Interested but lots of questions

[Jessica Meier]

I am interested in purchasing, but have lots of questions.

1. Which locations are available for purchase?
2. What additional fees are involved other than purchase price?
3. What locations can you use outside of WDW Resort?
4. Are the points transferrable to children via will?
5. If you do not pay outright and borrow money to purchase (not saying we will) what are the current interest rates?

Just some of the questions I have...

 

[LuvtheGoof]

I am interested in purchasing, but have lots of questions.

1. Which locations are available for purchase?
2. What additional fees are involved other than purchase price?
3. What locations can you use outside of WDW Resort?
4. Are the points transferrable to children via will?
5. If you do not pay outright and borrow money to purchase (not saying we will) what are the current interest rates?

Just some of the questions I have...

1. Disney is actively selling both Animal Kingdom Lodge-Kidani Village and Aulani, but you can request points for any DVC resort. You would simply be put on a waiting list, and when the points are available, your guide would let you know. If you buy via the resale market, all properties are available.

2. If you buy direct from Disney, I do not believe that there are additional costs. Via resale, there are closing costs depending on the cost of the contract.

3. DVC has properties at the Grand Californian at Disneyland, Aulani in Hawaii, Vero Beach on the Florida Atlantic Coast, and Hilton Head in South Carolina. They also allow you to use your points (though at a MUCH higher per night rate!) at pretty much all Disney owned properties at WDW and DL for a flat $95 fee. You can also use points bought directly from Disney for Disney cruises and Adventures by Disney, if you buy direct from Disney. Resale purchases no longer have this option. There is also the option to exchange your points into RCI for properties around the world, also with the $95 fee. This exchange is available for everyone.

4. Yes!

5. I believe that the current rates are 9% - 17% depending on credit.

 

[Jessica Meier]

Thank you! I guess my next question would be is how hard are Bay Lake Tower points to come by and does it matter where you buy in? You can stay at any just have an earlier advantage at your home resort, correct?

 

[LuvtheGoof]

The advice is always to buy where you want to stay. I don't believe that BLT is completely sold out yet when buying direct. Of course, there are always resales. The resort you buy at becomes your "home" resort, and you have a booking window starting at 11 months. At all other resorts, you have to wait until 7 months out. During some periods (Food & Wine for example), BCV and BWV will be taken by the members who own there near the 11 month mark, pretty much shutting out anyone else. It really depends on when you go. There are lots of times that all of the resorts are available at 7 months, if you call right at the 7 month window. We own at SSR (where we have stayed multiple times, including twice at the Treehouses), but have stayed at OKW, AKL, BWV, and the VGC, all at the 7 month window during different times of the year. We have BCV, VWL, and BLT left to try, and will some day.

 

[GoofGoof]

Thank you! I guess my next question would be is how hard are Bay Lake Tower points to come by and does it matter where you buy in? You can stay at any just have an earlier advantage at your home resort, correct?

Current direct price for BLT is $165. On the resale market you can probably get them for in the $90s. If you don't plan on using your points for cruises or staying in regular Disney hotel rooms You can save a lot buying resale. I bought 160 points at BLT a few years back and my closing costs were about $500. You could also make an offer to a seller and ask them to pay all of your closing costs if you choose. I used Timeshare Store and had a very positive experience, but there are others out there too if you do a quick search.

When considering which resort to buy you have to factor in when you want to go and where you want to stay. If you are flexible with where you want to stay it is less of an issue than if you really prefer a certain resort. Also, time of year factors in. If you frequently go during busy times (Christmas week, spring break, summer) it may matter more. If you want to go during food and wine in October and stay at BWV or BCV you better be an owner there. After factoring in where you want to stay something else to consider is maintenance fees. BLT and SSR both have significantly lower fees than say BWV. You may be able to get the points for $30 cheaper on the resale market, but if the dues stay consistently $1+ more over the 30 years left on your BWV contract you will end up paying more actual dollars. The newer resorts also have longer contracts if you are looking to pass the deed on to your family.

