Some DVC questions

[Sheryl]

I was wondering if anyone can fill me in on some DVC questions I ahve. I love hearing all about your trips,s taying at DVC and have been somewhat interested, but have been ahving trouble getting my Dh to really check into it.

1. Is it more economical to go DVC?

2. From what I understand of DVC, you put a down payment down (how much?) and then make monthly payments (again roughly how much)?

3. Do you have to use your points every year or can you go more than once a year?


I don't know why, and I'm sure these qustions have already been asked and answered, but I don't seem to understand how it all works. I almost got Terry to do the DVC tour, but I think he feels if we do it we will buy into it, and he shyed away.

Thanks for helping me out here.

Sheryl :minnie:

[SusanL]

Hi Sheryl,
I bought in 2000, I used Magical beginnings which I sold my first years points back to DVC as my downpayment. The price then was about $13000 for 200 points. I got $2000. for the downpayment so I financed about $11,000. I pay $130/month for 10 years. and my monthly fee is $66.00
You can go as many times as you can with your points, depending on the time of year, and the type of room. the points charts have the breakdown but if you get a studio on Sun-Thurs it is around 10 points a night and the weekend nights are more. So if you stay in studios and don't stay Fri or Sat nights you could go several times a year.
We normally go for a longer time and use all our points for a 9 or 10 day trip.
You can also bank your points from one year to the next or borrow from next year.
I really wished I had bought in sooner. You should look into it and tour them next time you are in WDW.
Hope this helps.
SusanL

[Tagrel]

Great Stuff from SusanL! I'll go throught your questions as well, and see if I can help as well! :)

1. Is it more economical to go DVC?
If you go to WDW once every year (or every other year) and stay in Moderate to Deluxe lodging, then DVC can save you money over time. Its not so much that DVC is cheaper - You are just pre-paying at today's rate. As inflation rises, and/or rates increase - you will be more locked down in cost. Points to stay will remain stable, but the yearly mainteance fees will rise with actual inflation/cost (Disney can't raise them on a whim)

2. From what I understand of DVC, you put a down payment down (how much?) and then make monthly payments (again roughly how much)?It will completely depend on the number of points you purchase (and at what rate per point). SSR is currently preselling at $79 per point, but as of Oct. 31st it will rise to $89 per point (for a 50 year contract). Disney's financing is pretty flexible, and as SusanL pointed out they have ways (like Magical Beginnings) where you can even sell back points the first year to pay for the downpayment. They have various payment schedules and I'm not positive of the current percentage for a downpayment. (I think we paid 10% down in 2001) What I quickly found out was that in today's market, a home equity loan provided a much better interest rate and insured that the interest paid was deductable for us. AND I paid off the balance on a points credit card and THEN paid the credit card company off the following month. LOTS of points THAT way! ;) To compute cost you will need to know the interest rate involved, amount down, amount financed, etc. Any mortgage calculator will help you compute this once you plug in your own numbers. To find out Disney's current interest rates you could contact a DVC rep. They will send you some literature and a nice Video explaining the program. If you need a contact, just PM me and I'll send you my guides info. She is really nice and very helpful. And I LOVE that they are not hard sell!

Another option is resale. Here you buy outright, so you have to provide your own financing. And you have to pay closing costs (Disney pays these as part of the process if you buy through them). Currently, Disney is ONLY selling SSR. If you wish to buy points anywhere else, it will have to be through a resale. You should definitely be able to get a cheaper purchase through resale, but the process can be a bit trying. Disney has the option to buy back resales if the price is too low, (and regularly does this) so you have to walk a tight rope of trying to pay enough (but not too much!) A good resale agent can help walk you through this particular process. Disney treats resale owners just the same as owners that purchase through them directly.


3. Do you have to use your points every year or can you go more than once a year?

Points have to be used withing 2 years of allocation. Each year you will receive your alloted points. You can use them that year or bank them for use in the following year. You can also borrow points. Points can be used however you desire. One night at a time, or all for one long trip. Its completely up to you, and one of the BEST DVC features!


I almost got Terry to do the DVC tour, but I think he feels if we do it we will buy into it, and he shyed away.
Well - it was the tour that finally turned Kristen's head. Those 1 bedroom units are VERY appealing. They just MAKE our trips into a real vacation where we can have all the comforts of home and enough room to breath.

As with SusanL - the only regret was not buying sooner!

I know all this is VERY confusing when first starting to think about DVC. I'd truly suggest the literature and video from DVC. They won't bug you, and it does answer a lot of questions. And of course, you can always feel free to ask as many questions here as you would like! :)

[Joe]

I can ditto what SusanL and Tagrel said, our only regret is that we did not purchase sooner! The other great thing about looking into the DVC is that the sales staff is really laid back. There was absolutly no pressure to buy from our CM. He spend a boat load of time on the phone with us, answering questions, laying out the possibilities, explaining the whole program, and just plain letting us make sure we were ready to get into the DVC thing. We purchased sight unseen, based mostly on the recommendation of our Cousin, an OKW owner from the very beginning.

All in all, it has been a very pleasant experience for us and one we are looking forward to for the next 40 years.

HTH

[Brer]

EVERYTHING everyone else said !!! Makes me want to buy more points!!!

[AliciaG]

Hi Sheryl! Great information you've gotten from everyone. I'll throw in my 2 cents worth too. :wink:

I'd never thought about DVC until I rented points for our trip this past spring. After renting...I started doing a lot more research and ran some numbers to determine that DVC was right for us. There are a lot of break even formulas that I saw on different sites. For us it looked like we'd break even in about 9 years, but we'd own it for 39. We are a family of 5, so the need to book two rooms at any given resort was looming for us as well.

I talked to John some about the Disney Vacation Club, but what really did it was when we actually stayed there. He loved the BCV so much, that while we were staying there, he suggested we go take the DVC tour. :shock: We didn't buy on the spot, but after gathering information from online friends, and then talking with our guide during the tour, we went home and decided that this was something for our family.

We didn't take it lightly. We really analyzed whether we thought we'd continue to vacation at WDW on a fairly regular basis, and though it's not a reason to buy...the World Passport Collection was a good selling point for us. I'm sure we'll occasionally use our DVC to stay in the Caribbean, Hawaii, or maybe even in Europe.

One additional thing we really loved was the flexibility. You have the ability to use up to three years of your points at a time, take one big trip per year, or several little trips, use your points outside of DVC, and even for the cruise.

If Terry is hesitant, you may want to try and actually stay at a DVC resort. There's nothing like soaking in that huge jacuzzi tub after a long day in the parks. :wink: :lol:

[TwirlerGirl]

If you can afford it without hurting your family unit, go for it! If you decide a few years down the line it's not for you anymore, you can sell. You won't lose on the deal beause of the great times and memories you'll have had. I know if I sold right now, I would make a little $$$ and still have had 6 years of wonderful vacations. Priceless!

Sandy

[Sheryl]

Thank you everyone for all your information and help. This is definitely something I will check into more this winter, but will start working on Terry now. If I work it right, I can get my way on anything. :wink: But I also want it to be something he wants also, its just sometimes he needs a little shove in the right direction. Now all I need is for Terry's plant to agree to a new Big contract in February and we'll be all set.

Thanks,
Sheryl :minnie:

[Joe]

I might suggest trying AliciaG's method; rent points for a vacation in a 1BR unit and see how you like it. I think once you get into the room, the rest will sell itself. Looking at your vacation patterns, I think you will be able to rent the necessary points for about what you are spending on your room. And what a difference there is between the hotel rooms and a DVC room!
HTH