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-   -   why is dvc worth it in the long run? (http://www.disboards.com/showthread.php?t=3028328)

monica9 12-02-2012 12:20 PM

why is dvc worth it in the long run?
 
Does dvc save you money in the long run if you are a family that goes once a year and only stays deluxe, has only one child and has to fly to get to Disney? Why did you choose dvc over RCI or other timeshares?
We realized we spend on average 3800 for a week and that includes base tickets and free dining at deluxe for a week while we will be paying $260 a month and almost $900 in fees that's about 4200 a year. Is there something I'm missing? Also, after the 10 years are up and we only have to pay fees, whos to say the prices on fees won't double? Then having to pay $400 a ticket for 3 people annually plus food. I can't see how this would save us money. Any help with making the decision? Unfortunately we purchased it yesterday and obviously didn't think it through too well. We have 10 days to cancel but not sure if we will lose out on our down payment either. Please no rude comments but friendly advice will be much appreciated!

Missyrose 12-02-2012 12:38 PM

Quote:

Originally Posted by monica9 (Post 46835770)
Does dvc save you money in the long run if you are a family that goes once a year and only stays deluxe, has only one child and has to fly to get to Disney? Why did you choose dvc over RCI or other timeshares?
We realized we spend on average 3800 for a week and that includes base tickets and free dining at deluxe for a week while we will be paying $260 a month and almost $900 in fees that's about 4200 a year. Is there something I'm missing? Also, after the 10 years are up and we only have to pay fees, whos to say the prices on fees won't double? Then having to pay $400 a ticket for 3 people annually plus food. I can't see how this would save us money. Any help with making the decision? Unfortunately we purchased it yesterday and obviously didn't think it through too well. We have 10 days to cancel but not sure if we will lose out on our down payment either. Please no rude comments but friendly advice will be much appreciated!

The first thing to remember is that DVC only applies to the lodging portion of your trip -- tickets, airfare and food will still all have to be bought on top of your DVC purchase.

If you tend to go at the same time every year, see if you can't schedule two trips within 12 months of each other so you could buy an annual pass instead of two sets of tickets.

But to the more fundamental question of whether DVC is worth it for you, you have to figure out how you plan your trips (do you typically plan far in advance? Do you usually book using discounts? Is staying on-property an absolute must?).

Rack rates for Disney resorts will continue to go up, but so will DVC MFs. Have you looked into renting DVC points for vacations, that would allow you to save the upfront cost?

ethanash1 12-02-2012 12:40 PM

Quote:

Originally Posted by monica9
Does dvc save you money in the long run if you are a family that goes once a year and only stays deluxe, has only one child and has to fly to get to Disney? Why did you choose dvc over RCI or other timeshares?
We realized we spend on average 3800 for a week and that includes base tickets and free dining at deluxe for a week while we will be paying $260 a month and almost $900 in fees that's about 4200 a year. Is there something I'm missing? Also, after the 10 years are up and we only have to pay fees, whos to say the prices on fees won't double? Then having to pay $400 a ticket for 3 people annually plus food. I can't see how this would save us money. Any help with making the decision? Unfortunately we purchased it yesterday and obviously didn't think it through too well. We have 10 days to cancel but not sure if we will lose out on our down payment either. Please no rude comments but friendly advice will be much appreciated!

Hi! Unless the policy has changed since we purchased in 2009, you do not lose your deposit. As far as saving money, would you be taking other vacations in the future? Also, is there family that you would like to take along on future trips? Would you be able to pay out of pocket for this? We wouldn't..... And DVC has allowed us to take other family members on trips with us, and instead of buying tickets every year, why not consider buying the 10 day with no expiration date? You can use it for a couple of years, or a couple of trips.
We have personally found that its worth it for us, and in the long run as well! Good luck with whatever you decide....

z28wiz 12-02-2012 12:51 PM

It also looks like you are financing which can almost double your cost as well. Financing a timeshare is almost always bad financially if not paid off in a year or so. If you didn't have the monthly payment for financing you would have broke even after about 5-7 trips. With financing it can take almost up to twenty years to break even. Also you won't lose your deposit unless you booked on a cruise and received an inboard credit.

DougEMG 12-02-2012 12:58 PM

If you are paying $4200 a year for the next 10 years, how does that $4200 a year compare to what you currently spend on accommodations only? Is that more, less or the same.

At the end of those 10 years you'll be down to only paying your maintenance fees of around $900 a year. At that point it is pretty easy to say that you will be paying less and saving money. So how much extra is it costing you in those first 10 years and is that worth it for the savings you get after the 10 years.

We live on the west coast, have 1 child, typically got a moderate and went once a year. We bought DVC, but bought resale. I looked at what the break even point was for us, ie how many years would it take comparing how much we would normally spend on the room as compared to what it would take to buy and pay MF to stay at the dvc room. For us that was 7 years, so that means after 7 years, the savings kick in.

Now we've got 3 trips planned in the next 10 months for a total of 53 days which I would never have taken if I was paying cash for a room. So I'm actually spending more in total because I'm going more, but I like that. What is happening is that my average cost per day is less, but since I'm going more, I'm spending more in total.


If you are having the slightest doubt you should cancel and take more time. DVC will still be ther when you are comfortable with your decision.

monica9 12-02-2012 01:33 PM

Thanks everyone. Looks like we will be cancelling but looking into resale. No nothing about it so if anyone has a link with good info, that would be great! Thanks again!

