What is the math on DVC? Why does it work?

[emmersandjack]

I am a Disney freak and any chance I get I love to stay on property but the biggest scam Disney has is the DVC club. To buy in for about $20K and another 1200/year for maint just doesn't make sense. When you can stay at the Poly for about 2500 for a week and evry year you can go someplace else, plus you can free up the $20k and keep it in bank. Or you can stay offsite and buy a timeshare for about $3k for a 3br/3ba in LBV with maint for 600/year and is deeded forever. You do the math not buying into the DVC is just common $ense

Like everyone says.....it's not for everyone.

 

[wdwfanatic2004]

I am a Disney freak and any chance I get I love to stay on property but the biggest scam Disney has is the DVC club. To buy in for about $20K and another 1200/year for maint just doesn't make sense. When you can stay at the Poly for about 2500 for a week and evry year you can go someplace else, plus you can free up the $20k and keep it in bank. Or you can stay offsite and buy a timeshare for about $3k for a 3br/3ba in LBV with maint for 600/year and is deeded forever. You do the math not buying into the DVC is just common $ense

Who pays $1200 a year maintenance fees? I don't even pay pay half of that.
We look at it as paying in advance for our vacations instead of all at once. Also as we 5 people in our family (6 including mother-in-law :brick: ), we would need a villa or 2 rooms wherever we stay. :wave:

 

[Craig & Lisa]

My wife and I have been members since 2003, and all I can say is since then she and I figure we have saved about 10,000 over what we would have paid up front for a deluxe resort. Which we could not afford to begin with. Now when we first looked into DVC we didn't buy right away, but eventually we bought in, and not had any second thoughts. Yes, as said before it is not for everyone, but we really love to go to Disney, and yes we know we don't have to always go to WDW. But, in the long run we can go to a high end resort that we wouldn't have even thought of before, not have to put out any money up front, which depending on the resort and time of year can be as high as 3000 for the week. Yes it is another mortgage, (and a tax deduction too :animwink: ) but after 10 years we don't have to pay for the property any more. And it is pay for 10 own for 50 now. When we bought into BCV it was 10 and 30. Now don't get me wrong, we've stayed at all of the All Stars, and POP and they have their own charms, but sometimes they are crowded and noisey.

 

[Master Yoda]

The wife and I looked into the DVC when we were first married and unfortunately the numbers did not work out for the way we traveled but it is easy to see how they would. What we were told was if you go to Disney at least once every 2 years and stay for a week straight or more in a deluxe resort DVC will have a plan that will work for you and save you money in the long run.

In our case we take 10 to 12 weekend trips per year and stay at the values or moderates. When we put together a DVC package based on those travel plans the points were so high that our annual maintenance was more than what we were currently spending on rooms and this did not even include the buy in price.

It is definitely not for everyone but it works incredibly well for some. The great thing is that the DVC sales reps, at least the ones that we dealt with, will not try to sell it to you if it will not benefit you in the long run. If you are interested I highly recommend taking the tour. It took us only an hour or two ad it was quite honestly the most pleasant sales presentation I have ever been to.

 

[MotoDisney]

Okay quick question to the DVC gurus as my wife and i are looking into purchasing as well. My in laws have 2 weeks any season with the Marriot (Royal Palms, Orlando) and they pay $1,500 a year in maitenance and taxes. I don't believe the maitenance to be overly high but combined $1500 a year and it's paid off (99 years is the original term for 10k a week) those nubers simply don't seem to work for me as I can stay for 1500 a week in a decent resort (not deluxe) and I know this doesn't include price increase etc. Do you have to pay real estate or property taxes? Just a bit confused.

 

[Princess Ariel]

I am a Disney freak and any chance I get I love to stay on property but the biggest scam Disney has is the DVC club. To buy in for about $20K and another 1200/year for maint just doesn't make sense. When you can stay at the Poly for about 2500 for a week and evry year you can go someplace else, plus you can free up the $20k and keep it in bank.

