Holy cow I am so lost-pls advise!

[Scarlett81]

Also make sure that you rent and try DVC. There are some significant differences between a DVC stay and a Deluxe resort stay. Some of them some people see as positives while others see as negatives (i.e. a lot of members like no daily housekeeping - but if you go over onto the resort board and bring it up, its a big negative to them on owning DVC).

One thing I like to say is that if you NEED it to work out financially, it probably isn't a good deal - whether it does work out financially in the end or not. This is because I'm very risk adverse and often see the worst case. And the worst case with DVC is that you buy points and make the "investment" then the economy crashes and your life changes drastically and you have to sell DVC at a loss - if you are in a position to afford that loss, its not a huge deal. If you aren't, it can be a really bad thing. A similarly bad thing is what Charles was talking about, if you aren't disciplined, and you need it to work, you can find yourself going over budget by tens of thousands of dollars over the course of ownership (and more if you catch the dreaded addonitis) because you make emotional decisions that DVC ownership encourages (more trips, guests, additional spending because your room is "paid for," etc.). Not a big deal if there is room in your budget.

Also remember that three young children will very quickly become three Disney adults - and that inflation at Disney outpaces inflation in the real world. Tickets for three tweens/teens - feeding a 16 year old boy at Disney - these things get really expensive - and will happen faster than you think. Its easy to change direction when you pay cash - and decide to start vacationing at somewhere cheaper (with a 16 year old boy, all inclusives ROCK - and he likes the beach better than Disney) - owning DVC can make those changes in direction both logistically and emotionally more difficult.

Very good points!!

I guess my feelings with cost/savings are that if going the DVC route in the end would mean (vs. regular 2x yearly deluxe resort bookings), that I end up saving something I may as well do it. ?? If not, then sticking with the regular booking may be the better choice.

 

[crisi]

Very good points!!

I guess my feelings with cost/savings are that if going the DVC route in the end would mean (vs. regular 2x yearly deluxe resort bookings), that I end up saving something I may as well do it. ?? If not, then sticking with the regular booking may be the better choice.

I'd look at it the other way "if it ends up costing you a little more - is it still worth it?"

Its easy to run numbers that will show you get savings - and depending on the assumptions they can be significant savings (we've seen people do rack rate comparisons without time value of money at Deluxes when their signature history is value resorts during free dining) - but its just as easy to make assumptions that have you spending more - three teenagers makes a two bedroom much more attractive - when you get to that point without DVC, what would you do? (a hotel room? rent points? An offsite condo? Family suites at a value? Trade in Disney for a destination where you can rent a house? Stop vacationing, as we nearly have, because between play practice and baseball games and AP coursework).

The question is really "do you want to stay in a DVC way" - you give up some things (some flexibility, daily housekeeping) and gain others (affordable access to multi room units onsite, a washer and dryer in your room if you book a one bedroom or bigger).

 

[HokieGCC]

Very good advice. Do you think this holds true financially even if you purchase a resale from someone else? Can you come out on top, or even slightly better?

Hi, yes I am certain that if your buy resale, are efficient with points, and take advantage of DVC discounts you save some money. So this implies making use of the 11 month home resort booking advantage. Resale shortens the breakeven point (to the 8-10 year mark).

If you end up in situations where you are "burning" points due to lack of options (for example - wanting a studio but having to get a one bedroom because the studio's are booked) then DVC is costing you.

So, in my mind if you have a regular yearly trip you can use DVC to save you some money (not tons... but some).

I also think I finally understand the emotional component of DVC. By joining DVC you are committing to and making happen yearly Disney (family) trips. That is a happy thought and a sense of accomplishment. Maybe it is similar to owning a vacation home verses renting yearly. The attachment and security of that one (or two) weeks of "great times" is (mostly) secured with DVC. If you don't have DVC there is always that chance that something will come along and wipe out our vacation (like needing a new roof). If you have DVC, then something else gets prioritized out in the case a new roof is needed (as an example).

 

[crisi]

I also think I finally understand the emotional component of DVC. By joining DVC you are committing to and making happen yearly Disney (family) trips. That is a happy thought and a sense of accomplishment. Maybe it is similar to owning a vacation home verses renting yearly. The attachment and security of that one (or two) weeks of "great times" is (mostly) secured with DVC. If you don't have DVC there is always that chance that something will come along and wipe out our vacation (like needing a new roof). If you have DVC, then something else gets prioritized out in the case a new roof is needed (as an example).

And as long as money moves around in a manner that everyone is happy with and is responsible (dining out and tickets to concerts and gymnastics lessons are given up for the new roof instead of Disney), it works. The danger is when the budget is so tight that there isn't any more room, and the emotional attachment to Disney that DVC encourages, plus "the room is free" makes it easy to justify a trip instead of fixing the roof - or putting a little more on credit to do both. In a few years of this sort of behavior, you've dug a pretty deep hole. And DVC makes it easy because you've bought it to "secure" that trip.

 

[Scarlett81]

Wow. And all this time I thought that the appeal to DVC was that you are saving money! If thats not the case, I am shocked that so many people would do it.

Affording it isn't the issue, its making a wise choice. If you have the $ to make the outright purchase and a measure of financial security, and you figure for your family's travel needs over a certain period of time this purchase will pay for itself and provide a substantial discount, its a no brainer. You'd be paying for your family's future lodgings, just outright. But I'd never be able to make this purchase if it didn't offer us a decent discount (long term) compared to yearly bookings.
The emotional attachment isn't enough incentive for me. I get as much emotional satisfaction booking and planning a yearly or bi yearly trip.
I guess if some kind of great resale option opened up, I'd consider that.

