Buying DVC...don't flame me for asking

BigRedDad

Well-Known Member
Original Poster
My wife asked me the other day about buying into DVC. We may be coming into a small sum of money, nothing great. I have toyed with it, but until the mortgage is paid way down, I wouldn't. Then, I start weighing the price to purchase and the maintenance. Running numbers at a high level, I can't compute a reason to buy.

We rented a 1BR unit at BWV for $1,200 for 7 nights in early February. It was 255 points at $0.060735 per point or ~$1,550 for the year. We just booked a room at SSR resort for a 1BR unit for $1,300. Maintenance fees for 241 points is ~$1,250. In this case, it is $50 more than the maintenance fees. When I figure these numbers out for what people rent them for, I can't see a reason to spend $20k -$25k to buy 250 points.

We may not get the resort we want. We are getting them for slightly more than Value resorts for the same time period. I just can't see a reason buying into it.
 

ParentsOf4

Well-Known Member
Not sure how you "rented a 1BR unit at BWV for $1,200 for 7 nights in early February. It was 255 points at $0.060735 per point or ~$1,550 for the year." That's just about what DVC members pay in Maintenance Fee, so it sounds like someone let you rent the room for cost. Perhaps this was a non-DVC timeshare owner who traded into DVC?

Places like David's DVC Rental charge as high as $16/point for BWV, more than double what you paid. However, there often are DVC rental bargains on eBay, if the buyer is flexible with dates.

Generally, DVC is the most difficult to justify financially for one-bedroom villas.

Using DVC points, a one-bedroom villa typically is double the number of points of a studio. However, paying cash directly to Disney, a one-bedroom villa at BWV averages only about 40% more than a studio. Consequently, one-bedroom villas are the least cost efficient units for DVC members to rent.
 

Tom

Beta Return
I second the question on how you rented a 1BR for 7 nights for $1200. That's definitely not the going rate for rental points, so you must have gotten a sweet deal from a friend....else something else in your math is off.

Regardless, the only reason anyone should buy into DVC is if it makes financial sense for their individual situation, and for no other reason. Based on what you're saying, your future Disney vacation plans and your personal valuation of your vacation accommodations do not justify the investment. So, I say, you've made the right decision.
 

StarWarsGirl

Well-Known Member
As others have said, that rental rate is extremely low and not something you would typically see.

As for why you buy...if you go enough and want to stay at higher-end properties and have the option of getting a larger room, than you buy in because financially, it's good investment that you can afford. We go 2-3 times a year, plus use our points for a trip elsewhere a third time a year (Aulani, Hilton Head, or Disneyland usually), and we save money on APs and receive other discounts. Definitely makes financial sense for us rather than waiting and hoping a good deal comes out every time we go. For some, it makes more sense to rent points or stay elsewhere on Disney property because they aren't going as much. Or some may not want to plan their trip that far out. It all depends. Do what's best for you and your situation
 

BigRedDad

Well-Known Member
Original Poster
I should have stated that the BWV was from a person through the RCI exchange and not DVC. That raises the other question if you can get DVC rooms for less than what it costs owners, going through RCI people may still be as good or better.

Thanks for not flaming for the question.
 

ParentsOf4

Well-Known Member
I should have stated that the BWV was from a person through the RCI exchange and not DVC. That raises the other question if you can get DVC rooms for less than what it costs owners, going through RCI people may still be as good or better.
I agree. If you can manage to get an RCI exchange for the dates you want, then it likely will cost less than renting from a DVC member, certainly less than renting directly from Disney.

The thing is, RCI exchanges are limited. Most are one-bedroom villas, which are the easiest type of room to get. Most are at SSR, by far WDW's largest DVC resort. In addition, to rent a room through an exchange, you often have to be flexible with your dates, something many people aren't able to do.

You're renting a one-bedroom at SSR for $185/night. That's a great deal and I understand why you are doing it. However, for someone who wants to rent something else or needs specific dates, their options through an RCI exchange are limited.

As @Tom wrote, the only (good) reason to buy DVC is if it makes financial sense for your individual situation. If you have found an alternative that works better (e.g. renting through RCI exchanges), then a DVC purchase is not for you. :)
 

DisneyJoe

Well-Known Member
We are getting them for slightly more than Value resorts for the same time period.

I was always told that in order for it to make sense, that you must be a regular guest of Disney deluxe resorts and plan to be for many years to come. Once you start comparing to values and moderates, it won't make sense.
 

