Dvc. Help!

Hi!

I am a DVC member and would be happy to answer any wuestions you have. Fisrt though, a good starting point for info and such is: www.disboards.com scroll down to the DVC Forum. You don't have to be a DVC member to join in the forum, and there are lots of people who will be happy to help you. You will get a variety of opinions and info there. There is also a FAQ on that page that explains the nuts and bolts of how DVC works. If you have any specific questions, ask away and I'll do my best to answer.

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Contrary to some DVC members beliefs, the membership costs do not save you any money. You will never "break even". The DVC is an expensive prepaid vacation plan that lasts 39 years. At the end of that time (2042) you have nothing. The DVC depreciates in value very fast. It is not an investment and you own nothing. You would be far better off (financially speaking) by renting DVC points or staying in other WDW resorts as your holiday plans dictate.

Originally posted by Woody13
Contrary to some DVC members beliefs, the membership costs do not save you any money. You will never "break even". The DVC is an expensive prepaid vacation plan that lasts 39 years. At the end of that time (2042) you have nothing. The DVC depreciates in value very fast. It is not an investment and you own nothing. You would be far better off (financially speaking) by renting DVC points or staying in other WDW resorts as your holiday plans dictate.

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Woody, as I responded to you in an earlier thread, I disagree vehemently with your assumption. Yes, it is expensive. However, within 5-6 years of joining in 1995, the cost of the accommodations that we stayed in exceeded the buy-in cost. The value of our annual usage since then has exceeded the annual dues by quite a bit. So, in fact, we have come out ahead of the game. If we were to stay in value or moderate accommodations, would it cost far less? Yes. However, the ability to stay in a Disney resort with a full kitchen, an in-room whirlpool tub, a patio, and all that space is worth it for us. (Not to mention the discounts we get as members.) The ability to stay in various types of accommodations is great, too. We've stayed in everything from studios to three-bedroom grand villas.

You may believe what you wish, but in our case it was a sound financial decision.

Indeed I have to agree with Bagheera. But it's kinda like a grocery coupon, you should only purchase the item if it's something you would have been using anyway. You should buy if you have been/plan on going every year or so and you have been staying at moderate/deluxe/or home away from home accomodations. You should not purchase however if you do not plan on going to WDW often, have been staying in the value resorts and are happy enough with that, or plan on buying just to do II trades.

I've gone to WDW every year if not more often for the past 19 years. So I would be going to WDW every year regardless of wether I own DVC or not. Before I bought I examined the costs and accomodations we had stayed in for the previous years. It was definitely a worthwhile purchase for us.

Strictly on a cost of accomodations basis......I purchased 150 VWL points in 6/2001, the costs so far: $10,800.00 (initial purchase price) + $1412.56 (2001-2003 property taxes/dues) = $12,212.56. I also keep a running total of what the same accomodations we book would cost with the current discount codes and FL taxes we would have to pay too. So far we have used $5,481.76 of accomodations. And we still have 40 of our 2003 use year points to spend. I'm just guessing but based on our use so far, we should break even in 2008.

There will always be the property taxes/dues every year, but once the initial purchase price is paid off it is a good deal. The points are also inflation-proof, so the 150 I bought in 2001 are worth the same now in 2003, and will be worth the same in 20 years.

BTW Bagheera, I just noticed you are live somewhere nearby, where outside of Albany are you? We live in Latham.

DVC is awesome! The places I have gone and stayed would have been impossible otherwise. Yes, it costs a lot to start, but it has been well worth it. The keys to DVC are as follows:

1. How willing are you to travel and stay Sun-Thurs (cheaper)
2. How far ahead are you willing to plan? (at least 7 mo)
3. How much do you like Disney?

These keys will allow you to maximize your points as I have in the 3 years I have owned. What could have been only 30 nights (IU own 320 points) at my home resort in a studio, has been turned into over 40 nights in studios, 1 bdrooms, 2 bdrooms, and grand villas because of careful planning. Any other questions, please contact me.

One other factor to keep in mind when calculating your break-even point: interest. If you're financing the initial buy-in, add a couple of thousand dollars to the purchase price to calculate the actual cost to you in dollars.

