Wow - this is like learning a foreign language!

[momoftwins]

I have just started reading FAQ's, posts, other DVC sites, etc. This can be overwhelming - but boy is it interesting! Can someone just kind of lists what costs are associated with buying direct from Disney vs. buy from a resaler. Also, other than the annual fees, are there any other costs for owning a DVC?

I have to have all of my duckies in a row, before I talk to hubbie.

 

[Granny]

Keeping it simple for now:

Buy from Disney direct...no additional costs to purchase other than the cost per point.


Buy from resale...negotiable, but you will probably pay the closing costs of the deal....in the $250-$600 range depending on the size of the contract. That is in addition to the cost per point.

Either way you will pay annual dues...currently running about $4.00-$4.25 per point ( I don't know exactly how much for each resort). It is the same amount for a resort whether you bought it resale or from Disney.

No other costs unless you want to trade out for another place outside of DVC or Disney resorts...then there's a fee in the neighborhood of $75 or so. I've not traded out so I'm not that familiar with that.


Ask more questions...you'll find plenty of willing people here to respond. Good luck in your decision process!

 

[momoftwins]

I do have some more questions:

Does anyone know how much the Disney rate of financing is?

I went to the DVC section of the DW web-site, but it has so little info. Any good sites that tell the basics?

What is the going rate right now for a point?

I've noticed, reading a lot of the posts here, that BCV don't really sell often as a resale. Is there a shortage on resales? Is that why there is a waiting list for the DVC from Disney.

I'll think of more later.

Thank you all so much!

 

[RobDoc]

Disney's mortgage rate has been 9.75% for direct debit. (This is lower than typical timeshare financing, but higher than most local Home Equity Loans).

SSR is currently selling at $89 per point- with a $5 per point discount for purchases of 100 points or more.

Any other DVC resorts available thru Disney are available at $84 per point and VB even has a $15 per point incentive (but, you'll have to give up your first year's points).

BCV has only been open for 18 months now and only stopped active sales this summer- so there are few resales on the market. Each of the DVC resorts have gone thru a similar resale patterm until more owners at the resort find they need to sell.

Some information about DVC is available in our DVC FAQ- the link is at the top of the page!

Feel free to ask more questions as they arise.

Enjoy!

 

[Cindy1]

With all due respect (maybe I'm a little tired from waking up so early this morning from the presents opening ceremony that we had, so forgive the curtness in this reply), but it sounds like to me, Webmaster Doc, like you are a DVC cast member.

From your first response in this thread, while I agree that it clearly states what is and is not included in the membership, I have always felt that Disney as a company wanted to exceed expectations not just to meet them. At least that's what I thought the philosophy and vision was from Walt Disney himself.

Maybe I sound pollyanna, and maybe it is my inexpereince as a new poster (you can see that this is only my second post), but why don't you expect more from your membership (like deeper discounts on stuff or more benefits that are exclusive to the membership)?

My husband and our kids have been coming to Disney for over 9 years. The first time we went on the DVC presentation prices were around $60 per point, I think that was about 7 years ago. Now its $89 point and I read somewhere on this board that its going up again. Maybe to $95 per point. Do you have any idea what kind of increase this is in DVC's profit? That's a 50% increase in cost of membership over 7 years not including a possible increase to $95. It borders on ridiculous and is almost criminal. Has the cost of living or cost of goods increased by the same percentages? Not to mention that their special financing also must be a HUGE money-maker for them at interest rates that sound like something the Government would offer to a vendor (anyone know where I can find a $500 toilet seat cover)?

In a past few years where the economy is sputtering and where folks need to stretch their dollars farther, I am galled at times with Disney's greed - particularly among a group of people that show incredible loyalty by spending upwards of $15,000 for their membership to not have DVC work a little harder to add greater value to the membership when I know they are being profitable.

We value our membership, but it would be nice for Disney to exceed my expectations as a DVC member and value me in return with more than a marketing ploy designed get me to spend more money with them. I really do not think that that is too much to ask or to expect.

Thank you for listening.