IMHO, if you want to save the most upfront, buying at SSR resale for somewhere in the $60s makes the most sense. The dues are low and you can roll the dice on trading in. If you definitely want to stay at BLT a lot of the time than buy there and avoid the hassle and stress of trying to trade in to get what you want at 7 months. That's what we ended up doing.

If you want to finance if you have a house and can get a home equity loan that is your best bet. You can get a rate less than 3% compared to the outrageous rates offered at 9 to 18%. That's higher than a lot of credit cards. Either way the interest on the loan should be tax deductible assuming you don't already own a vacation home.

 

[dreamfinder]

1. Which locations are available for purchase?
2. What additional fees are involved other than purchase price?
3. What locations can you use outside of WDW Resort?
4. Are the points transferrable to children via will?
5. If you do not pay outright and borrow money to purchase (not saying we will) what are the current interest rates?

1) As mentioned, they are pushing AKL and Aulani, but will usually try to accommodate your request for an older resort. By all account, GF will go in the market sometime this year as well, however that is expected to cost more, more to buy per point, as well as points per stay.
2) Outside the inital purchase, possibly closing costs if you buy resale, but then you need to pay the yearly dues. Currently somewhere in the neighborhood of $5-6 per point, but will most likely go up each year, and varies from resort to resort based on need and amenities.
3) If you buy direct from Disney you can trade your points for vacations at the Concierge Collection, the Disney Collection, and the Adventurer Collection. This basically lets you use your points at high end hotels that don't do timeshare, at non DVC resorts at WDW, Adventures by Disney, and the Disney Cruise line. If you buy resale, you can only use your points at DVC, RCI, Intrawest, etc.
4) Yes.
5) Depends on where you borrow from. But timeshare interest rates are going to be a fair bit higher than home mortgage rates due to the fact that most banks don't see any resale value in the timeshares. (Look at how many people are practically giving away) This is despite the fact that DVC does have a thriving resale market.

If you do buy resale, think about how you want to actually use it. Prime locations at prime times are hard to get for non owners due to the 4 month head start owners get. If you simply want to be on property, then it's no big deal. But if you must stay at a certain resort, then you will be better off to buy at that resort to ensure you get availability.

 

[WWWD]

I second buy where you want to stay. Remember, DVC occupancy and busy times for parks do not always align. DVC'ers, being more Disney savvy than the average guest, will tend to avoid the most busy times of year for the parks. And, they will go when they can get more bang for their points - point charts will tell you the dates of the different seasons. So make sure you take these into consideration, especially if you go during a specific time every year.

 

[disneyeater]

Buy where you wouldn't mind staying.

Buy resale.

 

[Phonedave]

Buy where you wouldn't mind staying.

Buy resale.

I like that idea better than "buy where you want to stay".

I WANT to stay at VWL and BWV almost all of the time. However I in no way mind staying at SSR (where I own) and it does not spoil my trip in any way to be there.

What I do enjoy is the lower purchase price and lower dues I pay.


-dave

 

[Mr.Skunkape]

Most important thing is to be 100% sure that this is what you want before you purchase it.

 

[goodanu]

Buy where you wouldn't mind staying.

Buy resale.

We were able to get BCV at seven months for fourth of July. We are SSR owners for two years and have yet to stay there. We probably won't stay there unless it is our last choice. It also helps we are flexible with our travel dates.

 

[PineapplePrincess]

I see that many people are advising you to buy where you want to stay. I can only speak from my own experience, and so far we have been able to book non-home resorts in July for two years.
We purchased a resale contract for Old Key West through the Timeshare Store. Had a great experience with them by the way.
Two months after purchasing, we took a weekend trip end of Nov/beginning of December. We stayed at Old Key West, but Saratoga Springs was also available on short notice.
Last summer, I was able to book a weekend in July for a Club Level Studio at AKV Jambo House, and the rest of our trip at Beach Club.
This summer, we will be staying eight nights at Bay Lake Towers and three nights at Vero Beach.
We plan to try a different DVC resort each summer, but if we can't get in where we want, we don't mind staying at Old Key West.
It's a tough decision and I'm sure you will get a lot of conflicting advice. My advice is, do a lot of research, so you know exactly what you want.
Good Luck!!

