DVC Pro and Cons?

[eliza61nyc]

also one of the great things imo about the dvc is the flexibility. now I'm a disney lover so this maynot apply to you.
When our kids where smaller we took what I would call a "traditional" vacation. You know a 5-7 night stay. the great thing about having a dvc is that I've gone a bunch of "smaller" getaways with various people.
we've done:

• a few "family" vacations where I upgraded to a 2 bedroom and invited relatives. No way would I do this out of pockets
• my late hubby and I did many 3 night quick getaways
• next April my college roommates and I are celebrating our 35 sorority anniversary. lol can't wait, girls trip only.

Each of these trips have had a different feel but all very enjoyable and all thanks to my points.

 

[Indy_UK]

Me and my husband want to buy into DVC.we are from the UK and want to go at least once a year.

Issue I have though is that no matter where I go for advice, all I get is 'buy resale' otherwise it isn't worth it. 'It's much cheaper etc'

I get all the points and bonus' to buying resale, but not everyone wants too. Some people are happier buying direct.

 

[xdan0920]

Me and my husband want to buy into DVC.we are from the UK and want to go at least once a year.

Issue I have though is that no matter where I go for advice, all I get is 'buy resale' otherwise it isn't worth it. 'It's much cheaper etc'

I get all the points and bonus' to buying resale, but not everyone wants too. Some people are happier buying direct.

I guess it depends where you want to buy. But, for the most part, buying resale does make it a heck of a lot easier to find a break even point on your purchase. Why does that upset you?

 

[Indy_UK]

I guess it depends where you want to buy. But, for the most part, buying resale does make it a heck of a lot easier to find a break even point on your purchase. Why does that upset you?

Doesn't upset me pre se as I'm not going to loose any sleep over it but where I'm in the financial position to buy direct, any questions I used to have regarding it was always met with a 'buy resale' answer.

I totally get why people buy resale and I would maybe consider it, and while using the points on cruise or elsewhere doesn't make financial sense, I'm sure enough people do it for the conviencence factor.

Maybe it's the break even point which is different from those in the U.K. When I look and even compare to a moderate, I find we can break even on 10 trips after a $20K or so outlay

 

[lostpro9het]

I get all the points and bonus' to buying resale, but not everyone wants too. Some people are happier buying direct.

What do you care what others think!?!? Do what makes you happy!

 

[nickys]

Doesn't upset me pre se as I'm not going to loose any sleep over it but where I'm in the financial position to buy direct, any questions I used to have regarding it was always met with a 'buy resale' answer.

I totally get why people buy resale and I would maybe consider it, and while using the points on cruise or elsewhere doesn't make financial sense, I'm sure enough people do it for the conviencence factor.

Maybe it's the break even point which is different from those in the U.K. When I look and even compare to a moderate, I find we can break even on 10 trips after a $20K or so outlay

Well if it helps, we bought direct. Back in 2010. Don't regret a thing either. We took a tour whilst on our first onsite stay, after being badgered to by our eldest DS (14 at the time). Had lunch at the Turf Club, had a wander around talking about it. Made a decision that day and went ahead and signed the paperwork.

We go every 3 years, using banking and borrowing. Works for us. Possibly going to rent out the rest of this year's points - due to the dates of our last trip and likely next.

We reckon the break even point will be around the 5th trip, based on how we use it. But we bought because of the 1 beds, so we have our privacy from the boys. It's nice we'll break even well before we stop going.

I do have one regret. I wish we'd bought our points as 2 separate deeds, so we could leave a smaller one to each of the boys. Ours may be too big a burden for one of them , with mfs rising etc. It may be we keep it on for them for a while and then sell, if neither wants it.

ETA - I'm a U.K. buyer too.

 

[jaklgreen]

So I finally bought in last year. I should have 20 years ago. We have been going annually(sometimes bi-annually) for the last 20+ years. And I know I want to keep going. So for me it makes sense, especially after doing the math. I bought the amount of points that I could easily afford and would get me pretty close to the length I like to stay. I have to say that I am using almost all of my first 3 years worth of points for my daughter and I to go to Aulani for a 2 week stay. OOP it would have been over 1/2 of my DVC costs. There is no way I would have been able to go to Aulani like that if it were not for DVC.

