Why not buy into DVC?

[amybethchristiansen]

My guide just said that points will be going up to $101 as of March 1. So, that really threw me over the top to join now. I mean, the cost is now $83 something a point. That is like an $18 savings over a couple of months from now. So, while I "think" we will only need 150, I am buying 200 because of the cost increase.

 

[Olaf]

$101!!!! You've got to be kidding?!!!

 

[pouncingpluto]

I wonder what it will be for other resorts. Not that we can afford an add-on right now anyway... but I wonder! I want my 50 BWV points!

 

[Daitcher]

My guide just said that points will be going up to $101 as of March 1. So, that really threw me over the top to join now. I mean, the cost is now $83 something a point. That is like an $18 savings over a couple of months from now. So, while I "think" we will only need 150, I am buying 200 because of the cost increase.

That is the hard sell from the guide. We all know DVC will offer some other good incentive to sell. $101 with no incentives will slow sales to a crawl. Guides try to act like they are doing you a favor by letting you know about the price increase. They are really just trying to get you bite now. There will be other incentives knocking down the price into the $85 - $89 dollar range. To the OP, don't feel the need to rush into the decision. It isn't cheap to vacation at WDW even with prepaid vacations. Financing is a ticket to the poor house. Financing, plus dues , plus airfare, plus food, plus park tickets, plus spending money all really add up. Timeshares have become too much for the masses. IMO anyone who must finance a timeshare has no business owning one. Pay yoursleves first, not the bill collectors. Timeshares are a luxury purchase and luxury purchases, in my mind, are not worth making a bill for. Timeshare owners have become the same group of people who have no money saved for emergencies, childrens education, retirement, etc. Many timeshare owners have trouble getting a conventional loan but still somehow get financed for this type of purchase. Does anyone know of anyone who has been turned down for a timeshare loan? Financing has made these purchases way to easy.( Don't let DVC or others hear this, they'll lynch me ) I hope this isn't too harsh and I know I'll take a lot of criticism for this. I'm simply hoping someone who is on the fence about this hears this and thinks it through. No savings account, no colege fund for the kids, no retirement nest egg, NO TIMESHARE. Timeshares originally were not intended to be for the masses. They were marketed for the upper middle class to high income folks who wanted a little more room in nice settings. Now every income bracket is in play. We wonder why there are so many resales???? Of course people want in when they tour, the places are great. Just really think it through. It wouldn't hurt to rent points until you can afford the buy in money. This will also help you see if DVC is for you. Good luck to the OP with the decision. I'm sure you'll make the best decision for your family.


DAVE


DAVE

 

[TheIncredibles]

Follow my math and tell me if I am understanding this correctly -

1. We currently pay 7 nights PolyLVC (room only) for $650(7) = $4550;

2. A proposed monorail DVC goes for $115 per point, 150 needed = $17,250 to purchase for 50 years;

3. $100 per month (?) in annual mainteneace fees, or $1200 additional per year;

4. Figuring a total cost for 5 years - maintenace fees are $6000 + $17,250 one time purchase of proposed monorail DVC...= $23250.

5. Taking the original Poly LVC, 7 night trip cost of $4550, dividing into the $23,250 grand total monorail DVC cost gives a 5.1 trip payback. After that, it would be $1200 per year in maintenace cost and then the big savings vs. the $4550...correct?

I realize there are time value of money consideratons and a few other factors to consider, but is the right formula (with my "beginers knowledge") of a DVC purchase?

 

[Hibernians]

I really don't buy the argument against financing; especially with the current promotion of 83/point. This is a great time to get into DVC and if someone needs to finance their purchase then so be it.
I appreciate people preaching against the evils of interest payments but we consumers all make choices - whether we want to finance a new $30,000 vehicle, save extra $$ for an IRA,401K or 529 or take a vacation every year and put it on plastic. An entry level purchase of 150 points at 83/point is not a terribly large amount of money to finance (less your downpayment).
If buying into DVC is someone's idea of happiness and their willing to fork over an extra 3,000 - 5,000 in interest payments then more power to them. in the bigger scheme of things, it really is a small price to pay for bliss.
My family loves Disney and we financed and have no regrets because we know what we are buying into and we love the product - to deny ourselves this would have been against our best interests.

 

[nestlejean]

It's a better choice to buy a used car vs. a new car but Many of us choose to buy a new car and finance it. It goes down in value. DVC per point price has not gone down in value. It may at some point in time but it hasn't so far. The maintenace fees do go up some each year but so do interest rates, our wages (usually) rent, hotel prices, food, etc. Most of us buy DVC because we don't want a hotel room, we want a prepaid vacation at a nice resort with wonderful accomodations. Not a hotel. When i ran the numbers, I took into account the interset I may have lost on a potential investment, the interest I may have to pay on this purchase and the overall cost. i felt it was worth it because I was not being charged extra for anyone over 2 adults in a hotel room or over 4 people, no room tax and the price of the room wasn't going up with inflation other than the maintenace costs. It lets me stay somewhere I couldn't otherwise afford. We all choose what to spend opur money on. Financing seems to be a way of life. Do we add the cost of financing to the price of our homes? I think if you can afford the loan, this is what you want, you would go on vacation anyway and spend money, why not go somewhere nicer than you would otherwise get and get what you want?