Keep in mind that the prices of hotels goes up almost every year with inflation, but the point system never changes. For example our room at CBR in May cost us $145/night, but in 1997 that same room cost $80. Same thing goes for the price of DVC. I just spent $17000 for 200 points, but it was half that 15 years ago when DVC started. I wish I had bought sooner than later. When we started figuring in inflation we were sold.

 

[Tinkwannabe]

I am a Disney freak and any chance I get I love to stay on property but the biggest scam Disney has is the DVC club. To buy in for about $20K and another 1200/year for maint just doesn't make sense. When you can stay at the Poly for about 2500 for a week and evry year you can go someplace else, plus you can free up the $20k and keep it in bank. Or you can stay offsite and buy a timeshare for about $3k for a 3br/3ba in LBV with maint for 600/year and is deeded forever. You do the math not buying into the DVC is just common $ense

Sorry it doesn't make sense for you - but we bought into DVC last year and we're sorry we didn't do it years ago. We like the idea of being able to spend our points in any configuration we choose whereas all of the other timeshares we've looked into is for a specific week, unit, etc. I don't want to be tied down to taking my vacation on, say, week 36 of every year. We're spontaneous about our trips to Disney and tend to go for as long as a week or as little as 2 nights. By managing our points, we can usually work out three trips a year. Plus, the other perks mentioned by other people (discount on our APs, discounts at certain restaurants and shops, etc. make it an even better deal.

Plus - do you really think the Poly is going to stay $2500 for a week forever?

We think DVC is a great deal and recommend it for anyone who loves staying in the World - Welcome Home!

 

[elcheapo]

True... DVC is not for everybody but when we looked at the #'s it doesn't work for us since we felt it better to keep the 20K in the bank and earn 5% interest and you should get about $1,600/year interest earned plus the cost of maint fees, but never buy direct from Disney always get a resale for about half the price from a timeshare broker it will save some big $$$$

 

[elcheapo]

Tink...if you get a floating week /year at an off-site timeshare then you are guaranteed a week it doesn't have to be a fixed week, you can go anytime of the year plus if you want to add another week onto your existing or any # of days for about $50/night for a 3br/3ba resort

 

[cmothemoose]

The way I see it DVC is going to pay dividends years down the road if you go frequently (close to yearly). Otherwise it will likely not be the bargin it is advertised as. You pay a large sum up front and maintenece fees throughout the duration of the ownership. As the cost of staying in hotels on property goes up your per year price stays the same. BUT you did pay big up front. And my guess is that maintenence fees will rise over the years.

In the end you will basically end up with a room upgrade. The price you pay per year averaged over say the next 25 years will work in your favor. You'll get a great room for the price of an economy one. There are other small perks (discounts etc....) to sweeten the pot. If you go yearly you will save money. Over the loooooong run. Disney does not need to.... and will not give something away for free. As wih all things in real estate the sooner you get in the quicker you benefit from inflation. My DW and I will most likely become DVC members in the future. We go enough to make it worth our while. As the Disney empire grows so too shoud your options for travel destinations. There is no steal here. But I'll bet those that got in early are laughing all the way to the bank. If you buy now that could be you in 10 years.

 

[Emberlene]

Can you use your points to go on the Disney Cruise as well? Seems like I've heard that you can.

As soon as we can afford it, we're signing up.

 

[mickeyfanatics]

DVC Makes Sense

My wife and I have been members since 2000. We have bought additional points and now own at Vero, Saratoga Springs and AK Lodge. We just came back from Europe and went on the 10-day Disney Magic Mediterranean Cruise.

Cost of cruise for 5 people in 2 category 10 staterooms - $16,000

Amount I spent based on my points value ($3.50) including paying for 1 child in cash - $6,500


Trust me, it makes sense. We planned on taking a 3-day Wonder cruise in February. In a Category 6, this is $2,100 for 4 people.

While on the cruise they gave us a double-points bonus offer. We bought 100 points at AK Lodge and they gave us 200 bonus points to use this year. The 300 points paid for cruise. We put the $2,100 towards DVC and now have 100 points at AK Lodge for the next 50 years!

