Why have you NOT bought DVC?

[Mr Vincent]

My opinion is that you would be better off putting your money into Disney stock and not this Timeshare....ooops, I mean Vacation Club.

Save your money to pay cash for vacations and go where you want, when you want.

Disney Vacation Club is NOT an investment. For most people its probably a very bad idea.

 

[Safari Queen]

Okay, I'm an owner and don't belong on this thread, I know, but please remember that room rates go up every year. Once you pay for your points, only maintenance will increase.

 

[tidefan]

My opinion is that you would be better off putting your money into Disney stock and not this Timeshare....ooops, I mean Vacation Club.

Save your money to pay cash for vacations and go where you want, when you want.

Disney Vacation Club is NOT an investment. For most people its probably a very bad idea.

So, just a question to play Devil's Advocate...

These vacations you are going to take every year, are they an investment? Is it a bad idea for you to go on vacations every year?

Let's suppose you have $15000 and you do invest it and vacation with it and that your lodging averages for arguments sake, say $1500. OK, so initially, if you are vacationing every year, the first year you spend $1500, so you really only invest $13,500.

Move to Year 2, let's say you return 10%, but accommodations increase 5%. You now have $14,850. Take out $1575 for this years trip, you now have $13,275, etc.

I run out of money after 13 years. So you don't really come out ahead this way either.

If you want to invest the money, leave it alone for the long term. That is the only way to really accumulate wealth. Following this logic, your point above should be generalized to "vacations are not an investment, for most people they are probably a very bad idea".

I agree that DVC is a prepaid accommodations timeshare. It is most definitely NOT for everyone. Never said it was. It works for people that choose to vacation on-site at WDW or other Disney properties (Hilton Head, Vero, Anaheim(Sooner), and Hawaii(later)). If you do not enjoy Disney vacations at least once every two years, then DVC is not for you. If you like value resorts, most likely DVC is not for you. But to put a blanket statement out like that is not necessarily applicable.

Yes, it is cheaper just to go to the beach, but if you enjoy Disney, DVC can be a cost saver.

Just my .02...

 

[castleeto]

So, just a question to play Devil's Advocate...

These vacations you are going to take every year, are they an investment? Is it a bad idea for you to go on vacations every year?

Let's suppose you have $15000 and you do invest it and vacation with it and that your lodging averages for arguments sake, say $1500. OK, so initially, if you are vacationing every year, the first year you spend $1500, so you really only invest $13,500.

Move to Year 2, let's say you return 10%, but accommodations increase 5%. You now have $14,850. Take out $1575 for this years trip, you now have $13,275, etc.

I run out of money after 13 years. So you don't really come out ahead this way either.

If you want to invest the money, leave it alone for the long term. That is the only way to really accumulate wealth. Following this logic, your point above should be generalized to "vacations are not an investment, for most people they are probably a very bad idea".

I agree that DVC is a prepaid accommodations timeshare. It is most definitely NOT for everyone. Never said it was. It works for people that choose to vacation on-site at WDW or other Disney properties (Hilton Head, Vero, Anaheim(Sooner), and Hawaii(later)). If you do not enjoy Disney vacations at least once every two years, then DVC is not for you. If you like value resorts, most likely DVC is not for you. But to put a blanket statement out like that is not necessarily applicable.

Yes, it is cheaper just to go to the beach, but if you enjoy Disney, DVC can be a cost saver.

Just my .02...

Well said. I think I'm going to forward your comments to my dh!

 

[missycj96]

We've been going a few times per year staying at a combination deluxe, moderate and value depending on what we feel like, how much we want to spend and what type of discount rate I can get. I feel like in a few years, a resale DVC would probably pay for itself and be fun to own. So after analyzing it and thinking about it, why don't I buy?

I feel like to truly enjoy the membership, going a few times per year like I like to, I would need to buy a great deal of points. (I feel like if I don't buy enough points, I'd have bought the membership and still be paying hotel rates). And the maintenance would be a lot of money. Even though we could afford it now, I always feel like what if in the future I am not working or we otherwise can't afford it? So I'm concerned about being locked into the maintenance bill. Also a WDW vacation costs far more than just the hotel bill - airfare etc. So I feel like in the future if we can't afford to travel as much or don't want to spend the money, we'll feel we have to pay for vacations. So, I'll have the maintenance bill plus even though it would be great to have the hotel covered, the rest of the cost of the vacation may be more than I would want to have to spend. So I guess it is the fear of future committments that keeps me from buying. It may be possible though with the kingdom tower, it will finally be too irresistable!

