News WDW Resorts to add fees for parking

[larryz]

If accurate, that means it’s $1,660 per year over 50 years. Not bad when 200 points gives you an average of around 10 nights in a studio (obviously could be more or less based on the resort and time of year). Definitely can’t stay in a deluxe now, or 50 years from now, for that kind of money. It’s why I could justify buying in at $86 over ten years ago.

With that said, I can’t imagine $83,000 is correct at around $200/point today. Half that would be initial buy in, and maintenance fees on 200 points won’t average less than $1,000/year over the life of the contract. Can you share your calculations?

You're right. I was using the cost calculator on the DVC official site and didn't break the figures down far enough
a) it's 175 points, not 200
b) buy in with closing is $32,400
c) annual "dues" for 45 years is $57K and change

It's actually $89,739.40 and that assumes no increases in dues for the next 45 years... and does not include admission media and/or travel costs.

 

[Tori]

This was at the Magic Kingdom, and the regular spots were around 10 rows from us. I admit I have no idea why they were being parked so close to us. Maybe there's a legitimate reason why they were being routed that way. This was around 9am so maybe it was slightly late, but the crowds were huge because it was Easter Week. And you're right, there were only a few rows even filled with preferred parking vehicles, which I also found strange.

preferred parking is pretty useless first thing in the morning, everyone is getting close parking. preferred parking is more beneficial during the middle of the day.

 

[Biff215]

You're right. I was using the cost calculator on the DVC official site and didn't break the figures down far enough
a) it's 175 points, not 200
b) buy in with closing is $32,400
c) annual "dues" for 45 years is $57K and change

It's actually $89,739.40 and that assumes no increases in dues for the next 45 years... and does not include admission media and/or travel costs.

Gotcha, thanks for clarifying. I have 175 points, so still perfect IMO for one long (or trip (or two short trips) per year in a studio. Assuming no increase in dues is the silly part. Obviously no way that happens, and not that difficult to estimate given 25+ years of data, so very misleading if that is DVC’s official calculator. I’d suggest to anyone considering DVC now to decide if they need the direct sale perks and then how many years they need, and pick a resale based on that. No doubt you can save some money over the long haul if you go every year.

I’m really interested to see if DVC markets the free parking as a perk to members. That might tell us where the contract language stands. It could also turn out like free valet, eventually being taken away. I certainly hope that can’t happen.

 

[LAKid53]

Gotcha, thanks for clarifying. I have 175 points, so still perfect IMO for one long (or trip (or two short trips) per year in a studio. Assuming no increase in dues is the silly part. Obviously no way that happens, and not that difficult to estimate given 25+ years of data, so very misleading if that is DVC’s official calculator. I’d suggest to anyone considering DVC now to decide if they need the direct sale perks and then how many years they need, and pick a resale based on that. No doubt you can save some money over the long haul if you go every year.

I’m really interested to see if DVC markets the free parking as a perk to members. That might tell us where the contract language stands. It could also turn out like free valet, eventually being taken away. I certainly hope that can’t happen.

If it's in the contract, DVC would have to amend every. single. contract. I have 5. Provided owners would agree.

 

[Lensman]

You're right. I was using the cost calculator on the DVC official site and didn't break the figures down far enough
a) it's 175 points, not 200
b) buy in with closing is $32,400
c) annual "dues" for 45 years is $57K and change

It's actually $89,739.40 and that assumes no increases in dues for the next 45 years... and does not include admission media and/or travel costs.

A more accurate analysis would include taking into account inflation and the time value of money and then comparing this with the net present value of cash reservations or renting the equivalent number DVC points. There are a couple of spreadsheets on other boards that go into this in agonizing detail. It's basically the same kind of analysis that you'd do if you were trying to figure out if you were better off buying a house or continuing renting.

