Why have you NOT bought DVC?

Again, not trying to sway a decision here, but just trying to provide some mitigating factors

The piece of the puzzle that makes it so attractive, is that the increase in hotel rooms prices over time are much greater than the dues increases have been. So, although prices continue to rise, when you add the dues to the purchase price and ammortize it over many years, the overall cost of your DVC Villa becomes much more cost-effective than the yearly price increase in regular hotel rooms.

This isn't an investment vehicle at all, but rather a hedge to stabilize the cost of your hotel stays over time. Let's face it, Disney wouldn't do this if they didn't make money on it. But it has to be a win-win, or else it wouldn't fly.

Actually, the increase of annual dues grows at a greater pace than the increase of hotel room prices. Check the DVC info on the mousesavers website; they have crunched all the numbers and it's right there in black and white!

The situation is not win-win from a financial perspective. Disney is laughing all the way to the bank on DVC. One last quote from the mousesavers article:

Some people just want to lock in an annual vacation at Disney with family and friends, regardless of whether it's a "good deal" or not. Ultimately many DVC members have joined because they found the membership emotionally satisfying -- and that's a hard thing to evaluate.
 
I have not bought because of the maintenence fees, the maintenence fees cost just as much or more than a stay.

I also don't like the no housekeeping, but that wasn't a factor in my choice not to buy.

my maintenance fees are less than 700.00 a year. We stay on average of 8-11 nights a year - all at one time. I can't stay in a value resort that long for less than 700.00

my personal feeling is that most people don't buy in because of fear. It is one huge chunk of change - I give ya that. We financed for 10 years back in 2001 - and have already more than gotten our moneys worth out of it.

As a matter of fact - DVC has allowed us to vacation at Disney - Vero Beach and a cruise - in ways that we never would have been able to without. :thumbsup2

The thing that really sold it to us - we can easily exhange for over 300 places around the world - it is not ONLY Disney.

Other than our home - it is truly the best investment we have ever made. YES - I do consider it an investment. It is an investment in my family - my sanity and the quality of our lives in the future.
 
Yikes! These dues are a lot...no matter how you look at it?! After paying your yearly dues, I don't see how that initial $20-30K pays for itself??:confused3

You don't have to do DVC that way. If you pay cash, there's no finance charge. And you don't have to buy the whole 160 points or a "$20-30k" contract (that would be a 200-300 point contract). You can buy a smaller (less than 160 pt.) resale contract for far less than Disney would charge for the same number of points - and thus have lower dues and fees than with a "full" 160 pt. contract. Including the fees AND what we paid for our contract, DVC has saved us several thousand dollars on what we would have paid for deluxe hotels. And that's just to this point. Every time we go in the future, the savings increase. Disney's hotel rooms increase in cost about 5% a year. The DVC villas don't - they're pre-paid.

But all this depends on how you'd use DVC, too. If you only go every 3 or 4 years and are happy to stay at a value resort, DVC probably won't do you much good.

DisFlan
 


Sorry, I hadn't read the post about purchasing electricity now, etc. or I would have responded in my above post.

But my answer is yes, if I could pay $16,000 for electricity now and have it for the next forty years at that stabilized price regardless of what the market was doing and how much electricity cost per kWh in the future, I would certainly purchase it. Not as an investment, but to stabilize the price of something I knew I was going to use.

This is why, when my oil company came out this summer and asked if I wanted to buy all my oil then for the locked in prices of $2.89 a gallon, I said yes, and wrote the check. This way I had a hedge against the price which, in my area, is now about $4.00/gallon.

There is no cut and dried answer to this question, you just have to do what works better for you and your family, and realize that other people are doing the same.

As far as discounting sites are concerned, I don't always think the less expensive alternative is the best, again depending on circumstance.

Regarding dues: Here is a link to posts on the historical increase in dues.

http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm

I'd rather have a 5% increase on $4.00 dues than a 5% increase on $250 which is what the BC cost us during October in 2001 which is the year we bought.

Again, different strokes.
 
If the increase in room prices and the increase in maintaince fees remain the same it would take 12.5 years to recoup my initial $15,300 investment.

That is buying resale at $85 per point for 180 points at AKL and using the points to stay in a one bedroom Savanah View Room during Regular Season.

my maintenance fees have increased by merely a few dollars a month since we purchased in 2001 - how much have room rates gone up?

I think we stared out paying 56.00 a month (we pay a bit less because we have it automatically deducted from our checking each month) and right now it is 60.00 a month. That is a total of 48.00 increase in 7 years.

