Why not DVC?

[Music City Mama]

http://www.mousesavers.com/other-disney-vacations/disney-vacation-club/

This is a pretty good site that explains the pros and cons.

I bought my first contract in 2010 (150 points at Saratoga) and second contract last summer (200 points at Beach Club; split with my sister.) So I have 250 points, which allows me to stay in a studio roughly 14 days a year, or a one-bedroom for 8 days a year.

Of course, as a PP mentioned, you may not want to go every year because either you want to go to other places, or your kids get sick of it...
So, if I use my 250 points every three years, (bank last year, use current year, borrow from next year) and I have 750 points! This gets me a Grand Villa for a week+ or a two-bedroom for nearly two weeks.

Also, PP, don't forget that DVC allows you to stay at Vero Beach, FL, Hilton Head, SC, DisneyLand, and Aulani, Hawaii, too! It's not all DisneyWorld!!!

Finally, last year DVC members were offered a rare treat: $399 Premium Annual Pass. Huge Savings! So glad I got one. Hope they do it again! We also get 10% off merchandise, and 10% off a lot of restaurants.

But it did cost roughly $17,000 for my 250 points. And the maintenance fees are $1,200 a year for those 250 points (roughly the price of 3 nights at Beach Club cash WITH a 30% discount.) But those points are mine until 2054 (Saratoga) and 2042 (Beach Club). So that's 40 and 28 years of points.

So you have to ask yourself - $17,000 for 250 points, purchased resale. + $1300 annual fees for an average of 34 years = $57,000; =$1670 a year.
$1670 a year for 14 days in a studio or a week in a one-bedroom at WDW. Or an ocean view studio for a week at Aulani every year. Would that be worth $1670 to you? ($238 a night?)

This is also assuming you're not financing any portion of it.

 

[MichiganDVC]

From the numbers I crunched, it is only worth it for us to buy into DVC under one of two scenarios. 1)If we go more than once per year

Absolutely, positively untrue. While I DO go more than once a year, plenty of people go every two or three years and stay in larger accommodations because they banked/borrowed their points. I would say that DVC is even better for people who only want to go every couple of years. This way, you don't have to buy as many points, you only have to pay for airfare once, your maintenance fees are less, etc...

We own 1 DVC contract and were planning to purchase another and backed out. The reasons for not making the purchase are:

[*]Ticket and food cost is getting outrageous, I am not sure when it will stop being a good deal to go to Disney

Actually, you get a better deal on tickets as a DVC member. Plus, with food prices rising, even more the reason to have a villa where you can have some significantly cheaper meals in the room.

I know, I know..."But I'm on vacation and I don't want to cook..."
Making egg sandwiches for breakfast is hardly cooking, but it saves you the time and money of having to either go to a restaurant or order QS.
If staying in a 1BR or more, you have a full kitchen. So, you can cook one dinner and have leftovers for the lunch the next day. That's two meals you've saved $$ on. I can go on like this...

 

[Dizneefamily+4]

We're coming up on our 6th trip in 9 years. Once we realized that we'd changed from the "go to Disney every few years" to "let's make it an annual (if not more) trip," we decided to start researching DVC. We're still in that research phase and actually plan to rent points for a spring 2014 trip. However, with fp+ in the process of rolling out, we're taking more of a wait and see approach right now.

We are NOT fans of fp+ as it looks to be. We're not Type A planners when it comes to our Disney trips. We do QSDP because we don't want to have to make ADRs and schedule our day around when we have to eat and which park we have to be in to eat at that time - 180 days before our trip. So planning which rides we want to ride and when a couple of months before our trip is not very appealing (horrifies me actually.) So, DVC research mode will continue a bit longer until we see how fp+ actually pans out and the jury comes in on it!

 

[MichiganDVC]

This is also assuming you're not financing any portion of it.

Yep, this is true. I wouldn't bother if you have to finance it. BUT...what you can do is what I did.... $10,000 for first 150 points (wedding gift money) and $7000 for the next 100 points (tax return + savings). Mostly people don't just have $17000 laying around...you might have to save for a few years to buy your first contract. Then wait a few more years to buy the next one. Everyone adds-on. It's like Lay's potato chips....

