confused on the draw to DVC

[SecondEventuality]

So... most vacations, our room costs us $100-$150 per night. Way cheaper than Deluxe.. and as we discovered on one trip, where our friends stayed at a value a few extra days, cheaper than value too.

I'm really, really trying to get to this beautiful number, but all my calculations aren't adding up...clearly, I'm missing something.

Take Saratoga Springs...With an average of 4% annual increase on the maint. fees + the life of the contract (until 2053 since you can't count the year it expires) is 33 years, we are looking at a total of ~$54,000 in fees. Combine that with a 120 point contract for a base price of ~14000. Take an 8-day vacation during Magic season on a yearly basis until 2053 (120 points for studio, annually) is a total of 264 days.

$53,650.87 + $14,000 = $67,650.87 / 264 =

$256 per night?

Where am I looking at this wrong? I'm guessing the only way to do it is in perhaps Adventure season, needing only ~100 pts for 8 days?

 

[crvetter]

I'm really, really trying to get to this beautiful number, but all my calculations aren't adding up...clearly, I'm missing something.

Take Saratoga Springs...With an average of 4% annual increase on the maint. fees + the life of the contract (until 2053 since you can't count the year it expires) is 33 years, we are looking at a total of ~$54,000 in fees. Combine that with a 120 point contract for a base price of ~14000. Take an 8-day vacation during Magic season on a yearly basis until 2053 (120 points for studio, annually) is a total of 264 days.

$53,650.87 + $14,000 = $67,650.87 / 264 =

$256 per night?

Where am I looking at this wrong? I'm guessing the only way to do it is Adventure season?

You need to discount all future value back by 2%, per year, to get back to the current dollars. Else your final number is mixing in future and current dollars in your representation, which isn't what you intend nor do most. Doing this I get closer to $191 a night. The issue with the quote you posted is I believe they weren't factoring in MF increases being above the risk free discount rate of 2%.

 

[CanadaDisney05]

I'm really, really trying to get to this beautiful number, but all my calculations aren't adding up...clearly, I'm missing something.

Take Saratoga Springs...With an average of 4% annual increase on the maint. fees + the life of the contract (until 2053 since you can't count the year it expires) is 33 years, we are looking at a total of ~$54,000 in fees. Combine that with a 120 point contract for a base price of ~14000. Take an 8-day vacation during Magic season on a yearly basis until 2053 (120 points annually) is a total of 264 days.

$53,650.87 + $14,000 = $67,650.87 / 264 =

$256 per night?

Where am I looking at this wrong?

Couple places...

1) Magic Season is one of the most expensive times of the year to travel.
2) $116/pt seems a bit high for SSR.
3) your factoring in increasing dues, but your not discounting that into present value..... a dollar buys more today than it will next year due to inflation. So those fees in 30 years from now are not really 4% (compounded) more expensive. Your income, and other expenses in the meantime should have gone up by about 2% annually during that same time frame.

 

[Ms.Minnie]

Maistre Gracey said: If you don’t smoke, drink, or go out to eat, how can you possibly accumulate enough cash back on credit cards?

Groceries, gas and clothes???

 

[SecondEventuality]

Ok, gotcha, I figured there was something I was missing, thank you!!!

I've updated my sheet to have an annual overall increase of 2% instead, thanks!!!

 

[SecondEventuality]

Ok, wow, so for another example, a large contract for Beach Club (which is our favorite) turns out to be closer to $292 a night for the same amt of days as well as the season.

 

[Jenniebee]

Take an 8-day vacation during Magic season on a yearly basis until 2053 (120 points for studio, annually) is a total of 264 days.

$53,650.87 + $14,000 = $67,650.87 / 264 =

$256 per night?

Where am I looking at this wrong? I'm guessing the only way to do it is in perhaps Adventure season, needing only ~100 pts for 8 days?

When I go on the Disney website and look up staying at SSR from Feb 8-14 (Magic Season), it is showing me a deluxe studio for $395 per night. So I think the math works out even with your calculations the way they are. That $395 will go up and up every year also.

