Who SHOULDN’T buy DVC?

[ScubaCat]

I actually think it's no different than any other thing we buy. Keeping with real estate, I buy the house I want to live in based on what I can afford and the area I want to live in. The trick to DVC is to disregard the incidental benefits and trading, and simply treat it as a real estate transaction at a property. Do you want to spend X days per year in a certain unit at a certain property? Then buy. If not, then don't. The only caveat would be the value studio issue (same as standard studios at boardwalk), I'd just disregard them since you're not guaranteed to get them. Other than that, I don't think any of the other things matter all that much IMHO. Even things like regular resort discounts are thing we certainly look for, but would likely come anyway if it's what we want to do. Maybe we'd stay fewer nights or at a less expensive resort if there were no discount, but we'd spend X dollars on a vacation if we wanted to go, and we wouldn't if we didn't.

 

[giovanni2231]

I think if you plan to finance for the 10 years they offer, it is definitely no worth buying into it. But for a lot of people, it's the only way into the game. I think when you look at the numbers, putting at least the required 10 percent down (more if possible)and finance the rest as long as you make a real effort to pay it off, really in the grand scheme of things, isn't a reason not to buy in. Buying points, especially when buying directly from Disney at the premium pricing can be quite expensive for most people. To shell out 25k + potentially in one shot may not be feasible. Lets say, it takes you 36 months to pay it off, you are looking at probably around another 3,000 - 5,000 in interested over those 3 years, making your total purchase price approx. 30,000 vs say the 25,000 cash price.

Although you basically just paid another 25 percent for the property, if you visit during that time frame, the DVC perks/pricing on things like rooms (no price for room, just points), access to gold annual passes which is several hundred cheaper than the regular annual pass and discounts on merchandise and special event tickets, all wash out the extra interest you are paying over that 3 years. Although this post is about who is DVC not good for, it really comes down to, if you are a family that likes to visit annually or multiple times per year, even with financing for several years, it outweighs the con of not buying in.

On a side note, the person that thinks they will buy in and use their points for cruising or RCI and other non DVC Resorts, really should reconsider... The best bang for your buck regarding your points is using the points in a DVC resort. So you may want to reconsider if you are not sold on Orlando and the other DVC resorts that they offer up as the main reason you are looking to buy in.

Just my 2 cents...

 

[jarestel]

Who shouldn't buy DVC?
1) Generally speaking, the further out one can plan a DVC vacation, the better one's chances of reserving the desired resort and accommodation type. If a job or personal situation prevents long term planning, DVC might not be a good fit. Obviously, the more flexible a member can be, the greater the chance of success.
2) People who don't feel the need to stay "on property". DVC will never be competitive with the cost of off-site property rentals.
3) Folks who don't see themselves visiting Disney on a regular basis.
4) If you expect everything about DVC to remain exactly as it is on the day you sign your contract, disappointment lurks in your future. DVC changes all the time from room designs to maintenance fees to room costs. For example, DVC may paint the walls of your favorite resort rooms a different color or swap out furniture you really liked. MFs will go up and in some years at higher rates than expected. The number of points required to reserve your accommodation of choice may increase.
5) People looking for "investment" opportunities. DVC is really a pre-paid vacation program not a supplement to a 401-k or the kids college fund. It's best to remember that even though it's Disney, you're still buying a timeshare.

 

[jerseygal]

Someone who is not able to plan vacations at least 7 months in advance should not purchase DVC. The system definitely works best for those that can plan 11 to 7 months in advance.

Wholeheartedly agree! Many like spontaneous vacations or book vacas say 3 to 5 months in advance, imo, those folks probably won't be happy or will complain that they don't have choices. Many cannot plan vacations because of work restrictions more than a few months in advance, for those I would not recommend.

 

[jerseygal]

I think it's a bad idea for anyone who needs to finance it. If you don't have the cash, you shouldn't even consider it.

I agree, I consider it a "luxury" purchase, not one to be financed to pay interest on.

 

[Louis morrell]

Haha. Well, yes. Taking the kids' college fund doesn't count!

