Why is DVC Worth It?

Frederic Civish

“I’m just here for the Ears.”
Joined
Apr 18, 2018
Why is DVC worth it?

In a few weeks, we are going to be staying a Riviera, using points from a contract at Animal Kingdom that I purchased a few years ago.

I just priced out the DISNEY CASH PRICE for our exact room at Riviera. Preferred View Studio for 7 days/6 nights for 4 adults and 1 child. It comes out to $5,068, including taxes.

Not having to spend that $5000 is what DVC is saving us. Of course,I doubt very much that I would be paying that anyway, if not for DVC.

This room is costing us 134 DVC points.

To look at our costs through DVC, first of all, we need to pay Membership Dues/Maintenance Fees on those points of about $950 for this year, for that many points. So, it is costing us $950.

Then, of course, there was the buy in cost, which for 134 points was $14,000 (I bought THESE particular points on the Resale market), but for that buy in cost, we get to use them THIRTY SIX MORE TIMES, and then they expire.

But I don't think you can even count that buy in cost, because the truth is, I could turn around right now, or almost anytime, and sell these points for at least what I bought them for. I do plan to sell someday, maybe in 15 or 20 years, well before their expiration date, AND BUY SOME MORE.

So, as far as I am concerned, I will get my money back that I spent for the points, when I sell them after I use them 15 more times, and this $5000 room (Starts at $830 per night, with tax) is costing us about $1000 for the week (6 days). Which works out to $166 per night, for a $830 per night room!!

And that is why DVC is worth it.

By the way. I know that there is NO GUARANTEE that I will be able to sell them in the future for the prices that I paid for them. But then there never is any guarantee with most investments. Try getting a guarantee from your stock broker or real estate agent or whatever. BUT, other than some variability as the economy goes up and down, and I can wait that out since I won't be in a hurry to sell, the price for DVC has tended to go up over time. I think you can expect the pattern to continue.
 
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  • Frederic Civish

    “I’m just here for the Ears.”
    Joined
    Apr 18, 2018
    You have to remember that those DVC points are a depreciating value and expire. They MAY fluctuate for some time up or down, but as it closes in on the last decade, the value will trend to zero.
    True, but if I have used them 36 times and saved a couple of thousand dollars each time, then I'd say they are worth it. And that assumes you use them 'to exhaustion.'

    When I travel with 5 people, I can't even stay at Pop Century or French Quarter for what I am spending ($166 per night) with DVC.
     

    montreid

    Mouseketeer
    Joined
    Feb 24, 2013
    The value of dvc or any timeshare is you spread a known cost across 50 years.

    The 'downside' is a forced yearly vacation to a predetermined set of sites.

    For dedicated adult mouse lovers....an easy choice. Not so much for others.

    We are in the downside of 40s....will we be the same enthusiasm when the grandkids are grown to use our dvc points? I hope so, but cannot be certain. We will have this into our 80s....

    Many have done the numbers. The break even point happens about 20-30 years depending on the acquisition price and general comps.
     

    DVC Doctor

    Member since 2001
    DVC Gold
    Joined
    Mar 19, 2014
    I just priced out the DISNEY CASH PRICE for our exact room at Riviera. Preferred View Studio for 7 days/6 nights for 4 adults and 1 child. It comes out to $5,068, including taxes.
    No offense, BUT $844.67 per night for a Riviera studio is a ripoff no matter how anyone looks at it. I am very glad you were able to book this room a reasonable DVC points rates and I have no idea how anyone could justify paying that much cash for the same room.
     

    AvidDisReader

    Mouseketeer
    Joined
    Mar 24, 2019
    Disney is worth it every time I see the look in my grand kids faces when we are in WDW. Knowing that the memories will live on with them long after I am gone. That is the single biggest reason we bought in the first place. That is why despite all the changes/restrictions made by DVC, my wife and I have no intentions of ever selling our points.
     

    jerseyduke

    Home is just where you stay when not at WDW
    Joined
    Jan 19, 2013
    No offense, BUT $844.67 per night for a Riviera studio is a ripoff no matter how anyone looks at it. I am very glad you were able to book this room a reasonable DVC points rates and I have no idea how anyone could justify paying that much cash for the same room.
    And yet, people pay it.
     

    skippytx

    Bay Lake Tower
    Joined
    Aug 24, 2015
    Why is DVC worth it?