 

[jcodespoti]

My husband and our kids have been coming to Disney for over 9 years. The first time we went on the DVC presentation prices were around $60 per point, I think that was about 7 years ago. Now its $89 point and I read somewhere on this board that its going up again. Maybe to $95 per point. Do you have any idea what kind of increase this is in DVC's profit? That's a 50% increase in cost of membership over 7 years not including a possible increase to $95. It borders on ridiculous and is almost criminal. Has the cost of living or cost of goods increased by the same percentages? Not to mention that their special financing also must be a HUGE money-maker for them at interest rates that sound like something the Government would offer to a vendor (anyone know where I can find a $500 toilet seat cover)?

Interesting observation, Its all about supply and demand, while I see your points, I must disagree with you about it"being criminal".


Case in point I bought my condo 10 years ago for $80,000 and now could sell it for $165,000 over double what I paid for it. No laws have been broken, its just supply and demand.

Some people have bought in the early to mid 90's and paid the $60 per point and now they actually have made money on their timeshare!!!! (at least in theory) which is unheard of.

Yes Disney is making money off DVC thats why they are in business. However, many thousand of people also benefit from DVC and thats a good business model.


Joe in CT

 

[gopherit]

As for "other" costs, it depends -- do you spend a lot on vacations now? Do you visit WDW frequently? Or would DVC be a facilitator to increase your vacation level? If the former applies, you will probably fare well with DVC -- you already know how pricey the "world" can be, and DVC will simply be a way of setting aside your dollars in a different way to finance that.

But if the latter is more correct (DVC will mean more trips, or longer trips, to WDW, than you ever took before), that's a matter to definitely consider. WHen we joined, we were a fam of 4 (studio-simple and kids were young enough to not need tickets, even!) We bought thinking we would visit 1x per year, for about 6 days. Now we're a fam of 5. We always bring along family (why not... we already have a 2 br, what's an extra grandparent or two?) We buy a fair amount of groceries, and usually treat our guests to whatever dining we do in the villa. Our oldest is nearing adult fare ticket prices (yikes); all now need some sort of ticket. Gas is expensive, and airfare evenmoreso, so we drive, but it requires a hotel room. So after trying a few different scenarios, we elected to do 1 big trip evey other year. It saves at least on transportation costs by 50%. I have done the math, and for our moderate spending (we eat out some, eat in some), it is roughly 4 to 5 K for a 12 day WDW trip. So that's now a cost we budget in a special WDW savings account, so that we can spend without fear or guilt on vacation! The 18-24 mos inbetween trips helps us build us that reservoir.

I agree with a prior poster that 9.75 is not very nice, especially with today's rates. THat's why our DVC is all paid off. I see WDW being probably as "greedy" as any other business whose goal is to turn a profit. It is, after all, a business, and that can be easy to forget amidst the heart-grabbing adds geared towards magic, importance of family, togetherness, and memory-making. While perks would be nice, as long as DVC continues to sell with whatever package they are offering, they are in the catbird seat and don't have to offer the members anything. They did, however, get a taste of just how far they could push their loyal republic when they tried that change to dining reservation windows earlier this year -- the DVC / AP-holder peasants revolted and they backed off from THAT plan.

 

[Chuck S]

Cindy1,

If you take your membership costs and divide it over the length of your ownership, including dues, you will see that DVC owners are getting a good deal on their accomodations vs. rack rate, and are getting rates currently comparable to the highest discounted rates Disney offers. DVC is a pre-paid vacation plan/timeshare, nothing more, nothing less. Expecting/demanding discounts was NOT presented as part of the sales presentation. While it would certainly be nice to receive a "standard" discount on all ticket media and souvenir purchases, it is not something that Disney feels it has to offer, and is under no obligation to do so. Sales incentives have been offered in the past, but with sales relatively brisk..why would Disney do so? They have no obligation to us as DVC owners other than what is stated contractually. On the otherhand, they do have an obligation to stockholders to maintain profitability and pay dividends or raise stock value.

