Worth it to become a DVC memeber?

[nuge67]

Since my in-laws live in Florida and we plan on going there almost yearly, me and my wife were wondering if it would be worth it to purchase a DVC timeshare? We figured if we are going to Florida, might as well stay at Disney and enjoy it!!!


What are the pros and cons of being a DVC member and are there any current discounts to become one.

 

[DisDaydreamer]

Pros - Deluxe accomodations, affordable price, lifetime of vacations.

Cons - In-Laws in Florida

 

[Mtnman44]

Here is a over simplified, bottom line summary from another potential member (me):

DVC membership is not the cheapest way to stay for WDW vacations. It will not save you money over less expensive options such as value resorts, some off property timeshares or low cost area hotels.

However, IF you will be going to WDW at least every other year anyway AND when you go you will stay at Deluxe properties anyway, then YES it will save you money over the life of the lease. This will be offset by more frequent trips that you will no doubt be taking due to how much fun you have so this will offset any savings and probably actually cause you to volunteer more of your money to Disney.

Other non-tangibles seem to include an emotional pride at owning (well, lets be honest - it's a lease, not ownership) a piece of the magic at WDW plus the freedom and flexibility of travel plans as well as the comfort in knowing you have almost guaranteed accomodations at prime deluxe WDW locations for the foreseeable future (with reasonable planning of course).

 

[bears163]

totally agree with the above post. if you are going to stay a value resorts DVC is not worth it.

here is our cost break down just for the past 12 months. we paid about 2450 to DVC. we just stayed at VWL for 5 nights in a 2 bedroom. if we paid cash (off season) it would hav cost us 2750. we have 165 points. but we already thinking of addon points. we now have a family of 5 so we will need a 2 bedroom pretty much every trip in a few years. so think about it that way. if you are going to stay a deluxe resorts & go just about once a year it is worth it. IMO. already think of where to stay on our next trip....2009 @ VAKL. ........ maybe our add on...hoping for a monorail resort for that

 

[disneydenisel]

I think that DVC would be great for you IF you want to stay at the DVC resorts. It would be nice to have your own place if you are going to FL, wouldn't it, instead of staying with the in-laws ?

The convenience to the parks is amazing! The magic all around is intoxicating! We just bought earlier this year and wish we would have bought sooner, but we're glad that we did it!

The cost is $86/pt for SSR with a member referral. The other resorts are considered "sold out," but Disney will sell you points if they have any in inventory...prices are $95/pt for them, I think, maybe less for VB and HH?! SSR is Right To Use (RTU) until 2054 while the others are 2042. Animal Kingdom Villas are coming, so that will be another place where you can use your points to stay. Aside from the initial outlay of cash, you have annual dues at $4-5/pt. You can usually easily rent these points out for $10-12/pt if you aren't able to use them.

We bought enough points to go every other year since we live on the West Coast. I still have addonitis big time, DVC is an addiction!

Good luck!

 

[Mtnman44]

Here is what i came up with bottom line. It's a very simplified calculation and doesn't take into account the time value of money or the opportunity costs associated with the lump up front purchase. It is also assumes a 7 night vacation every year in at the same level of accomodations.

Paying cash every year:
-assumed a $275 total per night cost with an adjustment of 3% inflation each year.
-by year 35 a seven night stay was up to $5,258.92
-Total cost of all 35 years: $116,389.51

Renting points (200) every year:
-assumes a $10 per point costs with an adjustment of 2% inflation each year
- by year 35 200 points will rent for $19.61 per point, $3,921.35 for 200 points
-Total cost of all 35 years of renting 200 points per year: $99,988.96

DVC purchase of 200 points:
-assumes purchase @ $85 per point and a 4.69 main fee adjusted for 2% inflation per year.
-purchase price divided by 35 years = approx $485.71 per year
-Each year's vacation "cost" is equal to 485.71 + that year's maint fee.
-by year 35, annual cost is $2,324.83
-Total cost for all 35 years of DVC use is $63,894.82

Maybe this helps? I don't know, there are a lot of variables. Each person needs to realistically evaluate what the next 20 or so years of their vacations will really be to see if DVC is a good value to them or not.

 

[emerymt]

Mtnman44
You obviously have a little financial experience under your belt! What finally dissuaded us from DVC was a lack of equity. 35 years is almost as long as a mortgage, but DVC is more like a growth stock. Of course, acquiring real equity requires one to be off-property- and that's the catch, for sure!

