Why DVC does or doesn't make sense for me

[seanyred]

Because let's remember, the real value in DVC comes once your membership is paid for (assuming you finance). In the first 10 years your total cost of ownership is going to be a lot higher as compared to just renting points, but predicting what happens beyond that period is where it gets dicey.

I agree with you when all you have is annual dues the real value of having DVC kicks in. But in my case another way I look at it is comparing rack rate to what I pay now (annual dues + mortgage payment). In those instances I am spending less money. Of course when Disney is offering deep discounts I might be spending a little more, but those discounts will not be forever or as deep.

[MarkC]

I think it really boils down to how often you go to Disney, and whether you like to stay at a value resort or a deluxe resort.

We average about 1 trip per year and love to stay at Beach Club so for us its an absolute no-brainer to have DVC. Plus we use a Disney visa to pay our annual dues so we basically stay there 6 nights a year and will never pay another cent while staying there. I will point out we've been there about 20 times, so even though we go to the parks daily, we also like to relax and swim and enjoy the surroundings.

If you are a person who likes to spend all their time in the parks or is fine staying at a value resort, DVC is not for you, especially if you have to finance it.

Finally, as other posters have mentioned, there is the non-financial aspect of being able to enjoy a deluxe resort and a Disney vacation without worrying about the cost. In fact, my son and his fiance are getting married next May, and we were happy to give them our points and a week at the Beach Club next May for their honeymoon. That falls into the "priceless" category.

[epceddie]

DVC makes sense for us, because we're able to make two or three trips a year during value season when the kids are all back in school and the crowds at the park are much smaller and a lot more manageable.

[mrsmouse]

Quite a few years ago we took the tour and decided against it. We had no grandchildren and were not really in a financial position to enjoy our commitment. In 2008 we did the tour again. We were certainly in a better financial position and also had a granchild who had already been to WDW a few times. For us it was a 'no-brainer.' We have visited 2-3 times every year since 2008 and have definitely found the benefits. We need the additional space that a 2-bedroom unit offers, and have several other family members that we have been able to share the experience with. For us, the timing and choice was right.

I should also mention that for us, BLT and a grandchild go together. Needless to say, that was our reason for choosing BLT.

[lawgirl]

I am going to jump in, and hopefully it won't be in the wrong place! Someone please redirect me if needed!

We go to Disney usually 2 times a year, always stay at AKL. Right now, we honestly don't have that much cash all at once to pay the DVC 100%. But I'm trying to figure out from a smart "investing" perspective, if we keep up our intentions of going 2 times a year and only staying at a deluxe villa, would it make more sense to buy into DVC and just finance it? I'm hoping we would pay it off early, and probably will. We are really "lifetime" Disney people, and I cannot imagine a year without going. And we are definitely not Value resort people (I don't have a problem with Value resorts, and I definitely see their "value" but its not our cup of tea. We LOVE the AKL and spend alot of time at our resort.)

Before I make the call to get more info from our DVC guide, I hope someone here can help me out! I really need a financial advisor to crunch the numbers;-)

For instance, I am looking at going in September and December, like we did last year. We paid approx $1200 in Sept for a 1 bedroom villa, and $800 in Dec for just a standard view room (not DVC rental) (and we have always paid the vacations off). And we've pretty much done that trend the past few years. I guess I just need to add up how much financing payments would be versus how much we would spend on the hotel each time.

Thanks ahead of time...this is new territory for us, even though my dad was there on opening day!

[VWL Mom]

Right now, DVC direct AKV is running about $125/point (after promotions applied) whereas resale is running in the $65 range. Our sponsor The TImeshare Store is one place to start your search.

I think you're right to want to sit down with an advisor to run the numbers. That's probably your first step. Look at the point charts for AKL and decide how many points you want to buy. You don't need to buy them all at once, maybe start with one week and add on later. Keep in mind, annual dues this year are running $5.68 per point so that is an added cost.

If you are financing a portion than you need to consider the interest rate. If you are buying resale you would need to arrange your own financing. Figure all that out and then decide if you want to proceed.

[lawgirl]

Thanks for the info Lynn! One more question, which seems relevant. Why would someone pay full price for a DVC membership when they can do the resale for almost half-price? What is the drawback to resale points?

Thanks so much. This has definitely given us something to consider!

(And on a side note, as I obviously have alot more research to do, so you can buy in at, let's say 90 points, then later on, you can add another 90 points? How does that work?)

Thanks!!!!!!