This is such an interesting thread as I always second guess and question my decision not to buy. I'm glad to get to hear what others who travel to disney often have to say on this.

 

[tidefan]

We've been going a few times per year staying at a combination deluxe, moderate and value depending on what we feel like, how much we want to spend and what type of discount rate I can get. I feel like in a few years, a resale DVC would probably pay for itself and be fun to own. So after analyzing it and thinking about it, why don't I buy?

I feel like to truly enjoy the membership, going a few times per year like I like to, I would need to buy a great deal of points. (I feel like if I don't buy enough points, I'd have bought the membership and still be paying hotel rates). And the maintenance would be a lot of money. Even though we could afford it now, I always feel like what if in the future I am not working or we otherwise can't afford it? So I'm concerned about being locked into the maintenance bill. Also a WDW vacation costs far more than just the hotel bill - airfare etc. So I feel like in the future if we can't afford to travel as much or don't want to spend the money, we'll feel we have to pay for vacations. So, I'll have the maintenance bill plus even though it would be great to have the hotel covered, the rest of the cost of the vacation may be more than I would want to have to spend. So I guess it is the fear of future committments that keeps me from buying. It may be possible though with the kingdom tower, it will finally be too irresistable!

This is such an interesting thread as I always second guess and question my decision not to buy. I'm glad to get to hear what others who travel to disney often have to say on this.

Missy, these are very valid concerns and you should be thinking about these things. If you did take the plunge and bought and encountered the situation above, you could do 2 things:

1) If you decide not to go say one year, you could rent out your points. Point rentals are currently going at around $10-$13 per point. More than enough to cover your maintenance fees. If you look at the DVC section, you'll see that there is an active rent/trade board.

2) Sell your DVC on the resale market. Based on the 16 year track record of DVC, you will probably recoup most of your initial upfront cost.

What I would do if you go to WDW multiple times a year is to add up what all of your hotel bills are (including tax!). It would probably go a long way towards the initial price on a contract...

 

[disneydad78]

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.

It is simply not a good investment to pay money upfront for vacation.

If you have that money upfront, then invest it intelligently. (Time shares, vacation, and new cars are NOT investments...they decrease in value.) Use the money you make on your investments to take vacations. I promise you'll come out ahead.

If you don't have that money upfront and pay in installments...well, what could that same amount of money do in a CD where it could grow? In a college fund? Saving interest charges by paying down other debt?

Wouldn't you want that money you're putting away each month to earn interest? I know there are plenty of people who pay for their vacations with credit cards and in installments...so they can probably justify DVC in their own minds...but those are emotional decisions, not financial ones.

I'm sure there are tons of emotional reasons to do DVC...otherwise it wouldn't sell. But financial reasons? Nope.

\\

AMEN, thats why america is in the state we are in. Invest,start businesses, then you can have money to go where ever you want.Pay up front 30K, THEN $800-$900 IN MAINTANCE FEES,then in what 20 -30 yrs loose it all, cant pass it down, just go buy a investmant property off site, rent it out while your not there, has to be a smarter way.

 

[avspilot69]

Just to add in a point I tried to make earlier, your room expense will actually be $3,375. You can't conveniently forget the taxes...

Also, looking at a Std view 1 bdr villa, I come up with a 6-night total of 171 or 198 points (depending on 1 weekend night or 2). It is 222 for 7 nights.

Yeah my bad on the taxes. Then its 11 years to recoup. I just wished I had known about DVC 6 years ago, it would have been a lot easier to decide.

 

[Mr Vincent]

We've been going a few times per year staying at a combination deluxe, moderate and value depending on what we feel like, how much we want to spend and what type of discount rate I can get. I feel like in a few years, a resale DVC would probably pay for itself and be fun to own. So after analyzing it and thinking about it, why don't I buy?