 

[MichiganDVC]

We are NOT fans of fp+ as it looks to be.....So, DVC research mode will continue a bit longer until we see how fp+ actually pans out and the jury comes in on it!

I hope that FP+ is so god-awful that plenty of current DVC members decide to sell their contracts for low-low prices! (Saving money starting....now!)

 

[rwdavis2]

Since we only go every 4-5 year DVC would make no sense. But renting points in this case looks like it's a steal.

 

[MichiganDVC]

Since we only go every 4-5 year DVC would make no sense. But renting points in this case looks like it's a steal.

It probably doesn't....except... Where do you go/what do you do for your vacations in-between your WDW vacations? If you don't vacation at all, then no DVC is not for you.
If you like to go to the beach, or golf, or go to Hawaii....these are all DVC opportunities. If you can use your points at least every 3 years, it can be an incredible deal.

 

[rt2dz]

I play with the idea regularly. Currently doing so again. I keep deciding against it because:

Renting is just fine with me. The break-even point is so far out there after initial buy in and ever raising maintenance fees.

We stay offsite too, making it even further push back break-even point. I like renting a full house, fairly close to property for under $1K for 10 days. Way better than renting even.

Our family is still dynamic. We have completed our family, but it isn't too far off that they will be off to college and on their own. Right now we need a 2 bedroom, but soon enough that would be point overkill. Selling before a break even point makes no sense and renting and paying maintenance fees might be a hassle to keep up with. I'm not sure there would be a profit.

I'm not fully sure I want to keep going to Disney every year. The price point on tickets and dining make other vacations appealing too, even if the lodgings have paid off. It's a great big world out there and since vacation time is limited, I may be skipping Disney. Especially if Disney becomes a massive scheduling effort.

It's a big fat outlay. Financing vacation to a single destination with interest seems like a bad investment. Watching all that money go out of my investment account is hard to do also. I like to see my money growing and know it is there for emergencies. Or 4 upcoming college educations and retirement.

Of course, I keep coming back to it, so who knows...?

Sent from my iPad using DISBoards

 

[BuckeyeBama]

If Disney wants me to buy DVC, they need to include free park admission while I am using my points.

 

[MickeyMinnieMelanie]

My dh and I have been looking into DVC for a few years. We came extremely close last year on DCL but just scared to take the plunge. Not financially ready yet for that much out of pocket expense. I have rented points on two different occasions and I paid for a studio what I would have paid for a value resort. Very good deal... My dh does not like the maintenance fees. I am not cooking on vacation. If it requires a stove, I'm not doing it. I do love a lot of things about the DVC resorts but just can't seem to justify the price right now when we can rent points. The most we could go to WDW would be twice a year. And going to Adventures by Disney, Aulani, or even Disneyland would be a very rare incidence so that doesn't justify it. We're still looking and talking but don't know if we'll ever commit. Would like to though..

 

[Ana~n~Joseph]

The annual fees are what pushed me away. They are too high. I am much better off renting points when I want to stay in a DVC property.

This We are sooo close to buying but backed out at the last minute. Now I rent points and I love it.

 

[North of Mouse]

For those of you who go to WDW often, stay on site, and can afford it -- if you have not bought into DVC, why have you decided not to?

Just curious. I'm doing research!

Thanks!!

Those that 'want' to 'buy in' will find all sorts of 'reasons' to do so, and the opposite is true for those that don't want to own DVC.

Our DD bought into Boardwalk several years ago when they were more reasonably priced. She purchased two weeks, has rented out one week during F&WF for the past few years. She is very happy, but realizes the yearly dues do take a bite out!

Our reasons for 'not' owning DVC is we have been campers all our lives and own a MH where we can go 'anywhere' and not be committed to just Disney (even though we go often to FW). Our accommodations are 'first class', plus we would rather our own private facilities.

On an annual basis, our vacation costs are much less than renting Deluxe. We would 'never' pay the price of Deluxe Disney hotels, so another reason DVC would be too expensive for us (plus the annual dues - 'that' really kills it).

