DVC right for me and my family?

[Touro1979]

Been researching DVC for a few weeks and wondering if it's a good fit for me and my family. Looking for advice. My situation.

I am married in my Late 30s with 3 year old so there are three of us. I have two older stepsons who don't have much interst in Disney but one is out of house and other will be starting college next year. Been to Disney twice in past 12 months and have trip booked for December this year. I went when I was a child twice. My wife loves Disney as do I. My child loves all things Disney and talks about going back all the time. I plan on doing Disney at least once a year, probably more while my daughter is young. We currently stay in moderates which are ok but I yearn for deluxe. Would never stay at value or off site. Probably would be using studio or one bedroom. Don't plan on traveling with other people other than my wife and child. Currently paying for Disney by putting it on credit card and paying trip off in 6 months. I am thinking of buying direct since I like the Polynesian and would like that as home resort. Thinking that if we really like DVC I can add on with a resale contract in future. I would need to finance in order to do this. Don't have 30k+ in cash laying around. Probably could lay out 20% down payment though.

My concerns:

Disney burnout (don't foresee but u never know lol)
Contract that will expire when I am in my late 80s
Initial cost

What are people's thoughts? Anyone regret doing DVC?

 

[LuvtheGoof]

We bought in many years ago, and have already added on. Going to add on again next year. It is addicting. We both love Disney, and I've been going there since 1978. We have no Disney burnout, even with 17 trips over the last 6 years. We can't wait to go back again, and are always planning at least 2 or 3 trips every year. We do not regret it in the slightest, as it works for us. We have saved literally thousands of dollars on our resort costs, which allow us to add many special experiences every trip.

Yes, the initial cost can be high nowadays. You might want to consider an initial resale contract at the Poly, and then a 25 point direct add-on to get all of the perks and to save some money. We own all of ours direct, and our next add on will be direct as well. After that, we might be looking at resale to add a few other home resorts (we own all of our points at SSR). Our contract doesn't expire until I am in my 90's, but that's OK as we can leave half of our points to each of our sons in the future. I still hope to get another 30 years of use for my wife and I!

We typically prefer staying at least in a 1 bedroom, even with only the 2 of us. We just prefer the extra space that the 1 bedroom has for the 2 of us, and the extra amenities of the full kitchen (though we really don't cook much on vacation), the washer/dryer, and the whirlpool tub. Since I am usually up first in the mornings, I make the coffee and let DW sleep in a bit. Sitting on our balcony in the quiet early morning hours is absolutely the best! Our kids are older, married, but still love Disney. We take each family on one trip in a 2 bedroom every other year, usually during Food & Wine.

Good luck with your decision, and don't hesitate to ask more questions. The people here are quite knowledgeable, and can help out with anything.

 

[Tom]

You're going to get a lot of solid advice, and a lot of other opinions, so be prepared.

As for your "future travel plans", you fit the mold. So, as long as you want to spend a week at a Disney destination every year (or every other year) for the next 45 years, you can check that box.

Money is where people get into trouble, and make bad choices. DVC is an expense until the day your contract expires. You have the initial cost (which can be paid up front, financed through Disney, or financed privately), but then you have annual dues. You can pay the dues lump sum each January, or if you commit to automatic withdrawal payments with Disney, they'll let you pay them monthly. Dues are based on the number of points - i.e. so many dollars per point, per year.

Many people think that financing means "they can afford it." But you obviously have to verify that the monthly mortgage payment AND dues will fall into your current household budget, and still leave enough for proper savings and emergencies each month. You don't want to end up in a situation where they yank your contract if you can't pay the mortgage.

My employer bought my personal vehicle from me (converted it to a "company vehicle") in early 2008. I was making several-hundred-dollar payments, which abruptly ended. The next month my wife and I were on our honeymoon at WDW and we went to the DVC spiel (we had already researched it, and knew most of the info). The finance payment plus dues came out to less per month than I had been paying on the car loan. So, we took the plunge and financed with Disney. Granted, that was back when SSR was under $100/point.

We were frugal enough after that to be able to pay it off a few years early (2 years ago, in fact). Now it's just a monthly payment for annual dues.

We're a family of 3 now, and always will be. We're not a fan of studios, and especially won't be as our 18-month-old ages. We will always stay in a 1BR, like @LuvtheGoof , because of the extra space, full kitchen, and laundry facilities IN the room. Plus, the kid can sleep in the living room, giving everyone some privacy and their own bathrooms (depending on where you stay).

A good piece of advice is to perhaps look at it as if you'll go every other year. Then, pull up a point chart, see what a week in your ideal villa would cost, and divide by 2. You can buy a smaller contract, and just bank point every other year to be able to stay where you want. If you become even more financially solvent, do the same thing a few years later with points at another resort, and you can still go every year, with 11-month privileges at two locations.

