Will becoming a DVC member pay for itself?

[twinx4]

Should I wait to become a DVC member before making room reservations at the more expensive resorts like Boardwalk and the Floridan (for example). Is it more economical instead of reserving a room only? I know I've heard that by becoming a member your vacations start paying for itself in a few years. But what about the first year that you join, can you already see a savings?

 

[MDonley]

Paying for itself? Hmmmmm.....
When you join DVC, it's more like you're prepaying for your vacation. Membership then provides several discounts. The "paying for itself" idea comes from the fact that, since you're already invested a substantial amount of money, you have much better accomodations than other non-DVC resorts and a hedge against inflation that also occurs. Someone on these boards stated around 4% per year. I'd suggest that you take a tour on your next visit and do some homework on these boards (as well as others) before your trip. It's a big decision.

 

[kweaver]

This is how I think of it. We have 200 points.

$738 our dues for this year
$316 (1/50th of inital purchase price)
_____
$1054 DVC expenditure per year.

Points useage vs. rack rate
$1925 - 1BR SSR villa 5 nights ($385/night or 135 total points)
$1150 - 2BR SSR villa 2 nights 2005 ($575/night or 62 total points)
______
$3075

If we didn't have DVC, our options would be (family of 5, 7 nights):

$1043 - one room for 5 at POR (can you say sardines?)
$1670 - one room for 5 at a deluxe (sardines again)
$1925 - two rooms at a value, or
$2310 - two rooms at a moderate

For us, the cost of DVC meets or beats every option we have at WDW. Granted, these are rack rates without any discounts, but I also used the standard "view" rooms when figuring the rates. Not to mention, we get a heck of a lot more space and in-room amenities with DVC.

You can do your own analysis using the DVC points charts here at the DIS and the list of rack rates from mousesavers. Determine what your upcoming vacation plans will be, "buy" your points at $95 (150 point minimum and $3.68 per point dues if you buy from DVC) and calculate the rest.

http://www.mousesavers.com/roomrates2005.html

 

[JudyS]

In general, you would need to stay a a DVC resort over a number of years before you would cover the initial cost of a DVC membership. However, in the long run, buying into the DVC can be much less expensive than renting rooms each year.

Joining the DVC requires a substantial investment upfront. After you pay the initial membership, you also have to pay annual fees.

Your membership gives you "points" that you can use to book rooms at the DVC resorts. The Boardwalk Villas are part of the DVC, but there is no DVC at the Grand Floridian.

It is possible to "trade" DVC points for non-DVC hotel stays (including at the Grand Floridian), but this is almost always a poor value.

You might want to click on the DVC FAQs link at the top of this page to get more information.

 

[Happy Birthday Cat]

DVC has saved us a lot and has allowed us to vacation at WDW more often. It will save us more in the future as room prices increase.

We are a family of six and we used to go at least once per year during a peak school vacation period and stay in a deluxe hotel like the Polynesian, getting two connecting rooms. Our last totally cash stay back in 1999 cost us over $7,000.00.

In terms of what we used to spend, does DVC pay for itself? Yes it has without a doubt. I also have no doubt that it won't for everyone. You have to look at your own circumstances. Good luck deciding.

HBC

 

[jimmytammy]

I tend to look at DVC as kweaver and Happy Birthday Cat do. I compare what Member vs. non-member prices are then justify that DVC is a better option. This is factoring in dues also. Our 2 bed stay in Dec would have cost us $600 more if we were paying cash at WLV. And that number will continue to rise in the coming yrs.

 

[JimC]

When we did the analysis DVC worked out to staying in a one bedroom villa for the price of a moderate resort room.

 

[mowog]

From your past vacation usage you would be a perfect candidate for DVC, but do the math as others have suggested. We looked at DVC when it started but it didn't make sense for us at the time. We bought a resale contract last year and am very excited to start taking advantage of it. In retrospect we should have done it sooner as we always stay at the premiums but I feel better not wondering if we made the right decesion. I would suggest trying a better resort for even a day or two and see if you like the difference. If you don't find BW or BC much better than say Allstars or Pop Century you could probably do better money wise staying at those for the rest of your life. If you like the better resorts ( I do- I really do!) then DVC is nice.

Good Luck, Jean and Bob

 

[tjkraz]

Originally posted by twinx4
I know I've heard that by becoming a member your vacations start paying for itself in a few years. But what about the first year that you join, can you already see a savings?

Just want to make sure you realize that the Disney Vacation Club is Disney's version of a vacation timeshare program. I reread your post several times, and it sounds to me more like you might think that the "Club" is a discount program that will get you reduced room rates.

DVC requires an up-front investment starting around $15,000. There are also annual dues which start around $600 per year for the minimum point purchase.

