Are the DVC Member PERKS worth it?

[Phonedave]

I was not insinuating that you would get anything different buying from DVD in regards to contract length even though there is that oddity with 2057 OKW contracts direct. What I'm saying is that you have the option to buy contracts with about 25 years on them for half the cost per point through resale versus what you'd be paying for a resale contract ending in 2042. I thought this was more clear since the OP was referencing Wilderness Lodge, which has two DVC options. Direct you will get roughly 49 years at $182 a point whereas resale you will get roughly 24 years at ~$90 a point. To me as a potential buyer I would wonder what I'm getting for the additional risk and slightly higher maintenance fees, which is why they dangle the perk/discount carrot to make sure people know they will be considered second class citizens if they take the cheaper option.

[edited to add original quote]

When you said the following

"I think given how steadily they have been increasing costs they have to dangle a carrot in order to give people a reason to buy through them when they might get half the contract length for half the price elsewhere "

I thought you were comparing apples to apples. In other words, a direct contract at XYA resort to a resale contract at XYZ resort. Not as you said above - a "new" direct contact - Wilderness Lodge Cabins (or whatever they are calling them) as compared to a resale "old" contract - Original Wilderness Lodge.

-dave

 

[John Kelly]

My wife and I have been exploring the DVC option for a couple years now and we're getting closer on a decision. I realize that this is a long-haul payoff kind of deal, so whatever we get into we're keeping for a while. My questions are; a. Going through Disney proper for new/resale points worth it for the perks; and b. How much of a break does the average schmo get by going through the official Disney DVC sale/resale office get rather than going through a broker site/company?

Thanks in advance. If there is a massive thread on this I apologize. Just point me in the right direction to it and I'll take my questions there.

What is the AP discount?

 

[rle4lunch]

There are perks and then there are benefits.

The benefits that come with a direct contract are the ability to use your points for cruises, or for non-DVC locations on property. Those are in your contract. And they are useless. You will do much better renting out your points through a broker and using the cash, instead of using points for these purposes. So right away this eliminates these benefits.

Perks are different - perks are not guaranteed. They can be changed or removed at any time. Granted, now that DVC has this two tiered system, they are less apt to remove perks, but that's not to say they won't change or remove them. Perks should really not factor in the decision, as they have no guarantee of being there.

Having said that, the current AP Discount is significant, if purchasing an AP is something that you would do. Merchandise and dining discounts are nice, but you have to look at how much you would buy. Do you really buy that much merch? I know we have cut back on a lot of TS dining,just because it is not worth it (food quality is not there).

The EPCOT lounge is nice, but I go to it once, maybe twice, a trip, for about 10 minutes, just to cool off. Not really that great a benefit.

The member magic events are very nice - if they fir your schedule. The never fit my schedule, so I just look at them and say "I wish I could be there for that."

-dave

Thanks. We've heard conflicting stories on whether or not the cruise benefit is worth it. For us, it probably won't be considering we have a 3 year old and a baby due in about 3 weeks. We're a military family, so we get considerable discounting on hopper tickets (about 60% off), but we would probably end up going with the AP at least once. My wife used to be a DL AP holder for a number of years before we were married, but the military salute discount is so huge she stopped buying the AP's.

Merch is another story. We typically will spend about $200-$300 per visit for clothes, christmas ornaments, etc., so that might not be too beneficial...

 

[rle4lunch]

What is the AP discount?

My wife knows the exact number, but it's a pretty good percentage off from what she told me.

 

[rle4lunch]

It's getting more and more difficult to switch to a different resort at 7 months, so be sure to buy somewhere you like to be, especially if you plan to stay in studios. Saratoga is a beautiful resort but it's probably the easiest to switch to at 7 months if you were to buy somewhere else. It's tricky balancing the annual costs between which location's rooms cost more per night versus higher fees, but if you're considering buying direct you might want to see what the declaration for Riviera looks like early next year or even consider buying Old Key West direct. That gets you lower point rooms up until 2057 whereas most of the resales would end in 2042 for that resort. For those two and CCV I'd probably buy direct, but if buying Animal Kingdom or the older Wilderness the costs savings for resale are pretty significant.

Didn't even think of the Rivera.

 

[rle4lunch]

Do you get dvc discounts on food & merch in addition to ap discounts?

Not really. I mean it could, but being a member since 2004 I can tell you perks come and go. While they have made 'tiers' of groups so that only those direct seem to get more than before, I cannot say this will stay true.

The break even point will vary. Like for us we get an AP discount but we're a family of 3. To me that is the bigger break even addition. There is food (TS get mostly 10%) and merchandise (20%). But he math would be totally depending on what contract you buy and how much you save.

That said it also depends on how many points you get and where with how much you will save going from direct to resale. Smaller contracts are harder to save on making the break even point even less.

