Short term benefits

[LilWalt]

I have been debating buying into the Vacation Club. I see the long term benefits but I am having trouble seeing the short term. When you bought into the club, did the long term benefits out way the short term for you?

Short term I mean, missing out on special offers like free dining and I still have to buy park tickets. You are spending 2500-3000 a year plus still buying tickets and food. I am having a hard time with that.

 

[Tom]

You can only look at it from a long term benefit perspective. You definitely lose out on discounts in the short term, especially during the years when you're spending the most money (assuming you finance).

But you need to assess your Disney vacation plans for the next 50 years, and figure out what you WOULD have spent on room versus what you're GOING to spend on DVC, over the same time period. Tickets and food will cost you the same either way (ignoring discounts like Free Dining, which will eventually be gone), unless you get an DVC-discounted AP.

There really is a lot more to think about than most people take into consideration when making this investment. You really need to be committed to taking a Disney vacation every year, or every two years (depending on the number of points you buy) for it to make a lot of sense.

 

[LilWalt]

We have gone at least once and on occasion twice a year for the last 7 or 8 years so that is not the issue. I guess I just to look at it as you are saying.

 

[ParentsOf4]

The primary financial reason to buy DVC is to save on stays at Disney's Deluxe Resorts.

DVC provides some other discounts. For example, 10% off at a limited number of restaurants and shops. The biggest single discount is $150 off an Annual Pass, which is useful if you visit more than once per year. From time-to-time, Disney has offered other ticket discounts.

Perks are subject to change. In fact, the list of perks changes every year. Some get added; some eliminated. Early on (before I was a DVC member), Disney offered free theme park tickets. When the Boardwalk Villas opened, Disney offered free valet parking. These perks no longer are offered.

You need to fit a very specific profile in order for DVC to make financial sense. (I recognize that there are emotional reasons to buy DVC.)

If you are OK with staying offsite, at a Disney Moderate Resort, or at a Disney Value Resort, then DVC definitely is not for you. DVC makes sense only if you stay at Deluxe Resorts.

If you typically visit when Disney offers "free dining" or "room only" discounts, then DVC probably is not for you since you are likely to get deep discounts (30% or more) at Deluxe Resorts.

If you need to take out a large loan to pay for your DVC membership, then DVC probably is not for you. There is a limited set of circumstances where a loan makes sense; mostly if you intend to pay it off quickly. However, DVC loans typically are for 10 years, which nearly doubles the purchase price using Disney's financing.

Over the last couple of years, Disney has increased DVC prices significantly. Overall, purchase prices have gone from roughly $100/point to $160/point.

For most, I suspect a direct-from-Disney DVC purchase no longer makes financial sense.

Disney has started selling at the Polynesian Villas & Bungalows (PVB) at $160/point. This will go up to $165/point next month. At those prices, PVB is hard to justify financially.

For example, if you are able to visit WDW when they offer "room only" discounts and have to take out a large loan to pay for your membership, then I estimate that 30 years of vacations at Disney's Yacht & Beach Club will cost less than 30 years of vacations at PVB.

That's an incredibly long time to start saving money.

Unless you absolutely have to stay at the Polynesian (the Poly has some big fans), I suggest that you mix up your WDW vacations between stays at Moderate Resorts and some of the less expensive Deluxe Resorts (e.g. Wilderness Lodge & Animal Kingdom Lodge). Over the long-term, this likely will cost less than a DVC membership at Disney's current DVC prices.

 

[LilWalt]

Parents, I guess I see things the way you put it. My whole family and most close friends absolutely love Disney and I plan on visiting for many years as long as I can financially do it. Not sure how often we will be able to attend more than once in a year with vacation time and other factors. So some of the DVC perks don't really help me. I am not one that particularly cares about which resort we stay at, you only sleep there. So I guess at this point in time I don't think it is a good fit for me and my family.

 

[George]

To really realize cost savings, I am building my own deluxe resort. It is called "George's Walt Disney World Deluxe Resort only Providing the Highest Service to Superior Upper Class Patrons". I figure I'll be rich. Do you see what they charge for rooms nowadays?

 

[LilWalt]

Yeah, deluxe resorts are ridiculous per night. Not sure what you get for staying there but definitely not worth $400 a night. Beds might be a little softer but not sure it's worth and extra $300 to $250 a night. They are pretty but they let you go to them for free and see how pretty they are.

 

[dreamfinder]

The only short term benefit is knowing you are going to be going to a Disney property until your deed expires. This may bring you much happiness. Quasi short term/medium term benefit is a breakeven point. Long term is the gravy. I think we broke even in 7 years worth of moderate stays, assuming a 30% room discount off rack rate (roughly what we were getting each year) So knowing I was planning on making trips for those 7 years meant it was fine by me.