Also, I DON'T cook on vacation - period! If I paid the price of Deluxe at Disney, I also would want maid service 'every' day, not just once every 4 days/once a week whatever. JMO's on our personal needs/wants and we all do what we feel is best for our particular family/needs/wants.

 

[Music City Mama]

Yep, this is true. I wouldn't bother if you have to finance it. BUT...what you can do is what I did.... $10,000 for first 150 points (wedding gift money) and $7000 for the next 100 points (tax return + savings). Mostly people don't just have $17000 laying around...you might have to save for a few years to buy your first contract. Then wait a few more years to buy the next one. Everyone adds-on. It's like Lay's potato chips....

If I came into some cash for some unknown reason and could pay for it outright, I would give it consideration for sure, but when I get tax return money or bonuses, for me, that's going to emergency money, my retirement savings, my kids' college funds, home renovations, etc.

I play with the idea regularly. Currently doing so again. I keep deciding against it because:

Renting is just fine with me. The break-even point is so far out there after initial buy in and ever raising maintenance fees.

We stay offsite too, making it even further push back break-even point. I like renting a full house, fairly close to property for under $1K for 10 days. Way better than renting even.

Our family is still dynamic. We have completed our family, but it isn't too far off that they will be off to college and on their own. Right now we need a 2 bedroom, but soon enough that would be point overkill. Selling before a break even point makes no sense and renting and paying maintenance fees might be a hassle to keep up with. I'm not sure there would be a profit.

I'm not fully sure I want to keep going to Disney every year. The price point on tickets and dining make other vacations appealing too, even if the lodgings have paid off. It's a great big world out there and since vacation time is limited, I may be skipping Disney. Especially if Disney becomes a massive scheduling effort.

It's a big fat outlay. Financing vacation to a single destination with interest seems like a bad investment. Watching all that money go out of my investment account is hard to do also. I like to see my money growing and know it is there for emergencies. Or 4 upcoming college educations and retirement.

Of course, I keep coming back to it, so who knows...?

Sent from my iPad using DISBoards

This poster makes an excellent point, which MichiganDVC, skews your numbers from your previous post quite a bit. The annual fees go up every year. In fact, I believe many of the villas went up as much as a dollar per point from 5 years ago. What will it be 10 years from now?!

With that said, I can tell by your posts and your enthusiasm, that DVC ownership is a good fit for you and works for you, and that's what matters. It works for many others, as well, but it's just not something that works for me financially (at least at this time) no matter how much I love vacationing there.

 

[kmb584]

With an upfront ~$25,000 cost for a minimum points purchase, a DVC ownership would take roughly 1/3 of my savings out of play. It's not a cost that I'm comfortable with at this point in my life despite the fact that we (myself & DD, extended family on occasion too!) visit our favorite Mouse every April and October.

We split our vacations with one on-site and one off-site. When we stay on Disney property it's almost exclusively in a deluxe resort, in either a "room with a view" or I rent DVC points for a 1- or 2-bedroom villa. The only time I go with a true resort room is when free dining is either offered to the public or I have a PIN attached to my name. DVC rentals come into play when FD isn't an option as I have both an AP and a TiW card which saves me a good bit of money on OOP dining costs.

When we stay off-site it's at either the Sheraton Vistana Resort or Wyndham Bonnet Creek in a 2-bedroom unit. The units are 1,000+ sq. ft and beautifully updated. Both are less than 10 minutes to the WDW gate and both cost me less than $1,000 for a 10-night stay. That makes the cost of DVC even harder to swallow.

My love for all things Disney has only grown stronger as I've gotten older and my little one has been bitten by the bug too. That said, a DVC ownership is in my future but right now isn't the right time.

 

[RSWA2]

For me, the numbers ($$$) had to make sense. Otherwise I would always rent. I went a few times before I purchased on resale. Here are my reasons for justifying the purchase.

I have the funds up front. No financing or any other type of finance sacrifice is needed, like a HELOC. As in the funds had to strictly come from funds set aside for vacations.