 

[CanadaDisney05]

When I go on the Disney website and look up staying at SSR from Feb 8-14 (Magic Season), it is showing me a deluxe studio for $395 per night. So I think the math works out even with your calculations the way they are. That $395 will go up and up every year also.

Those prices also don't include taxes & parking (if applicable). However, there is also a room-only discount for the same nights of 25% off, which is fairly typical.

 

[Hjs33]

I'm really, really trying to get to this beautiful number, but all my calculations aren't adding up...clearly, I'm missing something.

Take Saratoga Springs...With an average of 4% annual increase on the maint. fees + the life of the contract (until 2053 since you can't count the year it expires) is 33 years, we are looking at a total of ~$54,000 in fees. Combine that with a 120 point contract for a base price of ~14000. Take an 8-day vacation during Magic season on a yearly basis until 2053 (120 points for studio, annually) is a total of 264 days.

$53,650.87 + $14,000 = $67,650.87 / 264 =

$256 per night?

Where am I looking at this wrong? I'm guessing the only way to do it is in perhaps Adventure season, needing only ~100 pts for 8 days?

Your calculation above is correct, but then in the end you end up comparing the $256 average per night over 33 years to today’s rates.

If you take the weekday $170 per night rate to stay at one of the All Star resorts during magic season and similarly grow that rate at 4% per year, you will have spent $93.6K over 33 years(using 8 nights per year). That comes to an average nightly rate of $355.

 

[crvetter]

Those prices also don't include taxes & parking (if applicable). However, there is also a room-only discount for the same nights of 25% off, which is fairly typical.

These are very important. The tax alone is 12.5% (for those in Orange County) and 13.5% (for those in Osceola County), eating through about half of what most DIS members think is a fair discount on rack. Plus with a room rate of 394 and parking at 25, that is essentially about another 6% of increased costs on the cash side (this is if you need to bring a car).

 

[MICKIMINI]

If you don’t smoke, drink, or go out to eat, how can you possibly accumulate enough cash back on credit cards?

Funny! We do buy food, gas, auto insurance, clothes (probably more than necessary) need I go on!! Everything, and I mean, everything goes on the card which gets me the max...I know you are having fun with me. Boring and without debt!

 

[DianeW]

Why do I own DVC? Lots of reasons, but mainly because it makes me happy. Being a DVC owner is not the same as just traveling to Disney World and staying at a value resort every year. When I arrive at my DVC villa, I truly feel like it's my home. And....the cast members treat me that way. We own at Old Key West, and there is a genuine "neighborhood" feel there. It's so relaxing and welcoming. Such a different feeling than staying at a Value or Moderate where I'm just basically there to sleep and shower.

There is also a different level of service for DVC members. From something as simple as the tapstile turning purple when I enter the parks and hearing the cast member say, "Welcome Home", to the concierge level of service I get from Member Services each time I call, it all makes me feel special and valued. My Member Services cast member is always so friendly and helpful when I call her (and yes, you can have the same person help you every time you phone), and she's always offering to do things for me (make dining reservations, sign us up for Magical Express, fix the My Disney Experience app when it's glitching on my end) without me even asking. She's worth her weight in gold!!

And I can't help it...I'm a sucker for the "Welcome Home" greetings. The last time I was in Hollywood Studios, I was strolling past the DVC kiosk in my Old Key West hoodie, and all the DVC cast members called out, "Welcome Home" to me en masse. That made my day!!

If you want to learn more about DVC, and how and why the owners are so passionate about it, please check out www.dvcfan.com. It's part of the DISboards family of websites, and you will get a wealth of information from it. And if you want to know why we purchased at Old Key West and why it's my personal favorite DVC resort, check out my article on it.... https://dvcfan.com/2019/10/05/five-reasons-why-old-key-west-is-my-favorite-dvc-resort/ (pardon the shameless plug, )

 

[Jenniebee]

Those prices also don't include taxes & parking (if applicable). However, there is also a room-only discount for the same nights of 25% off, which is fairly typical.

So then with 25% off, that makes the rate $297, still more than the $256 you came up with at the top of the thread.

