Newbie to DVC: What is DVC?

[Mickey92]

Hi Everyone,

Recently I have been seeing quite a few DVC adverts etc on the disney websites around on the internet and with possibly the rumoured DVC over at GF. Whenever I go to the world I see lots of Desks with DVC advertising the park guests as they walk through the parks.

It does look really really good, but Im not 100% sure what it actually is?? I have been on their website but I cant find the answers to the questions I am asking...

So, I have a few question that hopefully some of you could answer, I would appreciate it, thankyou!

What is the Disney Vacation Club?

I've heard about Timeshares...? What is a Timeshare and how is it related to DVC?

How much does it cost to become a member of DVC? And what are the benefits of becoming a member? Are the ongoing costs to spend out on each year?

So, lets say I am a member of DVC 'now', Does this mean that I can stay in the DVC Resorts such as BLT and DVC Villas?

Does it mean that I can get a reduced/discounted Disney Vacation if I'm from the UK?

And finally, Points? Ive heard about this also, what are they for? How do you gain them, do you get special gifts for saving them up?


Sorry that there are loads of questions but I am considering for in the future of becoming a member!

Thanks alot everyone, I really do appreciate it!

Tristan :wave:

 

[Pioneer Hall]

I am going to answer this as best as I can and as briefly as I can, but I strongly suggest checking out a site like DVCNews or Mouseowners that can provide you with much better details about what DVC is.

Disney Vacation Club is Disney's vacation ownership program, and is considered a timeshare. You purchase, either through Disney or a reseller, vacation points that can be used for Disney vacations at their DVC resorts (as well as some other options). Points directly from Disney cost an average of 105-115 now depending on incentives being offered, and the way to determine what you need is based on your vacation habits. This is how DVC differs from a number of other timeshares...the points system allows for maximum flexibility and does not restrict you to one specific time a year that you must vacation. Point values required vary on resort choice, room size, time of year visiting, and view. So staying in a studio during Christmas time will cost significantly more points than staying in that same room during a value time in September. Before purchasing points, you would want to look at the points charts of the resorts and decide how many you are going to need in order to take the vacation that suits you.

Initial purchase price can vary but the average direct through Disney now is probably in the $20,000 range. After your initial purchase, you pay dues each year on your allotment of points. For example, my 200 Animal Kingdom Lodge points had a dues value of $5.01 a point this year. So my dues for 2011 were about $1000. Dues make up the larger portion of the investment since you will be paying them every year on the contract regardless of use and well after you have paid off your initial purchase price.


DVC resorts can be found in various places, but the majority are in Walt Disney World. At WDW you have Old Key West, Saratoga Springs, Bay Lake Tower at the Contemporary, Boardwalk Villas, Beach Club Villas, Villas at Wilderness Lodge, and Animal Kingdom Villas. You also have the Villas at the Grand Californian at Disneyland, Hilton Head Resort in SC, Vero Beach Resort on the FL coast, and soon Aulani opening in Hawaii. Your points will get the best value and use at any of these resorts. You can also trade them in for RCI points and use them at other destinations and if you buy direct from disney you can use them for cruises, adventures by Disney, and some other things. However, many will tell you that anything outside of the true DVC resorts is not a good use of points. When you make your purchase you buy in at one resort which will be your home resort...for me that is AKL. Besides for paying the dues to your home resort, you have an extended booking window of 11 months at that resort. At 7 months you have the ability to book a reservation at any other DVC resort pending availability.

DVC can be a complex system, and is a major purchase that shouldn't be taken lightly. There are a number of rules and regulations that I didn't mention (reservation rules, banking, borrowing, housekeeping, etc). Check out the sites I mentioned above as well as just googling and finding more. Before I made my purchase, I was pretty informed about the system...but I still made sure I knew everything before I made my purchase. The program isn't great for everyone, but if it fits your plans can be a nice advantage. Good luck with your research.

