DVC pros & cons

[tercon57]

Hi folks,

Can anyone tell me the advantages of joining DVC over just making reservations at any of the other resorts? It will be our 11th trip in November and we were wondering if it would not be more beneficial to get into DVC.

Any info would be appreciated- Thanks

 

[disneydentist]

Originally posted by tercon57
Hi folks,

Can anyone tell me the advantages of joining DVC over just making reservations at any of the other resorts? It will be our 11th trip in November and we were wondering if it would not be more beneficial to get into DVC.

Any info would be appreciated- Thanks

Your profile says your favorite resort is All-Stars. Something that's been omitted in the thread is where you prefer to stay. The value of DVC changes when you don't compare apples to apples (deluxe to deluxe). Just something else for you to think about. For us a discounted moderate is plenty of room. We've done the deluxes and they are great but we only sleep and shower in the room. That being said, we're obviously not DVC members. Now, if only Disney would keep giving us discount codes to make the moderates an even better deal.

 

[Disneyfalcon]

One more question:
In the widwig article it said you could use your points to stay at other disney resorts as well. In other words, not just the DVC locations. Does that work out to be an okay deal, or do you overpay on points?
See, my hesitation is (well besides the up front cost) I like a variety of resorts and hate to be locked into three or four DVC resorts.

 

[tercon57]

disneydentist, you are right. Our last 4 visits have been to All-Stars. Before the kids, we chose moderate resorts. All-Stars are less expensive and the kids love it there. We do not spend much time in the room at all. As the kids get older, our needs will change. We need to take all this into consideration.

I am so impressed with all this math; it may take a while to digest it all. (I was an english major)

 

[Yellow Shoes]

I don't have the figures, but using DVC points for regular resort rooms (i.e., at the GF or Poly) is VERY expensive. It is not a wise use of points (IMHO)

 

[GalacticGobbler]

Don't forget, when you are talking about rates that DVC members do not pay room tax on their stays. Not sure how much that is but probably at least 15%.

Also, if you have read the note on mousesavers, the big post 9/11 discounts are going to be less frequent. So here come the rates, back up closer to rack rate.

 

[TURKEY]

Originally posted by GalacticGobbler
Don't forget, when you are talking about rates that DVC members do not pay room tax on their stays. Not sure how much that is but probably at least 15%.

Tax is 11%.

 

[RickEff]

Some friends of mine bought 300 some odd points at Boardwalk years ago. Each year they rent enough points that it covers their annual dues. It's an interesting way of doing it if you have the upfront cash.

Me? I don't <g>

 

[Woody13]

Originally posted by turkey leg boy
Tax is 11%.

That's true for all WDW resorts except for the All-Stars which is 12% tax!

 

[Zurg]

So it seems that with taxes at 11% being excluded it should cover some of the discount possibilities that may or may not be availiable. Yeah the are bigger now but the mouse is said to be trying to cut back so.....

 

[Disneyfalcon]

Ok I lied, one more question:

RickEff, what did you mean by renting points? Why would people pay more then the annual finance charge for points?

Oh yes and I agree, stunning amount of math in the above posts.

Thanks for the info!

 

[Rashba9]

This is great, you all have really thought this through. However, I used to teach a class on vacationing at WDW so I have talked to a lot of people. My findings are the following: most people (over 80%) would like to stay on grounds but prefer not to pay more than the cost of a moderate hotel to do so. Also the majority, even though on vacation and perhaps spending more money than they normally would, have no problem eating from a cooler or a rented refrigerator in their room for most of their meals and would eat out only one meal per day whether they were staying in accommodations with a kitchen or not! With these facts in mind, I find it hard to rationalize the cost of a DVC membership compared to the average cost moderate accommodations + 11% tax = approximately $200.00 per night plus $10.00 per night for a refrigerator = $210.00; for one week = $1470.00 compared to the cost of financing and paying annual dues for a couple of hundred DVC points = over $2,000.00 per year!!! I do understand we are somewhat comparing “apples to oranges” or “moderate to deluxe” in this case… but take the cost of a room at the Beach Club…. Most times of the year one can stay in this room for under $300/night. Do the math, this is the same cost as a DVC membership, without the obligation and contract. At or near the end of the contract, both will be worthless!

