As you may remember, last week in Should I purchase DVC? Part 1 I discussed my first meeting with the Disney Vacation Club (DVC) representative. Though the experience was not positive, I returned in February 2010 to listen to their discussion once more.
I was whisked away by DVC in their van to the DVC offices. I waited a few minutes for a representative in a very nice space which included small snacks. I helped myself to a few cookies and a drink as I waited. Once I met with the representative, I sat in for a short lecture. During this lecture, the representative mentioned that he knew I had already seen the presentation. He went on to tell me that if I had already purchase DVC on my prior meeting with DVC representatives, I would have already PAID for it per the savings I could have had on all of my vacations to Disney World since then. I requested that he explain how this could be so. Then he showed me some computer calculations of the average cost of staying in a Deluxe resort multiplied by the 8 years since my last DVC meeting. Of course, this cost was WELL over the cost of the DVC properties back in 2002 for the amount of points that matched the Deluxe resort stays.
However, I explained to the representative that I travel VERY often to Disney World and stay using my Annual Pass discount at a Value Resort. I explained that my average stay was around $60 per night during the timeframes that I stay at these resorts. Say I stay for 15 nights in a particular year, that is a total cost of $900. In my talks with the representative, I found that the LEAST expensive number of points needed for a night’s stay is 9 at Old Key West or Animal Kingdom Villas. At 9 points for 15 nights stay means I would need 135 points. Say I purchased at Bay Lake Tower (the DVC property with the least expensive annual dues), I computed the annual dues cost per point at $3.78 multiplied by the 135 needed points to get $510.30. So, that would be a savings for that particular year of $389.70 (My current payout for value $900 less the annual point costs of $510.30).
A look at the purchase of 135 points means that I would need to pay approximately $13,365 (price per DVC by Resale states $99/point for Bay Lake Tower) for the right to own these points for the next 50 years. When looking at $13,365 divided by the savings of $389.70 per year I computed 34 years to break even on the purchase. Now, remember that this computation does NOT include any change in cost per point over the next 50 years or the opportunity cost of having your money tied to Disney for this long of a timeframe or the cost of inflation, etc. (Can you tell I work with numbers for a living?!?) On the other hand, this would mean that in years 35 – 50 I would be clearing the savings of $389.70 or a total of $6,235.20.
Even with this considered, I just do not know if it is a good investment considering that in the end, the property is not YOURS and that by the time I actually have the investment paid off, I will be 70! I also do not like the fact that in order to only need the 135 points, I would need to travel ONLY in January and October (the least amount of points are needed per the DVC points charts for these months)and stay at Old Key West or Animal Kingdom Villas in a Studio. I also do not like the fact that I may not be able to get the room type I want for the points I have on hand due to the room type not being available for the timeframe needed.
What I did not consider is how much nicer these resorts are than the Value resorts or the annual pass savings I could receive per year. But when I travel to Disney World, I typically do not stay in the room that much. And what if I do not always want to purchase an annual pass?!?
In the end, I did not purchase DVC. I just am not SOLD on it yet. I understand people’s love for it, but am still not convinced it is a match for my family. So, I will continue to envy those that have purchased:)