 

[slappy magoo]

Honestly, you're better off talking to an agent. They're surprisingly low-pressure.

 

[dreamfinder]

Well, since you asked what a timeshare is, lets start there. Timeshare is basically a fractional ownership of a particular resort/hotel. Be it a week, month, or points like DVC uses. You pay an initial amount upfront for that fractional ownership, and then pay yearly maintenance/upkeep/dues, all are usually the same thing, just under different names. What you do with that fractional ownership it basically up to you, BUT you are still responsible for those yearly costs to the resort/hotel regardless of what you do with it. You can either go to the resort for the amount of time that you own, rent it to someone else, or try to trade it for time at another location.

The points system that DVC uses works like this. They assigned a point cost to each room per night when they built the resort. They then added up the total number of possible points in a given night in the resort, and then the possible points in a given year. People then buy the amount of points they feel they will need to vacation. So if the room you want at the time you want is 10 points a night, and you want to go 10 nights a year, you would buy 100 points. The plus side to a point system is that you can change how you stay and aren't locked into a given week. Say you want to go for Christmas this year. Well, that same 10 point room is 20 points during the holidays, so you can stay for 5 nights instead of 10. The downside is that you aren't guaranteed the week/room you want. You have a decent chance of getting something somewhere on property, but not guaranteed. The points really just equate to the fractional amount of the resort that you own.

With the DVC setup you have 4 ways to use your points. Use them, bank them, borrow them, or exchange them. Points are good for one year from when you get them. You can use them within that year to stay at a DVC property. You can bank them to use the following year. Or you can borrow from the following year to use this year. Exchanging your points would let you stay at a non DVC timeshare resort through RCI, or possibly do a Disney cruise or other Disney trip depending on where you buy your points from.

Will DVC save you money? Hard to say, it depends on the person. You have those upfront costs (~$140 per point from Disney, less from a reseller or with promotions) plus the yearly maintenance costs. If you travel to WDW yearly, and stay in a moderate or better, you should at least break even if not come out ahead. But if you stay in values, or only travel every few years, then you may not find it to be worth your while. So is it reduced/discounted? Over the long run, yes. But upfront, or with a high interest loan, not so much.

Disney likes DVC because it really costs them nothing. The guests who buy into a particular resort end up paying for most of the construction for that resort, and then pay for a large chunk of the upkeep through their yearly fees. And if DVC owners don't book a particular unit, Disney will try to book it to a regular guest at a high rate.

Try looking at dvcnews.com for more information, or as Slappy said, get in touch with a guide. They have a whole spiel they can give you to cover all the bases.

 

[Phonedave]

All very good and factual information so far, but one point.

What you do with that fractional ownership it basically up to you, BUT you are still responsible for those yearly costs to the resort/hotel regardless of what you do with it. You can either go to the resort for the amount of time that you own, rent it to someone else, or try to trade it for time at another location.

Not that the OP is thinking of a business investment, but regular renting of a DVC property is not allowed. If you are a DVC owner and need / want to rent out your points evey so often, that is perfectly allowable.

However Disney does not want people to buy into the DVC for the sole purpose of using it as an investment and renting out points on a regular basis. If they see evidince of this happening, they will take action. It's kind of vague what this evidence constitutes or what the actions will be, but it is mentioned in your contract.


-dave

 

[tjkraz]

However Disney does not want people to buy into the DVC for the sole purpose of using it as an investment and renting out points on a regular basis. If they see evidince of this happening, they will take action. It's kind of vague what this evidence constitutes or what the actions will be, but it is mentioned in your contract.

Yeah, the Public Offering Statement allows casual renting and prohibits "commercial" renting without really defining commercial activity.

About 3-4 years ago DVC sent letters to people who were making 20 or more reservations in a year, and claimed they were under the microscope. DVC implied that they had the right to cancel reservations if they felt the owner was involved in commercial renting. FWIW, I've never heard of a single reservation being cancelled solely on that basis.