 

[Indy_UK]

Well if it helps, we bought direct. Back in 2010. Don't regret a thing either. We took a tour whilst on our first onsite stay, after being badgered to by our eldest DS (14 at the time). Had lunch at the Turf Club, had a wander around talking about it. Made a decision that day and went ahead and signed the paperwork.

We go every 3 years, using banking and borrowing. Works for us. Possibly going to rent out the rest of this year's points - due to the dates of our last trip and likely next.

We reckon the break even point will be around the 5th trip, based on how we use it. But we bought because of the 1 beds, so we have our privacy from the boys. It's nice we'll break even well before we stop going.

I do have one regret. I wish we'd bought our points as 2 separate deeds, so we could leave a smaller one to each of the boys. Ours may be too big a burden for one of them , with mfs rising etc. It may be we keep it on for them for a while and then sell, if neither wants it.

ETA - I'm a U.K. buyer too.

From what I've researched it certainly seems that the break even point is much sooner if you buy DVC but are from the UK and still able to go on a regular basis.

 

[nickys]

From what I've researched it certainly seems that the break even point is much sooner if you buy DVC but are from the UK and still able to go on a regular basis.

Well I guess that's because we go for longer at a time.

But IMO there's another factor, which doesn't always get considered.

If you stay in a studio, your comparison can be a room in a deluxe resort, (which could also be booked at a discounted rate at certain times of the year).

If however, like me, you stay in a larger villa, the only comparisons are 2 rooms at a resort or the cash rate for a villa. For 14 nights that's quite a lot!

 

[slappy magoo]

Doesn't upset me pre se as I'm not going to loose any sleep over it but where I'm in the financial position to buy direct, any questions I used to have regarding it was always met with a 'buy resale' answer.

OK, as has been said before, do what makes you happy. But if you're thinking about buying DVC points, and you only intend to use them on Disney trips at DVC resorts, and it makes financial sense to go resale...you can't really blame people for suggesting you think about resale. It's not like anyone's calling you poor, nor is anyone going to think less of you if you do buy direct.

When I bought, I didn't know about resale. Affording to buy direct wasn't a problem but had I known about resale I probably would have bought more points than I initially bought.

You might also want to consider splitting the difference, buying some points resale, and the minimum you have to buy direct to get all the perks and discounts available to people who buy direct.

 

[correcaminos]

Well I guess that's because we go for longer at a time.

But IMO there's another factor, which doesn't always get considered.

If you stay in a studio, your comparison can be a room in a deluxe resort, (which could also be booked at a discounted rate at certain times of the year).

If however, like me, you stay in a larger villa, the only comparisons are 2 rooms at a resort or the cash rate for a villa. For 14 nights that's quite a lot!

Try looking at the bungalow cost.

Made our direct add on at PVB seem like nothing when we looked at the cash price.

To me it's not about a 'break even point' any longer. We've been members so long we'll get our value out of it. For me it is the cost per point that makes me say go resale for most people. $220+ per point is ridiculous to me. The $180 range is high too. Our resale though was dirt cheap by comparison. Our add ons were direct and I don't think I'd add on direct again unless the numbers went right. With smaller contracts direct can be a wash in cost.

So again I don't look at break even points. I look at over all value. I still tell friends to look at resale vs direct unless they have a good reason. Wanting direct is a good enough reason to do it so I wouldn't worry what others think.

 

[Club Cooloholic]

I tried justifying this a few times but every time I look at the numbers, and the control over my vacations that I would be giving up, I could not justify it. I think if you bought many years ago when these first came up you came out ahead, but I think anymore there are few to no benefits of it. The biggest hindrance to me is that one, your not eligible for the discounts they are offering, not free dining etc. Second there are maintenance fees that seem to keep going up and up. Say you want to stay a week at the AKL. The fees for 150 points(seems to be an average that will give you around 7 nights in at least a studio equal to nearly 1000 a year. So it's 1000 plus the say 16,000 you paid just to buy in(and thats resale). I don't see how the math works as an advantage.