 

[DryCreek]

OK, I am also (slightly) interested in learning more about DVC. We tend to visit Disney properties about every three years, so this may or may not be something that would interest me.

1. - How many points would I need to purchase to be able to stay at one of the DVC properties? Now, keep in mind that I would be banking points two out of every three years, so maybe I could get by only purchasing the minimum number of points? We would also not be staying over 7 days at most (have cattle that cannot go much longer without our attention). Our Disneyland trips are about 4 days too.

2. - One of the most important perks of staying onsite at WDW is the DME. Does a DVC stay qualify you to use DME from MCO to your resort? I don't like to rent vehicles while on vacation. I drive enough at home as it is. I assume that the standard WDW Transportation services are available for your use while there - i.e. buses to the parks or DTD, and sometimes watercraft where appropriate?

3. - "Level of Property". I see here that the DVC properties are probably best compared to Disney Deluxe lodging. In what way would you say that they are comparable to the deluxes? Other than using Fort Wilderness for when we lived on the East Coast and pulled our RV down to stay on site, we have only stayed at moderates since then (POR/POFQ). So, which deluxe is most like the DVC properties? AKL, GF, Contemporary, Poly, WL?

4. - Describe the DVC rooms. I see mention of kitchens and laundry. Is that a washer/dryer for each room? Do all of the DVC offerings have those amenities?

5. - What is the least expensive way to "get into" the DVC? We are empty-nesters now, so a single bedroom would probably suffice for most of our trips. Infrequently we travel to WDW with my wife's folks, so we may need to rent extra points or something for those rare occasions. I am a firm believer in purchasing resale when it comes to timeshare. It is a no-brainer when you put pencil to paper. In this case though, I see mention that some of the folks buying into DVC through resales won't get some of the other privileges offered to those who purchased directly from Disney. I might be interested in using our points at the GC at Disneyland every now and then.

6. - Cash offers for resale points - will that help to lower the price? We don't intend to ever finance anything for the rest of our lives. All paid off now, and we intend to stay that way.

7. - Expiration dates? Did I read that right? Your contract will expire on so many years after the property was first sold? Which properties have the least amount of time left, and how does that affect your purchase decision? I know that it darned well better have an affect on sales price!

8. - Any other perks I should know about? Discounted park tickets? Discounts on meal plans? Towel animals? Smiles from CM's? Anything?

So, given all of these questions, I have yet to decide if the DVC plan would be a good fit for us. I am a huge Disney fan. The wife? Not so much. She only tolerates a visit to "The Land" or "The World" when I get pouty after a three year withdrawal. The rest of our vacations are generally to destinations and we bring our RV (Grand Canyon, Lousiana,NM, OK, etc.). We may even return to Hawaii some day, so the Aluani resort may play into that decision on DVC.

 

[dreamfinder]

1. - How many points would I need to purchase to be able to stay at one of the DVC properties? Now, keep in mind that I would be banking points two out of every three years, so maybe I could get by only purchasing the minimum number of points? We would also not be staying over 7 days at most (have cattle that cannot go much longer without our attention). Our Disneyland trips are about 4 days too.

I think the cheapest a single night gets is 9 points for a studio in slow season, and might be as expensive as 206 points for a 3 BR during Christmas. So the points needed will vary dramatically.

2. - One of the most important perks of staying onsite at WDW is the DME. Does a DVC stay qualify you to use DME from MCO to your resort? I don't like to rent vehicles while on vacation. I drive enough at home as it is. I assume that the standard WDW Transportation services are available for your use while there - i.e. buses to the parks or DTD, and sometimes watercraft where appropriate?

You can use DME, along with any other WDW transportation services available to guests.

3. - "Level of Property". I see here that the DVC properties are probably best compared to Disney Deluxe lodging. In what way would you say that they are comparable to the deluxes? Other than using Fort Wilderness for when we lived on the East Coast and pulled our RV down to stay on site, we have only stayed at moderates since then (POR/POFQ). So, which deluxe is most like the DVC properties? AKL, GF, Contemporary, Poly, WL?

