Can you give me the Good, the Bad, and the Ugly?

[RysMomma]

Hi everyone,

I have been a Disney fan for about 40 years now! I can't tell you how many times I have gone to WDW because I've lost count. We did Disneyland for the very first time this summer and fell in love with it! We also did a family WDW trip which we just came home from a few days ago. We thought about buying in 14 years ago right before we got pregnant with our second but we weren't financially ready. After this trip, I'm really considering it. We started a bank account to put some of our paychecks away and save up for it. Our kids are 15 and 13 so we have college on the horizon (but hopefully we've been saving for that all these years and that will help), we'd love to do an Alaskan cruise in 2 years, plus, we have other things we need to buy (new car for us next year, house expenses, etc.) Anyway, after all this is said, my favorite resort right now is the Riviera! We went to Topolino's this trip and I fell in love! I will say, growing up, my dad was a value person. Always stayed at Value resorts. This year, my kids, husband, and myself stayed a few days at the Poly, and we also fell in love that! It was our first deluxe and I think we just realized what we've been missing!

So, give me the good, the bad, and the ugly. If you financed, how bad was the interest rate? (Hoping we won't have to, though). I'm a teacher so my only real times to travel are during breaks. The hope is that in 10 years, I'll retire from teaching and have a different job that I can travel at other times. But what information can you give me? I probably did this so many years ago but it's time to update my info and see what we are getting ourselves into.

Thanks so much!

 

[aceshigh73]

Howdy, difficult answer to give since u put so many variables in there, including future expenses (college, etc).
Buy when you think you are financially ready. Try to use the Dave Ramsey principle... Pay off all debts minus the house, build emergency fund, save 15% to retirement (although you probably have a pension since you are a teacher). and then you should consider DVC. This is only my opinion ofcourse. Its easy to get "caught up" with WANTING DVC vs NEEDING DVC. Since you are a relatively young family, it might makse sense to buy in. We looked at DVC when they were building BLT but didnt pull the trigger (until this July on Boardwalk resale)because we didnt want another expense (and we already own Marriott Vacation Club). Do your research, sleep on it, look at the bank and investment accounts and college costs) and try to make an informed decision. Good luck.

 

[RysMomma]

Howdy, difficult answer to give since u put so many variables in there, including future expenses (college, etc).
Buy when you think you are financially ready. Try to use the Dave Ramsey principle... Pay off all debts minus the house, build emergency fund, save 15% to retirement (although you probably have a pension since you are a teacher). and then you should consider DVC. This is only my opinion ofcourse. Its easy to get "caught up" with WANTING DVC vs NEEDING DVC. Since you are a relatively young family, it might makse sense to buy in. We looked at DVC when they were building BLT but didnt pull the trigger (until this July on Boardwalk resale)because we didnt want another expense (and we already own Marriott Vacation Club). Do your research, sleep on it, look at the bank and investment accounts and college costs) and try to make an informed decision. Good luck.

I appreciate this answer! We're going to be debt free this year! (Huge for us since our kids have had childcare for many many years up until Covid when my husband was able to work from home). We're definitely in a better financial bracket now than where we were 14 years ago. We have savings plans for the kids for college (of course, knowing it could be more than those plans), I do have a pension and my husband as a 401K. We definitely do not NEED one, you're totally right. We only want to do it when we're ready-that's why we're saving money now and hopefully, when the time comes, we can avoid the whole financing thing! Last time we were so close and we were going to finance, but we just knew it didn't make financial sense to us. Thank you for your response!

 

[aceshigh73]

I appreciate this answer! We're going to be debt free this year! (Huge for us since our kids have had childcare for many many years up until Covid when my husband was able to work from home). We're definitely in a better financial bracket now than where we were 14 years ago. We have savings plans for the kids for college (of course, knowing it could be more than those plans), I do have a pension and my husband as a 401K. We definitely do not NEED one, you're totally right. We only want to do it when we're ready-that's why we're saving money now and hopefully, when the time comes, we can avoid the whole financing thing! Last time we were so close and we were going to finance, but we just knew it didn't make financial sense to us. Thank you for your response!

Sometimes saying "No, i cant afford it" is the best and most empowering answer you can tell yourself. Im not saying its easy, nor will I say i havent made financial mistakes throughout my life (hello leasing SUV's in my 20's when i didnt need one (or 4!). Buy when you feel you are ready, when you see the yearly dues bill arrive in Jan, you dont care and you just pay them (all at once) and when you dont have to finance (although buying interest free on a Disney visa or the new Wells Fargo CC i've seen recently that gives 2x cash back and 15 months no interest is still ok as long as you can pay it off quickly!) Maybe look at resale SSR, or something like that, even if its just to see the $$ difference.