I feel like to truly enjoy the membership, going a few times per year like I like to, I would need to buy a great deal of points. (I feel like if I don't buy enough points, I'd have bought the membership and still be paying hotel rates). And the maintenance would be a lot of money. Even though we could afford it now, I always feel like what if in the future I am not working or we otherwise can't afford it? So I'm concerned about being locked into the maintenance bill. Also a WDW vacation costs far more than just the hotel bill - airfare etc. So I feel like in the future if we can't afford to travel as much or don't want to spend the money, we'll feel we have to pay for vacations. So, I'll have the maintenance bill plus even though it would be great to have the hotel covered, the rest of the cost of the vacation may be more than I would want to have to spend. So I guess it is the fear of future committments that keeps me from buying. It may be possible though with the kingdom tower, it will finally be too irresistable!

This is such an interesting thread as I always second guess and question my decision not to buy. I'm glad to get to hear what others who travel to disney often have to say on this.

Exactly. Well said.

DVC is a timeshare pure and simple. I strongly suggest people seek professional advice before getting involved in this.

Do not assume you will be going every year. Life circumstances change. DO not assume you will be able to sell your points either at some point in the future.

My advice as I said before is if you want to take nice vacations just save for it and pay for it without any financing. Dont lock yourself into one company or location forever.

Just my advice.

 

[a Really Bad Egg]

Wow...everyone is a vacation funds financial adviser these days.

 

[Mouseaholic!!!]

Exactly. Well said.

DVC is a timeshare pure and simple. I strongly suggest people seek professional advice before getting involved in this.

Do not assume you will be going every year. Life circumstances change. DO not assume you will be able to sell your points either at some point in the future.

My advice as I said before is if you want to take nice vacations just save for it and pay for it without any financing. Dont lock yourself into one company or location forever.

Just my advice.

Thank you - well said!

 

[MOUSELOVER171]

Hope i'm not out of line by responding... but I bought into DVC 7 years ago and must say that it was by far, one of the best investments I have ever made. I was only 21 when I bought in and 22 when I increased my point value.. I've used it every year and have even rented out the points for some extra cash. I've paid off one contract and will have the second one paid off next year. So worth it!!!!

This year I will be going twice, middle of May and the beginning of December. There's no way in the world I would be able to afford DVC accomodations, comforts, and numerous trips without ownership! If you can swing it, buy buy buy! You can always rent out your points for some quick cash!

 

[ldo]

I think it's OK for me to post here--as I was in the "it's too $$$ and why does anyone buy this for 6+ years" and some of my reasons are still how I feel--so:
Why I would NOT buy---if I needed a 2 BR at prime times, and esp. at peak times--the points costs are just too much and we would stay at a moderate or off-site in a 2 BR condo or at ASMU family suites.
Why I DID BUY(just a little)---after thinking DVC was just too $$$ and we could do just fine with above lodging--we stayed at SSR and LOVED it--my kids esp. LOVED the kids rooms where you can do crafts, games, or just princess coloring--they didn't care if we went into the parks!!
But the budget person in me REALLY had to justify it---so, we bought a resale of 50 points for $4000. My annual fees are about $250. We only stay sun-thur, when it takes less DVC points. So, for 50 points, I got 5 nights in the summer in a studio. A WDW moderate hotel (sort of equivalent to a studio) would be $175 a night (even with AAA discount, when you add tax). My out of pocket per night cost is about $75 for a DVC studio---that is adding per point amortized rate plus annual fee). With 50 points, we can bank or borrow to have as many as 150 points every 3 years. 100-150 points gets me a 1 BR for sun-thurs. in the summer. But, for a full week in prime time--you'll still see us down the road off 192. Elaine

 

[acejka]

Honestly???

This thread.

We are just waiting for a down payment on another timeshare that we cancelled within 24 hours of buying because the salesman gave us false information to make the sale. And then we were going to buy the DVC immediatly.

Now I am starting to second guess our decision to buy.

 

[chalee94]

Here's why I am not inclined to purchase at the moment. This coming mid June we will be staying at BWV for 6 nights.

COST for the 6 nights 1 Bedroom Villa = $3000

Now according to the booklet the point required for a similar stay is 222. Right now the cost per point from Disney is $104/point.

So the INITIAL cost for me would be $ 23088.