Many DVC owners are under the "impression" that DVC ownership is an "investment" in WDW or the Walt Disney Company. It is no more an "investment" than any other timeshare like Marriot or Fairfield. The fact that DVC is maintaining its reseale value (even if supported artificially by the Right of First Refusal) already puts it several pegs above most other timeshares. We early owners can "opt out" now for a decent profit. or at least without a loss, try that with most other timeshares.

As far as "extra" Disney magic, it isn't free...someone has to pay for it. At regular Disney resorts, it is paid for by increased room prices, at DVC resorts, it would be paid for by our Dues. Talk about "obscene" cost increases, compare Disney hotel rates at the Poly now with 15 years ago.

"Disney Magic" to me, at DVC resorts is the feeling (at least at OKW) that we are "Family". CM's recogize us, even often remember our names, how we like our meals prepared at Olivia's, from visit to visit, what part of OKW we like to stay in.

 

[DebbieB]

DVC's attitude is pretty much take it or leave it as is. They are selling out new resorts faster than they can build them so there are plenty of takers at the current level, there's no reason for them to give more discounts or benefits. I've owned DVC for over 4 years and have no regrets, I knew what the deal was when I bought. Sure I'd love more benefits, but don't expect them. What I expect is quality rooms and service during my stays and I've always received that.

 

[rocketriter]

The interest rate that Disney offers is roughly equivalent to a decent credit card rate--not bad, but not as good as a home equity loan. However, when you buy points from Disney they don't force you to take their financing; you can take that equity loan or call Grandma instead. So on the basis of finance rates I'd accuse them of runnning a business, but not of being greedy. A more interesting test will be to see what Disney gives DVCers during the upcoming member celebration. It's hard to tell in advance, which has made some posters to this board understandably nervous. Bottom line for our family is that travel with Disney is almost always expensive and it's almost always first class; the DVC offers us a break on hotel expenses and is still first class. Anything else is gravy.

 

[colleen costello]

When my family first took the DVC tour, back in 1992 ('93?) when Old Key West was called "The Disney Vacation Club," you got free park tickets thru the year 2000. We didn't buy then - the time wasn't right. Years later, in 2002, we bought for a much higher rate and of course, no tickets were included. My family has often discussed "hindsight" and also the fact that the "old-timers" who used to get free tix must REALLY be cranky now... But as other posters have said, Disney can afford a "take it or leave it" attitude because DCV keeps selling!

 

[Caskbill]

Originally posted by colleen costello
When my family first took the DVC tour, back in 1992 ('93?) when Old Key West was called "The Disney Vacation Club," you got free park tickets thru the year 2000.

Actually it was <u>to</u> the year 2000, not thru the year 2000. The original ticket perk ended Dec 31, 1999.

Also, that particular perk was not from Disney, but rather from the developer.

Finally, keep in mind that while DVC is part of Disney, it is not Disney itself. Disney is a lot of things, including ABC television, Movies, Theme Parks, Cruise Line, etc. DVC is under DVD which is simply another entity within the Disney umbrella of companies. Anything that DVC can get for us in the way of discounts is something they've been able to negotiate with the other Disney companies. The people that run the Theme Parks have their own agendas. They're not going to offer DVC discounts unless there's something in it for them.

So while it's simple for us to simply refer to Disney we do need to keep in mind that these are all separate businesses. Our membership in DVC is as an owner of a condominium, nothing more, nothing less.

 

[Werner Weiss]

Originally posted by Caskbill
Actually it was <u>to</u> the year 2000, not thru the year 2000. The original ticket perk ended Dec 31, 1999.

Also, that particular perk was not from Disney, but rather from the developer.

Just to clarify, the developer was and is Disney Vacation Development (DVD), which is part of Disney.

DVD paid a negotiated rate to the Disney theme parks for passes through 1999 for MK, Epcot, and D-MGM. The passes were part of DVD's cost structure in the early years &#151; just like the construction costs, furnishing costs, and marketing costs.

Those of us who received the passes knew it was a temporary program. It was in writing, in the contract.