 

[UrsulaWantsYourSoul]

Heyyo!
We are teachers as well and go to Disneyland (a 2.5 hour flight from Seattle) about 5 times a year for like 2-4 nights for most trips which is great for DL. We have Magic Key passes. You can probably guess when we go - haha. But yeah by taking either Friday or Monday off for most trips it works great (then do a longer trip December and Summer).
I totally get saving up until you can afford it and not finance but... 1) the cost keeps going up (so that increase offsets quite a bit of what you would pay in interest 2) you could be staying in deluxe accommodations for all the time it would take for you to save up. YOLO! Haha. So yes if you can pay for a good chunk and finance less (or none) even better. If you go the resale route there's already a discount built it (but some potential negatives - like you can't stay at Riviera which you mentioned loving unless they are Riviera resale points which then you couldn't use those anywhere else which is very limiting). If you go with an actively on-sale property and buy enough points there's always a sweet spot that gets you the best value. You'll probably (ok you will haha) add on points later but it sounds like you go a lot so I'd say jump in if it's not a hardship / doesn't stress you out. Some people like to do a HELOC to get a good rate for a loan. Oh and don't forget about the Magical Beginnings option (selling back the first year of points). You can always borrow some of your points from next use year. FYI we own at Riviera and LOVE it! We have added on a VGC and VDH. The wonderful thing about DVC (at least historically for the entire existence of DVC) is that you can resell your points for what you paid for them or usually quite a bit more if something in life comes up and you decide it's time to exit. So many timeshares that is not the case. And of course yes keep in mind the costs of yearly maintenance dues (and TOT tax if you go with VDH). Renting some/all of your points is also an option for years you choose not to go.
FYI - I have students in front of me on Wednesday. Here we go!!

 

[Robbie Cottam]

right now the incentives are pretty amazing but there is only a few more days ….
Disneys in house financing is straight forward 10 percent down term up to 10 years….
people are going to tell you if you have to finance you can’t afford it, what ever, it’s a personal decision…..

you only get so much time with your kids, to me it was always worth it to pay extra to make it happy and special…

people are going to tell you DVC isn’t an investment….. it may or may not be a financial investment….. but IT IS VERY MUCH an investment in your family……

if you are going to use it, it is very much worth it

you can structure your purchase to go multiple time a year or once ever other year…..

the direct v resale, is a multi page argument….. bottom line here either you can pay cash or finance
just make sure you know what you are buying and are happy with it


the bottom line,
dont place too much stock in what anyone on this site tells you…..
‘do what you and your family think is best,

i would call a guide tomorrow and let them give you all the details

good luck either way

 

[RysMomma]

I have loved these boards for many many years! Thank you all so much! I love hearing all of your opinions. I do believe I had someone calling me right before we left because we were staying at the Poly. Right now my husband and I have covid (which we came down with the day after we came home), so I really have nothing to do right now except make a phone call and obsess over DVC!

FYI - I have students in front of me on Wednesday. Here we go!!

Ursula-I have one more week! Although, my son's school starts this week! Crazy! GOOD LUCK!

 

[thelionqueen]

Hi everyone,

I have been a Disney fan for about 40 years now! I can't tell you how many times I have gone to WDW because I've lost count. We did Disneyland for the very first time this summer and fell in love with it! We also did a family WDW trip which we just came home from a few days ago. We thought about buying in 14 years ago right before we got pregnant with our second but we weren't financially ready. After this trip, I'm really considering it. We started a bank account to put some of our paychecks away and save up for it. Our kids are 15 and 13 so we have college on the horizon (but hopefully we've been saving for that all these years and that will help), we'd love to do an Alaskan cruise in 2 years, plus, we have other things we need to buy (new car for us next year, house expenses, etc.) Anyway, after all this is said, my favorite resort right now is the Riviera! We went to Topolino's this trip and I fell in love! I will say, growing up, my dad was a value person. Always stayed at Value resorts. This year, my kids, husband, and myself stayed a few days at the Poly, and we also fell in love that! It was our first deluxe and I think we just realized what we've been missing!

So, give me the good, the bad, and the ugly. If you financed, how bad was the interest rate? (Hoping we won't have to, though). I'm a teacher so my only real times to travel are during breaks. The hope is that in 10 years, I'll retire from teaching and have a different job that I can travel at other times. But what information can you give me? I probably did this so many years ago but it's time to update my info and see what we are getting ourselves into.

