DVC for Dummies

[missymouseworld]

Can someone give me a quick explanation on how the DVC works? I have read things here and there, but am a little confused and would like a quick and easy explanation. Thanks in advance.:mickey:

[DVC Mike]

The Disney Vacation Club is an extremely flexible point-based timeshare program. Members purchase an allotment of points for a one-time purchase price, and then receive the same amount of points to use each year until their contract end date arrives.

Point-based timeshare programs should not be confused with fixed-week timeshare programs. Under a fixed-week program, owners typically purchase the right to use a single accommodation for the same week every year. Under DVC’s point-based system, the member purchases points which may be redeemed for stays at any time of year, in a variety of different-sized units at many different resorts.

There are virtually no limitations placed on when, where or how one uses his or her points. For instance, a DVC member could spend 10 nights in a Studio villa at the BoardWalk one year, and 5 nights in a Three Bedroom Grand Villa at Old Key West the next year. Program guidelines even allow members to "bank" their points one year into the future and "borrow" from the next year, adding another layer of flexibility.

There are two cost components to DVC ownership: the initial purchase price and Annual Dues.

DVC has a minimum purchase threshold of 160 points. However, contracts can be found on the resale market in smaller increments.

A contract of 160 points will cost upward of $15,000. DVC offers financing, and the interest you pay will most likely be tax-deductable. That contract entitles the owner to receive 160 points for the next 35-50 years (depending on the resort). Those 160 points could be used to stay as many as 18 nights per year in a Studio-size villa (which is comparable in size and amenities to a standard guestroom at any Walt Disney World Deluxe resort).

You should consider carefully the appropriate number of points you wish to buy, incorporating the season of your stay as well as your family's growth or decline over the years into your decision-making process.

The beauty of DVC is that the number of your points required to secure a reservation stays pretty much the same in future years. If one night of the year goes up by x points, then another night of the year has to be reduced by x points, so during the course of a year, the overall number of points will always remain the same.

Aside from the initial buy-in cost, DVC members must pay annual dues (more commonly called "maintenance fees") on their membership interest. Maintenance fees cover operating costs and upkeep of the resort, and are expressed on a per-point basis. Typically, maintenance fees, which typically increase by 3-4% from year-to-year, are $4 - $6 per point (depending on which resorts the points are associated with). Thus, maintenance fees on a 160 point contract will cost between $640 and $960 per year.

Compared to booking a deluxe or even moderate resort room every year, DVC can save you money. The break-even point will probably take around 5-7 vacations.

No other fees are charged for reservations at DVC resorts. In addition, DVC members do not pay resort taxes or any other fees at check-in.

[missymouseworld]

Thank you very much for your explanation, it cleared up alot of questions. We have to weigh the pros and cons.

[faline]

I'd also suggest contacting Disney World to order the Vacation Club DVD. It gives you a tour of the various properties and offers further explanation on how it all works.

[SFD998]

That is about the most well put "quick explanation" as I have ever seen.