 

[byoung]

We love BWV, well worth joining.

 

[Mtnman44]

It's just prepaying for your disney vacation lodging. Plain and simple. It's not really 'ownership' in the sense that you expect it to hold or gain equity. When you evaluate the next 20 or 30 years of your vacations and what you will spend anyway, that is what will tell you if DVC is "worth it" or not. for some it is, for others it isn't.

For those that plan to travel to Disney almost every year and always want to stay "on-property", it's a no brainer: go with DVC. If you only occasionally plan on going to WDW and/or you plan on staying off site or in lower cost hotels, etc then DVC would be less financially wise for sure. Even then, if you simply want to be in the magic, want the option, and enjoy the experience, then it really doesn't matter. After all, Vacations aren't about earning or saving money, they are about SPENDING it.

Mtnman44
You obviously have a little financial experience under your belt! What finally dissuaded us from DVC was a lack of equity. 35 years is almost as long as a mortgage, but DVC is more like a growth stock. Of course, acquiring real equity requires one to be off-property- and that's the catch, for sure!

 

[emerymt]

After all, Vacations aren't about earning or saving money, they are about SPENDING it.

We're very good at that!

 

[spiceycat]

when I first stayed at CRB it was $59 a night.

given 15 years - expecting the value resorts to be priced as high if not higher than the moderates are now.

they are definitely going up in price.

the maintence fees are also going up in price - but since they started at much smaller amount - their increase is easier to take.

 

[MommaluvsDis]

As the other posters have said, you're basically paying for your room upfront. Now it is true that the cost of the rooms to rent on property go up every year.

If I had in-laws that lived in FL (I'm assuming they live close enough for day trips?) I would not buy into DVC. From time to time, I would pay for us all to stay somewhere nice off property.

 

[Step]

Here is a over simplified, bottom line summary from another potential member (me):

DVC membership is not the cheapest way to stay for WDW vacations. It will not save you money over less expensive options such as value resorts, some off property timeshares or low cost area hotels.

However, IF you will be going to WDW at least every other year anyway AND when you go you will stay at Deluxe properties anyway, then YES it will save you money over the life of the lease. This will be offset by more frequent trips that you will no doubt be taking due to how much fun you have so this will offset any savings and probably actually cause you to volunteer more of your money to Disney.

Actually if you look at the cost of inflation, than DVC will indeed save you money over time.

Right now it costs $82 a night to stay at a value resort in off season. 11 nights would cost you $902. At an inflation of about 8% per year, in 48 years it would cost you $902x(1.08^48) = $902x40.21057 = $36269.93697

$36,000 to stay at a value resort in 2054 (inflation is scary!!!!)

Now, if you had bought into dvc at saratoga this year, 150 points will get you an 11 night stay at a studio (lowest available option. Your annual dues are approximately 600, and they only rise about 4% per year. In 48 years it would cost you 600x(1.04^48) = 600x6.5705 = $3942.3169

$3942 to stay at Saratoga in 2054!!!

Slightly more than 1/10th of the cost to stay at a value resort, with much better ammenties.

You do have to count your original purchase price in there, but it's a drop in the bucket comparatively ($15,150 is less than half the cost of renting a value in 2054)

The point is that you save money with DVC over time by beating inflation. At that point in your life where you are retired, not pulling in an income and wanting to vacation more, you are paying much much less.

Now I know the price doesn't always go up by 8%, but the point is, the difference in increase, 4% vs 8%, 2% vs 4%, is much more dramatic than you would think.

In addition, I didn't actually compound the interest... so the price would be even more. Scary huh?

I'm so happy I took first year economics. The moment I have a good solid full time job I'm doing DVC.

 

[JMLBrats]

Here is what i came up with bottom line. It's a very simplified calculation and doesn't take into account the time value of money or the opportunity costs associated with the lump up front purchase. It is also assumes a 7 night vacation every year in at the same level of accomodations.