Thanks so much!

Be prepared to get a lot of financial advice with many saying financing is not the way to go. Although that’s good advice, the reality is, some need to use it. I have for every single contract I’ve ever owned, and don’t regret one second! It gave me the opportunity to acquire an interest in my passion and is money I spend there anyway!

I paid a decent amount of interest over the years, but the profit I made on the contracts I sold more than made up for it. In short, I’ve actually never paid interest if you consider I made money at the end of the day,

I’m paying interest now on 2 contracts but 1 will be paid off in Jan, the other in May. I don’t really care to be honest. I’ll rent some of the points to fully offset any interest as well as pay off the loan. But, each person is different and has a different option that they choose. I’m just saying, don’t let those who bad mouth financing make the decision for you. Do it or don’t do it for your or reasons.

 

[Robbie Cottam]

Be prepared to get a lot of financial advice with many saying financing is not the way to go. Although that’s good advice, the reality is, some need to use it. I have for every single contract I’ve ever owned, and don’t regret one second! It gave me the opportunity to acquire an interest in my passion and is money I spend there anyway!

I paid a decent amount of interest over the years, but the profit I made on the contracts I sold more than made up for it. In short, I’ve actually never paid interest if you consider I made money at the end of the day,

I’m paying interest now on 2 contracts but 1 will be paid off in Jan, the other in May. I don’t really care to be honest. I’ll rent some of the points to fully offset any interest as well as pay off the loan. But, each person is different and has a different option that they choose. I’m just saying, don’t let those who bad mouth financing make the decision for you. Do it or don’t do it for your or reasons.

I think the way you do…
paid disney of interest,
but made money along the way
had some really great vacations with my kids along the way.._

 

[intamin]

Going along with what @lionqueen said.. financing is a very personal decision. A lot of people just like to echo if you have to finance then you shouldn't buy DVC right now which is simply not always the case.

The incentives can be not as good in the next round, there may be a price hike, or simply the resort you want to own may be nearing selling out. Magical Beginnings could be ending and you won't be able to sell back the prior UY points for 3300 dollars. In addition, while you're waiting to accumulate money for the contract, there's a fair chance you'd be spending that money on a cash stay anyways because I know I sure wouldn't stop vacationing. Of course, if you can afford the contract outright then you likely should just pay cash but these decisions aren't always black and white. IMO if you have a solid plan to pay off the contract within the first 2-3 years it can absolutely make sense to finance.

 

[tom1944]

Paying interest on an item that increases in value is not a problem.

It is paying interest on a product that decreases in value and having to sell it that becomes a problem.

Right now the majority of DVC owners have been lucky in that the product increased in value from the date of their purchase.

 

[Robbie Cottam]

Paying interest on an item that increases in value is not a problem.

It is paying interest on a product that decreases in value and having to sell it that becomes a problem.

Right now the majority of DVC owners have been lucky in that the product increased in value from the date of their purchase.

The big question with DVC is the value tangible in the form of cash, or intangible in the form of happiness.

Place a FMV on DVC is hard enough. Placing a derived happiness factor is personal…

 

[Straulin]

For direct sales, other folks have mentioned various credit cards. We did the Disney Visa for free 6 months financing, There are other Chase cards that will do free financing as well for longer. If you are buying direct, it would be worth combing the posts for the best options folks have found. With the rewards points and free financing on a credit card, you can end up with a decent “discount” on top of the current promotion. Our purchase netted around $700 in Disney rewards which we used to pay for our next trip’s dining. I don’t think the Disney Visa is the best option for rewards or financing duration, but, we already had it so it was easy.

 

[jimmymc]

The good: you're able to stay at deluxe resorts for far less than the price of paying cash. You're also locking in an initial purchase price for the next 20 to 50 years. While annual dues go up each year, it's rarely even close to the amount room rates increase year over year.

The bad: you are paying a lot of money up front and committing to at least 10 years of Disney vacations. Yes, you can sell DVC, but with things like closing costs and sellers fees, you really need to use it to get good value out of a contract.

The ugly: at crowded times of the year, rooms do fill up. You will not be booking at one of the Epcot area resorts in the fall unless you own there, same with Grand Floridian or Wilderness Lodge around Christmas. If you plan on traveling at these times, you really need to have your dates at least approximately set by the time you get to 11 months. DVC in general also just has a big learning curve, since you're not just paying for one stay at a time. Learn how booking windows, use years, annual dues, and waitlists work before you buy.