    In a few weeks, we are going to be staying a Riviera, using points from a contract at Animal Kingdom that I purchased a few years ago.

    I just priced out the DISNEY CASH PRICE for our exact room at Riviera. Preferred View Studio for 7 days/6 nights for 4 adults and 1 child. It comes out to $5,068, including taxes.

    Not having to spend that $5000 is what DVC is saving us. Of course,I doubt very much that I would be paying that anyway, if not for DVC.

    This room is costing us 134 DVC points.

    To look at our costs through DVC, first of all, we need to pay Membership Dues/Maintenance Fees on those points of about $950 for this year, for that many points. So, it is costing us $950.

    Then, of course, there was the buy in cost, which for 134 points was $14,000 (I bought THESE particular points on the Resale market), but for that buy in cost, we get to use them THIRTY SIX MORE TIMES, and then they expire.
    This isn't a shot at your or anyone else on the board, but the bolded part is a major point many people do not make on this board.

    We're quick to talk about, even boast about the "savings" we get with DVC, but it's all a false dilemma. It's not an either/or situation in most cases. If you weren't DVC members, you wouldn't be staying in that room, so are the savings actually realized?

    I know I personally would not be paying cash for my future BLT room, is it fair to claim "savings" from a scenario that would never happen? I could claim savings off renting the BLT points, or staying at an AoA family suite, or several other options. For example, I've got 9 nights in a BLT studio next month, which ran me about 172 points I think. My buy in price for those points, including dues this year was about 10 bucks a point, so 1,720 dollars for my stay. Rack rate (which almost no one pays) is just over 7700 dollars for this stay which I would never pay, so can I really claim 6,000 dollars in DVC savings? I don't think that's fair or accurate. I could have rented the points for 3100 or so, so yeah, maybe I saved 1400 over renting if I look at this transaction in a vacuum. An AOA family suite would probably have ran about 4,000.

    Same thing with the annual pass discount. Without the discount how many people would buy the AP anyway? I know I wouldn't have bought mine if it was full price. I would have just bought 2 sets of normal tickets. The AP discount "savings" are only really savings if the original purchase was going to happen anyway, and then you have to consider how much you use it.

    I enjoy our DVC membership, I think it works out really well for us, and I'm generally a fan. I just think it gets portrayed as a much rosier situation than it really is.
     

    Melissa55

    Earning My Ears
    Joined
    May 14, 2016
    For our family, we view DVC as more of an upgrade than a savings... We would be going to WDW either way. We’re addicted so there’s no way around that. We talk about vacationing other places but we always end up at WDW. With our DVC membership, we basically just get to stay at Deluxe resorts instead of Value or Moderate.

    We also don’t treat it like a traditional investment. We see it as an investment that we will continue to take vacations. My husband is a workaholic and has trouble taking time off. Having our points with an expiration date attached forces us to use them. I certainly have no illusions that it’s the smartest possible thing we could have done with our money, but it works for us.
     

    kboo

    DIS Veteran
    Joined
    Mar 10, 2014
    We also don’t treat it like a traditional investment. We see it as an investment that we will continue to take vacations. My husband is a workaholic and has trouble taking time off. Having our points with an expiration date attached forces us to use them. I certainly have no illusions that it’s the smartest possible thing we could have done with our money, but it works for us.
    That bolded language used be about me and my DH. Now, it's only half about my DH. We know that we will be going back to WDW and when, and that works for us.
     

    montreid

    Mouseketeer
    Joined
    Feb 24, 2013
    Forced vacations. This is what I like and using our aulani points for while trying to get into vgc if the mouse ever stops rofr our contracts
     

    CanadaDisney05

    DIS Veteran
    Joined
    Mar 20, 2017
    Like others have mentioned, I look at it more like a guaranteed "free" upgrade rather than a savings. In exchange, I give up liquidity of my capital. I have managed to save enough liquid assets to allow me to sleep at night, and continue to put away enough for retirement, so buying DVC doesn't have a negative affect on my day to day life.
     