Lots to consider, but most importantly is: does it make complete financial sense? Many will say that if you can't write Disney a check up front, don't do it. Sure, that's ideal, but sometimes there are things in life worth splurging on. Just don't let it put you in a bad spot if someone were to lose their job, have a catastrophic health event, or other financially devastating situation.

 

[Seanual757]

1st off I am a DVC owner and purchased our second DVC resort in May (the Poly) both purchased direct.

The way my wife and I approached our purchase is this. We have visited Disney 3-4 times a year for the past 3 years. That 3 year period and our 1st trip in 2016 if paid out of pocket would have paid for our entire VGF contract ($33k). We start our 3rd trip for 2016 tomorrow and our 4th in October. We did finance via Disney for 10 years. We ended up paying off our DVC contract at the end of April 2016. It's not to say knowing you do not have a bill at the end of the trip for your stay.

We jumped on the latest DVC promotion paid cheaper per point for the Poly than we did for VGF.

We based our decision on DVC by the following that fit our family.

-We live local so it’s easy to travel to and from WDW (20 min from home)

-We have been APH for 5 years so we love going (we visit the parks 3-4 times a month)

-4 small girls so I have lots of years left for them to spend time at Disney before they get tired.

-We already stay 3-4 times per year so it just made sense so my 1st contract we have 49 years left for FREE (except annual dues, and the Poly 50 years left)

-Access to the RCI collection once we decided to travel without the kids.

We do plan to purchase again not sure if it will be re-sale or direct.

So for our family it works we treated the purchase like a vehicle payment we were just able to pay it off early.


If it’s in your budget and you go to Disney a lot I say go for it.


Good luck

 

[dreamfinder]

Have you ever stayed DVC? If not, you may want to look into renting points once just to make sure you like the accommodations. Almost everyone here will advise against financing. A resale contract can hit the break even point in 7-10 years, but buying direct and financing often turns it into a 20-30 year breakeven. Now admittedly the Poly resale contracts are only about $15 bucks cheaper than direct, so it's not as obvious a decision. Run the numbers. Look at what you are currently paying to go to WDW, and compare to what DVC will cost you. Don't compare DVC rack rates, or deluxe rates unless that is what you would normally outlay. Then figure out if you are ok will not breaking even on your investment until however many years down the road. But make darn sure you can afford the payments until it's paid off. No one can predict everything in life, but if something happens and you need to get car repairs, pay medical bills, etc that having a looming DVC payment won't prevent you from doing that.

We got in resale well before they starting making changes. I don't regret it one bit. Paid cash, and hit our breakeven point at year 5 I think. So from now on, it's a great deal for us. But if I didn't have that ability, I don't know if it would have made nearly as much sense.

 

[CaptainAmerica]

Absolutely not. Of all the stupid things you can finance, a depreciating asset with escalating maintenance costs outside of your control is probably the worst one I can think of. Save your money and pay cash for a resale in two or three years.

I used to be tremendously anti-DVC on principle, but I've come to see its value if 1) you pay cash and 2) you buy resale.

 

[Touro1979]

Thanks or the opinion thus far. I don't think resale makes sense honestly since I would prefer home resort to be Poly and you don't save much money on resale with poly from what I can see. I would much prefer to spend cash but I don't see myself having the discipline to save 30k lol. I probably could put 20% down and double up payments and pay off in 4-5 years. Saving the cash would take several years and I am not getting any younger lol. I think the older you get the less DVC makes sense. May be I should start with resale and get small contract in cash but that would mean doing another resort other than Poly. Reason I want poly is first, I love the theme, the pool looks great and I also want to be on monorail. We are magic kingdom people and having monorail resort would be great.

 

[Touro1979]

I have started looking at resale at Saratoga Springs, Looks like you can get points for half the price resale compared to poly new. Wonder If I should get my feet wet with a small 12k dollar contract resale to start. Can you finance resale? If I put 5k down I would only need to finance 7k. That would be a lot easier to swallow. as much as I love the poly resort, half price is attractive option

 

[Touro1979]

If I buy 150 points resale at Saratoga and 100 points at poly direct it would cost me the same as getting 175 direct points at poly and it would give me 250 points. I could go to poly ever other year with banking points. Hmmm. Decisions. Lol. Sorry for my rambling.

 

[Tom]

Keep in mind that Poly only has Studios, no 1BR or 2BR. Well, they have the Bungalows, but you won't be staying there more than 1 night.