Brian Noble 12-02-2012 03:03 PM

Quote:

Does dvc save you money in the long run if you are a family that goes once a year and only stays deluxe, has only one child and has to fly to get to Disney?
Chances are good that yes, you will save money on the lodging costs of your vacations if you are in this pattern, and would stay in DVC studios instead. If you buy resale rather than direct, you will do even better.

Quote:

Why did you choose dvc over RCI or other timeshares?
Well, I for one *did not* choose DVC, because I was not sure that we would always enjoy going to WDW as often as we did when the kids were younger. In hindsight, that has turned out to be the right decision for our family. We can still sometimes exchange in via RCI if we are flexible (and a little bit lucky) but we also stay many other places at a much lower effective cost than if we used DVC points to do so.

DVC is really only a good value for staying at DVC properties. Any other use is very inefficient---even purchased resale.

Deb & Bill 12-02-2012 06:52 PM

Quote:

Originally Posted by monica9 (Post 46835770)
Does dvc save you money in the long run if you are a family that goes once a year and only stays deluxe, has only one child and has to fly to get to Disney? Why did you choose dvc over RCI or other timeshares? ...

RCI hasn't always been the trading company. It was at first, then the trading company was changed to II, then a few years ago, back to RCI. So buying RCI won't guarantee you an opportunity to stay in a DVC resort using your RCI trade.

Jasonkat 12-03-2012 01:55 PM

Can a DVC purchase be a good move financially? Yes
Can a DVC purchase be a bad move financially? Yes

Like everything you need more details. I have run the numbers (as most people on here have) and depending on the discount rate you use (a finance term for calculating cash flows at different time periods, not the discount on rack rates) DVC will break even between 6-12 years IF YOU BUY IT WITH CASH UP FRONT. This appears to be relatively similar to what other people say the break-even is.

The cash-up-front part is key. If you finance your purchase you will never come out ahead and you will be better off just paying for the hotel.

If you buy with cash and you stay at least every other year it will be a good purchase in the long run. In my opinion if you know you're going to WDW regularly for the next 15 years and you want to stay in Deluxe resorts, then it will be a good deal. If you aren't sure you want to go that frequently or you'd be happy at All Star or Pop Century then don't buy.

I haven't bought in yet but I will in spring when I've saved enough to pay cash. The reason I'm buying is because I know I'm going to Disneyworld constantly for the next 20 years (I have a 1 year old and 3 year old, I hate the beach, I hate camping, and I love Mickey Mouse so WDW is the best fit). Also, if I don't buy into DVC I am too cheap to pay for a Deluxe resort and my poor wife will be stuck going to All Star Movies her whole life. If I buy DVC my wife can stay at a nice resort and I won't feel like I'm "wasting" money. Strangely I have more of a problem spending $300 for one night then spending $15,000 up front for a DVC contract.

zavandor 12-03-2012 02:22 PM

Quote:

Originally Posted by Jasonkat (Post 46844126)
Strangely I have more of a problem spending $300 for one night then spending $15,000 up front for a DVC contract.

:rotfl2:
Exactly as I feel! I thought to be the only one :)

Quote:

No nothing about it so if anyone has a link with good info, that would be great!
You are in the right place.
I've found tons of information on this board. I've read for months before making my purchase.

awilliams4 12-03-2012 08:19 PM

Quote:

Originally Posted by Jasonkat (Post 46844126)
Strangely I have more of a problem spending $300 for one night then spending $15,000 up front for a DVC contract.

Same here.

RunnerMomO 12-03-2012 08:27 PM

We have looked at it a little different, but live closer by. We try to use our DVC points for multiple long weekends through out the year. We had found we were primarily stays at deluxe resorts and saw as our boys got older, it would be nice to have a little more room. Since joining in 2009, we have used our points in Florida, but also had opportunities at Hilton Head, California Grand Hotel and Disney Vero Beach. And then this year were so excited to stay at Aulani. Looking at the rack room rates for Aulani, we felt our points really did help us save a lot of money. And they do offer various savings at times for DVC members, such as tickets, etc. In fact, we just got an offer for a premium annual pass at $300 the base rate (non-Florida resident). Just some things to consider on how you can use DVC points. One thing we haven't done and probably won't is use points for a cruise...not as good of a deal in our mind, nor do we have enough points for the whole family.

bakerworld 12-09-2012 05:16 PM

3 weeks at a premium venue in DVC studio costs us $5068 (financing + annual dues).
3 weeks at the same premium venue at a 35% discounted room rate would cost $5776.

I think that says it all. ;)

Deb & Bill 12-09-2012 07:47 PM

Quote:

Originally Posted by bakerworld (Post 46889677)
3 weeks at a premium venue in DVC studio costs us $5068 (financing + annual dues).
3 weeks at the same premium venue at a 35% discounted room rate would cost $5776.

I think that says it all. ;)

But a studio doesn't really compare with a deluxe hotel room. The hotel room is better because it has real beds and sleeps five.

I'd never pay cash to stay in a studio. Are you staying three consecutive weeks in a studio?? Or are you booking three trips? I can't imagine three weeks in a studio.

super mike b 12-09-2012 08:04 PM

Interesting thread.....


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