[TinkerbellT421]

Thanks for the info Lynn! One more question, which seems relevant. Why would someone pay full price for a DVC membership when they can do the resale for almost half-price? What is the drawback to resale points?

Thanks so much. This has definitely given us something to consider!

(And on a side note, as I obviously have alot more research to do, so you can buy in at, let's say 90 points, then later on, you can add another 90 points? How does that work?)

Thanks!!!!!!

There are a few reasons for some.
1) The right of first refusal by Disney
2) You cannot use points for anything other than on site Disney property with resale
3) The contracts are shorter and already in use so instead of having "so many years from today" the ones already in use only have so many years left.

If purchasing through Disney there is a minimum first purchase buy in, ours was 160. It is higher now I believe. With add-ons however you can buy any amount you want.

[VWL Mom]

Effective March 2011 restrictions were put on resale which limited owners from using points for Disney Collection, Disney Concierge Collection, and Disney Adventurer Collection. If you are planning on using your points only at WDW or DL, than this is a non-issue.

Other than that, right now there is no major drawback. Resale rates are low right now and IMO are just a reflection of the economy. Especially BLT and AKV where many bought and then realized they couldn't afford it so either decided to sell or were foreclosed.

Another point is DVC requires a minimum purchase which I believe is 150 whereas resale doesn't have a restriction so if you could find some small contracts you could buy them. If you are going to be combining smaller contracts it's best to keep the same use year, just simplifies booking later on. We did our original purchase through DVC because we didn't know about resale, our recent add-on was through resale and saved us 50%.

Resale requires some patience, once the contracts are signed they go to Disney and they decide whether or not they want the contract. Most times the sale goes through but there are times when the exercise ROFR because they think it's too cheap or they may have someone waiting to buy the spot. Since they have plenty of AKV inventory I don't think that would be an issue.

[TinkerbellT421]

Effective March 2011 restrictions were put on resale which limited owners from using points for Disney Collection, Disney Concierge Collection, and Disney Adventurer Collection. If you are planning on using your points only at WDW or DL, than this is a non-issue.

Other than that, right now there is no major drawback. Resale rates are low right now and IMO are just a reflection of the economy. Especially BLT and AKV where many bought and then realized they couldn't afford it so either decided to sell or were foreclosed.

Another point is DVC requires a minimum purchase which I believe is 150 whereas resale doesn't have a restriction so if you could find some small contracts you could buy them. If you are going to be combining smaller contracts it's best to keep the same use year, just simplifies booking later on. We did our original purchase through DVC because we didn't know about resale, our recent add-on was through resale and saved us 50%.

Resale requires some patience, once the contracts are signed they go to Disney and they decide whether or not they want the contract. Most times the sale goes through but there are times when the exercise ROFR because they think it's too cheap or they may have someone waiting to buy the spot. Since they have plenty of AKV inventory I don't think that would be an issue.

As of 2008 when we purchased the minimum allowment was 160 points.

[VWL Mom]

3) The contracts are shorter and already in use so instead of having "so many years from today" the ones already in use only have so many years left.
.

Just to clarify, resale contracts and direct contracts have the same life for the same resort. The shelf life of the contract depends on the specific resort.

January 31, 2042 (Old Key West*, Boardwalk Villas, Beach Club Villas, Villas at Wilderness Lodge, Vero Beach Resort and Hilton Head Resort.) Saratoga Springs memberships end on January 31, 2054, Animal Kingdom Listings end on January 31, 2057, Bay Lake Towers listings and The Villas at Disney's Grand Californian Hotel® and Spa end end January 31, 2060. *Some Old Key West listings end 2057 and those are clearly marked.

[VWL Mom]

Tonya, we always seem to be cross-typing

[TinkerbellT421]

Just to clarify, resale contracts and direct contracts have the same life for the same resort. The shelf life of the contract depends on the specific resort.

January 31, 2042 (Old Key West*, Boardwalk Villas, Beach Club Villas, Villas at Wilderness Lodge, Vero Beach Resort and Hilton Head Resort.) Saratoga Springs memberships end on January 31, 2054, Animal Kingdom Listings end on January 31, 2057, Bay Lake Towers listings and The Villas at Disney's Grand Californian Hotel® and Spa end end January 31, 2060. *Some Old Key West listings end 2057 and those are clearly marked.

Tonya, we always seem to be cross-typing

lol, meant years used to date! Duh!

Aren't we? lol Your always much more detailed though!