And you can only finance resale privately, if you can find a funding source. Since Disney isn't part of the transaction, you can't finance through them.

Regarding the financing, while pricey, a perk of Disney's is that it doesn't go on your credit report.

 

[Touro1979]

Kinda leaning towards getting my feet wet with resale contract at either ssr or akl because they are both 85ish a point. If I love it and can afford more I can get a direct contract later if they still offer them at poly.

As far as financing, I get it makes it more expensive but life is too short to take the Dave Ramsey approach to everything. (Pay everything in cash, no debt). My buddy is a huge believer in Dave Ramsey and he is so paralyzed with fear of debt he does nothing. It's kinda sad. I'm 37 and my life is flying by. I'm going to enjoy it. Plus 14k isn't that much. If I have a good year I can pay most of it off in a year probably.

 

[GoofGoof]

Kinda leaning towards getting my feet wet with resale contract at either ssr or akl because they are both 85ish a point. If I love it and can afford more I can get a direct contract later if they still offer them at poly.

As far as financing, I get it makes it more expensive but life is too short to take the Dave Ramsey approach to everything. (Pay everything in cash, no debt). My buddy is a huge believer in Dave Ramsey and he is so paralyzed with fear of debt he does nothing. It's kinda sad. I'm 37 and my life is flying by. I'm going to enjoy it. Plus 14k isn't that much. If I have a good year I can pay most of it off in a year probably.

Sound logic. I try to avoid telling others want to do, but the current direct from Disney prices (especially financed) make me cringe. It's just crazy how much they have jacked up the prices. If in a few years you decide you really want Poly as your home resort you can always resell your 85 points and use that money as a big down payment towards buying Poly. If you are anything like me once you try the villas you won't want to go back to studios. I've never used my points for a studio...hooked on villas. I may try out the studios at Poly for a trip since I do love the resort, but I wouldn't want to own there.

 

[ParentsOf4]

Please keep in mind that we're offering you friendly advice. Many of us have been exactly where you are right now: making a decision about a DVC purchase. This is not a matter of "life is too short". I'm not suggesting don't go to WDW. Instead, I am suggesting be smart with your money when you do go.

To start, you always have more flexibility by not purchasing DVC. Disney will gladly rent you a room at any hotel at any time. With DVC, you commonly have to plan your vacations 7 months out, sometimes even 11 months. SSR generally is available on short notice but most other DVC resorts (or exchanges into Disney hotels) require planning well in advance. More than anything, this is the biggest difference between DVC and Disney hotels.

Sales pitch aside, a DVC purchase is first-and-foremost a financial decision. Effectively you are buying vacations in bulk. As with most things purchased in bulk, the upfront cost is higher but you stand to save a lot of money if you use enough of the product. Think buying toilet paper in bulk.

Long-term, a DVC purchase will save you money if you stay at Deluxe Resorts. The question becomes: How long will it take before you start saving money?

Doing some basic number crunching for you, without financing, a purchase at PVB has a breakeven point of roughly 15-20 years. That means that for the next 15-20 years, you'll actually be spending more by purchasing DVC than you would have if you just rented DVC points or rented Polynesian hotel rooms directly from Disney. Being in your "Late 30s", that means you'll be in your mid-50s before you start saving money at PVB. That breakeven point gets pushed out further if you finance. If you finance most of it without paying off the loan early (a typical DVC loan is for 10 years), then you're talking about being in your 60s before you reach the breakeven point.

A resale purchase at SSR at $85/point has a breakeven point of about 5-8 years.

These numbers are approximate and will change depending on assumptions. Do you visit when Disney typically offers hotel discounts? How much will Disney increase prices? How much could you have made if you invested that money instead of purchasing a DVC? There are many assumptions that need to be made to determine the value of a DVC purchase. Depending on how I massage these numbers, I can get your PVB breakeven point down to about 10 years or as high as 25 years without financing.

Also consider that these breakeven points assume Deluxe Resort stays. If, for example, you are happy at a Disney Moderate or Value Resort, then you might never reach the breakeven point. DVC only makes financial sense if you are a "Deluxe Resort" person.

As you've discovered, a resale purchase at Sarasota Springs Resort (SSR) is half the price of a direct purchase at the Polynesian Villas & Bungalows (PVB). In addition:

• SSR annual Maintenance Fee (MF) is $5.44/point. PVB MF is $6.09/point. MF changes every year and it's difficult to predict if, over the long hall, SSR or PVB will increase faster. However, at the moment, PVB costs 12% more annually.
• SSR rooms require fewer points per night. For example, during the summer, a SSR Standard View Studio requires 106 points while a PVB Standard View Studio requires 169 points. This means you'll need fewer points at SSR for the same length of stay.