But DVC is not a discount program, or a bargain. It's a timeshare. When I have booked cash rooms I usually spent more than $400 a night on my stays at WDW so for me I am OK with the math to purchase a timeshare. Everyone is different and it's a personal decision.

 

[ray3127]

Lots of reasons, but mainly because it makes me happy.

I'd like to echo this, because I think it is sometimes lost with all the cutthroat financial analysis we discuss on here (which I partake in and contribute to).

Short story: A year and a half ago I traded a pretty sweet truck for a Honda Pilot. The financial side of my brain told me I didn't need so much $ tied up in a vehicle (my truck), and the Pilot was a far wiser financial decision.

That lasted about a year. I decided I made a mistake, and now I drive a large SUV which is similar to my truck, but even better. Is that a wise financial decision? Of course not. But I thoroughly enjoy driving now, so much moreso than before. Am I "wasting" money? Some would say yes. Surely, I could get by with a much less expensive vehicle and survive. But it makes me happy, so I don't really care.

I'm not saying financial analysis isn't an important consideration; it is. Of course, it's important to not get into financial trouble... But assuming one can afford DVC to begin with, at some point, it's okay to say "this brings me joy," and go with that.

The feeling I get when I pull up to a DVC resort or walk into a Disney park is indescribable. It's just "happy." And if you're staying at Deluxes every 1-2 years anyway, then owning is still a better financial deal than the alternatives (over the long term).

The added benefit of making our trips more relaxed (no longer the need to rope drop til park close)... It's hard to put a price on that. I still think it was a wise financial decision for our family, but in the end it simply make us happy.

 

[Miffy]

Thanks, All!

Of course, I don't enjoy the value resort stay, I just bear it and focus on the parks! I'd LOVE to stay in a deluxe, are you kidding me?! We often walk through the deluxe resorts and my son will see the magnificent pools and want to use them, but can't!!! I can see the perks, but man, the cost blows my mind!

Thanks! So, with DVC it doesn't actually cost $500 a night, gotcha. Thanks!!!

SecondEventuality: People like different accommodations for different reasons. I like to stay in the Disney deluxe resorts because I like sitting out on a balcony, which is part of my vacation fun. In Values and Mods, there's no balcony. Also, I spend time at the resort. The place itself is important to me.

That being said, keep in mind that many, many of the DVC owners on this board have owned DVC for quite a while and bought in when the cost was substantially less than it is now, either direct or resale.

I don't own DVC and I go to WDW usually at least once a year. It just never made sense for me to purchase for lots of reasons. There's not one answer that fits for everyone. For some people, with or without kids, DVC makes a lot of sense. For me, it never has.

(Thought you might want an opinion from someone who doesn't own.)

 

[cedricandsophie]

We have owned dvc since 1998. We own at six resorts and have almost 1400 points. We would not travel the way we do without dvc. We go to aulani once a year and stay In a one bedroom ocean view for 10 days. That suite would cost anywhere from 1100 to 1500 a night. We go to DW for two weeks every year in March. My husband goes to vero beach with a friend. They each get their own room and stay for five nights to watch spring baseball. Then he joins Me, my disabled adult daughter and her best friend for the rest of the two weeks. We might stay at boardwalk for a few nights and then move to OKW which is our favorite. We never get less than a one bedroom for the room, the kitchen and the laundry. Plus we are not really park people any more so we might go to 2 or 3 parks in a day once during our trip. We might also go to WDW after thanksgiving for the Christmas decorations. For us dvc is a godsend. We paid cash for all the points and now pay about 9000 a year in maintenance. That’s a lot but doesn’t get close to what the values of the suites we get would be. I figure we’ve gotten our money back already and we have a lot of time left in our contracts. If we die our kids inherit the points to use mainly for our disabled daughter.

 

[Maistre Gracey]

We used to own, but got out for several reasons. We are happy we did, yet we also enjoyed our time as Members. That time in our life came and went.

I’m super happy now, as we are free to rent rooms (or DVC reservations), without the pressure to constantly return to WDW.
We are not tied to WDW.