LOL, I am sure somewhere there is someone who did that.
I see advice to finance DVC on these boards from time to time. I just can not get behind that idea. Call me a tight-wad but I just can not see it as a good idea.
If you could pay it off in notes in 24 to 48 months, just wait and save. Then just use the interest you save for tickets. It's only 2 years. At my age that seems like 2 months.

Just my own opinion.

 

[Marionnette]

People who should not buy into DVC include:

• Those who like last-minute trips. Availability can be spotty and you may not be able to book your entire stay at one resort. You're basically picking up the scraps that nobody else wanted.
• People who only visit Disney World occasionally (less often than once every two years). Going every 3 years is the absolute minimum but if you're not using your points every 2 years you are likely to land in a situation where you will lose a large number of points due to banking and borrowing rules.
• People who live paycheck to paycheck or have large consumer debt. DVC is not a money-saver. It's a money pit.
• People who have never stayed a single night in a DVC villa. You wouldn't buy a car without a test drive. Why would you commit thousand of dollars to DVC without trying it out?
• People who like vacationing at a variety of places. Buying DVC can be as much as a 50-year commitment to paying the Mouse. Even if you're not traveling there and banking your points for another time, you still have to pay those annual dues. And that cuts into your vacation money for other trips. Using your points for non-Disney vacations is a poor use of an expensive commodity and is generally not recommended.
• People who sign on the dotted line while still under the influence of pixie dust. It's better to stop, think it over, research the pros and cons and evaluate the resale market.

 

[RipperSB]

Whenever I am asked if I think DVC is right for someone, I ask them two questions: 1) Do you like going to WDW every year (maybe every two years)? and 2) do you like staying in Deluxe accommodations? If the answer to both of those questions is "Yes", then DVC is something you should look at. If you are not going to go regularly, or you are happy staying at the Value or Moderate resorts, then DVC is not going to be a benefit for you. After that, then you can look at the nuances like planning and booking eleven months out and how many points would be required for a desired room, at a desired location, during a desired time of year.

 

[MB_01]

What if you are someone who plans trips to WDW and as soon as you tell them the extended family says they want to go as well so you plan the trip out and pay for everything and then no one reimburses you for any of the rooms and you eat all that cost every year?

If that happens to you 3-4 years in a row I suggest your only options are buy into DVC or move out of the country.

 

[RipperSB]

What if you are someone who plans trips to WDW and as soon as you tell them the extended family says they want to go as well so you plan the trip out and pay for everything and then no one reimburses you for any of the rooms and you eat all that cost every year?

If that happens to you 3-4 years in a row I suggest your only options are buy into DVC or move out of the country.

If that were me, it would have only happened one year in a row. Third option... Just say NO.

 

[_auroraborealis_]

If that were me, it would have only happened one year in a row. Third option... Just say NO.

No is a complete sentence!

 

[kniquy]

Poor DVC candidates:
1. Those who like to plan last minute. This meaning 6 months and under. There is limited room availability during this 6 month time frame. It is variable on the time of year -- Mid September through Marathon weekend in January. If you want at studio you better book your studio room at the 11 month mark, slightly better availability at the 7 month mark for 1 or 2 BR.

2. Some one who needs to finance the purchase. Financing, especially at high interest rates which timeshares are typically at. This really eats into your savings buying into DVC. The only exception might be someone who would finance and have the loan paid off in a couple of years vs 10 years.

3. Someone who has not educated themselves on the aspects of UY, banking and borrowing points.

4. Someone who buys a "cheaper" resort (Vero Beach or Hilton Head) with the intention of using the points for WDW properties. Not only will they end up paying more than some who purchased an on property resort in the long run, but they will also have a tougher time finding a room on property at certain times of the year.

5. Some who only plans on going every 3 years using banked and borrowed points. This could possibly result in a significant loss of points if they have to cancel a trip.

6. Buying in to only book a studio and they plan on booking at or less than the 7 month mark. Studios book up the quickest simply because they have the lowest point requirements. Competition for these rooms is high.

7. Buying in to stay at AKL value rooms. Even owners of AK have trouble booking value rooms at the 11 month mark.

8. Buying into Rivera (once it become available) uneducated. They need to be fully versed in the potential resale value/restrictions before buying direct at Rivera.