There are a couple of more points to consider.

DVC resales no longer have the same perks as direct purchases. The main difference are the discounts offered at many restaurants and shops. With the exception of the World Showcase, these discounts generally are not available at the theme park restaurants. However, they apply to many Disney Springs & Disney hotel stores and restaurants. It's complicated. For example, these DVC discounts won't save you anything at the Contemporary's Chief Mickey's but it will save you 10% at The Wave (also at the Contemporary). A complete list of membership perks can be found here:

https://disneyvacationclub.disney.go.com/discounts-perks-offers/special/download/

DVC contracts have expiration dates. PVB expires in 2066. SSR expires in 2054. That means your PVB points will last 12 years longer. 12 years might seem like a lot but, as I think of it, am I really worried about where I'm going to be vacationing 38 years from now? Do I really want to pay now for my vacations 38 years into the future? In your case, being in your "Late 30s", think about what you were doing 38 years ago.

Good luck with your decision!

 

[Simba's Mom]

Just a couple comments-you've gotten a lot of great advice here. The main one involves your stepsons and their lack of interest in Disney. For us, and lots of people, that changes. Both of our DSs went through the "over Disney" for several years. Then, when my older one graduated college, what did he want? A trip to WDW. Now he's married with little children, and for him the Disney love has returned. DS #2 is a musician, interned at DL one summer with the DL band, and has friends working at both parks (dancers, mostly, one at FoLK). So he's more than happy to go to WDW anytime. Even with Mom and Dad! Our contract expires when we're 91 yo, and I already told our guide that "When our contract expires, I'll get a Sultry Seahorse (at OKW's Gurgling Suitcase) and expire right along with it." No regrets!

 

[21stamps]

Please keep in mind that we're offering you friendly advice. Many of us have been exactly where you are right now: making a decision about a DVC purchase. This is not a matter of "life is too short". I'm not suggesting don't go to WDW. Instead, I'm suggesting being smart with your money when you do go.

To start, you always have more flexibility by not purchasing DVC. Disney will gladly rent you a room at any hotel at any time. With DVC, you commonly have to plan your vacations 7 months out, sometimes even 11 months. SSR generally is available on short notice but most other DVC resorts (or exchanges into Disney hotels) require planning well in advance. More than anything, this is the biggest difference between DVC and Disney hotels.

Sales pitch aside, a DVC purchase is first-and-foremost a financial decision. Effectively you are buying vacations in bulk. As with most things purchased in bulk, the upfront cost is higher but you can save a lot eventually if you consume the product. Think buying toilet paper in bulk.

Long-term, a DVC purchase will save you money if you stay at Deluxe Resorts. The question becomes: How long will it take before you start saving money?

Doing some basic number crunching for you, without financing, a purchase at PVB has a breakeven point of roughly 15-20 years. That means that for the next 15-20 years, you'll actually be spending more by purchasing DVC than you would have if you just rented DVC points or rented Polynesian hotel rooms directly from Disney. Being in your "Late 30s", that means you'll be in your mid-50s before you start saving money at PVB. That breakeven point gets pushed out further if you finance. If you finance most of it without paying off the loan early (a typical DVC loan is for 10 years), then you're talking about being in your 60s before you reach the breakeven point.

A resale purchase at SSR at $85/point has a breakeven point of about 5-8 years.

These numbers are approximate and will change depending on assumptions. Do you visit when Disney typically offers hotel discounts? How much will Disney increase prices? How much could you have made if you invested that money instead of purchasing a DVC? There are many assumptions that need to be made to determine the value of a DVC purchase. Depending on how I massage these numbers, I can get your PVB breakeven point down to about 10 years or as high as 25 years without financing.

Also consider that these breakeven points assume Deluxe Resort stays. If, for example, you are happy at a Disney Moderate or Value Resort, then you might never reach the breakeven point. DVC only makes financial sense if you are a "Deluxe Resort" person.

As you've discovered, a resale purchase at Sarasota Springs Resort (SSR) is half the price of a direct purchase at the Polynesian Villas & Bungalows (PVB). In addition:

• SSR annual Maintenance Fee (MF) is $5.44/point. PVB MF is $6.09/point. MF changes every year and it's difficult to predict if, over the long hall, SSR or PVB will increase faster. However, at the moment, PVB costs 12% more annually.
• SSR rooms require fewer points per night. For example, during the summer, a SSR Standard View Studio requires 106 points while a PVB Standard View Studio requires 169 points. This means you'll need fewer points for the same length of stay.

There are a couple of more points to consider.