LuvtheGoof

Grill Master
Premium Member
The other problem you may run into is that nothing with DVC is guaranteed in the future. It is possible that they may cut out certain RCI exchanges, limit the resorts or time of year, they can even cut out renting completely (though it is doubtful). People say that renting is cheaper, but that is only true right now.

The other factor to consider with renting is that YOU have no say over any part of the reservation. The owner has it, and can change or cancel anytime they wish. David's has a contract that both sign, but renting direct can be a problem. We would never want to have a reservation that we weren't in complete control over.

I also have to agree that if someone is OK with staying in Values, that DVC is definitely not for them. We would never even consider staying at a Value, even for one night. Yes, we are deluxe snobs :angelic:, but we have stayed at POR, POFQ, and the FW cabins in the past.
 

dreamfinder

Well-Known Member
I should have stated that the BWV was from a person through the RCI exchange and not DVC. That raises the other question if you can get DVC rooms for less than what it costs owners, going through RCI people may still be as good or better.

Thanks for not flaming for the question.

Keep in mind that I believe the RCI terms specifically prohibit someone "renting" out the DVC booking they made. As such, either RCI or DVC could cancel the reservation leaving you high and dry, without a vacation.
 

Tom

Beta Return
The other problem you may run into is that nothing with DVC is guaranteed in the future. It is possible that they may cut out certain RCI exchanges, limit the resorts or time of year, they can even cut out renting completely (though it is doubtful). People say that renting is cheaper, but that is only true right now.

The other factor to consider with renting is that YOU have no say over any part of the reservation. The owner has it, and can change or cancel anytime they wish. David's has a contract that both sign, but renting direct can be a problem. We would never want to have a reservation that we weren't in complete control over.

I also have to agree that if someone is OK with staying in Values, that DVC is definitely not for them. We would never even consider staying at a Value, even for one night. Yes, we are deluxe snobs :angelic:, but we have stayed at POR, POFQ, and the FW cabins in the past.

All excellent points.
 

GoofGoof

Premium Member
I agree. If you can manage to get an RCI exchange for the dates you want, then it likely will cost less than renting from a DVC member, certainly less than renting directly from Disney.

The thing is, RCI exchanges are limited. Most are one-bedroom villas, which are the easiest type of room to get. Most are at SSR, by far WDW's largest DVC resort. In addition, to rent a room through an exchange, you often have to be flexible with your dates, something many people aren't able to do.

You're renting a one-bedroom at SSR for $185/night. That's a great deal and I understand why you are doing it. However, for someone who wants to rent something else or needs specific dates, their options through an RCI exchange are limited.

As @Tom wrote, the only (good) reason to buy DVC is if it makes financial sense for your individual situation. If you have found an alternative that works better (e.g. renting through RCI exchanges), then a DVC purchase is not for you. :)
It's funny that you mention this scenario. My cousin owns a non-Disney timeshare in SC and was planning to trade in through RCI for this August to stay at Disney. I had told her that we had booked a room at BCV for August and we realized our times overlapped. She was hoping to book a 2BR at BLT with BCV or BWV as her fall back options. I just found out today that she got shut out from all of those resorts but still ended up with two 1BR villas at SSR.

She has stayed at BCV in the past through an RCI trade-in. It's just kinda hit or miss.
 

Donfan

Active Member
Don't forget, buying into DVC is not an annual deal. You only buy in once. You really need to compare forty years of one-bedroom suite costs to the buy in costs, not just one year.
 

GoofGoof

Premium Member
If I am reading this correctly @BigRedDad is renting a DVC room from a third party who owns a non-DVC timeshare but traded in for a DVC resort through RCI. The price is definitely going to be really good in that scenario. You are limited to what dates and resorts are available, but if you are really flexible you can save a bunch of money.

As another poster noted, the big drawback is that particular scenario is technically not allowed by the rules. It's an RCI rule not a Disney one. Once you trade in through RCI you cannot re-rent that reservation. It may be possible to get away with, but it's a big risk. Of course if RCI did crack down and canceled your reservation you would need to try to get your money back from the original renter and if that's some guy on e-bay or Craig's List it may be a lost cause. I think the point is this is not a viable plan for the mass public.