At first glance, it looks like breakeven is at a 5.28% nominal rate of return assuming 2% inflation and renting points at $13 a point. It varies by resorts and whether you're looking at resale prices or direct. Interestingly (or not, if you're a financial wizard), the lower your cost of funds (or alternatively your assumed alternative rate of return), the better value DVC is for you. Or as the layman would say, DVC might look like a pretty good deal when Treasurys are yielding 2.85% and not-so-great when they're at 4.85%.

I revisit this analysis every so often to figure out whether I'm better off selling my DVC points or to continue renting them almost every year (we're in a Disney "lull" with the kids pretty much grown up now).

If [parking's] in the contract, DVC would have to amend every. single. contract. I have 5. Provided owners would agree.

Given what happened with the OKW extensions, they'd never try to amend the any of the contracts again. That said, I don't think parking is explicitly stated in the contracts, though for many of the resorts I think the parking lots are part of the common areas. I'd be interested in seeing whether parking fees start showing up in the financial statements. I'm sure it will be different between the dedicated DVC resorts vs shared.

 

[larryz]

A more accurate analysis would include taking into account inflation and the time value of money and then comparing this with the net present value of cash reservations or renting the equivalent number DVC points. There are a couple of spreadsheets on other boards that go into this in agonizing detail. It's basically the same kind of analysis that you'd do if you were trying to figure out if you were better off buying a house or continuing renting.

At first glance, it looks like breakeven is at a 5.28% nominal rate of return assuming 2% inflation and renting points at $13 a point. It varies by resorts and whether you're looking at resale prices or direct. Interestingly (or not, if you're a financial wizard), the lower your cost of funds (or alternatively your assumed alternative rate of return), the better value DVC is for you. Or as the layman would say, DVC might look like a pretty good deal when Treasurys are yielding 2.85% and not-so-great when they're at 4.85%.

I revisit this analysis every so often to figure out whether I'm better off selling my DVC points or to continue renting them almost every year (we're in a Disney "lull" with the kids pretty much grown up now).

Yeah, mine are just thumbnail numbers... if I could get over the sticker shock of TCO, I might dig a little deeper to see if it would be worth it long term.

And I didn't include any financing cost -- to my mind, if you can't afford to pay cash for your points, you don't want to even consider it.

 

[rodserling27]

I just can't figure out how this is going to truly be enforced. Who's to stop someone from telling the guy at the security gate a lie? "No sir/ma'm, I'm not staying here, just meeting some friends at the pool for the afternoon." This is going to be interesting to see it all pan out.(Also why the HECK aren't AP holders exempt from this?!? ) The perks of staying on-property continue to dwindle a little more...

 

[drizgirl]

I just can't figure out how this is going to truly be enforced. Who's to stop someone from telling the guy at the security gate a lie? "No sir/ma'm, I'm not staying here, just meeting some friends at the pool for the afternoon." This is going to be interesting to see it all pan out.(Also why the HECK aren't AP holders exempt from this?!? ) The perks of staying on-property continue to dwindle a little more...

I'm curious too. Although I'm guessing when you come through the guard shack they are marking you as having a car. If you are being dropped off, it would then be on you to go to the front desk and explain so the charge is removed.

 

[Lensman]

I just can't figure out how this is going to truly be enforced. Who's to stop someone from telling the guy at the security gate a lie? "No sir/ma'm, I'm not staying here, just meeting some friends at the pool for the afternoon." This is going to be interesting to see it all pan out.(Also why the HECK aren't AP holders exempt from this?!? ) The perks of staying on-property continue to dwindle a little more...

They could give all overnight guests paying for parking a pass that you put on the dashboard, or they could ask for your license plate and security could go around and check license plate numbers overnight - I bet there's an app for that.

Eventually, when parking is gated it'll be a different system but I bet it's something like that.

 

[drp4video]

They could give all overnight guests paying for parking a pass that you put on the dashboard, or they could ask for your license plate and security could go around and check license plate numbers overnight - I bet there's an app for that.