The annual dues would be $4.71/point - 222 PTS = $ 1045

In summary my savings would be $ 1955 per year assuming I would vacation every year at WDW with the same accomodation. So it would take me approx 12 years to recoup the initial payment. Now that's a long time. Also, by that time my kids would be in their senior year in HS and wonder if they would still like to go to WDW. BTW I live in Calif so WDW is going to be a once a year thing.

also, if you want to stay at BWV, you'd be better off buying at BWV (assuming you can book 8-11 months in advance.)

a resale contract for 200-225 pts at BWV would reduce the initial cost to $16,500ish-$18,000. and assuming you can take advantage of the "home resort window" before booking opens up at 7 months, it would greatly improve your chances of booking what you want at BWV.

there are still plenty of reasons not to buy - i posted 10 of them on page 6 - but i want to make sure you're using the best information in your decision.

Hope i'm not out of line by responding... but I bought into DVC 7 years ago and must say that it was by far, one of the best investments I have ever made.

sure...but if you had invested in disney stock 7-8 years ago, your $40 per share would now be worth...about $32 per share...

 

[chalee94]

Now I am starting to second guess our decision to buy.

if you fit the categories below, maybe you should. DVC is not for most people. it's not for many wdw fans. but it can be a good deal for some wdw if you understand how to use it.

but don't get confused by paranoid posters (who no doubt grow their own food and make their own clothes - the supermarkets and dept stores are out to make a profit, so buying their stuff must be a bad deal for you, you know - and the tinfoil hats have really come a long way...but i digress...), there are plenty of CPAs, bankers and business people who have crunched the numbers and decided DVC made sense for them. it is a complex and expensive transaction, though, so you need to do your homework and make sure you're comfortable with what you're getting into...

reasons why DVC might not work for you:

1) thousands of $ upfront plus annual fees require a certain level of financial ability and commitment (and still need to pay for tickets and travel, etc.)
2) commitment to wdw/fear of wdw burnout (sorta - while you can trade out, the best value is staying at the DVC resorts)
3) DVC not as deluxe as deluxe hotels in some senses (limited housekeeping, sofabeds, no room service at some DVC resorts)
4) prefer to stay on weekends and weekend point costs are OUTRAGEOUS
5) financing a depreciating (sooner or later) luxury purchase is generally a poor idea
6) happy with value hotels
7) want to stay at a monorail resort (pending "kingdom towers" announcement)
8) amenities like a kitchen and washer/dryer have no value for me
9) i don't/can't plan my vacations 6+ months in advance
10) i enjoy hunting for deals/bargains for each trip

11) i have a castmember discount and can stay at the GF for less than $200 a night

(i think now that's everything.)

 

[fla4fun]

sure...but if you had invested in disney stock 7-8 years ago, your $40 per share would now be worth...about $32 per share...

7-8 years is not long term - I bought one share of Disney stock back in the late 80's, and due to stock splits, I now have 12 shares. But then, you really can't compare stock investing to buying timeshare points.

The original question was why haven't "I" bought DVC. I do stay deluxe or DVC at least twice a year right now, because I can afford to do so. But I also live less than 30 minutes away from WDW. Life circumstances change. I have gone through periods of unemployment, one as long as nine months, where it was difficult to pay for the bare necessities. I wouldn't have had the funds to pay for maintenance fees on DVC. There have been stories in the local news here just this week, about the number of liens placed on timeshare owners because they can't afford to pay their annual fees. Employment in Florida, especially employment that pays well with good benefits, is not easy to find, and with companies going out of business every day, can be hard to hang on to. Out of the four jobs I've had in my lifetime, two went out of business, and my current job has been sold three different times in the 12 years I've been there. I'm in a good place right now, but I know that can change without warning at any moment. It's just a fact of life. My personal choice is not to take on any obligations that I can't meet if I have to be on unemployment benefits. For me, DVC falls into this category.

For me, I go to Disney when I can afford to go to Disney, and I stay at whatever level of accommodation I can afford at the time. When I can't, I don't want to be tied to a contract that I may not be able to get out of. I don't want to have to worry about trying to rent points, or trying to sell. If the only Disney trip I can afford is a day trip with my AP, I'm OK with that. But I'm fortunate in that I live here and that is possible.

I think the decision to buy into any vacation ownership program has to be a personal one by each family. Each family has different needs, different goals, and different financial obligations. For some people, it's a good fit. For some, it's an OK fit. And for some, it's better that they give it a pass. It's not a one size fits all kind of purchase. We shouldn't give someone a hard time because they choose one way or the other, because we don't know their circumstances. We can only explain why it is, or isn't, a good choice for us.

