New DVC at Grand Floridian...

[Main Street USA]

I only paid 10k for my dvc. After a couple of years of trips then it becomes me getting my hotel for disney for free. Plus try to get a room in disney non dvc with its own kitchen.

That saves you a ton of money right there being able to make your own meals instead of getting overpriced park food.

The rooms and resorts are much nicer then standard disney rooms also.

Well, if by free you mean having to pay a variable rate annual amount based on your points, then yes..."free." You have dues. That's not free, I'm afraid. If they didn't charge you dues, then saving money with DVC would be possible. With dues, it takes a very long time to recoup the total cost.

 

[Main Street USA]

It is an investment in the same way a boat or an RV is an investment. The chances of making money off of them are slim to none (it can even be argued the same for a car) and they probably aren't going to be around in 50 years and if they are, probably of little value to anyone.

You're not investing to expect a monetary ROI but one in memories (as cheesy as that sounds). I don't want to imply that folks should go into DVC thinking that they can flip points for a profit. You (you plural) may save money in the same way that an RV may save you money on hotels if you travel across the country.

It is an investment in what it can potential save you in hotel cost at Disney for the next 50ish years. If it doesn't work for you (plural, not you personally), it doesn't mean there is something wrong with the system or something wrong with the individual's vacationing style, it's just one of the many systems of vacationing at Disney that are available.

I don't want to turn this into a DDP bashing, but we find that we don't use DDP often (only once or twice) because it doesn't mesh well with the way we eat (especially at Food and Wine). I don't begrudge those that use DDP.

Same for tickets, this year is the first time in 5 years that we didn't renew our annual passes. We looked at the times we would be vacationing and decided that 10 day tickets would be the way to go. We are taking our newly adopted son for the first time and the combination 10 day ticket plus water park is more economical for us than annual passes plus seperate tickets. I'm not shaking my fist at the annual passholders with their Tables in Wonderland card (well maybe a little, ).

We ran the numbers most likely as hard as you did, and found that purchasing at the time we did, it will work for us. We will probably never add on points through Disney, though. The price point we bought at 5 years ago was comfortable for us. Now...not so much.

Well, said. Quoted for actual, factual information.

 

[captainkidd]

The rooms and resorts are much nicer then standard disney rooms also.

I totally disagree with that. The standard rooms we've had at WL were much nicer than the Studio at the Villas, which are the same price point.

Now, if you're talking a 1 or 2 bedroom, sure they're nicer. You're also using more points, which will mean either less time or more money.

 

[captainkidd]

Out of curiosity, I did some digging last night.

In 1992, a standard room at the Grand Floridian was $220.
In 2000, a standard room at the Grand Floridian was $310.
In 2010, a standard room at the Grand Floridian is $420.

Just pointing out, DVC points and dues have increased at a far higher percentage than resort rooms.

This really means 2 things:

1.If you were fortunate enough to have purchased DVC 10 or more years ago, you got a pretty good value.
2.If you are looking to purchase DVC now (or in the future), don't buy into the whole Disney claim "it will pay for itself in so many years."

 

[Pumbas Nakasak]

Excellent news, the more they build the less likely I have to stay at SSR Home for the Insane and Incontinent

 

[DisneyJoe]

Just pointing out, DVC points and dues have increased at a far higher percentage than resort rooms.

Do you have those supporting facts?

 

[Pumbas Nakasak]

Do you have those supporting facts?

No your honour...........

 

[wm49rs]

This really means 2 things:

1.If you were fortunate enough to have purchased DVC 10 or more years ago, you got a pretty good value.
2.If you are looking to purchase DVC now (or in the future), don't buy into the whole Disney claim "it will pay for itself in so many years."

Well, if room prices continue to increase as they have in the past, then owning DVC over the course of 50 years will eventually pay for itself. And if the room rates continue to rise as they have in the past.....

And let's not also forget, the points don't have to be just used at a Disney resort. We're using ours for a trip to New England next year, and then on the DCL the year following. So the economic benefit is also combined with one of variety and travel options around the world.

 

[Pumbas Nakasak]

So the economic benefit is also combined with one of variety and travel options around the world.

Except that when used around the world the VFM factor is pretty non existent.

Better hotel deals to be had using the t'interweb. Still if the DW continues to stagnate it may be the only option.

 

[wm49rs]

Except that when used around the world the VFM factor is pretty non existent.

Better hotel deals to be had using the t'interweb. Still if the DW continues to stagnate it may be the only option.

Agreed. We'll cross that when the time comes. Of course, by the time we get to your side of the pond our membership will be paid, so using the points may be our best option regardless....

 

[captainkidd]

Do you have those supporting facts?

Well, someone on this thread pointed out yesterday that 10 years ago they paid $7,750 for 150 points. Today, that price would be more than double.

10 years ago, a standard room at the GF was $310. Today, it's $420.