 

[dfisher9]

I tried justifying this a few times but every time I look at the numbers, and the control over my vacations that I would be giving up, I could not justify it. I think if you bought many years ago when these first came up you came out ahead, but I think anymore there are few to no benefits of it. The biggest hindrance to me is that one, your not eligible for the discounts they are offering, not free dining etc. Second there are maintenance fees that seem to keep going up and up. Say you want to stay a week at the AKL. The fees for 150 points(seems to be an average that will give you around 7 nights in at least a studio equal to nearly 1000 a year. So it's 1000 plus the say 16,000 you paid just to buy in(and thats resale). I don't see how the math works as an advantage.

For that 150 points, I'm assuming that means you are staying in a savannah view studio. If you go in value season for Disney hotels at the end of August, it is actually 123 points for a week in a savannah view studio, but we will use your 150 points. $16000 purchase price is $106 a point, which is a decent estimate.

Let's say you want to spend a week in a savannah view hotel room. The cheapest rack rate is $550, but let's say you get the 20% discount so it is $440 a night, which means you would be paying $3080 for the week. It's a little low since I didn't take into account the increase in weekend rates. $3080 is a savings of about $2066 off the annual dues of 1013.48 of 150 points. If you save $2066 every trip, that means you break even in your 8th year and start saving a lot of money after that. With ~40 years left on the contract, if you took that trip every year, you would come out ahead ~$66,000.

This math doesn't take into account increases in annual dues, but I'm assuming they go up at a similar rate as the hotel rack rates. Also, your break even point is a little lower if you drop it down to the 130 points you need for that time period (break even in year 7, with lifetime savings of $72,666).

 

[nickys]

I tried justifying this a few times but every time I look at the numbers, and the control over my vacations that I would be giving up, I could not justify it. I think if you bought many years ago when these first came up you came out ahead, but I think anymore there are few to no benefits of it. The biggest hindrance to me is that one, your not eligible for the discounts they are offering, not free dining etc. Second there are maintenance fees that seem to keep going up and up. Say you want to stay a week at the AKL. The fees for 150 points(seems to be an average that will give you around 7 nights in at least a studio equal to nearly 1000 a year. So it's 1000 plus the say 16,000 you paid just to buy in(and thats resale). I don't see how the math works as an advantage.

Well, very quickly, running with your example.

4th to 11th August, 7 nights at AKL. (Family of 4)

A standard view resort room is quoted as $2980

A DVC studio would be 139 points.

So if you go every year, and if the m/fs are indeed $1000, you're saving pretty much $2000 a year. So after 8 years, your investment of $1600 has now been "paid off", and you would have however many years left on your deed.

Free dining means paying rack rates. Or you get a discount of maybe 25% off. That makes it $2,250 for the week. So it'll take longer to reach that "break even" point.

If you skip a year, you could rent out those 150 points for $15/point giving you enough to cover the m/fs and $1000 towards another vacation.

Obviously this is very very simplistic!! This should not be taken as financial advice.

 

[nickys]

For that 150 points, I'm assuming that means you are staying in a savannah view studio. If you go in value season for Disney hotels at the end of August, it is actually 123 points for a week in a savannah view studio, but we will use your 150 points. $16000 purchase price is $106 a point, which is a decent estimate.

Let's say you want to spend a week in a savannah view hotel room. The cheapest rack rate is $550, but let's say you get the 20% discount so it is $440 a night, which means you would be paying $3080 for the week. It's a little low since I didn't take into account the increase in weekend rates. $3080 is a savings of about $2066 off the annual dues of 1013.48 of 150 points. If you save $2066 every trip, that means you break even in your 8th year and start saving a lot of money after that. With ~40 years left on the contract, if you took that trip every year, you would come out ahead ~$66,000.

This math doesn't take into account increases in annual dues, but I'm assuming they go up at a similar rate as the hotel rack rates. Also, your break even point is a little lower if you drop it down to the 130 points you need for that time period (break even in year 7, with lifetime savings of $72,666).

Haha! Both of us posting at the same time! And we even agree on the 8 years (I'm surprised, I was being very rough and ready).

 

[dreamfinder]

Second there are maintenance fees that seem to keep going up and up.