Eventually, when parking is gated it'll be a different system but I bet it's something like that.

They always did give you a parking pass to put on your dash board even when parking was free.

 

[Lensman]

They always did give you a parking pass to put on your dash board even when parking was free.

I know.

 

[John park hopper]

Can anyone who has stayed since the new parking fee is in place tell us how they are keeping track of who should or should not be in the resort parking lots. Are they towing illegally park cars , warning tickets, do they have security routinely checking dash board passes?

 

[matt9112]

Dude seems shocked that it cost money to roast marshmallows at GF.

for 600 bucks a night I would be too. but hey I have never stayed there wouldn't want to inconvience the status quo.

if you beat me over the head up front (room rate) make me feel like I'm getting value FFS. Disney room rates are inflated and I "assumed" you know the saying this was for location and perks...the buses the little Disney touches etc. little things make your stay feel valuable even when value is nowhere to be found. I have had APs for two years now and still have yet to ever stay on site I did with my two family vacations before i lived in FL but now nah. flamingo crossing hotels where under 100 a night when they first opened that's killer. really wish I got to see cabana bay before those prices got jacked.

 

[BoardwalkGlenn]

They always did give you a parking pass to put on your dash board even when parking was free.

I know.

I thought that was the case as well, but we were not given one at AKL in February 2018.

 

[larryz]

I just can't figure out how this is going to truly be enforced. Who's to stop someone from telling the guy at the security gate a lie? "No sir/ma'm, I'm not staying here, just meeting some friends at the pool for the afternoon." This is going to be interesting to see it all pan out.(Also why the HECK aren't AP holders exempt from this?!? ) The perks of staying on-property continue to dwindle a little more...

All they have to do is ask to see an ID. "Ah, I see you're on the check-in list, sir. Welcome home."

 

[wannabeBelle]

They have already said that if you are going to a restaurant to have lunch/ dinner, shop etc. you will not be charged but if you car is there overnight and they cant find you as registered guest, I would imagine your car would be towed. Just a guess though as I haven't heard anything official as to how this is being handled. Marie

 

[Biff215]

I thought that was the case as well, but we were not given one at AKL in February 2018.

I believe most resorts discontinued those a few years ago when MagicBands came around. I know I asked the front desk the first time I didn't receive one for the car and panicked. I say "most resorts" as I can't speak for everywhere, just where I stayed.

This does seem like a bit of a nightmare system until they work everything out. I doubt they're overly concerned about cheaters right now, most will be honest and Disney will collect the cash. I just can't see security checking license plates every night, and towing violators would bring its own issues for the resort. I could be wrong, but I'm sure they'll work it all out in time...sadly I'll add.

 

[winstongator]

They could give all overnight guests paying for parking a pass that you put on the dashboard, or they could ask for your license plate and security could go around and check license plate numbers overnight - I bet there's an app for that.

Eventually, when parking is gated it'll be a different system but I bet it's something like that.

What about the online check in though? You could enter your licence plate there though, potentially.

I believe most resorts discontinued those a few years ago when MagicBands came around. I know I asked the front desk the first time I didn't receive one for the car and panicked. I say "most resorts" as I can't speak for everywhere, just where I stayed.

This does seem like a bit of a nightmare system until they work everything out. I doubt they're overly concerned about cheaters right now, most will be honest and Disney will collect the cash. I just can't see security checking license plates every night, and towing violators would bring its own issues for the resort. I could be wrong, but I'm sure they'll work it all out in time...sadly I'll add.

It's possible to track someone down even through a rental car. I've had a parking ticket follow me. It could be quicker for Disney as they probably have a relationship with the car rental companies.

 

[deeevo]

All they have to do is ask to see an ID. "Ah, I see you're on the check-in list, sir. Welcome home."

Unless you online check in and wait for the text message that your room is ready then use your MB to enter instead of going through the guard house.

 

[The Mom]

Please stick to the topic - parking fees. Thank you.