 

[sweetpee_1993]

Also to be noted, when you go check out the DVC in person while at WDW it truly is a no-pressure deal. They give you the info and let you decide if it's for you. It's not at all like a normal sales pitch. I found it quite relaxing. The gentleman we got the tour from was wonderful...and was a long-time member himself. I can't say enough about how pleasant the whole experience was. It was very, very informative.

 

[DVC Mike]

There are several Excel spreadsheets floating around where you can do the financial comparison. I plugged in my numbers and I broke even in the 5th year and DVC started saving me money from year 6 onward. The savings get pretty large in year 10 and onward. So it's a long term committment to save money.

DVC can make sense financially -- assuming you would always stay in a deluxe resort. If you always stay in a value resort, then it won't -- but that's not an apples-to-apples comparison. The DVC resorts offer deluxe amenities and room size.

DVC membership might make sense if you meet most or all of these criteria:

• The cost of membership and dues does not appear to present a financial hardship.
• You vacation at Walt Disney World frequently: ideally at least once every two years.
• You plan to continue vacationing at Disney World far enough into the future to make the membership at least break even.
• You prefer to stay in Deluxe or DVC accommodations and/or you stay a long time (10 days or more per year). If you always stay at a Value resort, or always stay off-site, or you really spend the entire day at the parks away from your hotel, and you don't spend time at the resort itself (other than crashing at the end of the day), then DVC may not be for you.
• You are able to plan your vacations well in advance -- ideally 7 to 11 months out. If you aren't a planner, don't even look at becoming a DVC member. If you can't plan and book your vacations 11 months in advance, and staying at a particular DVC resort is important, then don't join DVC. If you really don't care which DVC resort you end up with, then it's not an issue.
• You can do without daily mousekeeping and room service (of course, you can pay extra and get mousekeeping as a DVC member).
• You desire more space than a typical resort room (such as a 2 bedroom villa, with full kitchen, living room, 2 bathrooms and jacuzzi suite, and even a washer/dryer).
• You’re not looking at DVC as an investment or a way to make money (it’s not). It is a decision to prepay, at today's rates, the next several decades of Disney trips.

If the only consideration is whether it makes financial sense, then maybe you should be staying offsite and only eating offsite as well, since that beats staying onsite. Beyond just the financial considerations, DVC membership is emotionally satisfying (you “own a piece of the magic”), and it gives you a reason to take a vacation at WDW.

Buying a DVC membership is a rational, financially viable option for some people: namely people who plan to stay in the higher-end accommodations at Walt Disney World on a regular basis.

Buying into DVC is almost a lifestyle choice. A DVC purchase is a way of committing to an annual Disney vacation with family and friends. For some people, that may outweigh any financial considerations. DVC will pay dividends beyond mere dollars and cents – your return on investment will be the joyous times, the family gatherings, and the experiences of a lifetime.

Only you can determine if DVC membership makes sense for your situation, based upon your lifestyle and financial capabilities.

 

[jim1051]

We bought 280 pts at hilton head in 1999 for $ 18000.00 plus we pay about $700 a year in maint. So far the vacations we have taken would have cost over $30000, if we paid cash for them. So we pay only maintenace fee now for great vacations. Sure food and tickets are not included, but we eat if we are not on vacation so the meal deal is a wash.

We have used the points at 6 different disney resorts, Holland America Alaska cruise, posh resort hotel on Maui.

The plus for us is that we actually plan a vacation or 2 every year which we had not done since our children were in elementary school. Now they are grown with kids of their own. We can afford to use our DVC to take them on great trips.

I could go on but ultimately you need to decide if it fits your idea of vacationss.

 

[Shere_Khan]

DVC_Mike - Thank you so much for that post. It really helped me understand the DVC better.
I have been wondering how it works since I saw the free DVC DVD in which they don't give you ANY information about the cost, so of course it sounds all great and wonderful in the DVD.
And I'm sure it is great and wonderful - if you can afford it!

 

[Phonedave]

Can you use your points to go on the Disney Cruise as well? Seems like I've heard that you can.

As soon as we can afford it, we're signing up.

I just bought in this last June.