I agree that it is NOT for everyone - but for us - knowing the we have our vacation accomodations paid for - until 2042 - when I will be 76 and DH will be 79 - that is nice. I have no idea if we will still be around by then - but we can pass it onto our children and they can use it for Disney - Hawaii, London, an African SAfari - what ever they want.

No it is not to be seen as a monetary investment - but that quality family time we KNOW we have each and every year - means more to me than the almighty $ ever will.
 
My parents bought a used (non point system) timeshare for about $5000. Its in Orlando right by Disney and is a beautiful 3 bedroom 3 bath with full kitchen. They get whatever week they choose and often trade out for other resorts thru RCI. Their yearly dues are also around $700.

If they want to go somewhere for a week in a 1 bedroom they get an "extra week" at a 2 bedroom basically.

We freeload off them for now (well, we pay for rental car and this year are helping out with their plane tickets). They are great babysitters. It all works out for us.
 


Actually, the increase of annual dues grows at a greater pace than the increase of hotel room prices. Check the DVC info on the mousesavers website; they have crunched all the numbers and it's right there in black and white!

The situation is not win-win from a financial perspective. Disney is laughing all the way to the bank on DVC. One last quote from the mousesavers article:

Some people just want to lock in an annual vacation at Disney with family and friends, regardless of whether it's a "good deal" or not. Ultimately many DVC members have joined because they found the membership emotionally satisfying -- and that's a hard thing to evaluate.


Thanks for the information - just took a look on Mousesavers. More convinced than ever that DVC just isn't a good idea for travel choices.
 
Would you pay your electric company $16,000 upfront for electricity?

Would you pay Macy's $16,000 upfront for clothes for the next few years?

Of course you wouldn't...because it makes no sense financially.

LOL! I'd have bought upfront electricity in a heartbeat! I wish I could have a year ago. Ours has doubled in cost. And the clothes, too - over 34 years (the life left on our DVC contract), either one would be a HUGE bargain.

All facts and figures aside, we didn't buy DVC as an "investment". We bought it because we love WDW and we knew we'd be vacationing there. We go elsewhere as well, but we know we'll be at Disney World at least every year or year and a half.

DisFlan
 
Actually, the increase of annual dues grows at a greater pace than the increase of hotel room prices. Check the DVC info on the mousesavers website; they have crunched all the numbers and it's right there in black and white!

The situation is not win-win from a financial perspective. Disney is laughing all the way to the bank on DVC. One last quote from the mousesavers article:

Some people just want to lock in an annual vacation at Disney with family and friends, regardless of whether it's a "good deal" or not. Ultimately many DVC members have joined because they found the membership emotionally satisfying -- and that's a hard thing to evaluate.

That's a more than a little misleading. Here's what the article concludes when it comes to dues vs. room rate increases:

I think it's fair to guess that dues increases and resort rate increases may be roughly equivalent over time. I based my calculations below on that assumption. If you think resort rates will go up faster (and they might) than DVC dues increases, that will tend to make DVC membership look more attractive.

The examples they use show cases where DVC points inflation have been LOWER than the average annual room rate increase, as well as the reverse.

The article also explains how and when a DVC membership makes financial sense. Not for everyone, to be sure, but there are plenty of people that it has worked for, and the Mousesavers article acknowledges that.

Buying a DVC membership is a rational, financially viable option for some people: namely people with the cost of the initial purchase already sitting in the bank, who plan to stay in the higher-end accommodations at Walt Disney World on a regular basis.
 
Actually, the increase of annual dues grows at a greater pace than the increase of hotel room prices. Check the DVC info on the mousesavers website; they have crunched all the numbers and it's right there in black and white!

maybe you need to polish those reading skills a bit...:rolleyes:

what mousesavers ACTUALLY says is:

Here are some examples of historical increases:

Old Key West Resort, the oldest of the DVC resorts (thus having the longest track record) had dues of $2.51 in 1991 and in 2007 has dues of $4.40. That means it has averaged a 3.57% increase, compounded annually.

Boardwalk Villas has gone from $3.70 in 1996 to $4.85 in 2007, an average annual compounded increase of 2.49%.

Villas at Wilderness Lodge has gone from $3.62 in 2000 to $4.73 in 2007, an average annual compounded increase of 3.9%.

...To be fair, the cash cost of staying in one of Disney's resort rooms has also gone up significantly over time, and the cash cost of a resort room starts out much higher than the dues for an equivalent stay. Like the DVC resort dues increases, the rate increases at the Disney resort hotels are not consistent. For example:

In 1992 a standard room at Caribbean Beach Resort in regular season cost $77, while in 2007 it is $165 -- a 5.2% increase, compounded annually.