AKL, WL, and Contemporary all have existing DVC units, GF is expected to open within a year, and Poly is rumored to be building one within a few years. SSR and OKW are a bit different in their layout, but offer similar ammenities.

4. - Describe the DVC rooms. I see mention of kitchens and laundry. Is that a washer/dryer for each room? Do all of the DVC offerings have those amenities?

If you are a DVC owner staying on points, you can do laundry for free. Studios would need to go to a common laundry area, other units have them in room. Studios have a kitchenette (mini fridge, microwave, sink, etc) while the other units have a full kitchen.

5. - What is the least expensive way to "get into" the DVC? We are empty-nesters now, so a single bedroom would probably suffice for most of our trips. Infrequently we travel to WDW with my wife's folks, so we may need to rent extra points or something for those rare occasions. I am a firm believer in purchasing resale when it comes to timeshare. It is a no-brainer when you put pencil to paper. In this case though, I see mention that some of the folks buying into DVC through resales won't get some of the other privileges offered to those who purchased directly from Disney. I might be interested in using our points at the GC at Disneyland every now and then.

As of now, you can definitely use resale points at VGC. Any DVC location is fair game. However, VGC are very tough to get into due to their very limited number.

6. - Cash offers for resale points - will that help to lower the price? We don't intend to ever finance anything for the rest of our lives. All paid off now, and we intend to stay that way.

Depends on the seller. Some may knock something off the cost, or pay closing if they know you can pay them as soon as the contract is signed, but I don't know if most will care that much.

7. - Expiration dates? Did I read that right? Your contract will expire on so many years after the property was first sold? Which properties have the least amount of time left, and how does that affect your purchase decision? I know that it darned well better have an affect on sales price!

Most of them expire roughly 50 years after the resort opened. OKW was the first, so some of those expire in 2042, but some owners bought a 15 year extension. Any resale contract should state which expiration date it has. BLT expires in 2060 Aulani in 2062. The others are somewhere in between. If the GF DVC does open this year, those will prob expire in 2064.

Even the shortest contracts sill have 29 years left on them. 30 years of vacations is alot of time. Most people plan on breaking even by year 15 at the latest, so beyond that is gravy. They will affect sales price somewhat, but since they are uniform with a given property, it mostly comes down to demand for a given resort.

8. - Any other perks I should know about? Discounted park tickets? Discounts on meal plans? Towel animals? Smiles from CM's? Anything?

The ability to spend money on some DVC exclusive merchandise? There are discounts offered on somethings, but are subject to change and really shouldn't be taken into financial talks. You can buy the DDP without having to buy tickets if you are a DVC owner, but it will be at full price.

Check out a site like dvcnews.com to get more specifics. They have pictures, and lots of details about owning.

 

[DryCreek]

Well, thanks to all who have replied already. I was poking around on a few sites and found some 50 point contract offerings at reasonable pricing. By reasonable, I mean between $50 and $65 per point.

So, OKW, where I see the best prices offered for points, is more like a moderate in comparison? I also used the point calculator in the FAQ/Wiki post near the top and I see that if I bank points for three years, I can easily get a studio during the dates we normally travel (February to early March). Can I bank points for three years? It seems that most discussion here are about banking points over a two year period. I have also seen mention of points "expiring". What is the story on that? I think that it would be reasonable to say that (based on past history) we will be visiting a Disney park every three years. That is about the shortest cycle that I can convince the wife to buy into. As long as they keep adding reasons to go (i.e. park additions such as Carsland/Buena Vista Street and New Fantasyland), I can make the case for a trip to satisfy my need for a Disney fix.

I also seem to remember running across a chart showing the current maintenance fee breakdown per point based on home site selection. Anyone care to point that out again? My Google-Fu is weak today.

It's good that I would be allowed to use DME - otherwise it would be a deal breaker for me!

OK, once I have obtained points, what do I do to use them for a stay? Is there some kind of "booking fee" or any other costs associated with a DVC stay? That is information I need to see if there is ever going to be at least a break-even point for purchase under my circumstances.