 

[Mr Vincent]

Chalee94, good post. Actually they are all great posts and this thread has been alot of fun to read.

We will be at the BWI and GF for a total of two weeks coming up in May.

I wasn't planning on doing this but now I will: I will document my DVC encounter, if there is one, and do a write-up in the DVC board when I get back. I will take pics too.

Regarding my previous posts: I'm sorry if I sound a little stern regarding this issue. I am just the kind of person who hates to "subscribe" to anything that I cant cancel easily. I was a real estate investor for many years and I sold everything over the last few years except one of my homes. This is the first time since I was 18 where I feel freedom. Freedom from work and freedom from debt.

For those of you who did the research and are enjoying the DVC, I want you to have a great time and know that there is a special place in my heart for Disney and I understand that you love the Dis as well.

When I was a kid in the 70s, our only vacation was every few years and we always chose Disneyland.

 

[acejka]

if you fit the categories below, maybe you should. DVC is not for most people. it's not for many wdw fans. but it can be a good deal for some wdw if you understand how to use it.

but don't get confused by paranoid posters (who no doubt grow their own food and make their own clothes - the supermarkets and dept stores are out to make a profit, so buying their stuff must be a bad deal for you, you know - and the tinfoil hats have really come a long way...but i digress...), there are plenty of CPAs, bankers and business people who have crunched the numbers and decided DVC made sense for them. it is a complex and expensive transaction, though, so you need to do your homework and make sure you're comfortable with what you're getting into...

reasons why DVC might not work for you:

1) thousands of $ upfront plus annual fees require a certain level of financial ability and commitment (and still need to pay for tickets and travel, etc.)We are not thrilled about this part but we can afford to finance it and that works best for our lifestyle. Hubby is not thrilled about park tickets still being pretty pricy
2) commitment to wdw/fear of wdw burnout (sorta - while you can trade out, the best value is staying at the DVC resorts)I'm going to have kids inthe next couple of years, and I would think that means lots of trips in the future, even if we don't have kids, we go once a year, we would trade out every few years, and are looking forward to Hilton Head and Vero at sometime.
3) DVC not as deluxe as deluxe hotels in some senses (limited housekeeping, sofabeds, no room service at some DVC resorts)I actually want no housekeeping!!
4) prefer to stay on weekends and weekend point costs are OUTRAGEOUS
5) financing a depreciating (sooner or later) luxury purchase is generally a poor ideawe stay tuesday to friday so that works for us
6) happy with value hotelsthey make do, because im not there to sit in the room, but they could be nicer
7) want to stay at a monorail resort (pending "kingdom towers" announcement)i drive everywhere so this doesn't apply to me
8) amenities like a kitchen and washer/dryer have no value for memajor value to me
9) i don't/can't plan my vacations 6+ months in advancewe like last minute things, but we are extremely flexible with vacationing so it could be done that far with no problems
10) i enjoy hunting for deals/bargains for each tripi hate this part actually, it bothers me for some unknown reason

11) i have a castmember discount and can stay at the GF for less than $200 a night

(i think now that's everything.)

I can't decide now if it is for us. We also go to the tampa area while we are in FL so that would be out of pocket, but DVC covers South Seas in captiva area and I have always wanted to go there so I could trade out sometime. I like to make it to the eastern shore every year and that would be out of pocket as well.

What do you think?? chalee??

 

[chalee94]

I can't decide now if it is for us. We also go to the tampa area while we are in FL so that would be out of pocket, but DVC covers South Seas in captiva area and I have always wanted to go there so I could trade out sometime. I like to make it to the eastern shore every year and that would be out of pocket as well.

What do you think?? chalee??

i'm really hesitant to give specific advice, since there will always be a lot of personal financial factors that i don't know, but it sounds like you generally fit the profile.

weren't you looking for a smaller resale contract at one point? if you don't have kids, don't go for longer stays at this point and can just use the points at wdw and pay cash for your other stays, maybe taking on less financial risk (and less debt, if you are planning to finance) would be a better move to try out DVC and would make things less stressful? if DVC is a financial stretch for you and will be a source of stress, then i'd vote to wait. only your family knows what to do in your case.

don't feel rushed, though, DVC will still be there in a few months/years if you aren't sure and want to keep researching.