Friday, March 9, 2012

Is it worth it to buy Disney Vacation Club?

I heard that the start-up fee for Vacation Club is around $17,000 for a family of four. I think that's crazy talk, but I'm not even sure if it's true. My family goes to Disney World about every year, and we like to stay at the Wilderness Lodge (a deluxe hotel). Any ideas? Thanks!Is it worth it to buy Disney Vacation Club?
Generally speaking the $17K figure is correct.



Bear in mind that those dollars give you the right to use a certain amount of DVC points EVERY SINGLE YEAR for up to 50 years into the future.



With 160 points you could spend up to 11 consecutive nights in a Savanna View Studio Villa (which is comparable to a standard hotel room) at the Animal Kingdom Villas. That's 11 nights every single year.



Exact point usage varies depending upon season, day of the week, resort, the category of room booked and other factors. That's just one example. We've used our DVC points to book 1200sq ft Two Bedroom villas which sleep up to 9 guests.



All DVC ownership does end at some date in the future (date varies by resort.) Some would view this as a negative but it can also be a positive. For many people it means not leaving a potentially unwanted timeshare behind for heirs to deal with. It also means that you (or your heirs) won't be paying for maintenance and upkeep on resorts that are 80-100 years old.



There are cheaper ways to buy DVC other than paying the $17k. DVC will actually sell a contract as low as 100 points at select resorts. That should cost under $10,000. Or you can go through a resale broker and purchase an even smaller contract.



Although the terms aren't particularly enticing, DVC will also finance a direct purchase. The initial purchase of 160 points will run you about $250 per month when financed over 10 years. After the 10 years you only pay the annual dues which presently run $4-5 per point.



The initial purchase is a big obligation to meet. However, once that amount is paid off you're vacationing for pennies on the dollar. Going back to my original example, 160 points could get you 11 nights in a Studio villa at the Animal Kingdom Lodge / Villas. With annual dues of $5 per point, the out of pocket expense for those 11 nights is only $800 or $72 per night. Cash guests won't get a Savanna View room for anywhere near that price.
That's ridiculous pricing. Unless that is the only place you ever want to go, I know of a club that is only $2,000 to join and that's for life. You can go anywhere anytime 5 star all inclusive. I joined this one: http://www.morvacations.com/default.aspx?UserName=joesuccess

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Is it worth it to buy Disney Vacation Club?
If I could go back and do it all again I wouldn't do it.

Take that 17k and divide it by how many years you would be an owner of the property. Then add on the yearly maintenance fees. That is how much you are paying to own the right to stay at a certian property.

Why not take that same money and stay at different locations around the world.

I would rather have the freedom of staying where I want when I want vs. having to pay maintenence fees every year regardless of if I use it or not.

It is a decision to weigh carefully because it is not something you can get out of easily.

I would also recommend buying it from a resale vs an original deal, you can usually find a better deal and get the same benefits.

Especially with the down economy there are people probably trying to get rid of them to get out from under a monthly payment they can no longer pay.
I think it's too expensive.



The current price to purchase ownership in the DVC, from the DVC, is $112 per point with a 160-point minimum. You use these points to "spend" on your vacation accommodations. The time of year, the resort chosen and the size of the unit will determine how many points are necessary. There are also annual dues.



Something to think about: unlike traditional timeshares, your Disney Vacation Club membership, for most properties, ends on January 31, 2042. Membership at Saratoga Springs Resort and Spa will end on January 31, 2054, membership at the Animal Kingdom Villas will end on January 31, 2057 and the new Bay Lake Tower ends in 2060. Although you are buying a "real-estate interest" and your purchase is actually deeded, your ownership ceases to exist after these dates.





Check it out very carefully before you decide to make the "investment".



:o)
You can buy resale contracts and they are exactly the same as buying direct from Disney. Disney's are more expensive because you have to buy in a minimum amount of points of, I believe, 160 points. Look at resale prices for places such as http://www.dvc-resales.com. You can buy smaller contracts to fit your budget, and add on as you need. DVC is a lot to consider, there are a lot of ins and outs. I suggest you spend some time on www.disboards.com at the DVC section, read around a lot you can get a lot of information to really see if it's right for your family. However, if you are already staying at a Deluxe resort, then it probably is right for your family. But go to disboards and ask any questions you may have there, the people who go there are really the experts.
The buy-in is very expensive. The price is per point. There are usually some incentives for buying through DVC. The minimum puchase is 160 pts through DVC. You can buy fewer points through resale. It is no more an investment than any vacation is. Cash wise, is it worth it? After about 6-7 years, you end up on the positive side. That is, as long as you would otherwise vacation at Disney every year or every other year while staying in deluxe accomodations.



Check out the point charts to see how many you would need:

http://www.wdwinfo.com/disney-vacation-c…



Prices keep going up. I paid $107/point for my Bay Lake Tower contract. The current dues are $3.53/point. Dues are reassesed every year.



I love DVC. Also, I have never met an owner who didn't love it. If you contact DVC, they will send you a free, no obligation packet.



EDIT: Here is another Yahoo!Answer about DVC. It has some good info.

http://answers.yahoo.com/question/index?…

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