Disney Vacation Club

[tjkraz]

So I'd basically be buying another $16,000 in points I'd never use. Sure, I could rent them out each year and get my money back, but why tie up $16,000 for 24 years and only get $684 of it back each year?

...

I guess my point is for me, because I take short vacations of just a few nights, I don't feel the DVC buy-in of 160 points is cost effective.

DVC has been known to sell contracts with as little as 100 points to new members. Sub-160 point contracts are also available on the resale market for very reasonable prices.

Renting is good for occasional trips but I'd be hard pressed to believe that it's a sensible (financial) approach for someone who makes frequent return trips. There are a number of perks available to members but not renters (and that disparity may get even worse in years to come.) Most renters have very restrictive cancellation policies, assuming they allow ANY changes or cancellations. Renting points to book a trip 11 months out can be difficult and involves it's own substantial cash outlay.

And it's important to note that DVC contracts continue to hold value on the resale market until the contract's end date arrives. In the one example provided here, an ownership period of only 24 years is examined. If one buys into the Bay Lake Tower and decides to sell the contract after 24 years, there will still be 26 years of ownership remaining. That contract will return thousands of dollars when sold on the resale market.

 

[DisDadWoz]

Phonedave is correct in his noting it is more than just the financial obligation. (Which is very important) The little things are something that are not really deal breakers but made us change our planning for our trips. Such as the limited housekeeping which also means limited coffee:snore:

The first time we went down as a family we asked ourselves "who would go that much to make it worth it?" Well, it was us, that's who. We go twice a year and like to stay at the deluxe type resorts so joining made alot of sense to us. We have enjoyed it tremendously and don't regret anything we did other than not getting enough points. (We have 225)

Make sure you do your homework (including the math) and make sure it works for you.

Good luck!

 

[Computer Magic]

The actually point totals cant change. If they add points at one place they need to remove from another, so in the end the totals stay the same. I am sure others can explain it more specifically than I.

I guess my question was this:

I buy 100 points at AKL. Today it cost 72 points for a week. Can the points for a week go to 120 a week, thus meaning I don't have enough points for a week. So I have to buy 20 more points or go less in vacation time? In other words, cost creep

 

[cemeb4dk]

Its my understanding, that if the week ( in question)is 72 points for a certain season. If that if that particular week goes up in point values for that season, then the point value for a week in a different season must go down the same amount that the original week went up. So you have a total number of points, and they can be changed around but in the end the still must equal the same amount. So yes you can always get a week for 72 pts but it may not be the same week in the same season. I hope I made myself clear.

 

[Phonedave]

Its my understanding, that if the week ( in question)is 72 points for a certain season. If that if that particular week goes up in point values for that season, then the point value for a week in a different season must go down the same amount that the original week went up. So you have a total number of points, and they can be changed around but in the end the still must equal the same amount. So yes you can always get a week for 72 pts but it may not be the same week in the same season. I hope I made myself clear.

Close, very close, but missing a small detail

Think of it this way.

Take all the rooms, and all the days in a particular resort, and add them up.

Lets say it comes out to 10,000 points (which is way low, but for this illustration it serves the purpose)

They can change point values however they want, anging room values, season dates, weekend rates, whatever. However when it's all added up at the end, there can still only be a total of 10,000 point at the end of the year - no more, no less.

So yes, you are right, they may move points, but lets say there are 100 studios and 50 1BR units. They could lower the price for a studio by 1 point per night, and the cost for a 1BR would go up 2 points per night (1 x 100 = 2 x 50)

So its not allways if it goes down 1 point in one season, it goes up 1 in another.

DVC does not move points to make money or on a whim. It is done to drive behavior and fill out the resort. When a resort is completely sold, that means they have sold enought points to make sure every room is filled every day (actualy this is incorrect, they are required by law to hold back a certain number of rooms, but that's not really important for this discussion). If they find that loads of people are booking in the fall, but there is little action going on in spring, then next year they may make the fall rates higher and the spring rates lower, to encourge more people to go in the spring than in the fall.

It's actualy a good thing for owners, because it helps to control the demand at the resorts, meaning there is overall a better chance of getting the room you want when you want it (you may have to use more or less points depending if you are in the "unlucky" room that got its points raised though)

-dave

 

[Phonedave]

Dave,

:wave:I am so glad you jumped in, you always have a thought for the small deatils that others just let pass them by and then when something like point charts changing, perks, etc. they get upset but this was one area I keep asking questions so I understood the effect it would be to us.

So for me, once i understood those factors, it was not an issue and I was willing to work around that.

Thank you.

I try to be informative and helpful - sometimes I get lucky and it works out. :lol:

-dave

 

[luvlifeinfl]

Dave,

You are Welcome! also your above explaintion was perfect! I was sitting last night thinking how do I explain it with not giving more info than they needed to understand.

I know it took me a while to understand and I can tell you I probably drove our DVC guide ( Steve) nuts! but I really want to understand the process so that I can be able to explain it back to others.

