Thinking about DVC, number crunching

[wonderstruck]

Hi, everyone! I used to have an account here ages ago, but since I can't remember that old e-mail or password to save my life, I've started a new account to ask about DVC!

My husband and I love WDW (okay, I'm the main obsessed one - but he likes it too and doesn't mind that I never want to vacation anywhere else), and everyone I've talked to who is a DVC member says they wish they'd signed up sooner. We are just trying to figure out if it financially makes sense for us. I've been browsing the boards and see that most members generally feel that it's worth it if you go every year (we've gone twice in the last three years - skipped this year because we're expecting a little one soon), are okay with committing to going to Disney for your vacations for the long future (I will go every year for the rest of my life if I can!), and like to stay at deluxe resorts. That last one is kind of the sticking point for me - I love staying at the deluxe resorts, but we tend to only stay at them every few trips. Often we stick with All Star Movies, Pop, or POFQ to save some money. Considering that, do you think it would still be worth it financially?

I've been trying to crunch the numbers on my own, but I've been struggling a bit to make sure I understand how all of the fees work. I realize you pay so much per point, then there are dues, the actual buy-in cost, etc., but I keep feeling like I'm missing something. Any advice on a good website or something to figure it out, or just advice in general?

 

[stlbobby]

Go here:

http://forums.wdwmagic.com/threads/crunching-the-numbers.851451/

We just did this.

 

[GoofGoof]

Hi, everyone! I used to have an account here ages ago, but since I can't remember that old e-mail or password to save my life, I've started a new account to ask about DVC!

My husband and I love WDW (okay, I'm the main obsessed one - but he likes it too and doesn't mind that I never want to vacation anywhere else), and everyone I've talked to who is a DVC member says they wish they'd signed up sooner. We are just trying to figure out if it financially makes sense for us. I've been browsing the boards and see that most members generally feel that it's worth it if you go every year (we've gone twice in the last three years - skipped this year because we're expecting a little one soon), are okay with committing to going to Disney for your vacations for the long future (I will go every year for the rest of my life if I can!), and like to stay at deluxe resorts. That last one is kind of the sticking point for me - I love staying at the deluxe resorts, but we tend to only stay at them every few trips. Often we stick with All Star Movies, Pop, or POFQ to save some money. Considering that, do you think it would still be worth it financially?

I've been trying to crunch the numbers on my own, but I've been struggling a bit to make sure I understand how all of the fees work. I realize you pay so much per point, then there are dues, the actual buy-in cost, etc., but I keep feeling like I'm missing something. Any advice on a good website or something to figure it out, or just advice in general?

It is not likely that you will save money over staying at a value resort. If you compare DVC to values it is always more expensive. If you compare it to moderates it could have a break even, but probably a long time. If you compare it to deluxe then you will see the value a lot faster. Keep in mind you are always staying deluxe now so you are getting g a much nicer room.

On your point of not necessarily going every year you can still make out well with DVC. You can start out with less points. Maybe just enough for a trip every other year at DVC. With banking and borrowing you could actually skip 2 years if need be. If you end up going more frequently you can either stay for cash or potentially rent points. Check out the link ParentsOf4 posted. It is very good.

 

[DVCOwner]

If you compare it to deluxe then you will see the value a lot faster. Keep in mind you are always staying deluxe now so you are getting g a much nicer room.

As I have said in other post, I can not compare DVC to even deluxe rooms. DVC is different, it is like renting an apartment on vacation. First I love having a full kitchen in the rooms I stay in (always 1- or 2-bedrooms) and that is a big plus for us. We also have breakfast with the grandkids before heading to the parks. The rooms are much larger that even deluxe rooms so we do a lot of things in the room that you could not do in a hotel room. This month when we go to the Boardwalk villas, we are having a party one night in one of the villas we rented. Another item that is different is that you do not have housekeeping cleaning your room everyday. We do have a washer and dryer in the room that allows us to pack less and wash a few things during the week. We like the feeling of being "home" even if it means a little time each day doing a little housework. So my point is that when looking at DVC I do not compare to other Disney resorts, I see if it meets the way that I want to vacation at Walt Disney World.

 

[BCVTalsJam]

I am not going to get into this because there are so many people on here that try to "bash" Dvc saying its not worth it etc.

