Why DVC???

linjmit

Earning My Ears
Joined
Jul 11, 2001
We go to WDW, on an average, about every 13 or 14 months. We are going in August, 2001, and were just there in October, 2000. We are seriously considering buying about 220 to 250 points. Yesterday we were told by DVC that the maintenance on 250 points is $906.00 a year. We currently stay for no less than two weeks and we always book two rooms together at one of the All-Star Resorts (3 children...two bathrooms). We did the math and it doesn't seem feesible for us to purchase points (at about $18,500.00) because of the maintenance and also maybe not having enough points to stay as long as we do...We are just looking for some input on WHY buy into the club???? The maintenance fee alone will cost $40,000.00, over the next 40 years...Please help.....Thanks....
 
That price for points ($18,000) gets you 250 a year for 40 years without an additional room price. The annual dues ($905 that you mention) pay for the costs of operating the resort, upkeep and taxes, and those can increase annually, although historically increases have been small and there have actually been some decreases like last year.

If you are looking at it from a view of financial advantage,such does not happen immediately. If, as most expect, room rental rates continue to increase over the years, then the total cost of DVC for the type of accomadations you get will will be significantly less than if you just rented every year. Important though is the "type of accomodation" in that equation. DVC are considered deluxe resorts and thus when doing a financial comparison to renting to determine advantage you need to compare to like accomodations at deluxe resorts.
I think it has been said many times before that if one is perfectly happy with a value resort and its small room then in the long run for equal stays, the renter will pay less than DVC, although getting two rooms at AS every year may not in the long run be cheaper than DVC; for example that $90 per night per room usual rental at AS (to which you have to add taxes) may well double in less than 10 and quadruple in less than 20 years). Nevertheless in comparison to All-Stars, DVC generally loses the finacial issue, but when otherwise compared to GF, Poly, Cont, WL, AKL, YC/BC, or BWI, it will be victorious.

In other words, persons who buy at DVC usually consider the financial advantage as secondary. What they want is to be able to stay at a deluxe resort and many want larger rooms (like 1BR or 2BR). That kind of buyer when doing a financial comparison is comparing it to room prices at the deluxes not AS.
 
It is difficult to compare the All Star Resorts with DVC. A comparison with other luxury resorts is a better match. Having said that, I calculate that the cost of two rooms at ASR for 40 years would be at least $123,200 ($99 per night per room plus 11% tax) that does not take into account the fact that Disney will certainly raise the rates at ASR. A two bedroom villa at VWL would provide a truly magical vacation for your family. You might consider more points (Disney has a very flexible finance program). It would cost more than ASR, but the enhanced experience would be worth it.
 
linjmit...

You might also consider the re-sale market. I did before buying directly from dis...(since I only wanted 150 points or less it turned out the cost savings seemed to be minimal so I went with Disney).

An OKW resale for 250 can be had for distinctly less than a VWL purchase....larger point purchases seem to be a great candidate for re-sale purchases and can be financed. Plus the maintenance is a tad lower as well (800 some odd dollars). That still wouldn't be enough to break even against AS but maybe it would come closer.

Given that there are 5 of you I think you may be mostly stuck with either 2 rooms or a 2 bedroom anyway (as the years go by...I don't know how old your kids are). Maybe others can tell if there is a one bedroom out there that could take 5...my guess would be that it would be in OKW anyway.

As Drusba said...if you are happy & enjoy the value resorts DVC doesn't work...personally I found it does work in comparison to the moderates as well as deluxe.

P.S. I just dashed over to the Timeshare Store & saw there is an OKW out there for $64 per point for 250. Its been on the market for just over a month so perhaps the seller would take less...but $64 is $11 off the current VWL price.
 


HI,

We are in a similiar situation that you are, usually go ever 1 1/2 to 2 years. Normally we spent close to $10,000 on each of our previous vacations. We did the math and figured 15 more vacations would cost $150,000 in todays dollars, while buying into DVC would run close to $70,000 over the life of the contract. We usually stay for 10 days and bring about 5 people ( 3 adults, 2 kids) and stayed so far at BWV,OKW, and Dis Institute prior to buying into DVC. Basically a business decision that made financial sense to us.....
 