 

[Disneykidder]

We are in the process...still...of joining. (Paperwork) Yesterday we priced out BLT for 6 nights in July and it was over $4k just for the room. Buying in at just under $20,000 (200pts) would get us more than 6 nights in July, too. It really is a value for us.
What I also like is how you can get APs for $100 off. We plan to go in August one year and July the next so we don't have to buy it every year. Cool!!

 

[DVCOwner]

There is one thing that I would like to add. When we first purchased points we planned on going only once every two years. Using the banking and borrowing of points we did not have to buy as many points to stay once every two years. When we decided to start going more often we added points from the resell market. For example if you purchase 160 points at BLT and go every other year you will have 240 points to send each time.

 

[dizzney]

We are in the process...still...of joining. (Paperwork) Yesterday we priced out BLT for 6 nights in July and it was over $4k just for the room. Buying in at just under $20,000 (200pts) would get us more than 6 nights in July, too. It really is a value for us.
What I also like is how you can get APs for $100 off. We plan to go in August one year and July the next so we don't have to buy it every year. Cool!!

We always plan our trips so we have at least 2 within a calendar year if not more, it makes so much sense dolalrwise, we also dont automatically renew our passes, we will buy them this year for our 12/31 trip and are already planning on going again in August 2010. The second/third trip is "free", its a great feeling.

We try to maximize our savings. We also enroll in the Tables in Wonderland program which gives us 20% off our meals and drinks, you can do this when you are an AP holder.

Enjoy!

 

[Bork Bork]

Foreverbelle nailed the primary reason for us loving DVC: it forces us to take yearly vacations! We never went anywhere before DVC, but now we can hardly imagine a year without WDW. DS12 and DD9 think it's pretty cool too.

 

[fredtom]

My wife and I have been DVC members since 2003 and love it! Wish we had joined even sooner, but had to wait until our finances would allow it.
Our club guide is Tony Heard... He's the nicest guy.



"An Adventurer's life is best!" :lol:

 

[DVCOwner]

I have known many DVC members and they fall into two groups, first the people that plan on using the points for trips and staying at other places other than DVC resorts. Most of the people I know in this group became unhappy with DVC as the number of points increases for the things they want to do. I think that this group sales off their membership after a few years. The other group is people like me that go to Disney and use my points to stay at DVC Resorts. Most of these people are happy and see a big advantage to being a DVC member. My suggestions is if you plan to stay at DVC resorts than buy, but buy at the resort you plan to stay at so you can book early. I love being a DVC member.

 

[gwhb75]

Thanks everyone. We are still trying to decide, but just in case we do want to we opened a line of credit at our bank today. We're very interested, so it wouldnt' surprise me if we end up buying shortly.

 

[cwbysfan3]

We just got back from Disney today and we purchased the DVC at Bay Lake. I am very happy and excited to know that for the next 49 years we will have at least one vacation at Disney. If you have any questions I will try to answer them, it is still pretty fresh in my head.

 

[Phonedave]

Thanks everyone. We are still trying to decide, but just in case we do want to we opened a line of credit at our bank today. We're very interested, so it wouldnt' surprise me if we end up buying shortly.

Arguments about buying something when you can't pay for it in full - especially in this economy - aside. One thing to remember is that if you finanace a time share, it is a mortage and therefore the interest may be tax deductable. If you use a line of credit to get cash, and then use that cash to pay for the DVC, you remove that tax benefit. In reality it's not much of a tax break, but it is something. You would have to look at the interest on your line of credit, and the interest available on a traditional time share mortgage loan.

-dave

 

[DVC Mike]

We just got back from Disney today and we purchased the DVC at Bay Lake. I am very happy and excited to know that for the next 49 years we will have at least one vacation at Disney. If you have any questions I will try to answer them, it is still pretty fresh in my head.

Congrats!

 

[gwhb75]

Arguments about buying something when you can't pay for it in full - especially in this economy - aside. One thing to remember is that if you finanace a time share, it is a mortage and therefore the interest may be tax deductable. If you use a line of credit to get cash, and then use that cash to pay for the DVC, you remove that tax benefit. In reality it's not much of a tax break, but it is something. You would have to look at the interest on your line of credit, and the interest available on a traditional time share mortgage loan.

-dave

Oh you crazy Americans and your wacky tax system. Just kidding....I'm Canadian (and an accountant), which means that mortgage interest isn't tax deductable (the Canadian part excludes the interest, not the accountant part). At Disney the rate they were offering was something like 10.9%. My LOC has a rate of around 6%. Cross-border financing can get kind of dicey, so I can't see too many places in the US willing to loan money to a Canadian. Thanks for your input though.

 

[Phonedave]

Oh you crazy Americans and your wacky tax system. Just kidding....I'm Canadian (and an accountant), which means that mortgage interest isn't tax deductable (the Canadian part excludes the interest, not the accountant part). At Disney the rate they were offering was something like 10.9%. My LOC has a rate of around 6%. Cross-border financing can get kind of dicey, so I can't see too many places in the US willing to loan money to a Canadian. Thanks for your input though.

Ah, didn't pick up on the Canadian thing. Yeah, it sounds better to go your direction.

My grandparents used to own property in Canada. They had Canadian bank accounts set up, because trying to do anything cross-border was a lesson in frustration.

-dave