They do, but that is life. Those maintenance fees are tied by law to actual costs. And those costs are going to be reflected in the room costs as well. Buildings need a new roof? That's rolled into DVC dues, but also into room costs. Increase to benefits for front desk employees? Yeah, DVC and regular rooms both pay those. The good thing about DVC is other than a very small line item that goes to DVD for managing the resort, they can't raise rates on a whim. Star Wars Land wicked popular? Hotels might go up 5-10% to take advantage and increase profits, but DVC maint fees cannot.

That said, DVC isn't for everyone. Much like the DDP, if you don't travel in the manner that DVC prescribes, you won't come out ahead. Usually this means you prefer to stay at value or sometimes moderates, don't travel yearly, etc. It's a long haul cost savings. If it doesn't work for you, then it simply doesn't work.

And yes, there are many of us who say that under current costs, it isn't worth it. Much easier to break even when points were under $100 than when they are closer to $200. Although if the value/moderate/deluxe scheme goes out the window when Star Wars/gondola opens, who knows.

 

[Club Cooloholic]

Haha! Both of us posting at the same time! And we even agree on the 8 years (I'm surprised, I was being very rough and ready).

Well who ever pays rack rate? But then again I could rent the points and in your example I pay $1856 a week...suddenly the break even amount is higher, and again, your locked into Disney vacations, there is no recourse if the quality goes down. But maybe I am wrong, I am still considering it, and maybe you guys gave me some ammunition with my wife to get her to buy in, but how easy is it too book the weeks you want? For real any info on that would be awesome, how much time ahead do you have to do it etc...and I thought I read somewhere about being able to use it for DCL...is that something possible?

 

[nickys]

Well who ever pays rack rate? But then again I could rent the points and in your example I pay $1856 a week...suddenly the break even amount is higher, and again, your locked into Disney vacations, there is no recourse if the quality goes down. But maybe I am wrong, I am still considering it, and maybe you guys gave me some ammunition with my wife to get her to buy in, but how easy is it too book the weeks you want? For real any info on that would be awesome, how much time ahead do you have to do it etc...and I thought I read somewhere about being able to use it for DCL...is that something possible?

DVC works best for those who can plan at least 7 months ahead. If you buy where you will be happy staying, and don't buy "just enough" points for the cheapest room category, you can usually get what you want at the 11 month mark. Certain rooms at certain resorts book out right on the dot. And there are a lot of people now who only have enough points for a studio stay at low season, which is making it harder to book.

The days of being able to just make a last minute trip next weekend are numbered.

Renting points is great. Until of course you need to cancel. Unless you have insurance that will pay out, you can't change your dates because the flights don't work out, DD has an important sports competition, Gran takes ill.

If you buy direct you can use points for DCL and non-DVC resorts. But you would be far, far better renting your points out and paying cash.

 

[correcaminos]

Well who ever pays rack rate? But then again I could rent the points and in your example I pay $1856 a week...suddenly the break even amount is higher, and again, your locked into Disney vacations, there is no recourse if the quality goes down. But maybe I am wrong, I am still considering it, and maybe you guys gave me some ammunition with my wife to get her to buy in, but how easy is it too book the weeks you want? For real any info on that would be awesome, how much time ahead do you have to do it etc...and I thought I read somewhere about being able to use it for DCL...is that something possible?

When I purchased I used discount room rates and still came out ahead after 5-6 years.

Granted that was a purchase in 2004 when DVC was in the $60s per point resale.

We often plan between 5-7 months, if not 11 months if we know we want to go 'home' again. We usually book 2 bedrooms though which are easier to book than studios. We have little issues finding good room.

The 1 bedrooms and larger are amazing. Really hard to go back to a standard room once you do that.

 

[Club Cooloholic]

When I purchased I used discount room rates and still came out ahead after 5-6 years.

Granted that was a purchase in 2004 when DVC was in the $60s per point resale.

We often plan between 5-7 months, if not 11 months if we know we want to go 'home' again. We usually book 2 bedrooms though which are easier to book than studios. We have little issues finding good room.

The 1 bedrooms and larger are amazing. Really hard to go back to a standard room once you do that.

This may be an online forum first, but I have been swayed! Seriously looking into it. Few questions, how important is picking the bright home resort. If say I went Saratoga cause it cheaper per point, can I use those points for say all? what are the restrictions?