Actually, the maintenance fees will probably cost more than that over the next 40 years, if one anticipates a 3% increase per year. Annual dues have gone down recently, but 3% is a reasonably safe estimate for future planning purposes. Of course, hotel room at WDW have gone up more than 5% on average in recent years (but many discounts are available via annual pass, Disney Club, etc.).

DVC is targeted at families that want to enjoy what Disney describes as "home-away-from-home accommodations". DVC provides a significantly different level of accommodation than Disney's "value priced" resorts. Studios are a premium version of the "deluxe" hotel rooms. For example, at BWV (BoardWalk Villas), the studios are comparable in size to the regular rooms at the BWI (BoardWalk Inn) with the addition of a wet bar, undercounter refrigerator, and microwave at the BWV. However, the normal room limit for a BWV studio is 4 guests (plus one child under the age of 3) compared to 5 guests (plus one child under the age of 3) in the BWI. The one-, two-, and three-bedroom DVC units provide condo- or townhome-like facilities (full kitchen, washer/dryer in the unit, multiple baths in larger units, etc.) but require much more points than the studios. Guest limits are 4, 8, and 12 for these different size units. For your family size, you would ultimately need a two bedroom, so the 220-250 points per year would not go very far, certainly not for the length of stay you are currently doing at ASR. For you then, there is little or no economic advantage of DVC compared to staying at the All-Star Resorts, at least in terms of current costs for the value resorts. Two regular rooms at the ASR would be less expensive than any stay at a DVC facility, even in a studio. This might be offset in part by reductions in the cost of meals if you choose to do a lot of cooking yourselfs, but I never count on this since for the two of us, eating out is a significant part of the vacation experience.

We bought into DVC (via resale at BWV) after staying at the Disney Institute (a "home-away-from-home" resort which has been around since the early days of WDW) and the BWI (renting a refrigerator to provide some limited in-room breakfast fixing capabilities), so we knew we wanted this level of accommodation for future visits to WDW. We like the location and convenience of being able to walk to two parks (Epcot and MGM) and also take advantage of the entertainment along the BW. We will generally stay in a studio and fix only breakfasts and some leftovers in the room, so the larger units are less important to us than stretching our 220 points/year to provide at least two weeks worth of visits to WDW. Even this takes careful planning, since weekend nights (Friday and Saturday) have significantly higher point costs than the rest of the week (generally, more than twice as expensive in points). We will also stay at other DVC properties at Vero Beach and Hilton Head Island as alternatives to WDW stays. For us, the economic break-even point on our point purchase comes quickly, since we get about $4000 worth of accommodations for our annual dues plus the lost earnings on the money used for our point purchase (we paid cash rather than financing) which together total about $1600/year. We will have recovered our initial investment in about 6 years just from the annual savings, assuming that we would have used the earnings from the funds used to buy DVC to finance vacations instead. The $4000 estimate of the value of our accommodations is based on what we would be paying today for comparable accommodations at BWI or BWV during the seasons we visit and the length of time we stay during each visit, not what it would cost us to stay at one of the value or moderate resorts at WDW, and takes no account of future increases in hotel room rates. So for us, the economics made sense. For your family, they very well may not, since the initial investment (forgone earnings) and annual carrying costs (for dues and possibly financing) may be much more than your annual costs to vacation. That's one of the nice things about WDW today, there are such a wide variety of accommodations to fit the needs and desires of such a wide range of visitors.

Ralph
 
Having stayed at the AS resorts before I can tell you that the AS's are NO comparison to the DVC units. By purchasing DVC we upgraded our vactions to staying at a deluxe resort each year. For our family it's well worththe $$, no more crazy rush to get discount codes or worrying about room prices going up...up....up.
 


Just do the math. Lets assume a summer stay, and for ease of calculation and reduction in confusion let's just take todays dollars with no inflation:

Scenario 1: 2 rooms at AS for 2 weeks
$99/night + 11% tax * 14 nights x 2 rooms = $3,077
Do this for 41 years 41 * $3,077 = $126,157

Scenario 2: 2 bedroom at Old Key West
It will take 296 poinst to stay at a 2br at OKW during
summer months for one week, so you will need 592
points for 2 weeks.
Resale estimated $65/pt * 600 pts + closing = $40,000
Maintenance for 41 years = 41 * 3.13 * 600 = $76,998
For a total of $116,998

Now as times change you will no longer need 2 rooms at AS so you might have a couple of options. Buy two 300 point packages and have the ability to sell one of them after the kids are grown. Wait to take the grandkids or the kids. Or be selfish, imagine what you can do with 600 points and no kids ! ! That's whats great, so many options.
 
We bought 200 points in 1997, at about $12000 I think. DH figured it out, and based on the financials at the time, if you were to go every other year, it would make it worthwhile. Since we go every year, sometimes twice:) , it makes it very worthwhile for us!!!

If you compare a studio in a DVC property to a room at the AllStars, the DVC studio will blow it away!!!! It's bigger, more nicely appointed and has a little kitchenette thing. Once you get into the 1 or 2 bedroom units, there's no comparison between that and a regular room.

The fact that we don't have to come up with that big lump sum to pay for the room at the time of the vacationis nice...we find it easier to make a smaller monthly payment than to scrimp and save all year to drop $1500 on a hotel room for a week.

Those are just a couple of reasons why we love it. Even after 4 years of ownership, I still think it's one of the best things we've ever done!
 
The above posters have made some excellent points. I would like to add something that I've found with DVC that I didn't expect.

We don't go into the parks as much and therefore save (pulling number out of the air) $300 per trip. OKW is so nice, we spend at least one or two days just hanging out in our 2BR relaxing, and hitting the pool. Maybe we even hop into our conveniently parked car and take a little trip to the grocery store to stock up on our food. Or maybe we pool hop over to another nice resort and check out their pool!

We also find significant savings by cooking our own food. In 7 days, we may only eat 3 meals in the parks - and we provide our own snacks etc.

BUT - you seem to have a nice set up now with AS - and yes, the cost savings will seem small at best. So the bottom line as said above, is what kind of accomodation you enjoy.
 
I think that part of what people miss when they do the financial calculations is the human factor of having a kitchen, much bigger accommodations, etc. Also you don't have to bring as many clothes or spend money washing clothes because there are washers and dryers in the units.

For many people it just depends on how much extra you willing to pay for your comfort. Wtih DVC it turns out to be not that much....

Once your points are paid off you are basically staying in a deluxe resort for the price of the All-Stars.
 
One of the reasons that we bought in other than the money we felt we would save by cooking in was the money we would save by bringing friends or family. We are going down next summer to a 2br at the BWV and are bringing my parents. Because we are taking care of the accommodations, they offered to pick up our park tickets. That will save us approximately $800.00 for the amount of days we will be there, plus my parents save quite a bit to stay in such nice accommodations. Not to mention, we will have two grandparents who will be thrilled to watch their grandson while my husband and I have a night out for dinner alone with no worries about who is caring for our son!!! Priceless!!!
 
It's really like comparing apples and oranges. We were staying at an AS resort when we "discovered" DVC. When we toured BWV and did the math at that time, we realized that we could have been at BWV in a studio for about $5 more per night in that same week.

There are many things to consider. First, I found AS extremely cramped. And then there was that waiting in line for breakfast with throngs of very hungry, impatient people. Those cute waffles and pancakes added $25 a day to our hotel stay for four of us. So there are other "room" costs, not to mention room tax and tipping.

The following year, we stayed at BWV in a studio. We gained the ability to eat in. We had more room. We ran at a slower pace and realized that we did not even have to go into the theme parks to have a Disney experience. We so enjoyed the resort and its surroundings that we spent most of our time there. So we actually saved money by staying out of the parks.

We stayed at a one-bedroom at HHI last week, and I'm quite sure I will never, ever be able to go back to an AS resort. Talk about feeling comfortable and pampered. It puts new meaning into the word "vacation."

DVC is enabling us to buy our vacations ahead at todays prices and to maintain the standard of vacation that we always wanted. Goodness only knows how much it would cost to pay out of pocket for that kind of accommodation in five years.

Good luck. I can't imagine any regrets with DVC.

Carolyn
 
Originally posted by erick10520
Normally we spent close to $10,000 on each of our previous vacations. We did the math and figured 15 more vacations would cost $150,000 in todays dollars, while buying into DVC would run close to $70,000 over the life of the contract.
I hope that by this, you are comparing accommodations expenses to DVC expenses. If you compared the whole cost of your entire vacations to the price of DVC, you would be forgetting that you will still have expenses when vacationing as a DVC'er (passes, transportation, food, souvenirs, etc).

If the original poster would continue to enjoy the All Stars for now and perhaps take advantage of good deals and discounts in coming years, then they may NOT be the best candidate for DVC. We too are a family of five (who sometimes travel with more). We found that DVC has limitations that make it rather pricy for a budget-minded traveler, especially in a family of five. With DVC, there are no connecting studios, as there are connecting rooms at the Value & Moderate Disney hotels. A 2-BR is the ONLY sanctioned option at all DVC's but BWV (studio plus daybed).

Comparing the pricing of a 2-BR with 2 All Stars rooms(especially with discounts) or a single deluxe room may indeed show the DVC to be more pricy and less flexible than simply renting from Disney as needed. This is especially true in upper points seasons and when considering that you must tie up so much purchase money! DVC 2-BR's do offer a far superior room but not everyone feels the need to spend more to get more. If they did, and would've paid for the deluxe room(s), then that's where they need to seriously consider DVC. But this does not seem to be the case with the original poster of this thread. JMHO.
 
Since we purchased in '95, we have taken more vacations (at a higher class) than ever before. We mortgaged a portion and paid cash for the rest! I did this due to the tax advantage! We average about 25-30 days in (near) luxury accommodations. (that's a far cry from All Star anything).

We also are alot more relaxed since DVC. We don't have to bargain for the best deals (except airfare), we know what to expect and get it!!!

We feel it paid itself off in 5 years or approximately 100 days. You also assume that you will be going to ASMo year after year, but we did not assume that for ourselves (especially since we flavored other DVC's and hotels).

We buy more and more. Can't get enough of a good thing.

It's your choice! Make the right one for you.
 
do all the math you want. I love DVC (yes, i did run all the #'s) but bottom line there is a lot to do in the orlando area other than disney and we wanted more room to spread out and have or friends and family down. Nothing wrong w/any hotels on Disney property. Stay and do what works for you.

Joe in CT
 
I figure if you pay cash you will recover your initial cost in about 5 years. I would spend the equivalent of $3500 per year for the same rooms I use under DVC. Yes you pay maintenance. But you do not pay any room tax (about 10%). I have not used the larger accommodations yet because I either take multiple week vacations or I send my college age kids. Either way I get more vacations out this plan than I could afford otherwise. I am on a fixed income (2 universities lay claim to most of my income). It has to make sense for you, but I find it is great as long as you are happy with the vacation choices given to you by DVC. If you are happy with the choices I believe it will save you money in the long run. Even an $18000 initial cost and $40,000 in maintenance dues figures out to only $1450 per year for vacations over 40 years. The thing that made sense to me is that my kids will use this years from now even if I am tired of DVC.
 
Let's say you've been doing your 2 room/2 weeks at the All-Stars for the last 5 years, so basically you already wasted around $15,000 with nothing to show for it, you could have already paid off your DVC and now spending the rest of the 40 years of incredible vacations in accomodations that don't make you feel like sardines for the cost of maintenance.

Plus talk to your tax professional to see what deductions you can take on your income tax, you can't do that at All-Stars.

Plus like everyone says, with the full kitchen in the larger unit, you can really save money, even if you do just breakfast.

Figure you spend $25 for the 5 of you each day just for breakfast even if you eat breakfast out a couple of days out of your 14, you save another $300 there.
 

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