Some other thoughts:
1. Learn the pros and cons between buying a resale contract vs direct from DVC. Resale contracts are cheaper, but the process takes a lot longer, you are limited to the resorts you can use it at, and you don't get perks like Moonlight Magic parties or in-park discounts. In my opinion, the direct bonuses are only worth it if you live close to the parks, as in a one day's drive.

2. When it comes to financing, even a poor interest rate has a pretty small impact over the length of the contract, and by my numbers, it doesn't change the value over booking hotel rooms at all. DVC and resale places will typically offer financing, but if you have a good credit score, you can get better rates through a bank or credit union. I started at 8% and refinanced to 4%. Places with no credit checks range from 10% to 15%, but like I mentioned earlier, the interest rate doesn't have a big impact on the value of DVC. I only put down 10% and have zero regrets.

3. If you want to do something like an Alaska cruise or international trip, you can always rent out your DVC points for that year. You'll get anywhere from $12 to $19 per point, more if you book an early trip at a hard to get resort. This is taxable income, but you can deduct the dues on your tax forms.

4. If you do go the resale route, be patient. Wait to find the right resort, contract size, and use year for your family. Study the prices, read the right of first refusal reports published on DVCFan, and make an offer you think is reasonable but has room for negotiation. Bigger contracts usually have a lower price per point, so if you're not sure exactly how many points to get, lean on the side of more.

Edit:

I'd like to add one more general guideline for anyone new to DVC reading this. When I think DVC will be worth the investment is if you come every year at least once, plan to keep coming every year for the foreseeable future, and stay in a moderate room or higher. Depending on the purchase price and dues, the true cost of a DVC studio falls somewhere between value and moderate resorts, so even if you replace that moderate stay once a year with enough DVC points for a studio, you'll still be saving money while staying at a (theoretically) nicer resort. Values and off-site rentals/timeshares are usually less than DVC, so if that's the level you're comfortable at, then it may not be for you.

Plenty of people do bank and borrow with a small contract to only come every other year, but unless you're traveling with a large group and getting a bigger villa, I don't think it's really worth the investment. Those types of Disney travelers tend to spend more time in the parks and less in the room, plus they probably do other vacations in-between and don't want all that money tied up in a contract.

 

[DLgal]

I also went to WDW recently and dined at Topolinos and fell in love with Riviera. It's so beautiful and peaceful and was totally my vibe. I want to stay there next time!

I also had the fleeting thoughts of buying into DVC, even though we are eligible for major room discounts and I have gone over the numbers dozens of times and it does NOT make sense financially for us at all.

Then I read the complaints about availability and booking difficulty, and poor customer service, and rooms in bad shape, and I remember why I never want to actually be a DVC member. I snapped right out of the "pixie dust cloud."

The truth is, the DVC rental market exists and it's a great way to stay at these resorts if you want, at a good discount. We have never actually stayed in a DVC villa but we are now at the point where we cannot all stay comfortably in one room as a family, so our next trip will be a rented 1 or 2br villa. I will miss the daily housekeeping, but we will make do. I will appreciate the in room washer and dryer since I ended up doing laundry twice on our last trip.

The truth is, there is good and bad to DVC ownership. Our teens are older now, but are special needs and will be with us throughout adulthood, so we COULD still benefit from a membership, but the $$$$ outlay over time is just too high to justify when you consider the constantly increasing dues.

My husband and I talked about it and decided that unless we come into a large amount of unexpected money, like an inheritance or something, it's not for us. Its absolutely not something we would ever finance, and we have other goals for our savings at the moment that take priority. We will continue to vacation on the same budget, but instead of one room at a deluxe, we will stay in villas via renting or booking with a discount directly via Disney.

 

[Robbie Cottam]

People keep bringing up interest if you finance….

I know before the Trump tax changes I always was able to deduct the interest….. I don’t know or care if it was dollar for dollar… but it was something.

In another thread, someone suggested that is no longer a thing…… I would have to go back an check to see if I took the deduction or not….

But in either case my be someone to ask your tax guy or girl ….

I guessing this isn’t a deal breaker or maker,
But it might be another intangible …

 

[IDSkinner]

Howdy, difficult answer to give since u put so many variables in there, including future expenses (college, etc).
Buy when you think you are financially ready. Try to use the Dave Ramsey principle... Pay off all debts minus the house, build emergency fund, save 15% to retirement (although you probably have a pension since you are a teacher). and then you should consider DVC. This is only my opinion ofcourse. Its easy to get "caught up" with WANTING DVC vs NEEDING DVC. Since you are a relatively young family, it might makse sense to buy in. We looked at DVC when they were building BLT but didnt pull the trigger (until this July on Boardwalk resale)because we didnt want another expense (and we already own Marriott Vacation Club). Do your research, sleep on it, look at the bank and investment accounts and college costs) and try to make an informed decision. Good luck.