Membership in DVC gives you deeded ownership in one of the resorts at Walt Disney World. For the newest DVC resort, Saratoga Springs, the ownership runs through the year 2054--a full 50 years. Compared to Disney's Rack Rates for hotel rooms, it can take about 8-10 years to break even on the initial $15K purchase. But then you get 40+ years of vacations for a fraction of their current cost.

If you are used to (and comfortable) staying in the Disney Value Resorts, you probably won't be able to justify buying into DVC. The costs for DVC will never fall into the $50-70 per night range of the Value resorts. But they are very different properties. Most DVC rooms come with a full kitchen, in-room washer and dryer, whirlpool tub, balcony, and separate living and sleeping quarters. Quite simply, they are a different class of accommodation than the Value resorts.

If DVC is of interest to you, I'd highly recommend visiting the DVC web site and requesting the sales materials they have available.

 

[southtown]

IMO DVC cant be beat. My wife and I stayed in Value and Moderates before and we thought we would be happy with those. We used to laugh at the DVC booths in the parks and think people who joined DVC were suckers. Boy were we wrong. I looked into DVC on here and other places and saw how excited people and decided to take the tour. My wife was still a little leery but I talked her into it. After the tour I was still on the fence. I knew it was a great deal but it still was alot of upfront $$$. But my wife who was not interested in DVC was now practically begging me to let us buy into it. So we did and we absolutely love it. It may not be a deal compared to a value room, but you are not getting anything near a value room. DVC gives you a much better vacation experience. It adds to the trip in ways that are hard to describe. We are getting great rooms we could never afford paying cash now much less in 10 to 20 years down the road. For us DVC is definately worth it and we just cant wait to go again

 

[twinx4]

Hi

Just needed to supply some clarification. >Tjkraz< I did know that DVC was Disney's version of a time share. And I actually had a representative send me some info about 2 yrs ago.
I've been reading the sites and have seen alot of positive reviews. The more I read the more I was looking forward to taking a tour.

It sounds as if big families are getting really big savings. With me ...it is only me and my young DD, that usually go. And at the time when we started going, value resorts provided more entertainment for my DD (she enjoys the gigantic icons), well she still enjoys them and yes they were lighter on the pocket.

But now I want to vinture out and visit some of the othe resorts and enjoy the extra bonuses.

So I guess my concern is: Will the DVC roomd pay off for a small family just as well with a bigger family?

 

[tjkraz]

Originally posted by twinx4
Will the DVC roomd pay off for a small family just as well with a bigger family?

No reason why it wouldn't. When Disney rents a room, they don't charge you based upon occupancy. A room is a room is a room.

You can get a week in a Studio at SSR for as little as 98 points. That means a 150 pt purchase would get you as many as 11 nights per year (assuming only one weekend).

If you want to step-up to the One Bedroom (which has a full kitchen, separate living room and bedroom, washer/dryer, whirlpool tub), it will cost a few more points. But you could still manage 6 nights per year with 150 pts.

Getting back to the value, a single night in a SSR studio starts at $254. So, the 11 nights noted above would cost you about $3100 cash, including tax at 11.5%. But the DVC dues for your 150 points are only about $600 for the year.

You'd have to use the remaining $2500 difference to offset your initial purchase amount (about $15k). So, it will probably take close to a decade to break even. But after that you get years and years of vacations for a portion of the price.

(If you wish, you can assume some discounting off of Disney's Rack Rates, which will probably delay your break-even by a couple of years.)

 

[crisi]

Here is my thoughts:

If you currently stay in a Deluxe room (or even a moderate) and don't use a lot of weekends - and your vacation patterns remain the same once you join DVC (i.e. owning points doens't encourage a change in habits), you'll save money.

DVC can change habits a few ways. The expensive side: You may decide to book a one bedroom to get the kitchen over a studio and have your DD sleep in a seperate room. Then you don't save as much, because the one bedroom is more points. Then you decide that you don't like the hideabed, so you put your daughter in her own bedroom, more points. Or you go more often. Or, without a room bill, you spend more eating out. Or you use those extra points to treat relatives and friends. You may take more Disney vacations than you used to, where you would formerly alternate between Disney and something cheaper.


They can also change on the frugal side. DVC provides a kitchen - in the studios a kitchenette. So you'll have a place to warm leftovers, make your own coffee, put a frozen dinner in a microwave. And a fridge for your pop. Laundry is also included (in a studio, you'll need to visit the laundry room), so if you were spending $20 a trip in quarters for the dryer, you can save that.

Unfortuantely, its hard to compare apples to apples, as most of us here have gone through a lifestyle change when becoming DVC members.