What I will tell you that as a member it's great to be able to vacation more a wdw....not have to find the cash to pay for hotel since your paying monthly...being able to stay at amazing hotels in wdw dl and all around the world...and the discounts on passes and meal plans. We are saving a lot of money compared to what we were when we were paying cash. But it's all about how Dvc can work for you...the one nice thing is that Dvc is a tiiiimmmmeee share and you will see its worth it over time. Yea their are monthly dues but they are nothing compared to the money you save for the life of your share. We love it but its how it can work for you.

That is all I'm going to say because some people are going to just say whatever they want bashing it left and right and say how it's not worth it..take it these people are not Dvc members lol. I would call an Dvc agent and speak with them so you can get a clear message of what it's about.

Cue the haters lol

 

[stlbobby]

As I have said in other post, I can not compare DVC to even deluxe rooms. DVC is different, it is like renting an apartment on vacation. First I love having a full kitchen in the rooms I stay in (always 1- or 2-bedrooms) and that is a big plus for us. We also have breakfast with the grandkids before heading to the parks. The rooms are much larger that even deluxe rooms so we do a lot of things in the room that you could not do in a hotel room. This month when we go to the Boardwalk villas, we are having a party one night in one of the villas we rented. Another item that is different is that you do not have housekeeping cleaning your room everyday. We do have a washer and dryer in the room that allows us to pack less and wash a few things during the week. We like the feeling of being "home" even if it means a little time each day doing a little housework. So my point is that when looking at DVC I do not compare to other Disney resorts, I see if it meets the way that I want to vacation at Walt Disney World.

Excellent points. I like your idea that less housekeeping makes it feel more like home.

I always questioned people that bash DVC because they don't get maid service everyday. What is their life like at home? And what are they doing to their rooms that they need a full scrubbing everyday?

 

[captainkidd]

I don't think there are any DVC haters on here. I know that was directed at me, and I can assure you, I'm no hater. I've spent more time researching DVC and speaking with agents than I care to think about. For us it doesn't work simply because of the way we vacation, how long we stay and when we can go. I am absolutely in agreement that DVC is different for everybody and how it works for you depends on your exact situation.

My whole point has always been "there is no correct answer". Just because DVC works for 1 person, doesn't mean it will work for another. And vice versa. I don't think it's "bashing" DVC. I think what some non-owners (myself included) take offense to is that some owners, in the way they come off (and it is probably not intentional) make it seem like not owning is stupid. And again, I just don't believe that. Everybody's situation is different.

To me, the ideal DVC audience is someone who can go during off seasons and stay in studios. That is where the greatest savings come from.
Someone like me, who has to go in peak season and needs at least a 1 bedroom - I'm not a good candidate for DVC.

 

[captainkidd]

Excellent points. I like your idea that less housekeeping makes it feel more like home.

I always questioned people that bash DVC because they don't get maid service everyday. What is their life like at home? And what are they doing to their rooms that they need a full scrubbing everyday?

I actually like not having housekeeping. I didn't think I would, but housekeeping gets to be a pain in the neck at times. It always seems, whenever we would come back to the room during the day for a rest, they were always cleaning our room. They're just doing their job obviously, but going back to our villa and knowing we don't have to wait for anyone to finish cleaning our room is nice.

On the flip side, I think people like housekeeping because they enjoy getting fresh towels, new soap, having the floor vacuumed. Many people go on vacation because they want to get away from home, not feel like they're still there.

 

[DVCOwner]

Many people go on vacation because they want to get away from home, not feel like they're still there.

I guess that is not me because I really look forward to the first cast member that says "Welcome Home", because I do think of DVC as my home at Walt Disney World.

 

[captainkidd]

I guess that is not me because I really look forward to the first cast member that says "Welcome Home", because I do think of DVC as my home at Walt Disney World.

They say that to all guests now. I kindly say thank you and try to remind myself I'm not at home. Home sucks. Vacation rules!

 

[GoofGoof]

As I have said in other post, I can not compare DVC to even deluxe rooms. DVC is different, it is like renting an apartment on vacation. First I love having a full kitchen in the rooms I stay in (always 1- or 2-bedrooms) and that is a big plus for us. We also have breakfast with the grandkids before heading to the parks. The rooms are much larger that even deluxe rooms so we do a lot of things in the room that you could not do in a hotel room. This month when we go to the Boardwalk villas, we are having a party one night in one of the villas we rented. Another item that is different is that you do not have housekeeping cleaning your room everyday. We do have a washer and dryer in the room that allows us to pack less and wash a few things during the week. We like the feeling of being "home" even if it means a little time each day doing a little housework. So my point is that when looking at DVC I do not compare to other Disney resorts, I see if it meets the way that I want to vacation at Walt Disney World.