Sample:
Buy 50 points OKW at $60 per point $3,000
Annual Maintenance Fees $ 275 (estimated at $5.50 per point)
Booking fees? $ 60 (guess)

Hmmm, just looking at paying the maintenance fees of $875 over the three years alone would just about equal the cost of a moderate standard-view two queen room, wouldn't it? If you amortize the cost of the points purchase over 20 years too, that is only $150 per year, but if you only use the points every three years, that's another $450 to add in to the maintenance fees.

I'm starting to get the feeling that maybe DVC isn't a good fit for me. Honestly, if it were up to me, I would visit WDW or DL once a year in February, and then plan a "destination" vacation for the DW every fall.

 

[GoofGoof]

Well, thanks to all who have replied already. I was poking around on a few sites and found some 50 point contract offerings at reasonable pricing. By reasonable, I mean between $50 and $65 per point.

So, OKW, where I see the best prices offered for points, is more like a moderate in comparison? I also used the point calculator in the FAQ/Wiki post near the top and I see that if I bank points for three years, I can easily get a studio during the dates we normally travel (February to early March). Can I bank points for three years? It seems that most discussion here are about banking points over a two year period. I have also seen mention of points "expiring". What is the story on that? I think that it would be reasonable to say that (based on past history) we will be visiting a Disney park every three years. That is about the shortest cycle that I can convince the wife to buy into. As long as they keep adding reasons to go (i.e. park additions such as Carsland/Buena Vista Street and New Fantasyland), I can make the case for a trip to satisfy my need for a Disney fix.

You can bank this year's points into next year. If you have 50 points for 2012 you can bank them to 2013. In 2013 you would have 100 points to use (50 from 2012 and 50 from 2013). Next you can borrow your 50 points for 2014 points in 2013. Now you have 150 points to spend in 2013. In 2015 you start all over again and end up with 150 points in 2016.

I also seem to remember running across a chart showing the current maintenance fee breakdown per point based on home site selection. Anyone care to point that out again? My Google-Fu is weak today.

http://www.resalesdvc.com/DVC_2013_Point_Charts/page_2489184.html

OK, once I have obtained points, what do I do to use them for a stay? Is there some kind of "booking fee" or any other costs associated with a DVC stay? That is information I need to see if there is ever going to be at least a break-even point for purchase under my circumstances.

Sample:
Buy 50 points OKW at $60 per point $3,000
Annual Maintenance Fees $ 275 (estimated at $5.50 per point)
Booking fees? $ 60 (guess)

Hmmm, just looking at paying the maintenance fees of $875 over the three years alone would just about equal the cost of a moderate standard-view two queen room, wouldn't it? If you amortize the cost of the points purchase over 20 years too, that is only $150 per year, but if you only use the points every three years, that's another $450 to add in to the maintenance fees.

I'm starting to get the feeling that maybe DVC isn't a good fit for me. Honestly, if it were up to me, I would visit WDW or DL once a year in February, and then plan a "destination" vacation for the DW every fall.

You can book rooms and bank and borrow points online at the DVC member page or by phone. There is no charge to use your points. If you trade in your points to use outside of Disney with RCI there is a fee - $85 I think.

The fees go up each year too. It wouldn't be $275 each year. Average is around 3.2% increase a year. The rack rate for a week in the cheapest room at Coronado Springs in May is about $1,700 after the 12.5% tax. A studio at OKW for a week in May is 99 points. You could get a Lake View studio at Bay Lake Tower for 141 points. The rack rate for the cheapest room at the Contemporary for a week in May is about $3,500 after tax. Discounts are always offered so you wouldn't be paying rack rates.

Lastly, you don't have to stay at your home resort. If you buy at OKW you can book there up to 11 months out. You can book any other DVC resort at the 7 month window.