Excellent advice!

 

[tom1944]

I also went to WDW recently and dined at Topolinos and fell in love with Riviera. It's so beautiful and peaceful and was totally my vibe. I want to stay there next time!

I also had the fleeting thoughts of buying into DVC, even though we are eligible for major room discounts and I have gone over the numbers dozens of times and it does NOT make sense financially for us at all.

Then I read the complaints about availability and booking difficulty, and poor customer service, and rooms in bad shape, and I remember why I never want to actually be a DVC member. I snapped right out of the "pixie dust cloud."

The truth is, the DVC rental market exists and it's a great way to stay at these resorts if you want, at a good discount. We have never actually stayed in a DVC villa but we are now at the point where we cannot all stay comfortably in one room as a family, so our next trip will be a rented 1 or 2br villa. I will miss the daily housekeeping, but we will make do. I will appreciate the in room washer and dryer since I ended up doing laundry twice on our last trip.

The truth is, there is good and bad to DVC ownership. Our teens are older now, but are special needs and will be with us throughout adulthood, so we COULD still benefit from a membership, but the $$$$ outlay over time is just too high to justify when you consider the constantly increasing dues.

My husband and I talked about it and decided that unless we come into a large amount of unexpected money, like an inheritance or something, it's not for us. Its absolutely not something we would ever finance, and we have other goals for our savings at the moment that take priority. We will continue to vacation on the same budget, but instead of one room at a deluxe, we will stay in villas via renting or booking with a discount directly via Disney.

That was us. I used accrued vacation time at retirement to buy a resale contract. I was told to consider renting but I wanted the commitment to vacation that owning would bring. For us I needed that.

 

[intamin]

I also went to WDW recently and dined at Topolinos and fell in love with Riviera. It's so beautiful and peaceful and was totally my vibe. I want to stay there next time!

I also had the fleeting thoughts of buying into DVC, even though we are eligible for major room discounts and I have gone over the numbers dozens of times and it does NOT make sense financially for us at all.

Then I read the complaints about availability and booking difficulty, and poor customer service, and rooms in bad shape, and I remember why I never want to actually be a DVC member. I snapped right out of the "pixie dust cloud."

The truth is, the DVC rental market exists and it's a great way to stay at these resorts if you want, at a good discount. We have never actually stayed on a DVC villa but we are now at the point where we cannot all stay comfortably in one room as a family, so our next trip will be a rented 1 or 2br villa. I will miss the daily housekeeping, but we will make do. I will appreciate the in room washer and dryer since I ended up doing laundry twice on our last trip.

The truth is, there is good and bad to DVC ownership. Our teens are older now, but are special needs and will be with us throughout adulthood, so we COULD still benefit from a membership, but the $$$$ outlay over time is just too high to justify when you consider the constantly increasing dues.

My husband and I talked about it and decided that unless we come into a large amount of unexpected money, like an inheritance or something, it's not for us. Its absolutely not something we would ever finance, and we have other goals for our savings at the moment that take priority. We will continue to vacation on the same budget, but instead of one room at a deluxe, we will stay on villas via renting or booking with a discount directly via Disney.

I imagine for most people this is the case where renting is the superior option. If there's any hesitancy at all about whether or not you'll keep coming back or simply you want your money in something else renting makes the most sense. For OP it seems like DVC ownership may be a good fit since they're going to Disney World consistently already but most people don't meet the criteria.

1. you obviously have to be a huge Disney fan and are okay with going to WDW for the next 20-50 years
2. you have to be willing to go at least every other year and ideally are ALREADY going regularly
3. it has to make sense financially for you - aka you wouldn't rather have that money invested in something else like a mutual index fund or property etc., and aren't straining your finances by buying in
4. you have to be able to plan your vacations ideally 7-11 months in advance to optimize the use of the membership
5. you have to be willing to put in the time to do your homework to fully understand the product
6. you have care about staying in deluxe level accommodations AND staying on property vs. value/offsite

Renting pretty much eliminates all of that except for the planning 7-11 months in advance essentially although even that is not always necessary because of confirmed reservations.

 

[DLgal]

That was us. I used accrued vacation time at retirement to buy a resale contract. I was told to consider renting but I wanted the commitment to vacation that owning would bring. For us I needed that.

Oh, we don't need anyone to convince us to vacation. We are very much YOLO in that way. But I get it.