularly, and with an AP, I'm paying $129/night next week to stay at WL. I'm not arguing--just trying to understand.

 

[MojitoMiss]

SUV's are now selling so poorly that GM stock is in the 9's. Ouch!

A perfect example of an "investment" which many bought and lost money on. Yet, at the time of purchase, it was still an "investment." It was bought with the hope of future gains, and at the very least avoidance of loss. All investments bought with the sole intention of financial gain involve risk.

Many people buy DVC this way. They hope to sell when they no longer need it for at least as much as they paid, plus dues. Who knows what the market will do. Assuming that owning DVC is a losing venture because gas prices are increasing is really simplistic. Yes, energy consumption is up. Yes, Americans are feeling increasingly pinched at the pump, with no end in sight FOR NOW. But, as you say....we will continue to invest in alternative fuels. DVC ownership is until 2042 or 2056. I feel certain that we will have found some solutions by then, through a combination of increased consumption and alternative fuels. I think of it as the terrorism fears post 9-11: the concerns will never again go away completely. But we will adapt and manage.


Do I feel DVC is a good financial investment? For me, no. But I didn't buy it as such. I bought it simply because I wanted to and I could afford it. I have no problem admitting that. I don't plan to sell. I love Beach Club. I love having ample space, and a washer/dryer. I love knowing that I will go there often, and I don't have to worry about lodging $$ anymore. I could have paid cash for a BCV each time I went to WDW. So I did. Only I paid in advance. For me, it's not an investment; it's an inflation hedge.

That's how I see DVC ownership. A more expensive version of the "forever stamp."

 

[DVC Mike]

SUV's are now selling so poorly that GM stock is in the 9's. Ouch!

A perfect example of an "investment" which many bought and lost money on. Yet, at the time of purchase, it was still an "investment." It was bought with the hope of future gains, and at the very least avoidance of loss. All investments bought with the sole intention of financial gain involve risk.

A car is not an example of an "investment", as they depreciate the minute you buy them, and typically go down in value over time and rarely go up in value (the sole exception being rare classic cars).

If anyone is buying a car with the hope of future gains, they'll be sadly disappointed in most cases.