Doing the Math when Considering a DVC Purchase
I became a member of the Disney Vacation Club in December of 2015, but not before I crunched the numbers. If you read my article, The Trip That Convinced Me to Buy Into DVC , you’d know that I was already in Disney World at the Boardwalk on vacation with my future wife. Sure, I was on property at a deluxe resort where I had never been before. I hadn’t been in a while either, but the memories came back to me from my childhood and let’s face it, can you ever really have a bad time at Disney World?
So as I sat through the spiel from the Vacation Adviser, it sounded both expensive and too good to be true at the same time. I went home to crunch the numbers with my financial adviser, also known as my mother, who manages a financial institution. I was considering a 100 point contract at the Polynesian which went for $150 a point, meaning that the total cost would be $15,000. At first glance, that seemed like a lot of money and at second glance, it really is a lot to pay to stay at seemingly one destination. I say one destination because I have yet to book outside of the Disney World Resort in Florida. I have considered the other DVC properties outside of Florida, including Aulani in Hawaii and Hilton Head in South Carolina.
I looked at the total price of what I paid for in December 2015. Five nights at a deluxe resort, The Boardwalk, was about $375 a night which totaled $1,875 not including tax or any other fees. What that meant to me is that with the hotel booking alone, I could break even in about eight trips. Being that the contract was new and expired in 50 years, we could keep going with any future children and even grandchildren until we were 80!
I also considered that locking in at $150 per point was worth it. The Same trip I took from December 16th to the 22nd at $375 a night would now cost $629 a night if I booked it today for a total of $3,145. So the math makes sense to me. I’m pre-paying my Disney World vacation addiction for the next 50 years. My annual dues on the 100 points are $429 per year.
When I bought in in December of 2015, they allotted me 100 points from the August of 2015 use year as a bonus for signing up before January 1st, 2016. Having the extra 100 points to bank or borrow has been helpful. Since becoming a member, we have stayed at the following resorts: The Polynesian, The Boardwalk, Bay Lake Tower, Saratoga Springs, Old Key West and the Copper Creek Villas at the Wilderness Lodge. We are set to stay at Kidani Village in July of 2019.
Now, to be clear, we haven’t stayed a full week at all of these resorts. We do have family in Florida and often opt to stay for three or four days at a time. It’s a nice way to visit our favorite place to vacation every year while exploring other areas of Florida during the same trip. We can use the Magical Express one way or the other to the airport, or use a rental car which is nice because the resort parking and theme park parking fees are waived for DVC members.
Lastly, while it isn’t the primary reason to purchase DVC, the additional perks such as Top of the World Lounge, Moonlight Magic Events, free parking and a 10% discount on merchandise and dining (not alcohol) certainly add up. So if you plan on visiting Disney World frequently with your family, DVC is worth every penny for your future family vacation and memories.
I just wanted to point out, for the benefit of those still learning about DVC, that they didn’t really give you 100 points from the August 2015 UY as a “bonus for signing up before January 1st, 2016.” You bought in December 2015, which was within your August 2015 UY, so they had to give you those points – you bought them! It would have been illegal for them not to have given them to you. Now, if they had said they were giving you 100 extra points (so that you started out with 200 points in December 2015), that would have been a bonus.
You say “My annual dues on the 100 points are $429 per year.” or $4.29 per point. If that’s for the dues that were due in January of 2019 how did you get that rate since I pay $7.0572 per point for my contracts at BWV?
Eric,
You are right on the money. I bought in 1992 at Old Key West I have 250 points and have used it in Cape Cod Ma as well as Alani and New Hampshire. I am know going with my grand children . Old Key West is still my favorite
But then you lose out on any package deals, correct? I have not ever stayed at a deluxe resort. I cannot afford to if I want to have a vacation worth going for. My trip would be shortened extensively. Dues + monthly payments on the points + food + souvenirs + passes. How many years until one who doesn’t have extra money to burn could go and have a truly good time? Where is the math for that comparison?
I am definitely considering getting a DVC, I also am not able to go every year due to overall cost of a Disney vacation, but being able to rent your points out makes the math a lot better, if I buy double the points I actually need I can rent half of them out the year I go and pay for the Dues, the year I do not go I rent all my points and pay the Dues and make enough extra to by my park passes for the year I do go.
When considering the purchase of a DVC ownership contract, keep in mine that the contract is “one sided” and can be changed by Disney at any time. There are significant limitations to DVC ownership that are not covered during the purchase, and once you sign the contract you are committed to the contract for 50 years. DVC ownership is not an investment. It’s a one sided comment and you have not rights or legal recourse.
I look at it that when use my points the cost of the contact÷ by the years+ the dues comes to approx one day of the stay. I based this on a 2 bedroom which is what our family regular uses.
I just checked out point rental and was told YOU do the work, make the reservation, dining reservation, park passes as the people that do this have NO access to your account. You must make any changes they might want etc. The money is nice and we looked into it at 2 places and it can be a lot of work.
As a DVC owner for the last 20 years, there are many more factors to consider than cost to consider. There are significant limitations in using DVC points and by contract a DVC owner has not rights and Disney can change the contract limitations and restrictions at any time. Many of the perks of DVC ownership have been eliminated and currently one can rent a DVC resort for as much as 70% off the regular room rates. Also, under a DVC contract there are limitations and restriction on using DVC points that you need to fully understand before purchasing a DVC contract.