Its so funny, I come on this forum thinking the DVCers are going to have me convinced and booked within days! Well I'm happy for the non biased opinions!

 

[crisi]

A lot of us didn't do it to save money - we did it because having a separate bedroom from the kids and a washer and dryer adds significant value. We spend more, but DVC is one of the only ways to get that at Disney - particularly if you are a fan of onsite. I'd never buy for a studio. The people that buy for a studio and have the discipline to remain in studios (rather than Deluxe hotel rooms) will save money if they keep all other moving parts of their vacation constant as well.

We call it the nookie tax - its expensive nookie, but it keeps everyone happier when we aren't tripping over each other in a hotel room.

 

[Scarlett81]

We call it the nookie tax - its expensive nookie, but it keeps everyone happier when we aren't tripping over each other in a hotel room.

Have you and my husband met, perhaps?? He's always asking for the same thing and I'm always saying, I'll see what room size they have available, hon... LOL. Too funny.

Well, much to consider.

One other question I can't seem to find the answer to. The upfront 'lump' sum you pay, can you explain what is all included in that, the break down? I just read somewhere that you get X amount of years worth of points..dpending on your contract expiration. So, upfront you are paying for 50ish yrs of points? I understand the yearly costs you will continue to incur.

 

[supersnoop]

One other question I can't seem to find the answer to. The upfront 'lump' sum you pay, can you explain what is all included in that, the break down? I just read somewhere that you get X amount of years worth of points..dpending on your contract expiration. So, upfront you are paying for 50ish yrs of points? I understand the yearly costs you will continue to incur.

You're buying a timeshare. That's what DVC is; a "RTU" (right to use) timeshare.

Disney Vacation Development holds a 50 year lease from the Walt Disney Company on each property. They build on top of the land and sell the improvements to you. When the lease expires, Disney gets their land back, and ownership of anything built on top of it reverts to them.

You purchase a piece of a unit, but your ownership is represented as a certain number of points which you can use to reserve a room.

 

[Minniesgal]

Wow. And all this time I thought that the appeal to DVC was that you are saving money! If thats not the case, I am shocked that so many people would do it. Affording it isn't the issue, its making a wise choice. If you have the $ to make the outright purchase and a measure of financial security, and you figure for your family's travel needs over a certain period of time this purchase will pay for itself and provide a substantial discount, its a no brainer. You'd be paying for your family's future lodgings, just outright. But I'd never be able to make this purchase if it didn't offer us a decent discount (long term) compared to yearly bookings. The emotional attachment isn't enough incentive for me. I get as much emotional satisfaction booking and planning a yearly or bi yearly trip. I guess if some kind of great resale option opened up, I'd consider that. Its so funny, I come on this forum thinking the DVCers are going to have me convinced and booked within days! Well I'm happy for the non biased opinions!

We didn't do it to save money and frankly, we won't we will spend more because we now go more often although we might save on park passes as we now prefer the resorts. We bought to have the 2 bedrooms instead of a hotel room.

 

[chalee94]

One other question I can't seem to find the answer to. The upfront 'lump' sum you pay, can you explain what is all included in that, the break down? I just read somewhere that you get X amount of years worth of points..dpending on your contract expiration. So, upfront you are paying for 50ish yrs of points?

supersnoop nailed it. DVC is a timeshare. RTUs are like a lease contract, but in DVC's case, it is structured as a deeded interest (so certain costs might be tax deductible - but IMO these possible deductions won't change the math significantly).

but like a leased car, once the time is up, you end up with nothing. if you own BCV, the contract ends in jan 2042 - if you own VGF, the contract ends in jan 2064. doesn't matter if you buy resale or direct, that is just when the contract ends.

i'll link the resource thread again if you want to look at other comparables or expiration dates:

http://www.disboards.com/showthread.php?t=2823943

 

[Lynne M]

Wow. And all this time I thought that the appeal to DVC was that you are saving money! If thats not the case, I am shocked that so many people would do it.

Well, yes, that is the appeal. It's really the only reason to buy.

Generally, you save money when you compare to the cost of booking a cash reservation for a villa, or if you compare booking a studio through DVC to booking a cash reservation for a deluxe room. It has to be an apples-to-apples comparison.

People usually come to DVC when their family has outgrown the standard hotel room. They want villa-style accommodations, and they see that having a DVC membership is a more cost-effective way of getting them. Or, like me, they want to stay in deluxe resorts, and see that a DVC studio gets you into those resorts, with their better amenities and proximity to the parks, for a much lower cost.

 

[Lynne M]

The other thing I wanted to mention.....you said awhile back that you often reserve your rooms three months out. You also said that you'd only consider purchasing GF, BC, or BLT.

The reality is, during much of the year, your chances of finding availability at those resorts at 3 months out are not good.

The reason to choose a particular resort as your home resort is to get that 11-month booking window. Really, that's the only reason. You get no special perks as a GF, or BC, or BLT owner. The booking advantage is it. If you don't see yourself routinely booking between 7 and 11 months, they you're paying premium prices for an advantage you're not using.

I think that's the first decision you'll have to make. If you're certain that you want to have most of your stays at GF, or BC, or BLT, particularly if you travel between the end of September and the end of the year, then you need to select your favorite resort as your home, and book between 7-11 months, preferably closer to 11.

If you truly plan to book most of your stays at 3 months, then get yourselves a resale at SSR or OKW. You'll save a ton of money.