We've been talking to a Disney Rep on resale listing instead of the broker sites, seems he is hesitant to give any solid numbers. We're heading down there in April and looking to rent at Copper Creek for the week and taking a day off in the middle of the trip to hit up the main DVC folks to see what resales they have going on at the time. We heard that if there are resale 'deals to be had and added perks', it's done through the direct office down there. The guy on the phone offered 2k off of Copper Creek (this month only of course).

 

[dreamfinder]

What is the AP discount?

On a Platinum/Platinum Plus, currently $120. However DVC members are eligible to get the gold pass, which if the dates work in your favor, is another $140 cheaper than the DVC Platinum costs. ($589 vs $729 for Gold/Platinum respectively)

From time to time the benefits have changed IE get Platinum for the price of Gold, but those come and go.

 

[dreamfinder]

We've been talking to a Disney Rep on resale listing instead of the broker sites, seems he is hesitant to give any solid numbers. We're heading down there in April and looking to rent at Copper Creek for the week and taking a day off in the middle of the trip to hit up the main DVC folks to see what resales they have going on at the time. We heard that if there are resale 'deals to be had and added perks', it's done through the direct office down there. The guy on the phone offered 2k off of Copper Creek (this month only of course).

Unless something has drastically changed, DVD doesn't deal with resales in the same manner that the brokers do. DVD advertises certain DVC properties as currently for sale. Those are the ones that they still have inventory on hand, and are usually the newest properties. However, DVD will also usually take waitlist requests to buy the properties that they don't currently have for sale. Basically you say that instead of buying into the new Copper Creek DVC units, you want OKW. DVD would then exercise ROFR on a OKW resale deed, and then turn around and resell it to you. DVD buys the points at the resale market rate, say $70, and then sells them to you are what is basically new deed rate, say $150 (current new point cost for OKW is $151). So you pay more than resale price (perhaps as much as double) to be eligible for any perks/discounts associated with ownership bought direct.

 

[correcaminos]

We've been talking to a Disney Rep on resale listing instead of the broker sites, seems he is hesitant to give any solid numbers. We're heading down there in April and looking to rent at Copper Creek for the week and taking a day off in the middle of the trip to hit up the main DVC folks to see what resales they have going on at the time. We heard that if there are resale 'deals to be had and added perks', it's done through the direct office down there. The guy on the phone offered 2k off of Copper Creek (this month only of course).

When you say Disney Rep, you mean someone who does direct sales? I think that would be why you aren't getting exact numbers - he doesn't work in resale Disney does not do resales - only direct purchases. I'm not sure what kind of deal you can get $2k off directly. They have some cash insentives though.

What is the AP discount?

We get FL resident pricing and the ability to purchase Gold and above more or less. I'm not sure where we are allowed to link, but allears.net has it all listed if you search there.

On a Platinum/Platinum Plus, currently $120. However DVC members are eligible to get the gold pass, which if the dates work in your favor, is another $140 cheaper than the DVC Platinum costs. ($589 vs $729 for Gold/Platinum respectively)

From time to time the benefits have changed IE get Platinum for the price of Gold, but those come and go.

And even getting the discount has not always been there... which is why I wouldn't always count on it for more than a year or two in advance even.

Unless something has drastically changed, DVD doesn't deal with resales in the same manner that the brokers do. DVD advertises certain DVC properties as currently for sale. Those are the ones that they still have inventory on hand, and are usually the newest properties. However, DVD will also usually take waitlist requests to buy the properties that they don't currently have for sale. Basically you say that instead of buying into the new Copper Creek DVC units, you want OKW. DVD would then exercise ROFR on a OKW resale deed, and then turn around and resell it to you. DVD buys the points at the resale market rate, say $70, and then sells them to you are what is basically new deed rate, say $150 (current new point cost for OKW is $151). So you pay more than resale price (perhaps as much as double) to be eligible for any perks/discounts associated with ownership bought direct.

It hasn't changed, and they do not do resales. They sometimes take back more points than they need for a waitlist and then have some on hand to sell, but not often.

To reiterate, these are not resales though. They are direct purchases.

 

[rle4lunch]

When you say Disney Rep, you mean someone who does direct sales? I think that would be why you aren't getting exact numbers - he doesn't work in resale Disney does not do resales - only direct purchases. I'm not sure what kind of deal you can get $2k off directly. They have some cash insentives though.


We get FL resident pricing and the ability to purchase Gold and above more or less. I'm not sure where we are allowed to link, but allears.net has it all listed if you search there.



And even getting the discount has not always been there... which is why I wouldn't always count on it for more than a year or two in advance even.


It hasn't changed, and they do not do resales. They sometimes take back more points than they need for a waitlist and then have some on hand to sell, but not often.

To reiterate, these are not resales though. They are direct purchases.

Disney rep, as in calling directly to the DVC customer service line provided on the Disney website.

I think the 2k was an incentive and not a discount, apologies for the bad verbiage. We're not in FL, we're stationed in Maryland, so the AP thing we're kinda on the fence about since we get such a good military rate on hopper tickets. It would be more used for in park food/merch discounting for us rather than saving us money on park ticketing.