    Wakey

    DIS Veteran
    Joined
    Dec 22, 2015
    I totally agree with your logic Fred, this is my mindset also. Basically I wouldn’t stay in these places without DVC as I wouldn’t pay the crazy prices. I stayed in a BLT 1 bed over Xmas, that cost me about $250 a night in dues. One guy came in to ask for cash price on a studio, a third the size, and he was quoted and agreed and booked a studio at $699 plus tax plus parking a night.
     

    Just People

    Lurker
    Joined
    Apr 3, 2008
    The "you never know where prices are headed" mentality is just a non-issue. Even their newest resort, Riviera, can already be booked with a huge discount by means of Disney Visa card (which is free). The whole pre-paid vacations is really just a marketing ploy too. Disney World is a gigantic resort, and most times of the year you are going to be able to book were you want, especially 7+ months in advance. You are only doing your wallet a disservice by leasing Disney's timeshare service.
     

    Sandisw

    Moderator
    Moderator
    Joined
    Nov 15, 2008
    This isn't a shot at your or anyone else on the board, but the bolded part is a major point many people do not make on this board.

    We're quick to talk about, even boast about the "savings" we get with DVC, but it's all a false dilemma. It's not an either/or situation in most cases. If you weren't DVC members, you wouldn't be staying in that room, so are the savings actually realized?

    I know I personally would not be paying cash for my future BLT room, is it fair to claim "savings" from a scenario that would never happen? I could claim savings off renting the BLT points, or staying at an AoA family suite, or several other options. For example, I've got 9 nights in a BLT studio next month, which ran me about 172 points I think. My buy in price for those points, including dues this year was about 10 bucks a point, so 1,720 dollars for my stay. Rack rate (which almost no one pays) is just over 7700 dollars for this stay which I would never pay, so can I really claim 6,000 dollars in DVC savings? I don't think that's fair or accurate. I could have rented the points for 3100 or so, so yeah, maybe I saved 1400 over renting if I look at this transaction in a vacuum. An AOA family suite would probably have ran about 4,000.

    Same thing with the annual pass discount. Without the discount how many people would buy the AP anyway? I know I wouldn't have bought mine if it was full price. I would have just bought 2 sets of normal tickets. The AP discount "savings" are only really savings if the original purchase was going to happen anyway, and then you have to consider how much you use it.

    I enjoy our DVC membership, I think it works out really well for us, and I'm generally a fan. I just think it gets portrayed as a much rosier situation than it really is.
    I think it does depend on each circumstance to say whether or not one would stay in a particular place if it were not for DVC.

    When I got in in 2009, we routinely stayed deluxe at that point. Had no interest in staying elsewhere, and most of the time, it was the Contemporary. So, in my case, I was paying a lot.

    Now, anyone who is okay with staying at value or moderate resorts, especially given today’s prices, even resale, it definitely becomes harder to say DVC saves.
     

    Frederic Civish

    “I’m just here for the Ears.”
    Joined
    Apr 18, 2018
    I totally agree with your logic Fred, this is my mindset also. Basically I wouldn’t stay in these places without DVC as I wouldn’t pay the crazy prices. I stayed in a BLT 1 bed over Xmas, that cost me about $250 a night in dues. One guy came in to ask for cash price on a studio, a third the size, and he was quoted and agreed and booked a studio at $699 plus tax plus parking a night.
    Wow. I agree with everything you said.

    I know DVC isn't really an 'Investment' but, since I love Disney and am going to take trips anyway, DVC makes a lot of sense. I have stayed at all the Moderate resorts, and even more I always used to stay at the Value resorts. (I still stay at those places for fun, or for a day or two for various reasons. My daughter loves French Quarter, and I love the gondolas from AOA/POP and CB. There is NOTHING wrong with any of those resorts.) But I had never previously stayed at a Deluxe resort, despite going to DW for decades. My view of the pricing on Deluxe resorts was, "You've GOT to be kidding!!" But then I did an RCI exchange into Kidani Village a number of years ago, and I realized how much I loved it. So, I studied DVC and decided it made sense. It turns out that it has been even better than I expected. But without DVC I would be back to the Moderates and Value resorts, and I wouldn't be complaining. Still, it is a great thing to be able to stay at amazing Deluxe resorts for about what I would be paying for those other places.
     

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