You could just buy a non-Disney DVC with the intent of trading in through RCI. That's definitely within the rules. You would be at the mercy of availability so the better the timeshare the better chance it would work but you would likely save some money up front. There isn't likely to be as good a resale market either so you would run the risk of not being able to get out of your contract if you needed to. Plus as someone else pointed out they could cancel trade-ins with RCI at any time.
 

Parrain

Active Member
We have been to WDW 25 times since 2005. We infected my bro-in-law with the Disney bug and they just bought GF DVC membership! Now we have to buy, since we usually vacation together.. Problem is we are somewhat cash strapped, and DVC seems to be less of a value than in the past. I don't think it will ever make financial sense for us. We will finance it all and pay it off in about 5 years, but at 52, I will not average out in the black in my lifetime. BUT, my teenage daughter will have years of memories with our family and later hers, and her mom and I will undoubtedly be a big part of those happy memories! What is that worth?
 

LuvtheGoof

Grill Master
Premium Member
If you go every year, then you will probably hit your break even point around 60, or even sooner, as long as you always used to stay deluxe. We hit our break even in just 6 years, and have saved over $12,000 on resort costs so far.
 

Parrain

Active Member
I hope so! We have been very lucky in the past. We have stayed deluxe the last three years, and received a few PIN codes for 45% off! Then Mousekeeping left a book now discount in our room twice, and most recently in 2014 my Mother in law was given a 30% off PIN that we all shared. I have not seen better than 30% off in the past year... We stayed at the Yacht Club a number of times and the Beach Club the last trip. Had we not received the PINs I would have been forced to stay back at PORS. Since we now spend more time in the resorts, We do not want to go back to Moderate. They are not bad but they do not compare to the deluxe; It is so easy to walk into Epcot from the resort or just hop on the monorail. And dont forget the nicer restaraunts! And how much nicer to have the inside rooms with hallways during stormy weather! I think whether I "break even" in my lifetime or not will not be an issue. I am super excited to finally join you fine folks in DVC!
And I won't have to spend all of my time searching the web for a PIN code to do it!
 

LAKid53

Official Member of the Girly Girl Fan Club
Premium Member
I hope so! We have been very lucky in the past. We have stayed deluxe the last three years, and received a few PIN codes for 45% off! Then Mousekeeping left a book now discount in our room twice, and most recently in 2014 my Mother in law was given a 30% off PIN that we all shared. I have not seen better than 30% off in the past year... We stayed at the Yacht Club a number of times and the Beach Club the last trip. Had we not received the PINs I would have been forced to stay back at PORS. Since we now spend more time in the resorts, We do not want to go back to Moderate. They are not bad but they do not compare to the deluxe; It is so easy to walk into Epcot from the resort or just hop on the monorail. And dont forget the nicer restaraunts! And how much nicer to have the inside rooms with hallways during stormy weather! I think whether I "break even" in my lifetime or not will not be an issue. I am super excited to finally join you fine folks in DVC!
And I won't have to spend all of my time searching the web for a PIN code to do it!

Except that SSR doesn't have "inside" rooms.....
 

DawnaldDuck

Member
My DH and I have been trying to figure out a way to get into DVC as well. DH and I are number crunchers and DH is a spreadsheet King! We have found that if you purchase through DVC with their financing, you will be paying double over the 3,5,7,10 years that you finance because the interest rate is CRAZY at 14.5%. A third party loan is the best option if you can get a lower interest rate.

The DVC seemes to be very front loaded, this is only from our findings and we could be completely off because we do not actually own one yet. You have to pay a bunch up front, and the "benefit" of savings does not kick in until the initital buy in price is paid off. If you have the money up front, you can start reaping the "benefits" of saving right away. If you do not want to part with that money, some financial institutions have what they call a "share loan" or "interest-only loan". This enables you to put your money in a CD or savings account and pay only the interest back on it, but they will give you a loan for around 90% of the amount of the CD or savings.

It is a big commitment and a lot to think about, but if you want the opportunity to go every year, or bring family/friends that do not have the opportunity to experience going to WDW because of financial situation and all want to stay together, it makes it that much better! :happy:
 

MGMBoy

Well-Known Member
My parents bought DVC when I was still working for the mouse and so they got my CM discount on the points compounded with another deal they were running so it has worked out really nice for us but it is definitely front-end heavy on the cost-benefit side but can pay off really well over 5-10 years. (My parents have owned for around 8 years now and they have already come out in the black.) They will often plan one vacation in August and another the following June or something similar so they can get a discounted AP and use it on both trips.
 
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