They were running a promo, you get your yearly allotment of point, plus as a bonus double that again (or you could take $10 per point off the purchase price)

I went with the points. I bought 160 points (the minimum) and then got an additional 320 one time use bonus points that had to be used within 7 months. I was going to get a villa and have the whole family down. Well that fell though, as nobody could make it before my kids were back in school.

So, cruise time. We just got back from a 3 day Disney cruise. Myself and my two kids (one "paying" adult rates) in a category 5 stateroom (room with verandah), and it ran me just over 320 points. Something like 327 or somthing like that. I still have the rest "in the bank" so next year I will have over 300 more points to use.


As was said before, the DVC is not for everyone. I took a long hard look at it before making the decision. Some observations

1) If possible pay cash

2) If you have to finanace, do not use Disney. They are easy, quick, hassle free, and have insane intrest rates.

3) Your maintence fee can (and most likely will) go up each year.

4) The amount of points at a resort will never change. They can adjust them internally, but not raise and lower them as a whole. For example if a studio is 8 points value and 12 points during moderate they are allowed to change it to 9 and 11 for example. They do this as an incentive to balance out the demand over the year. So, for the most part, my 160 points will get me the same number of nights in the same type of room until the end of the program.

5) If you finanace you can deduct your interest from your taxes (maybe, as long as this is only your second "home")

6) Part of your maintence fee pays property taxes, you can deduct this portion from your income tax as well. Its not much, but every little bit - right?

7) There is a certain "intangible" feeling that comes with being a member. Maybe it's the way the CM's always say "welcome home". Maybe its the little perks, maybe its all the mainlings you get, maybe its the way that other people in the DVC seem to want to talk to you -its like a club.

8) If they are still running the bonus points or $10 a point deal, you will have to make a decision within 3 days from the end of your vacation when you have your sit down with the DVC people. This was not a problem for me. I have already made my decision going in. I knew the financials, and if I liked the rooms I was going to do it. But do your homework BEFORE you go. That way you do not feel pressured to buy just so you do not miss out on the bonus. That bonus may no longer be in effect, I have not idea, but it was for me.

10) Weekend rates (points) are a lot more than weekday. If you are a weekend traveler, then this is not going to work out. If you go for longer amounts of time - mainly weekdays. then it does work out. Weekdays are Sun - Thurs.

-dave

Oh, I also paid with my Disney credit card, and then paid THAT off. So now I have a boatload of disney points as well.

 

[Lynne M]

Disney Vacation Club is something of mystery to me although I know a lot of people are in DVC.

Here's my impression which I'm sure is incomplete and inaccurate:

You spend thousands of dollars buying into DVC so you can go to WDW each year and stay in your 'own' place, like at Old Key West.

Mathematically how does this ever work out to an advantage?
It would seem like, for what you pay to join DVC, you could go to WDW every year for many, many years and just stay in any Disney resort.

What are the benefits of DVC that make people decide it is right for them?
Thanks.

:king:

I paid 10,000 for 150 points at VWL back in 2001. The loan has long since been paid off, but for the sake of the math, let's spread that cost over about 40 years. It comes out to roughly 250 a year. That, plus my annual maintenance, comes to about $959 a year.

For that $959 a year, I get 10 days in a studio at VWL. At roughly $96 a night. A room in a deluxe resort. For $96 a night.

That's all the math I needed to see.

 

[msmith]

Can someone please comment on the cost of annual passes with and without the DVC?

Also, how about the differences in the cost of the Dining plan with and without DVC?


The wifey, Junior, and I plan on visiting at least once per year, but possibly twice each year for a week at a time. We don't mind the All-star/Pop resorts, but wouldn't mind an upgrade either.
Just need to figure out if it's worth our time to more or less have the room paid for, but still need to buy the AP per year and dining plan each time we visit.

Thanks...

 

[scole3388]

Who pays $1200 a year maintenance fees? I don't even pay pay half of that.
We look at it as paying in advance for our vacations instead of all at once. Also as we 5 people in our family (6 including mother-in-law :brick: ), we would need a villa or 2 rooms wherever we stay. :wave:

We pay $1,440/year for 325 points at OKW.