 

[dreamfinder]

So, OKW, where I see the best prices offered for points, is more like a moderate in comparison? I also used the point calculator in the FAQ/Wiki post near the top and I see that if I bank points for three years, I can easily get a studio during the dates we normally travel (February to early March). Can I bank points for three years? It seems that most discussion here are about banking points over a two year period. I have also seen mention of points "expiring". What is the story on that? I think that it would be reasonable to say that (based on past history) we will be visiting a Disney park every three years. That is about the shortest cycle that I can convince the wife to buy into. As long as they keep adding reasons to go (i.e. park additions such as Carsland/Buena Vista Street and New Fantasyland), I can make the case for a trip to satisfy my need for a Disney fix.

The only way I would compare OKW to a moderate is in the layout of the resort. Since it is more spread out like the mods are. The in room amenities are the same as any other DVC resort.

You can only bank a given point once. So you could bank your 2014 points to use in 2015. You an also borrow a given point once. So you could borrow your 2016 points to also use in 2015. Giving you 3 years worth of points to use in a single year. You could then bank your 2017, and borrow your 2019 to go again in 2018. Etc.

OK, once I have obtained points, what do I do to use them for a stay? Is there some kind of "booking fee" or any other costs associated with a DVC stay? That is information I need to see if there is ever going to be at least a break-even point for purchase under my circumstances.

You just either call and book, or go online and book. No other fees associated with the stay, beyond what you need. Tickets, airfare, food, etc.

Sample:
Buy 50 points OKW at $60 per point $3,000
Annual Maintenance Fees $ 275 (estimated at $5.50 per point)
Booking fees? $ 60 (guess)

Hmmm, just looking at paying the maintenance fees of $875 over the three years alone would just about equal the cost of a moderate standard-view two queen room, wouldn't it? If you amortize the cost of the points purchase over 20 years too, that is only $150 per year, but if you only use the points every three years, that's another $450 to add in to the maintenance fees.

I'm starting to get the feeling that maybe DVC isn't a good fit for me. Honestly, if it were up to me, I would visit WDW or DL once a year in February, and then plan a "destination" vacation for the DW every fall.

Those aren't necessarily the best numbers. So if you travel to WDW in February, lets say the 3rd-9th of 2013. I know this already passed, but we can use the existing rates. A standard view room at CSR is $167/$182 weekday/weekend, so $1199. Now staying at OKW in a studio this same time, would cost you 99 points. Using your est. fees, that would be $544.5 in dues, plus $300 in your amortized purchase cost. So $844.50, or a savings of $354.50 over a moderate. That would require a 30% discount on your CSR stay to match the DVC price, but mods have been stuck at like 15-20% lately, and then you need to add room tax. So unless you got a better than 30% room discount, DVC should come out slightly ahead.

Now an OKW 1 BR requires 199 points for those same dates, which won't work with your 50 point purchase as IIRC you are capped at "buying" 20 one time use points each year.

 

[disneyeater]

OKW is no moderate. It has the largest rooms of any DVC.

 

[Phonedave]

50 points is a very small contract. I know you are thinking it is enough for a studio once every three years, and it is. However it leaves you almost no wiggle room if you wanted to do something different. If you wanted to go up to a 1BR for example, it is not as if you could put the trip off for another year and save the points (because of the way points expire). Your only option would be to buy one time use points from Disney.

The other thing to consider is that on the resale market smaller point contracts cost more per point than larger ones. Smaller point contracts are very desireable for people who have a contract and find themselves wanting to add a few more points.

You may be better served by looking a a slightly higer point range - around 80 - 100 if you can find one. It gives you a bit more flexibility as to how you can bank and borrow and "upgrade" the room or resort every so often.

-dave

 

[GoofGoof]

OKW is no moderate. It has the largest rooms of any DVC.

I would agree its a higher level than a moderate, but not quite on par with the deluxe resorts. The layouts of SSR and OKW makes getting around less convenient. All of the deluxe resorts other than AKL have non-bus transportation to at least 1 park, plus the buses are less crowded since the resorts are smaller. Unless you spend a lot of time at DTD you don't get that with SSR and OKW. The restaurant options are also lacking compared to the EPCOT resorts or the monorail resorts. The rooms and pools are probably on par or in some cases better. I think the reason someone would compare them to a moderate vs a deluxe is size of resort and convenience as opposed to lesser quality rooms.