I have to want to at least go every other year. I can then bank and/or borrow points as necessary. This allows me to buy 1/2 to 1/3 of the actual points I need. Reducing my upfront and MF by that ratio. I can forever borrow ahead and only lose on my very last year of DVC ownership or lose a trip every 3-5 years.

I have to want to stay in onsite deluxe type accommodations. DVC would not be financially reasonable if I was happy with the Value resorts or offsite locations.

There are plenty of posts comparing and predicting the breakeven costs of DVC vs non-DVC. For me, my approximate breakeven with my MF + up front resale purchase vs staying at at Deluxe resort (30% discount) was 4 trips of 7-9 nights or Mod resort (30% discount) was 7 trips of 10 nights.

Why not rent, similar reason as renting a home vs owning a home, except this is a luxury (2nd home) purchase. If I did not have the extra funds, I would rent. But to me if I have to rent, I would just save that funds for that trip towards a DVC purchase. I'd sacrifice a few trips to get more.

 

[MHSweb79]

Like other PP's, the initial buy-in and maintenance fees have kept us out of committing to DVC. We're very happy staying in a mod, with a room discount (either AP or general public) in off-season times of year. Also, we can't go for more than a week at a time.

I have looked into renting points, but they are non-refundable so I haven't tried it yet. We've never had to cancel a trip but I want the security of knowing that if my plans change I won't lose all that money.

 

[disneydreaming92701]

As an owner, I can confirm this with certainty. What we pay per point with dues and what we would rent them at.....we are certainly making a profit. It is still a better price for the renter, however, opposed to going through Disney WDTC/CRO.

Completely agree.

 

[patty57]

Those that 'want' to 'buy in' will find all sorts of 'reasons' to do so, and the opposite is true for those that don't want to own DVC.

This is so true. Our reasons for not buying:
While it is not the same, we used to own a vacation condo (not timeshare) and ended up selling it because we didn't use it enough even though it was only three hours away. It was a four season place in NH with skiing and a beautiful lake in the summer. Again...not the same as DVC, but after owning vacation property, we realized we don't want to deal with any of the details involved with DVC.
I/we are perfectly happy renting points, and have discovered the Swan/Dolphin and are very happy with them. The location we want at a discounted price.
The most important factor is probably that my husband is not a WDW fan. He only goes when we are also visiting his family in FL, and is usually not happy to be there. I love it though...as do our kids who are now in college.
Ultimately, we don't want to own DVC.

 

[MichiganDVC]

This poster makes an excellent point, which MichiganDVC, skews your numbers from your previous post quite a bit. The annual fees go up every year.

With that said, I can tell by your posts and your enthusiasm, that DVC ownership is a good fit for you and works for you, and that's what matters. It works for many others, as well, but it's just not something that works for me financially (at least at this time) no matter how much I love vacationing there.

1. Yes, annual fees will go up each year. So do the prices of the WDW resorts! So will rental fees! Right now it could be $12-14 per point from David's, tomorrow it could be $16-18 dollars. All fees go up. No one knows how much.

Here is the history, though: http://www.disboards.com/showthread.php?t=2951732

Let's assume that every 10 years the fees go up $1 per point (as has been the trend.)
So I re-did the numbers and it comes to roughly $1850-$1900 per year of costs for 34 years. $17000 up front, and 34 years of fees with $-per-point rising a dollar every 10 years.

So, $1900 a year. Is it worth it for 7 nights in an ocean view studio at Aulani? At $271 a night?

2. I was explaining to OP the pricing and how it works out if you look at it as a yearly fee over time, not trying to convince you to buy DVC.

 

[BuckeyeBama]

A few other things to consider -

The studios can be a real problem if you have more than 3 people, as the sleeping options for those not sleeping in the bed are very uncomfortable. If you are used to having 2 queen beds in a deluxe or moderate resort, studios are a step backward.

Also, DVC properties look far more dated and are not "updated" as often as standard resorts. Yes, you can stay in one of the newer DVC properties, but the nicest properties are booked very early.