DVC resales no longer have the same perks as direct purchases. The main difference are the discounts offered at many restaurants and shops. With the exception of the World Showcase, these discounts generally are not available at the theme park restaurants . However, they apply to many Disney Springs & Disney hotel stores and restaurants. It's complicated. For example, these DVC discounts won't save you anything at the Contemporary's Chief Mickey's but it will save you 10% at The Wave (also at the Contemporary). A complete list of membership perks can be found here:

https://disneyvacationclub.disney.go.com/discounts-perks-offers/special/download/

DVC contracts have expiration dates. PVB expires in 2066. SSR expires in 2054. That means your PVB points will last 12 years longer. 12 years might seem like a lot but, as I think of it, am I really worried about where I'm going to be vacationing 38 years from now? Do I really want to pay now for my vacations 38 years into the future? In your case, being in your "Late 30s", think about what you were doing 38 years ago.

Good luck with your decision!

Your post is fantastic.
I don't own DVC or any timeshare. I was in the timeshare business for 13 years- still never chose to own one. I admit that even after our last trip and upcoming one I almost was tempted given the math of what we are currently spending on monorail resort rooms. Then I remember why I never wanted to take part in vacation ownership.lol.

It's totally great and "worth it" for some people, not the best for others. It's a commitment, and depends if you enjoy spontaneity or more diversity when you travel... And where your child will want to go.

Anyway, good luck OP! Please stay at one of these resorts before you make a decision, also sit down with your spouse and really talk about your future travel plans. Do you have a top 10 list? Do you want to do cruises and international travel once your daughter is 7-8? These are things to really think about. Depending on your income level you may be able to do all of the above, which would be wonderful. But if not, really sit down and see how it will impact you life/vacations/savings account. Could your money be earning more somewhere else giving you the ability to pay for a deluxe without purchasing dvc?
Again, good luck!

 

[Touro1979]

Thanks for all the replies. Gives me a lot to think about.

I definitely am not a value person. I've only stayed in moderate and I would like nicer accomadations. Every time we stay I kick myself for not booking deluxe.

 

[GoofGoof]

Thanks for all the replies. Gives me a lot to think about.

I definitely am not a value person. I've only stayed in moderate and I would like nicer accomadations. Every time we stay I kick myself for not booking deluxe.

You should think about renting DVC points for your next trip before buying. Once you stay you will know for sure if it's a good fit for you. Some people just don't spend enough time in their rooms or at the resorts to see the benefit of the bigger rooms and better amenities.

If you do decide you want to consider buying DVC check the options of resale vs direct. Run the numbers for multiple scenarios like @ParentsOf4 was saying. You can calculate a break even point. Everything after that is just extra benefit. If for instance your break even is 10 years then after 10 years you can either sell your points and pocket the cash or continue to use them and the cost of each stay is just your annual MFs. Unlike almost any other "timeshare" on the market you will never have a hard time selling your points resale or even renting them out for a year or 2 if you fall on hard economic times or just want to skip WDW.

One last piece of advice from me, DVC has the most value if you actually want to stay at DVC resorts. You can trade in your points through RCI to stay a ton or places around the world, but that is usually not the best economic value for the points. In a lot of cases you could even make out better renting your points for cash and then using the cash to stay somewhere else or for a Disney cruise. It's a little more of a hassle but the economics are generally better.

 

[slappy magoo]

One last piece of advice from me, DVC has the most value if you actually want to stay at DVC resorts. You can trade in your points through RCI to stay a ton or places around the world, but that is usually not the best economic value for the points. In a lot of cases you could even make out better renting your points for cash and then using the cash to stay somewhere else or for a Disney cruise. It's a little more of a hassle but the economics are generally better.

Yeah, this is an important point. I once used points to stay at a bed and breakfast in San Francisco using DVC points. It was not part of RCI but as part of a seemingly more select "Concierge" collection which had a higher point value. Now don't get me wrong it was an awesome B&B, I have no complaints about the room or service or amenities. But after returning (AFTER), I went online and found out that with online offers available, I could have easily afforded the room out of pocket and saved my DVC points for the next WDW trip.

The ability to use your DVC points elsewhere is a nice flexible perk, but if someone's plan is to often trade out, I'm not sure it will always be worthwhile. As always your mileage may vary.

 

[Touro1979]

I talked it over with Wife and we have made up our minds to buy a 200 point contract at Saratoga to get our feet wet with DVC. Resale is def a better deal than direct. My goal is to pay it off in 2-3 years. I am going to wait to a few weeks so I Have 20% for down payment and few thousand for closing costs. Thanks for all of your help. I think we will like DVC. We are both disney fanatics lol and love going.

 

[Audrey77]

One other thing to mention- you do not get housekeeping daily.