Unless that person is lying, there is your fact.

 

[captainkidd]

Well, if room prices continue to increase as they have in the past, then owning DVC over the course of 50 years will eventually pay for itself. And if the room rates continue to rise as they have in the past.....

Yes, again, if you've owned DVC for 10 or more years and paid it off with no finance charges.

The fact is, DVC points values have increased at a higher rate than Disney Resort room rates. That's not to say it might not still be a good idea to go with DVC. However, don't buy into Disney's nonsense about it paying for itself in 10 years.

Here are the facts:

1.When you buy into DVC, you get a locked price per point. That can be a good thing, biut can be a bad thing.

2.When you book a room through Disney, yes the prices do increase every year, however, DVC calculations do not take into consideration AP, AAA or Bounceback discounts. As I said yesterday, I haven't paid rack rate in 10 years. In fact, what I paid for the Grand Floridian in January of 2010 was the rack rate of the Grand Floridian in 1992.

The only point I'm tryig to make is that DVC isn't a guaranteed smart move for everyone. There are simply too many factors to take into consideration:

-How many points you buy.
-How many nights you spend at Disney.
-The price of dues.
-The increase of resort room rates.
-Discount on room rates.
-The type of resort you prefer to stay in.

There is no 1 right answer as to whether DVC is the best choice.

 

[DisneyJoe]

-The type of resort you prefer to stay in.

There is no 1 right answer as to whether DVC is the best choice.

In my opinion in dealing with people questioning DVC over the last 10 years, this is the MAJOR question to answer - if you don't prefer to stay in deluxe level accommodations, the math/value will almost never work out for you.

 

[captainkidd]

In my opinion in dealing with people questioning DVC over the last 10 years, this is the MAJOR question to answer - if you don't prefer to stay in deluxe level accommodations, the math/value will almost never work out for you.

That's always been a given I thought.

But even staying at a Deluxe, though it PROBABLY will save you money, it's not a guarantee. There are people (I was one of them) paying $140 per night to stay at the Wilderness Lodge last year.

There are just so many variables. I don't think anyone should go into DVC thinking "This is a good opportunity to save a ton of money on Disney Vacations". Unless of course, you always stay Deluxe, and are too lazy to get yourself a discount.:animwink:

 

[DisneyJoe]

Just did some a simple example for myself.

Using AKL Kidani, studio as an example.

Purchase 160 points at $110/point = $17,600. No financing, Paid in full to make things simple.

Kidani has 36 years left in contract.

Assume $1000/year for dues, that's $36,000. (again, keeping it simple) (current dues for 2010 are $4.949 per point, so this should be $791.84)

Adding that to the $17,600 gives $53,600.

Dividing $53,600 over 36 years gives $1488 per year. (I know that the $17,600 was paid up front)

Currently, 1 week for an AKL Studio, Sunday-Sunday goes for 73 points; so I can get 2 weeks in a year for 146 points.

Take my cost of $1488/year divided by 14 nights gives me $106/night.

A standard room at AKL currently goes for $240/night, and as you show, will increase.

My rate of $106/night is locked in for 36 years.

The only thing lacking in my calculations is increase in yearly dues - and the possible finance of purchase over the first n years.

When spread over 36 years, I don't see how even the increase in dues would overtake the nightly room cost, even your discounted $140 rate - although it may come closer to that with financing and yearly dues increases.

 

[captainkidd]

If you finance (which most do), at a decent interest rate, after 10 years, that $17,600 becomes $28,000. Of course, if you have only moderate to good credit, that $17,600 becomes about $40,000 over 10 years.

Little bit different, eh?

To me, if you have the money so you don't have to finance, then it's sort of a no brainer. If you have that kind of money, why WOULDN'T you pay for your vacations in advance for 40 years?

 

[wm49rs]

To each their own, right?

 

[DisneyJoe]

If you finance (which most do), at a decent interest rate, after 10 years, that $17,600 becomes $28,000.

Little bit different, eh?

To me, if you have the money so you don't have to finance, then it's sort of a no brainer. If you have that kind of money, why WOULDN'T you pay for your vacations in advance for 40 years?

Not much different.

The nightly cost jumps to $126/night instead of $106/night.

 

[captainkidd]

Not much different.

The nightly cost jumps to $126/night instead of $106/night.

And you're talking a studio at AKL.

For 5 people (like the size of my family), we need either a 2 bedroom villa or a standard room at any deluxe other than WL and AKL. Figure how many points you'd need for a 2 bedroom villa at the Beach Club for 2 weeks a year (again, assuming you go during Value Season.)

 

[Pumbas Nakasak]

To each their own, right?

Some people may even purchase with no regard to the numbers on a calculator but emotional reasons, I suspect that there may even be people who use the dining plan and make menu choices based on the food rather than the foods price.

Bloody weirdos.