When we did own, we thoroughly enjoyed it.
That said, clearly the resorts were less maintained and housekeeping was a disaster.

 

[igrsod]

I'm really, really trying to get to this beautiful number, but all my calculations aren't adding up...clearly, I'm missing something.

Take Saratoga Springs...With an average of 4% annual increase on the maint. fees + the life of the contract (until 2053 since you can't count the year it expires) is 33 years, we are looking at a total of ~$54,000 in fees. Combine that with a 120 point contract for a base price of ~14000. Take an 8-day vacation during Magic season on a yearly basis until 2053 (120 points for studio, annually) is a total of 264 days.

$53,650.87 + $14,000 = $67,650.87 / 264 =

$256 per night?

Where am I looking at this wrong? I'm guessing the only way to do it is in perhaps Adventure season, needing only ~100 pts for 8 days?

When I have done the math in my head, I only seem to be comparing the cost currently and not in the future. I figure my price per point will increase with the inevitable increase in maintenance fees, but also increasing will be the price of cash rooms. So it all is relative really, and I see that we will always have a significant discount on the rooms at Disney.

My calculation is we paid 10500 for 4000 lifetime points = 2.625 per point. Add in the yearly maintenance fee of 7.44 = $10.065 per point currently.

I guess it's all in how you look at it. This calculation makes the most sense to me. I'm sure you can add in inflation, cost of taking that money and investing it, plus many other factors, BUT for me this is a simple and easy way to look. I put up a minimal amount of money to ensure a good price for nice rooms for the next 38 years.

 

[jerseyduke]

Hi there!

We are huge fans of WDW and plan on going at least 1 a year, maybe even 2x. We are new adoptive parents to a wonderful 5-year-old son. We usually opt to stay at value/moderate hotels since we view it as a way to just hang our heads at night, spending most of our time at the parks.

I feel like I'm in the dark with DVC - why do you have it? Am I missing something on why it's worth it to stay at a deluxe hotel? Any time I view the costs per night over the years we've gone, I can never wrap my head around why spending $500 vs $150 for a nicer room is worth it. I feel like I'm missing something! We are getting older, 46 and 49 respectively, and am wondering if you could enlighten us! Is it because you go with other family members whereas we are only a family of 3? I can then imagine if 2 families are going, then having more room and a small kitchen makes sense!!!!

Thank you in advance for your help with this! I really want to like DVC and no matter what I read or watch, no one really clues in WHY they chose it.

If a disney room is just that, a room, then DVC probably isnt for you.

There is no right or wrong its just preferences.

To me deluxe resorts have nicer rooms, better beds, but it is more about the actual resort. I sometimes do park heavy short trips, and stay value or mod. When I am at a deluxe resort I am at the pool, in the lounge, enjoying the resort itself.

We all have what we value. I have never seen the point in paying the $ for a new car, but I know I am in the minority. We all choose where we spend our money.

 

[jodifla]

When I have done the math in my head, I only seem to be comparing the cost currently and not in the future. I figure my price per point will increase with the inevitable increase in maintenance fees, but also increasing will be the price of cash rooms. So it all is relative really, and I see that we will always have a significant discount on the rooms at Disney.

My calculation is we paid 10500 for 4000 lifetime points = 2.625 per point. Add in the yearly maintenance fee of 7.44 = $10.065 per point currently.

I guess it's all in how you look at it. This calculation makes the most sense to me. I'm sure you can add in inflation, cost of taking that money and investing it, plus many other factors, BUT for me this is a simple and easy way to look. I put up a minimal amount of money to ensure a good price for nice rooms for the next 38 years.

This, and cash flow. I bought my points 23 years ago for a fraction of what they go for now. So I just have the dues. I don't understand working the numbers over the whole life of the contract. Even the cost of the cups of coffee you buy are going to seem astronomical if you do it over a lifetime.

Every time I go to a hotel and have to pay cash, I am blown away at how expensive they are even for a dang Days Inn once you add in "resort fees" and parking and the like.

It is great to have the hotel cost lifted off our WDW trips. We bring friends and we enjoy ourselves.