 

[Pa@okw95]

Becoming a member of DVC will not pay for itself. Some people ike to compare what they would pay for at a deluxe to the membership costs, etc. It is a myth. What you are doing is leasing points for X amount of years, with dues and taxes, and more trips to WDW, it is one big expense. My wife tells me how much she saved by buying a cetain outfit, I just laugh, that is what I so when people say they are saving money by buying into DVC. It is an expense not a savings. If you want to save, then, don't buy into DVC.

 

[JimC]

Originally posted by Pa@okw95
Becoming a member of DVC will not pay for itself. Some people ike to compare what they would pay for at a deluxe to the membership costs, etc. It is a myth. What you are doing is leasing points for X amount of years, with dues and taxes, and more trips to WDW, it is one big expense. My wife tells me how much she saved by buying a cetain outfit, I just laugh, that is what I so when people say they are saving money by buying into DVC. It is an expense not a savings. If you want to save, then, don't buy into DVC.

Hmmm.....then why am I spending less to stay at Disney now than before I joined DVC (and yes I do amortize the cost of the points).

Using your approach I guess I would save even more if I did not vacation at all

 

[twinx4]

All this information is very helpful. It sounds as if DVC enables me to take more mini trips throughout the year, then saving up for one big one. Especially if I utilize weekdays opposed to weekends.

I like to eat at the character dining restaurants and I enjoy the dinner shows. Last year was the first time I used a package. So maybe the studios would benefit me more (the less expensive route) if I plan to vacation more. I realize that I have to weigh out my travel plans in order to decide how many points I should buy into.

The way you all break down the savings is really helpful.

Thank you

 

[KristiKelly]

We are not DVC members (yet, I'm still working on DH), but here's what I would suggest. Rent points from someone on the Rent/trade board, stay @ one of the DVC resorts, Boardwalk since you've mentioned that one. Last fall, we rented points for 6 nights in a studio @ Beach Club Villas, it was 83 points (which we rented for $10/point - some people charge $12 -still a bargain) this was $830 for a studio, I looked @ Disney's website & it would have been right at $1900.00 for the same room direct through WDW. DH really liked it, he's always loved the EPCOT area. One night, we were on our way to dinner & I forgot something & went back to the room, DH took the kids to the lobby to wait. When I got to the lobby, DH was @ the DVC info desk talking to the guy, I asked what they were talking about & he said "Oh, DS & DD wanted a sticker" - yea right!! 2 days later we were taking the DVC tour. We still have not purchased, but DH really likes DVC & we spoke with our tour guide over the phone just last week, we are seriously considering purchasing now. I would definitely rent points & stay to see if it is right for you. Good Luck!!!

 

[twinx4]

Thanks Kristi that sounds like a great idea. I will look into it.

 

[pasta37]

Can't help but jump in here......
We are just the two of us and think buying into DVC was a huge money-saver (and I am an Accountant!) - Of course, there are several factors to take into account. #1 of importance would be whether you really beleive that you will be vacationing in Disney (or HH) every year - we already were and knew we would continue. Second, as several posts already addressed, if you are perfectly happy in an economy resort or even many of the moderates, it will not be of the same value to you.

In our case, we spend 10 nights per year, split between Vero Beach and OKW in studios, for 142 points. We bought in 1997 and our vacation in 2003 was our "breakeven" year. Taking into account what the cash price was per year, less our dues = what we offset the purchase price with. By 2003, we had "eaten" up the whole purchase price (we would have spent it anyhow!).

So, this year when we went....our $700 dues was the only cost involved for our 10 night deluxe stay - $70 per night for a $250-$300 room! The way we look at it now is that we save about $2k each year - if we can keep this up for another 38 years (until 2042) even though we will be pretty darn old, seems we will be saving thousands and thousands of dollars!!!

 

[OneMoreTry]

You will save buying into DVC if you would otherwise pay cash for a DVC resort. I think that's the only way it will "pay for itself."

As a DVC member I would pay cash for a room at GF, CR, Poly, moderate or value resort, etc. The cash cost of the room is less than the value of the points. The only way I would use points would be if I had a bunch that would expire otherwise.

In other words: In the long run, staying at a DVC resort on points is cheaper than staying at a DVC resort with cash. Staying at a DVC resort with points is more expensive than staying at a moderate or value resort with cash. (I don't know about DVC resort with points versus deluxe with cash.) Staying at a non-DVC resort with points is probably more expensive than a non-DVC with cash -- at least it was when I bought in and did the calculations.

If you want to save the most possible money going to WDW and that is your prime objective: Stay at value or moderates and use discount codes. Put the extra money into paying off your mortgage early. There's no doubt you will come out ahead that way.