In my mind, yeah 7 years is pretty short term when I'm looking at something that still has 40 years left. As @ParentsOf4 mentioned, there may be some short term perks in terms of benefits/discounts, but much like the AP discounts that recently changed for the worse, they can change at any point. So maybe look at being able to do laundry in your room (as long as its non studio) as a short term perk, I dunno. You really need to be in it for the long haul for DVC to make sense, especially with the current direct pricing.

 

[jakeman]

Yeah, deluxe resorts are ridiculous per night. Not sure what you get for staying there but definitely not worth $400 a night. Beds might be a little softer but not sure it's worth and extra $300 to $250 a night. They are pretty but they let you go to them for free and see how pretty they are.

If you do not see the benefit in deluxe accommodations then DVC is probably not for you.

 

[Phonedave]

I have been debating buying into the Vacation Club. I see the long term benefits but I am having trouble seeing the short term. When you bought into the club, did the long term benefits out way the short term for you?

Short term I mean, missing out on special offers like free dining and I still have to buy park tickets. You are spending 2500-3000 a year plus still buying tickets and food. I am having a hard time with that.

Where did you come up with $2,500 to $3,000 per year ?

How many points are you expecting to buy?

Granted there is the purchase price, but dues for 160 are not close to $3,000 a year.

 

[LilWalt]

It was an estimate. I don't really know how much exactly but it was to my point across.

 

[LuvtheGoof]

If you are into free dining (which isn't really free), then DVC probably isn't for you. If you are OK with value or moderate resorts, then DVC isn't for you. If you don't wish to go at least every other year, then DVC isn't for you. You really need to look at your vacation habits while at Disney. I also have to agree with jakeman, if you don't see benefits to deluxe, then DVC isn't for you.

Your dues estimate was really crazy. We own 360 points and our dues aren't even close to $2,000 per year, much less $3000. You would have to buy 500 points at the Poly to get to that $3,000 level. It really does not sound like you are really that interested. DVC is a long-term deal to save a LOT of money on your resort accommodations. That is ALL that it is. Yes, we get good discounts on certain things, such as APs, but they are never guaranteed.

I keep a spreadsheet that tracks exactly what we have spent over the last several years since joining DVC, and we have already saved over $12,000 just on our resort costs over our last 14 trips, not including the APs and other savings. This is even taking into consideration a 30% discounted rate on the rooms, even if it wasn't offered at the time.

If you have serious questions, please ask by all means, and we will be happy to give you straight answers.

 

[LilWalt]

I have looked into it but I guess not nearly in depth enough. We go every year, or at least we have for the last 8 years. I don't see that changing in the near future.

When I mean dues, I am talking if I finance it and any annual dues that come with it. Maybe my terminology is not very good. Sorry.

 

[Tom]

I have looked into it but I guess not nearly in depth enough. We go every year, or at least we have for the last 8 years. I don't see that changing in the near future.

When I mean dues, I am talking if I finance it and any annual dues that come with it. Maybe my terminology is not very good. Sorry.

You can only finance the purchase of the points. Dues are paid yearly, for the life of the contract.

 

[DVC Mike]

There are various financial analysis comparisons out on the web. I think the last one I saw was on MouseSavers.

I just ran a poll on the forums over at MouseOwners, and the vast majority said they purchased DVC to improve the quality of their stays and not to just save money.

Good luck with your decision!

 

[Tom]

There are various financial analysis comparisons out on the web. I think the last one I saw was on MouseSavers.

I just ran a poll on the forums over at MouseOwners, and the vast majority said they purchased DVC to improve the quality of their stays and not to just save money.

Good luck with your decision!

That's a good way to look at it. When we stay in a 1 BR villa, we relax more on our trips. Veg on the couch to watch TV, soak in the Jacuzzi, whip up a snack in the kitchen. A hotel room is OK for us if we're in the parks Sun up to Sun down, but if we hang out in the room, which we do often, the bigger accommodations are nice.

 

[George]

Where did you come up with $2,500 to $3,000 per year ?

How many points are you expecting to buy?

Granted there is the purchase price, but dues for 160 are not close to $3,000 a year.

I have 300 points and my dues are less than 3 grand a year. In fact, they are less than 2 grand/year.

 

[GoofGoof]

There are various financial analysis comparisons out on the web. I think the last one I saw was on MouseSavers.

I just ran a poll on the forums over at MouseOwners, and the vast majority said they purchased DVC to improve the quality of their stays and not to just save money.

Good luck with your decision!

I agree with this 100%. Most of the financial analysis focuses on comparing DVC studios to regular Disney hotel rooms and focus on money saved. It's a more apples to apples comparison. Many owners buy in to take advantage of the larger, condo style accommodations available with the villas. I know that's what sold me. I tried a few off property time shares but really missed the convenience and vibe of being on property. DVC was really the only way to get those types of rooms on property.