Paying cash every year:
-assumed a $275 total per night cost with an adjustment of 3% inflation each year.
-by year 35 a seven night stay was up to $5,258.92
-Total cost of all 35 years: $116,389.51

Renting points (200) every year:
-assumes a $10 per point costs with an adjustment of 2% inflation each year
- by year 35 200 points will rent for $19.61 per point, $3,921.35 for 200 points
-Total cost of all 35 years of renting 200 points per year: $99,988.96

DVC purchase of 200 points:
-assumes purchase @ $85 per point and a 4.69 main fee adjusted for 2% inflation per year.
-purchase price divided by 35 years = approx $485.71 per year
-Each year's vacation "cost" is equal to 485.71 + that year's maint fee.
-by year 35, annual cost is $2,324.83
-Total cost for all 35 years of DVC use is $63,894.82

Maybe this helps? I don't know, there are a lot of variables. Each person needs to realistically evaluate what the next 20 or so years of their vacations will really be to see if DVC is a good value to them or not.

This is very interesting, we are debating about buying at SSR right now too and I kept thinking that over the years it will actually be cheaper to rent points from people, but not based on Mtnmann44's assessment. The problem we have is that we have 3 kids, the youngest is just under 2 now, but from what i understand, once she's over 3 we would have to stay in a 2 bedroom? That seems crazy to me because our kids our so young now that we'd be very comfy in a 1 bedroom for probably the next 10 years. I have read on here in the past that sometimes people w/more than 2 kids do stay in 1 bedrooms and DVC kind of "looks the other way" but I'm sure that statement will cause a big debate on here...Can anyone tell me what the "fine print" really is about that? It's just sooooooooo much more expensive to stay in the 2 bedroom units!

 

[rie'smom]

We went through the same is it worth it thinking about a month ago. DH bought 300 BWV pts. for me as a Christmas/birthday present and I'm so glad he did. It's great not to have to search for discounts and codes. I'm so looking forward to our May trip without that stress!
The idea that I have a great place to stay w/my DD and with grandchildren in the future makes me very happy and that makes DVC worth it to me!

 

[Step]

It is true it is more expensive to jump up to the 2 bedroom, but think of all that extra space.

 

[Step]

Here is what i came up with bottom line. It's a very simplified calculation and doesn't take into account the time value of money or the opportunity costs associated with the lump up front purchase. It is also assumes a 7 night vacation every year in at the same level of accomodations.

Paying cash every year:
-assumed a $275 total per night cost with an adjustment of 3% inflation each year.
-by year 35 a seven night stay was up to $5,258.92
-Total cost of all 35 years: $116,389.51

Renting points (200) every year:
-assumes a $10 per point costs with an adjustment of 2% inflation each year
- by year 35 200 points will rent for $19.61 per point, $3,921.35 for 200 points
-Total cost of all 35 years of renting 200 points per year: $99,988.96

DVC purchase of 200 points:
-assumes purchase @ $85 per point and a 4.69 main fee adjusted for 2% inflation per year.
-purchase price divided by 35 years = approx $485.71 per year
-Each year's vacation "cost" is equal to 485.71 + that year's maint fee.
-by year 35, annual cost is $2,324.83
-Total cost for all 35 years of DVC use is $63,894.82

Maybe this helps? I don't know, there are a lot of variables. Each person needs to realistically evaluate what the next 20 or so years of their vacations will really be to see if DVC is a good value to them or not.

While it is true that inflation would be about 3% or so per year, disney's resort pricing goes up a bit more than that each year. I think the DVC guide said it is closer to 8%. I'd like to see some statistics on it to back that up though.

I do think the differences in cost would be a bit more than what you are showing, but you make a valid point.

 

[graygables]

This is very interesting, we are debating about buying at SSR right now too and I kept thinking that over the years it will actually be cheaper to rent points from people, but not based on Mtnmann44's assessment. The problem we have is that we have 3 kids, the youngest is just under 2 now, but from what i understand, once she's over 3 we would have to stay in a 2 bedroom? That seems crazy to me because our kids our so young now that we'd be very comfy in a 1 bedroom for probably the next 10 years. I have read on here in the past that sometimes people w/more than 2 kids do stay in 1 bedrooms and DVC kind of "looks the other way" but I'm sure that statement will cause a big debate on here...Can anyone tell me what the "fine print" really is about that? It's just sooooooooo much more expensive to stay in the 2 bedroom units!

AKV will have room for 5 in some studios.

 

[ACDSNY]

Keep in mind once your kids start to get older they want to take a friend or relative within them too. We've always have stayed in a 2 bedroom unit since we always have more then just our family. Just love all the space.

 

[Mtnman44]

Hmmm. it seems you are right. The inflation of the maint fees is higher than I estimated, much higher than general inflation. I'd like to ask DVC why their expenses are increasing so much each year.


2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51