 

[disneynutz]

People who love the magic and pixie dust of Disney shouldn't buy DVC. DVC shows you what's behind the curtain, a business that will do anything it needs to do to increase profit, even at the expense of the DVC owners.

Bill

 

[Brett Wyman]

People who's DW won't let them!

 

[ScubaCat]

People who's DW won't let them!

I have the opposite problem.

 

[miTnosnhoJ]

If you were to fall into financial distress, say, through the loss of your job, what would be your priorities?
1. Food
2. Shelter, e.g. your primary residence
3. utilities.
4. Clothing
5. Car payments
6. Credit card payments.

Down about #20 or #25 would be paying the loan and maintenance fees of a timeshare that you can’t afford to visit while under financial distress.

To drive this point home look at the timeshares that Disney has foreclosed on. DVC generally has good resale value, yet these people still lose their memberships to foreclosure.

Financing is very risky.. you may lose it all. It happens all the time.

 

[bumbershoot]

People who can’t plan in advance and won’t research.

I think it's a bad idea for anyone who needs to finance it. If you don't have the cash, you shouldn't even consider it.

Meh.

Most people who buy *are going to Disney anyway*. That money is being spent. It’s a choice of how to spend it.

We were going to Disneyland, staying onsite many times. And we had long trips. We were planning on Disney World soon.

For the cost of what we were paying for one or two trips a year we could pay for a year of the Dvc loan and have something we valued more. So it took a little longer to pay off. We were going there anyway. That money was going to be spent.

I think it’s silly for other people to decide what sort of “convenience fee” other people shouldn’t pay.

People who have never stayed a single night in a DVC villa.

Again, worked for us! It’s a Disney resort. What’s going to be horrible about it? I’ll admit I did tour the GCV model, but that’s literally my least fave Disney hotel so far, and it was still fine. Still haven’t stayed there (least fave resort!) but all the rest have been fine. It’s a timeshare “hotel room”. It’s not rocket science if you’ll like it or not.

 

[jarestel]

I'll agree that everyone should assess their own financial situation to determine if DVC makes sense and if a good breeze stands a chance of collapsing the house of cards, then timeshares aren't a good move. Financing though, isn't necessarily the bogeyman many make it out to be. The cost of an average size DVC contract isn't much different than financing a new car, which people do all of the time without the threat and worry of financial ruin. Financing costs more, but as has been mentioned, if you're going to spend the money on Disney trips anyway, it's money already spent.

I've no interest in debating the wisdom of financing vs paying cash, just pointing out that it may not be the road to ruin that many proclaim it to be. But the internet being what it is, I take most internet advice with a grain of salt (this post included). After all "we're not bossy, we're just helpful!"

 

[Johndubbya]

My wife & I financed we put down a 1/3 of what we paid... I have no regrets in doing so... My wife works her butt off as a nurse and Disney is a way for her to destress... Therefore it was worth it to us. We finance cars too but we pay them off in half the time. We paid off 14,000 worth of student loans in 18 months. So to say, people, shouldn't finance is extremely subjective

 

[DLgal]

Whenever I am asked if I think DVC is right for someone, I ask them two questions: 1) Do you like going to WDW every year (maybe every two years)? and 2) do you like staying in Deluxe accommodations? If the answer to both of those questions is "Yes", then DVC is something you should look at. If you are not going to go regularly, or you are happy staying at the Value or Moderate resorts, then DVC is not going to be a benefit for you. After that, then you can look at the nuances like planning and booking eleven months out and how many points would be required for a desired room, at a desired location, during a desired time of year.

I hear this a lot. I disagree with the second part about liking Deluxe accommodations and assuming you will be happy with DVC. In my experience, the DVC villas lean more towards moderate level accommodations, excluding the size factor. The furnishings and bedding are not as nice as you get in the Deluxe resort rooms proper. A sofa bed or chair bed is inferior to a mattress, every time. Lack of daily housekeeping included doesn't scream "deluxe" to me. Lack of club level, for the most part, is also decidedly not deluxe. As a family who prefers Deluxe Disney accommodations, it is actually one of the reasons we know DVC is NOT for us. I will choose a smaller room at a deluxe with club level over even a 2 bedroom villa, every time. Space doesn't factor in that heavily for us, and we are a family of 4. I can see the benefit for larger families though.