Don't get me wrong, I love staying in deluxe accommodations as much as anyone else but it is difficult to rationalize the cost difference after adding transportation to the area and the cost of ticket media!

Please comment I would love to hear your opinions!

 

[Zurg]

Well yes it is about a break even staying in a moderate with taxes and a fridge vs. dvc studio.

Infact it is abot a NPV of 400 less in the ten year model, unless I adjust the model for the extra points tehn DVC is about 10% lower NPV.

The real issue is are you going to go to WDW regularly and for the price of moderate want deluxe.

I got to go the CPU in my PC is overheating from all the math.

 

[mickeyfanatics]

Originally posted by Woody13
That's true for all WDW resorts except for the All-Stars which is 12% tax!

Not to burst anyone's bubble, but I have been a Florida resident all of my life and the hotel tax is 11%, however, you have forgotten to include the state sales tax and Orange county taxes of 7%, brining your grand total to 18%. Check you bill, you will pay 18% in tax on your room. With DVC, it is not there. Oh, I am staying at the Disneyland resort for the second time in March and paying almost nothing for it.

 

[Woody13]

Originally posted by mickeyfanatics
Not to burst anyone's bubble, but I have been a Florida resident all of my life and the hotel tax is 11%, however, you have forgotten to include the state sales tax and Orange county taxes of 7%, brining your grand total to 18%. Check you bill, you will pay 18% in tax on your room. With DVC, it is not there. Oh, I am staying at the Disneyland resort for the second time in March and paying almost nothing for it.

Sorry, but the sales tax rate is included in the overall rate. You need to look at your bill more closely. If you paid 18% then you were a victim of fraud. See this link for details:

http://www.mouseplanet.com/dtp/wdwguide/3_Tripplan/budgeting/taxes.htm

P.S. With the DVC you pay plenty of tax via the yearly maintenance fee.

 

[nikechic]

Originally posted by RickEff
It's important to compare apples to apples when looking into DVC.

Let's break this down. I'll use Boardwalk as the example. Let's assume you're going to stay two weeks at WDW. Seven nights in Value season, and seven nights in Peak season.

DVC: Value Season week - 85 points. Peak Season week - 111 points. That totals 196 points. Let's round that up to 200 points.

200 points of DVC will cost you: $17,800 points of initial fees (based on $89 / point. You can buy from current members for less if you do some research!)

Annual fees are about $4.00 per point. (I think it's less at Boardwalk, but I couldn't find out for sure) So - 200 x $4 is $800 annually.

$800 x 39 years left at DVC is $31,200 . Add that to your initial purchase price, DVC costs $49,000 for its lifetime.

Now - let's compare staying at Boardwalk during the same periods. Let's assume you're an annual passholder and are getting 45% off.

A week at Boardwalk Inn during value season would cost $1,240 . A week during Peak Season would cost $1691.20 . Total cost per year is $2931.20 . Multiply that by 39 years and you get $114,316.80 .

(fees above based on 2003 rates. Included in fees is a 45% discount. 11.5% tax is added.)

So - as a DVC member you would save $65,316.80 .

As for the argument that DVC annual fees go up, they don't go up any more than resort rates historically have. As a matter of fact between 1999 and 2000, they went down.

Do remember - you do not get room service. So if that's important to you, then DVC may not be for you.

Plus if you wanted to, you can go tons of other places in the country by using there trading system. I have been to California, Vegas, Arizona, Utah, Colorado all on points trade. And with Disney they are very picky so you will always stay at top resorts throughout the country. Ever wanted to stay a night at the Plaza Hotel in NYC you can trade points for that.
Also I like the advantage of having a kitchen and hot tub right in your room. We save a ton of money eating breakfast in the room.
Also someone said you don't get mousekeeping. You do but it is not everyday. I don't think it is a big deal. But some people like to have a fresh set of sheets on their bed everyday.