Actually you are quite wrong. The cost of the dues and the depreciated cost of the purchase price is under $8.00 per point. A studio can be as low as 8 points, 8 x 8 is $64 per night for a studio. The lowest priced room at the all star is $77 per night so I believe the DVC to be the better deal. A one bedroom at OKW is 16 points at times, so 16 * $8.00 is $128.00 per night for an approximately 1000 square foot 1 bedroom home, compared to the lowest moderate resort at $133.00 per night. You haven't done the math correctly I guess.

Woody13's views are not what most DVC members think (hence he is not a DVC member.) that is fine with me, more for the rest of us.

As a DVC member I really like it and wished I had joined years ago. (It would of saved us lot's of money.) If you do want to join look into it now and join as soon as you can. The sooner you join the sooner you start getting use out off it.

One thing to remember that comparing it to off property resort or value resorts is apples and oranges. The smallest DVC room (studio) is better then a normal deluxe room. (it has kicthenette and other admenities.) A one bedroom and up is just wonderful for familes and larger groups, even better if you are staying for a long trip.

Our DVC membership has allowed us to make 3 trips with in 10 months this year for a total of 25 days, all with 170 points. (making our new annual passes a good deal) Now we have borrowed our max allowed and found we are considering an add on of 50 more points. We will also take some time off in the future in order to build up our points again.

To make the most of your DVC membership you do need to plan ahead in order to bank and orgainze your points. This does not mean last min trip are out of the question, you can (we did.)

As mentioned before it is best to pay for them up frount and not get a loan (if possible) and I recomend getting as many as you feel you will need (not just the 150, because that is easier then adding on later.) Buy at the resort you like the best, but you are not limited to that resort. Infact we haven't stayed at our home resort yet (will Jan 1 2004)

No, DVC is not the same as owning a property you will not have forever, it does end in 2042, but you get use of it until then and it can be a great vaule if it fits you and your family. ( I will be in my 70's then, not too worried about lossing it then.) If you are worried you are too old to start now, DVC can be willed, passed on and given to family members.

If you love WDW, look into it. We are glad we did. Good luck. (and check out www.disboards.com as DVCgirl49 recomended. )

I have been toying with the idea of joinging DVC for about three years but the thing that has always stopped me is the annunal maintenance fees and the taxes. I have never been able to justify the up front cost when I can spend ten nights in a value resort for less that the yearly taxes and fees on the purchase of enough points to do a 10 night stay with DVC.And that does not even take into account the initial purchase price of the points. I guess I will just have to keep toying with it until I can provide a better justification that "owning a tiny little piece of WDW"

OK -- to give you the basics, since no one seems to have done that yet. There are 6, soon to be 7 resorts for DVC members. They are Old Key West, Bordwalk Villas, Villas at Wilderness Lodge, Beach Club Villas, Hilton Head and Vero Beach. Saratoga Springs Resort and Spa is opening sometime next Spring. You buy into one resort as your "home" resort, but you can stay at all of them. The reason for choosing your favorite as your home resort is because you can make reservations there at 11 months out, where you can only make reservations 7 months ahead for all other resorts, thereby giving you preference at your home resort.

Everything is based on a point system and the system is divided up by the resort you wish to stay, the size room you want, the days of the week you are travelling (weekdays are less then weekends) and the season you are travelling in. Rooms range from as low as 8 points per night for a studio at Old Key West during the slower seasons to as high as 158 points per night for a weekend night during the Christmas holidays.

I believe the current price per point is $84. Not all resorts are available and there are some deals available where you can sell back your points from the first year to Disney for anywhere from $5-$15 off. These deals vary. Your contract will give you the rights to these points until 2042. There are also annual dues to pay, which vary by resort with OKW being the least so far and VB being the most. They are usually around $3.50 per point, but they change annually.

Also, rumor has it that the newest DVC -- Saratoga Springs -- will be going on sale August 4th at $89 per point, but with a full 50-year contract. So act fast if you want the lower price or wait if you think you'd like the extra years on the contract. Also, if anyone in your family works for Disney, mention it! They're much more lenient with the Cast discount at the DVC for some reason.

I must say that the DVC is one of the best purchases we've ever made! I haven't exactly figured it out price per point or anything, but I've stayed at Disney for 8 nights so far this year -- 7 nights in a studio at Old Key West during regular season and one night in a one-bedroom at Wilderness Lodge during peak season. The cash price would have $2401. The points price was 114. My total cost for my 150 points was about $7300. So even with my $500/year in dues, I still see that as being $1900 closer to breaking even from this year -- and I have 36 points left for next year's vacation!

And maybe I'm a snob, but staying at the value resorts is not my idea of a vacation. I'd rather not go to Disney than stay at the All-Stars -- I just like a little more luxury than that. And you can't get the equivalent number of nights at the All-Stars for the dues I pay. Even at the All-Star, 10 nights would cost you at least $800 with taxes.

I hope all this helps some.

Originally posted by DVCgirl49
BTW Bagheera, I just noticed you are live somewhere nearby, where outside of Albany are you? We live in Latham.

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Hiya from Guilderland! :wave: :wave:

If you see me around (photo currently in avatar, though I'm not sure for how much longer), say hi!

Okay. Lets compare DVC pricing with regular resort pricing. For this example I will use Beach Club Villas and the Beach Club.

I will use the dates of Dec 1- 10 (nine nights) which is value season.


DVC:
150 points is the min. amount of points you can buy and that will give you nine nights in a studio in December. Your membership is now 39 years.

150 pts @ $84.00 a point = $12,600
39 years X $600.00 (for maint. fees) = 23,400
for a total of $36,000

Regular Resort Pricing:
I will use standard view for nine nights in December.

$289 a night X 9 nights with tax = $2900.16 a year
39 years X $2900.16= $113,106.29

So for 39 years of vacations in value season for 9 nights at each resort will cost:

DVC $36,000
Regular resort $113,106.29


I realize that in 39 years the maint. fees will rise.
I realize that in 39 years resort rates will rise.
I just used todays rates for my example.
I hope this helps

Oh, and of course don't forget that the property taxes (and interest, if you're paying off financing for the ownership) are deductible on your income tax!

I always enjoy watching as apples and oranges are compared to one another. I will agree that if one were to pay rack rates at the resorts, then the DVC is a much better deal. However, I have never paid even close to rack rates at any Disney resort during my many years of visitation. May I add that anyone can rent DVC points for far less than the "going rate" of $10.00 per point. Why buy points at full price when many DVC members rent their points at significant discounts? I have no problem with the DVC. It's great that people buy those contracts. The more people that own DVC points makes the rental costs go down.

Well, you keep on believing what you believe, we'll keep on believing what we believe, and we'll all be happy. However, please don't tell everyone that we are unable to understand the numbers and that we're getting rooked on joining the club. If you disagree with out calculations, I'd love to see your numbers. If you can prove that I'm losing money, maybe I'll sell off my points and follow your lead. (Maybe.)

I think the differences here are in the type of vacationer you are. We spend time in the room and time at the resort. I'm an avid exerciser, so I want to have a gym at the resort we stay at. We also usually travel with friends and family and love the idea of being able to put us all up in the same room where we can sit and plan out our day together comfortably and have meals together in the room. This also means we like to have a fridge and stove so we can cook meals in the room -- and reheat leftovers. When we go to restaurants, we like to eat long sit-down meals with our family and friends and we like to have restaurants at the resorts to do this so we don't have to go far if we're tired or just want to relax. We also like to get in some quick romantic vacations -- the jacuzzi tub was one of the things that sold us on DVC. You need to get a suite to get that at any of the regular resorts, and a night in a suite costs almost what we pay in dues for the year -- and there are usually no discounts on the suites. And we don't do the parks commando-style since we've been so many times -- like to sleep late and be leisurely. Most of this isn't offered at the value or even moderate resorts. And all of this, makes the services and style of a DVC plan perfect for us. And I do believe it saves me money because even if I could get 50% off the rack rate MinnieFan used in her example, I'd still be ahead by $20,000.

So the real question is, what type of Disney vacationer are you. If you are happy with the All-Star resorts then the DVC probably isn't for you. I've stayed at the All-Stars and while it wasn't terrible, it didn't offer what I was looking for either, and I wouldn't go back.

Originally posted by Woody13
. May I add that anyone can rent DVC points for far less than the "going rate" of $10.00 per point. Why buy points at full price when many DVC members rent their points at significant discounts.

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Think about it this way...

Say I rent my points to someone for $10.00 a point. (When I bought my points we paid $65.00 a point.) At that rate, It would only take 7 years for SOMEONE ELSE to pay for my contract that I get to use for 40 years. So actually, I would get 33 years of vacations for only my annual dues. Not to bad I say.:sohappy: