Why is DVC Worth It?

[Sandisw]

The "you never know where prices are headed" mentality is just a non-issue. Even their newest resort, Riviera, can already be booked with a huge discount by means of Disney Visa card (which is free). The whole pre-paid vacations is really just a marketing ploy too. Disney World is a gigantic resort, and most times of the year you are going to be able to book were you want, especially 7+ months in advance. You are only doing your wallet a disservice by leasing Disney's timeshare service.

The RiVera 40% off for Visa is a ploy to get people interested to sell DVC. Typically discounts over the past few years are ranging 25% to 30%.

It is not as cut and dry and you suggest, it all depends on what wants, how often one will visit, and whether having things prepaid is beneficial. Why do you think the dining plan is popular? It doesn’t necessarily save as people are getting food they may not buy if it were not for the plan. But it helps know upfront what you are spending and some like that.

The flexibility of DVC is what I like and if I want a few days in a studio for a solo trip, or a 2 bedroom for a family trip, it allows for this without the sticker shock each time,

Now, of course, upfront fees were paid, but if one continues for many years, eventually you will end up in the plus, if, for nothing else, staying in better rooms. Definitely not for someone who is okay staying Anywhere and doesn’t want to commit to 20 years worth of trips to Disney.

 

[Just People]

My problem with DVC is that, contrary to common opinion, you are not as valued a customer. Big picture, Disney doesn't have to work hard at all to woo you. They already have a guaranteed customer. If you don't stay a year, they don't care, you opened up availability for a cash booking. Rent your points? Awesome, someone else they will be able to get money from from your stay. Disney has to try harder to attract those of us who haven't signed a promissory note to stay at Disney on consistent cycle. Disney World can brag about how great their attendance is nowadays, but they are still consistently offering discounts. One thing about Disney is for certain, they are not going to offer any kind of discount unless they feel they have to. Disney know very well they have their die-hard Disney fans that will go year after year no matter what (PLEASE TAKE MY MONEY!), and those who feel Disney is just one of their options for vacation. I don't mean to demean those who lease DVC, its your money... but just take a breather before you sign those papers. That hard earned money isn't going to the land of talking mice and magical princesses, its going to men with very expensive suits and absurdly large mansions.

 

[CanadaDisney05]

My problem with DVC is that, contrary to common opinion, you are not as valued a customer. Big picture, Disney doesn't have to work hard at all to woo you. They already have a guaranteed customer. If you don't stay a year, they don't care, you opened up availability for a cash booking. Rent your points? Awesome, someone else they will be able to get money from from your stay. Disney has to try harder to attract those of us who haven't signed a promissory note to stay at Disney on consistent cycle. Disney World can brag about how great their attendance is nowadays, but they are still consistently offering discounts. One thing about Disney is for certain, they are not going to offer any kind of discount unless they feel they have to. Disney know very well they have their die-hard Disney fans that will go year after year no matter what (PLEASE TAKE MY MONEY!), and those who feel Disney is just one of their options for vacation. I don't mean to demean those who lease DVC, its your money... but just take a breather before you sign those papers. That hard earned money isn't going to the land of talking mice and magical princesses, its going to men with very expensive suits and absurdly large mansions.

While I don't disagree, your discussing a macro economics, and we are discussing micro economics. If nobody bought DVC, then you are probably right. Disney would have a harder time selling rooms, and would likely have to lower hotel rates. This would be the ideal scenario for us, the consumer. However, if I personally don't buy DVC, nothing will change for Disney as a whole. Nobody will follow me. They won't all of a sudden have tons of inventory that they need to give away. The only thing that would happen is that I wouldn't be staying in Disney Deluxe Resorts for the cost of a Value Resort.

In Economics, this is called "Game Theory". It's why governments try and limit Oligopolies from colluding on price fixing.

 

[Splash Mountain Fan]

...are only really savings if the original purchase was going to happen anyway

I agree. This concept and time value of money are the 2 biggies that can be commonly overlooked/misunderstood/misapplied.

And as I have already mentioned, DVC has worked very well for us so far. Hopefully many more good years and trips to come!

 

[Heather07438]

Like others have mentioned, I look at it more like a guaranteed "free" upgrade rather than a savings. In exchange, I give up liquidity of my capital. I have managed to save enough liquid assets to allow me to sleep at night, and continue to put away enough for retirement, so buying DVC doesn't have a negative affect on my day to day life.

This is exactly how I see DVC for us, basically an upgrade for our commitment. Since I know we'd most likely continue visiting WDW every 1-2 years and spending $250+/nite regardless, we might as well get the nicer accommodations and possibly more control with options. They get us locked in and we get Deluxe for the cost of Mods.

Which interestingly is the same way I feel about DDP. For the folks who commit a decent budget to WDW food regardless, they can get a bonus for that money spent.

 

[DisMomKY]

We decided to because we visited AKL, Poly and SSR and thought wow we’d love to stay here. Then we saw one bedroom units and were like these are amazing! Look at all the room you get. And then we saw the price tag we decided why pay $4,900 for one of those rooms one time when we could buy resale and have it locked in for a while. So after about 5 trips we will have got close to breaking even and then our dues are about the same price as a room at a value after that. Plus we don’t look at it as an investment. We fully plan to use those points til they expire

 

[Matty B13]

For a large family, like mine (5 members) buying DVC for the 1 bedroom & 2 bedroom options makes much more sense than having to get 2 hotel rooms, so for us it is a savings...... some what. We wouldn't be going every year to WDW if it wasn't for DVC.

Also, the forced vacation part of it, is a good thing for most families as long as it works within your budget for vacations.

 

[TikiRob]

I'd echo others in saying the "value" for us isn't the perceived savings, but the "plussed" vacations we'd be taking anyways. I would never pay $400/night for accommodations but that seems to be best pricing for deluxe when we travel.

 

[CyberPluto]

Buying any timeshare is usually an emotion-led decision. Salespeople count on this. You just had an awesome vacation--why not own a piece of it now and do it every year! Membership has its privledges! Now multiply that times Disney, something I suspect we all have extremely strong feelings about. I think a lot of us at a certain age as kids grew up dreaming of going just once. Now as adults we can freakin own a piece of DW and go every year!

I was immune to timeshares, especially as I saw lots of family members get them, regret them, then struggle to merely give them away. I also never had as strong a reaction to any place we've stayed before until DW (which I'd never gone to until I was 40). I read about DVC at first, saw the word timeshare, then filed it in my mental garbage can. We started going to Disney more. We went from staying at pre-refurb dumpster CBR to Animal Kingdom Lodge. We started enjoying time at the deluxe resorts as much as we enjoyed the parks. We started going twice a year. Made friends with people who had DVC and learned more about it. Eventually, after several years, we bought 100 points at Riviera.

So what was the value proposition for us? First, and I think this pretty much bread-and-butter for every single "is DVC worth it" article you will pull up in Google. If you aren't sure you will be vacationing frequently at Disney World for most of the rest of your life, OR if you are perfectly happy staying in the absolute cheapest deals you can find at value resorts, then DVC is never going to work out for you. If you go to DW once a year at least, and you stay at high moderates or deluxe resorts or want huge rooms, AND you don't need to finance the initial buy-in, DVC will most likely reach a break even in some years and then begin saving you money (this will happen sooner if you buy resale, and sooner if hotel rates climb). There are plenty of spreadsheets floating around that can show you break even and whatnot. And unlike nearly every other timeshare, you can always sell your DVC for at least some % of your initial buy-in. Now, that's purely the economic side of "worth it." But there's also an emotional "worth it" that's harder to quantify. A DVC purchase can be worth it even if you buy direct and have to finance, if the purchase brings you joy. Life is too short. If buying a piece of Disney gives you ongoing happiness and satisfaction, or if the idea of leaving a legacy of memories and points for your children fills you with glee--then DVC may be worth it too, even if it's just a timeshare that you can't quite make the numbers work out as far as savings over a long period of time.

For me personally, it was worth it financially based on our cash on hand and what I see as our long term vacationing habits. But it was also absolutely worth it for the emotional value as well. This is going to vary for people based on the number of variables at play. When considering, it's still important to recognize that it's still just a timeshare. Everyone needs to cautious and well researched before purchasing, and make extremely sure that it's a place you want to go every year for the next 20-50 years. But emotional satisfaction is not a meaningless value either.

 

[jarestel]

For me, the value of DVC has been in bringing my children, grandchildren, and now great grandchildren to Disney over the years. Monetarily, I have spent enough on Disney trips since joining DVC (transportation, tickets, food, dues, initial buy in costs, etc) to have purchased a home in the Orlando area. So counting all of those trips I would never have taken without DVC, it's been a huge money suck. Worth it to me, but not cheap and certainly didn't save me any money. But as I said, that's not what's it about for me anyway and I have no regrets.

 

[cvjw]

4 adults and 1 child in ANY studio isn’t a vacation to me. Sounds like punishment, no matter how cheaply you can book it with your points.

 

[Philsfan77]

Because my wife said so.

I have this quote on a shirt

 

[Wakey]

Just booked a Copper Creek studio at roughly $110 a night in dues cost- basically Comfort Inn money. I win as I get to stay in something that’s maybe $400+ a night to joe public, which I wouldn’t book anyway. Yep I spent 40 grand buying in across my contracts, but if I sold now, even after fees I’d get my money back. So I’ve lost investment income on it maybe- I have 400 points though so doing 3 vacations this year (well in a 12 month period- just).
Disney win as I wouldn’t have bought annual passes (worth it for 3 trips) or spent as much on Disney. I’d likely have gone once this year on a free dining plan UK deal.