 

[MJL]

Yikes

A appreciate all of the math done to justify both sides of the DVC argument.

With this being said, I just dont like the idea of paying upfront for vacations I 'might' be taking in the year 2031??????? I just dont see the point in committing so far in advance. What is Disney going to look like by that time? On the face of it, it seems to make much much more sense to not "commit" to such as an unknown quantity such as vacation habits 20 years from now. Plus, wouldnt you DVC members like to stay at the Poly or Grand Floridian once in a while and live it up at a monorail resort?

Also something I havent heard any of the DVC advocates compare is "what is the cost of renting points" from an existing DVC member from now until a DVC ownership agreement would expire. It seems rather easy to to rent points nowadays for around $6-800 for a whole week in value season, roughly equal to the cost of the "dues" DVC members pay each year just to keep their investment.

 

[WDWDave]

I cant belive that I am posting a reply to this ridiculous thread.

I have read two calculations one where the person says DVC members save money.

And woody's who says if you "tied" up your cash in "safe" investments. You'd be loaded with cash in the year 3550 (Yah!!)

You dumb azzhles (go ahead steve ban me from the site I don't care any more.)

None of you even once ask the question what will a hotel room at WDW cost in the year 2040?

It just might cost $10,000 a week to stay at any of the DVC resorts in the 2030. Maybe it will cost $15,000 a week to stay in a DVC resort in 2040.

If you can't understand the value of a DVC membership than you might want to think about checking yourself into a mental hospital. Because you do not have a brain that works anymore and your stupidity is a danger to yourself and the rest of the world

Here's what I do know I used to go once a year before buying a DVC pacakage. Now I go 3 times a year. The dues & the season passes for park admission are less annually than I was paying for the one trip per year.

That means for less money out of pocket every year I go 2 extra times for free.

Now go ahead anti DVC rocket scientist. How many years of getting two free trips (Hotel & Parks Tix included) will it take me before I make my initial investment back?

I don't give a rat's azz about taxes, tips to the valet, the cost a freakin box of popcorn or the some state's municiple bonds. If you are against Disney's DVC stay away from the park.

This site has become very young and argumentative of late, it's a pity.

Do not reply directly to me I DO NOT WANT TO HEAR WHAT YOU CHILDREN HAVE TO SAY.

 

[Zurg]

Re: Yikes

Originally posted by MJL
I just dont like the idea of paying upfront for vacations I 'might' be taking in ...

... easy to to rent points nowadays...

That fine.

The price of and availability of rentals and or hotel rooms may well change but that is a choice you make.

I think the expression is your milage may vary.

You are adverse to the risk of paying upfront for something you may not want later. Only you can judge the utility or lack of it to you of locking in the price.

That is why there are other options. Numbers are numbers - the first assumption I made was it was something I exected to want over time. If not well then skip the numbers.

 

[MJL]

WDWDave

Dave, its you that needs to grow up. If you really believe what you are saying then Disney Corp. must LOVE flushing their own money down the toilet (when they could be getting $10,000 per week for their resort rooms in not too distant future).

Go ahead, pay for your Summer 2025 vacation now .... smart move man.

 

[goofyman]

I did not want to get into this as well but, yes DVC is not for everyone, we purchased 2 years ago and wish we had sooner. It's NOT about going to Disney every year you can go anywhere in the WORLD. Your vacation is paid for for years to come. That comes in handy in the event you don't have the $$ at the time or your "safe" investments don't pan out! You most look at it from your own side not everyone here. Everything is not for everyone. For us this is a great investment it may not be for you. But look at at as a vaction that is payed for each year. We went to Hawaii with ours and stayed at a $ 450 a night resort, DISCOUNTED PRICE! so look at everything any make the choce for you! we love it and so do Many many others...:hammer: