Yesterday evening a good friend, and fellow Disney fan, stopped by for a brief moment. Our conversation quickly turned to his upcoming Disney trip and we were well on our way to a full fledged Disney Dork moment, when someone brought up the idea of DVC (Disney Vacation Club).
In theory, becoming a member of the Disney Vacation Club has tremendous perks for a Disney enthusiast like me. DVC is Disney's answer to the timeshare phenomenon, and their concept is one of the fastest growing in the timeshare industry. DVC members purchase "points" which can be used to stay at any of the Disney Vacation Club Resorts. These resorts are markedly nicer than the typical Walt Disney World Resort options. These resorts include: Animal Kingdom Villas, Bay Lake Tower, Beach Club Villas, Boardwalk Villas, Old Key West Resort, Treehouse Villas, Wilderness Lodge Villas, and Saratoga Springs Report & Spa. Points can also be used for a Disney Cruise or at Disneyland Resort stays. Other hotels (over 500) around the world are also included in the DVC package, and are typically top-of-the-line resorts in fabulous locations.
DVC allows more flexibility than other timeshare companies, and the cast members who specialize in the sale of DVC are quick to point out this fact. Members can use their DVC points at anytime throughout the year and the accommodations can be chosen based upon your liking. But the truth is the most cost-effective way to use DVC points is at the above mentioned resorts. It is for this reason, that DVC membership is a WASTE of money for most families, even Disney addicts like myself, unless you plan to stay at a DVC resort at least every other year.
It is this truth that had my friend and I nearly arguing with an imaginary DVC agent in my kitchen, having both been subjected to their pleas for membership. (I once attended an online seminar for DVC that resulted in me disconnecting early, and accepting the free mouse pad, leather-bound portfolio, and DVC mouse ears.) We deduced that the two of us, me with my family of 4, and he with his family of 5, visit Disney World approximately every other year, and spend between $2,000.00 & $4,000.00 per trip. If we put the minimum monthly payment that DVC allows (approx $195.00) we would accrue $2340.00 by the year's end. So....how does this compare to DVC? Let's run some numbers (this fact will no doubt make my husband laugh, as he knows very well, I'm not a mathematician!).
The initial cost of joining DVC is a huge investment. Although recently, DVC has been offering incentives for new members that are unbelievable, however without these incentives the current minimum of 160 points casts approximately $19,200 plus closing costs. There are also substantial annual dues and maintenance fees. The current minimum is around $253 per year for 160 points. Another hidden truth of DVC is that the points are not good forever. While you can bank your points each year, they do have an expiration date. They expire on January 31st of 2042, 2054, 2057 or 2060 depending on which resort you buy into.
I don't want to sound like a huge Debbie-Downer with DVC, so I will point out that there are some perks that almost make me want to join.
- DVC members save money on Annual Passes at WDW
- Some restaurant and merchandise discounts
- The villas have full kitchens - which could curb the cost of meals
- DVC members and their guests can purchase the Dining Plan when staying on points.
- No extra cost when more than 2 adults are staying in one unit
- FREE Internet access (general public costs $10/day)
- FREE self-service laundry
- Property tax portion of annual dues may be tax-deductible.
Simply put, joining DVC sounds like a glamorous way to experience Disney, and it is! But with that glamour, comes a glamorous cost. It is likely not a financially responsible decision for your family unless you have the upfront cost in the bank. In much the same way financial advisers would advise against financing a vacation on a credit card, I would imagine that joining DVC, thus financing a pre-paid Disney vacation, would fall into the same category. The numbers speak for themselves:
- Your dues for 160 points at Disney's Animal Kingdom Villas (2011): $802 (this ignores the purchase price of $19,200 and $253 closing costs)*
- If you rented points from an owner to stay in an Animal Kingdom Villas value studio unit for June 10-16, 2012 at $11 a point, it would cost you $880, savanna view: $1287*
- Maybe you'd be just as happy staying in the least expensive Disney Deluxe hotel room. If you stayed at Wilderness Lodge during the same dates as above, 6 nights would cost you $2233. *
- If you paid the full "rack rate" charged by Disney to stay in a Saratoga Springs studio for 6 nights, it would cost you $2396.*
Long story short? Stay clear of DVC! And you'll save yourself the drama of arguing with a fictitious DVC agent in my kitchen, making a case for how to best save for future Disney World vacations!
* Keep in mind that these prices are for the hotel only! These prices do not include park tickets, or dining plans. Another blog, for another day...