I agree 100%. I always stay in a villa. The rooms are great and we usually do breakfast most mornings. If you compare the studios to a deluxe room they are pretty close in size and amenities. I have had some people tell me DVC is not equal to deluxe since you don't get daily maid service. I personally prefer it that way. I like to spread out in the room and not worry about leaving valuables out. I know most people working at the hotels are honest, but it only takes 1 bad seed. You also get the DVC activities at the hotel. This plus more room is more than better than maid service.

 

[captainkidd]

Pay Cash. Do NOT Finance. If you have to Finance? Don't do it.

This.

 

[WWWD]

DVC is a life style choice and with any luxury purchase, it would be much better to pay cash than to finance. However, if you want DVC and can afford it, then you will enjoy it! Most all luxury purchases - vacation home, RV, boat, backyard pool, or sports car - are not money makers. They enable you to more fully enjoy life. Sure you can enjoy luxury activities without purchasing, but sometime it's more fun to say it's mine. If the numbers had to add up, no one would purchase any of these. Sure it's better to invest, but you still have to make choices on what you consider will help you enjoy life more. For some, like me, DVC is one of those. For others, it's not.

 

[ParentsOf4]

DVC is a life style choice and with any luxury purchase, it would be much better to pay cash than to finance. However, if you want DVC and can afford it, then you will enjoy it! Most all luxury purchases - vacation home, RV, boat, backyard pool, or sports car - are not money makers. They enable you to more fully enjoy life. Sure you can enjoy luxury activities without purchasing, but sometime it's more fun to say it's mine. If the numbers had to add up, no one would purchase any of these. Sure it's better to invest, but you still have to make choices on what you consider will help you enjoy life more. For some, like me, DVC is one of those. For others, it's not.

I agree purchasing a DVC is like buying a vacation home or a boat; it’s a luxury item. You purchase a DVC because you want it, not because you need it.

Large ticket luxury items such as vacation homes or boats need to be paid for all at once. If you don’t have the money, you have to finance. You have no choice. This is not true with Disney vacations. What Disney is trying to do is to get you to bundle together a series of individual vacations that you could have paid for one at a time. Why on earth would you want to pay a lump sum for future vacations unless there was a reason? Disney pushes the “savings” gimmick to try to convince you that it’s in your best financial interest to bundle these together. “You’ll save so much if you buy a DVC.”

Numerous analytical studies have shown that when making an apples-to-apples comparison (i.e. comparing DVC to similar rooms at Deluxe Resorts), a DVC purchase eventually will be less expensive than paying out-of-pocket every year. The question each person faces is how long does it take to reach the break-even point? If you vacation during times when WDW never offers discounts (e.g. holidays), don't feel comfortable renting DVC points from a third party, and can find an inexpensive resale, the break-even point can be reached in as little as 3 years. Conversely, if you are comfortable renting DVC points and only want to consider a direct sale from Disney, the break-even point can be 20 years or longer.

DVC is a long-term commitment requiring years to realize savings. If you remain a DVC member for many years, it’s possible to achieve significant savings. However, once you finance a DVC membership, you wipe out most of the savings you might have achieved by bundling your multiple vacations into a single package. If you finance your DVC, you eliminate the strongest financial reason for purchasing DVC. (DVC membership has other perks that provide ancillary financial benefits but these are not guaranteed.)

There are some circumstances where financing makes sense. (For example, the money is in an investment with a rate-of-return greater than DVC financing.) However, for most consumers, the financial gain from purchasing a DVC is lost if the purchase is financed.

There is little to no fiscal justification for financing a DVC purchase. IMHO, you should never finance a DVC purchase if your primary goal is to save money.

There are non-financial reasons to purchase a DVC. For example, some people purchase a DVC membership because it makes them happy. This is a reasonable line of thought. Stated simply, the reason for any vacation is to be happy. If DVC makes you happy and you can afford it, why not purchase?