 

[correcaminos]

Disney rep, as in calling directly to the DVC customer service line provided on the Disney website.

I think the 2k was an incentive and not a discount, apologies for the bad verbiage. We're not in FL, we're stationed in Maryland, so the AP thing we're kinda on the fence about since we get such a good military rate on hopper tickets. It would be more used for in park food/merch discounting for us rather than saving us money on park ticketing.

Following now. So yes, the person you are speaking with is doing direct only sales. Not resales.

If you are military and you don't go a few times a year, I likely wouldn't go in for direct for APs then. The dining is 10% off most table service. 20% off merchandise. I might run numbers of direct prices vs resale and see if it is really worth it. With a $2k incentive, you're looking at at least 175 points, and if that's the case that's a lot of money you could likely save buying resale.

 

[rle4lunch]

Following now. So yes, the person you are speaking with is doing direct only sales. Not resales.

If you are military and you don't go a few times a year, I likely wouldn't go in for direct for APs then. The dining is 10% off most table service. 20% off merchandise. I might run numbers of direct prices vs resale and see if it is really worth it. With a $2k incentive, you're looking at at least 175 points, and if that's the case that's a lot of money you could likely save buying resale.

It's weird, we have friends here that have 3 separate contracts (Poly, SS and something else), and they said they bought their last 2 via the sales office at Disney Springs, but weren't new, but resales that they were offering sort of as an 'in-house' thing. Are they confused? I know I am.

 

[correcaminos]

It's weird, we have friends here that have 3 separate contracts (Poly, SS and something else), and they said they bought their last 2 via the sales office at Disney Springs, but weren't new, but resales that they were offering sort of as an 'in-house' thing. Are they confused? I know I am.

They are confused. If they are purchased at the sales office, they are not resales

Only thing they could've had were "sold out" resorts that they can often get points for through ROFR, but they are still direct (from Disney) and not resale (broker).

 

[rle4lunch]

They are confused. If they are purchased at the sales office, they are not resales

Only thing they could've had were "sold out" resorts that they can often get points for through ROFR, but they are still direct (from Disney) and not resale (broker).

Thanks for the clarification.

 

[Phonedave]

Thanks. We've heard conflicting stories on whether or not the cruise benefit is worth it. For us, it probably won't be considering we have a 3 year old and a baby due in about 3 weeks. We're a military family, so we get considerable discounting on hopper tickets (about 60% off), but we would probably end up going with the AP at least once. My wife used to be a DL AP holder for a number of years before we were married, but the military salute discount is so huge she stopped buying the AP's.

Merch is another story. We typically will spend about $200-$300 per visit for clothes, christmas ornaments, etc., so that might not be too beneficial...

The cruise benefit is quite easy to figure out. DVC publishes a list showing the points for each cruise. Just picking one at random, a regular season, 2019, 5 night cruise on the Disney Magic to Bermuda in a category 7 stateroom is 236 points per person, double occupancy, or 472 points

Paying cash for the same room on the same cruise is $3,799.06

That means that if you can get more than $8.05 per point you will come out ahead. You can easily make $13.00 per point via a broker, and more if you go it on your own.

This does not even take into account the fact that DVC charges you a $95.00 transaction fee to use your points, and has some very tight restrictions around what rooms you can get, and the cancellation policy.

That cash quote also includes the $399.06 in port expenses, taxes, and fees - I'm not sure if using your points covers that or not.


-dave

 

[dreamfinder]

It's weird, we have friends here that have 3 separate contracts (Poly, SS and something else), and they said they bought their last 2 via the sales office at Disney Springs, but weren't new, but resales that they were offering sort of as an 'in-house' thing. Are they confused? I know I am.

Yup, they were confused. These are not resales. As I mentioned above, it's DVD buying a resale contract that they resell to the buyer at a higher rate.

 

[correcaminos]

Yup, they were confused. These are not resales. As I mentioned above, it's DVD buying a resale contract that they resell to the buyer at a higher rate.

Actually it's not even a contract they sell, they just reclaim points. They can divide our those points any way they like. A resale you're stuck with the exact amounts of the original contract.

 

[rle4lunch]

Actually it's not even a contract they sell, they just reclaim points. They can divide our those points any way they like. A resale you're stuck with the exact amounts of the original contract.

Is there any cost savings when they do this (reclaiming points and reselling them)?

 

[dreamfinder]

Is there any cost savings when they do this (reclaiming points and reselling them)?

Not really. Current direct prices for all properties can be see here -> https://dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions ROFR is usually only used if they don't have inventory for a given resort.

 

[correcaminos]

Is there any cost savings when they do this (reclaiming points and reselling them)?

For you? No. In fact PVB, VGF, & VGC all sell above $200/point now when you buy. All are sold out and would need to be on a waitlist to get. The only resorts that often have a better deal, are the currently available (not sold out) ones where they offer incentives if buying larger numbers.

Disney effectively gets to sell the same thing twice so for them it's a good thing. The profits on a second sell are smaller though, but really just an extra amount they get to take in.