In 1998 a standard room at Yacht Club in regular season cost $280, while in 2007 it is $359 -- a 2.8% increase, compounded annually.

...I think it's fair to guess that dues increases and resort rate increases may be roughly equivalent over time. I based my calculations below on that assumption. If you think resort rates will go up faster (and they might) than DVC dues increases, that will tend to make DVC membership look more attractive.
 
I haven't read the rest of the thread, but here's my answer:
We already own thru Bluegreen and have membership thru both RCI and II. I guess the main reason we don't sell and buy DVC is because its not a permanent thing. With Bluegreen, we can deed it to our kids and 100 years from now, it can still be in the family. Bluegreen itself has 2 Orlando resorts, one with a brand new waterpark. Also, when we bought into it, we were able to get lifetime bonus time(they haven't done this for years now). That means we are able to NOT have to use our points and we can get a condo for 60-80 dollars a night. Yes, DVC would be nice. We love being on property and stay at POR once a year. We also go down in the summer and stay at the Fountains off site once a year. We wouldn't give up staying onsite, but we also won't give up having a timeshare that allows us to stay all over the country, trade thru 2 exchange clubs, lifetime bonus time...and most of all, we won't give up having a timeshare that we can leave to our kids and have forever.:)
 
I like this part of DVC. Never let housekeeping in my room when I stay in a hotel either. I like my space and cleaning up after myself. (Note: I am a total freak.)
 
No it is not to be seen as a monetary investment - but that quality family time we KNOW we have each and every year - means more to me than the almighty $ ever will.

I agree with that as well. I choose not to buy because regardless of whether or not we own DVC, we still need to get down there, still need park passes, and still need to eat. It's reassuring knowing that if things aren't going well one year, we don't have to worry about making monthly payments. If I had the cash it would take to pay DVC off up front, I wouldn't hesitate. To finance vacations, just doesn't make sense to me.
 
.... We wouldn't give up staying onsite, but we also won't give up having a timeshare that allows us to stay all over the country, trade thru 2 exchange clubs, lifetime bonus time...and most of all, we won't give up having a timeshare that we can leave to our kids and have forever.:)

DVC has the same exchanges, and a few more besides. Our son's name is on our contract (and he works for Disney, to boot). We'll be in our 90's in 2042 when our contract expires. Our grandchildren will have gotten good use out our membership by that time, and at that point, our son can do what he wants with it. I'm sure he'll have gotten a good deal on another contract by then.

DisFlan
 
I think it's fair to say that buying into DVC is a good idea if you like to stay at Deluxe resorts more than once a year. If you don't fall into that category (which I don't), then you won't feel like you got your money's worth.

And as a whole, people don't buy into DVC because it's a great price break. They like the convenience of being members and the added perks that it brings. That is where the value lies, not in the fact that you will save money. Because at best all you will do is break even.
 
1) We don't pay "retail" for timeshares, as we buy "resale" at 50% off.
2) We don't want to do Disney every year.
3) We don't think there are enough activities if you do a "resort-only day".
4) We don't want to call for our vacation dates, as we like a fixed week.
5) We don't want to be tied to WDW.
 
Few reasons for us:

6.I don't like that after a set amount of years, you don't own it and you can't pass it on.

7.The dues, regardless of what anyone tells you, are VERY expensive.

i agree with most of your reasoning. if "vacation resort" = "daily housekeeping" to you individually, then that is a big negative for DVC. the value does vary depending on how you use it - including more weekend nights in your plans will make the value go down considerably. if you prefer hotel rooms to villas, then OKW's studios are the only comparable option (having 2 queen beds) - and i agree that the sofabeds are inconvenient for a lot of people.

but 6 & 7 seem a little contradictory to me. if the dues are really that expensive, i don't see why you'd be disappointed not to be able to pass it on (i.e. saddle your kids with a 50 year old property with enormous maintenance fees and a major assessment to refit the property just around the corner.) :confused3
 
but 6 & 7 seem a little contradictory to me. if the dues are really that expensive, i don't see why you'd be disappointed not to be able to pass it on (i.e. saddle your kids with a 50 year old property with enormous maintenance fees and a major assessment to refit the property just around the corner.) :confused3

It's very contradictory - But nevertheless, it's 2 negatives. It would be idea if maintenance fees were cheap and it could be passed on, or at least one or the other. As it turns out, it's neither.
 

GET A DISNEY VACATION QUOTE

Dreams Unlimited Travel is committed to providing you with the very best vacation planning experience possible. Our Vacation Planners are experts and will share their honest advice to help you have a magical vacation.

Let us help you with your next Disney Vacation!





Top