4 DVC Questions to Ask When Buying and Helpful Insider Tips
This post is all about buying DVC.
Is DVC worth it?
Most Disney lovers say, “If money is no object, then DVC is a no-brainer”. But unfortunately, even as Disney Adults, we must make a smart, financially sound decision.
I won’t be discussing the basic DVC info here. This is written for those looking for extra tips to help them make their final decision and info that helped me personally buy into DVC.
There are a couple of questions that you can ask yourself that may point you in the right direction:
- Do you vacation at Disney at least once a year?
- Do you only stay at Disney’s deluxe resorts?
- Would you need to finance the upfront purchase price?
- Are the annual dues a manageable long-term expense for your budget?
No.1 What are your vacation habits?
For DVC to make sense, a yearly Disney trip should be a top priority on your family’s travel list. If you live within driving distance (8 hours or less) to a Disney theme park, and visit more than once a year, then it’s definitely worth it.
Keep in mind that some home resorts will offer up to 50 years of annual vacation points while others may have less than 25 years left on the contract.
Your vacation plans may change over the years, but if having your annual Disney villa prepaid for decades to come brings you happiness, then let’s move to my next tip.
No. 2 Where do you stay while at Disney?
DVC is for the family that likes to splurge on the best accommodations they can afford. If you’re anything like me, maybe you spend WAY MORE than you can afford on your hotel stays.
The newest and nicest places are where I want to be. If you can relate to this, then DVC is the perfect solution for you!
Check out the magical resorts Disney Vacation Club offers:
| Disney World Resorts | ||
| Riviera | Grand Floridan | Polynesian |
| Old Key West | Boardwalk Villas | Beach Club Villas |
| Bay Lake Tower | Saratoga Spring | Cabins at Fort Wilderness |
| Animal Kingdom Villas | Copper Creek | Boulder Ridge |
| Disneyland Resorts | |
| Grand Californian Hotel | Disneyland Hotel |
| Other DVC Resorts | ||
| Vero Beach | Hilton Head Island | Aulani Hawaii |
*Your points can be used at other locations and experiences, but these resorts offer the best value per point in my opinion.
*Over the life of your contract, you can save up to 50% on Disney’s deluxe accommodations. But this statement only applies if you can make your upfront purchase in cash (without financing). Which brings me to my next question.
No. 3 Should I Finance my DVC contract?
Simple answer, No. Unless you bring at least a 50% down payment to the table, you won’t see the needed savings over the life of your contract to make this worthwhile. You should only finance if you have a large down payment and/or would limit the loan terms to a max of 5 years.
You must consider better options. 2024 finance interest rates are anywhere from 9.99% to 18% (current DVC direct terms). If you plan on financing your contract through DVC directly using their 10-year loan with a 10% down offer, then DO NOT buy DVC.
I am not a financial advisor, accountant, or banking professional, and I am not giving any financial recommendations. I think DVC is a great option for people who have excess cash in the bank.
But I definitely did NOT have an extra $38,000 lying around when it came time to purchase my 200 points. 401(k) to the rescue! Did you know you can borrow from yourself?
Here are a few pros/cons and things to consider when taking a loan from your 401(k):
Advantages
- You pay a reasonably low rate of interest, often only a point or two over the prime rate.
- There is no credit check since essentially you are borrowing your own money.
- You are paying the interest to yourself, not to the bank or credit card company.
- There are no restrictions on how you can use the money from a retirement plan loan.
- The loan application is often much quicker than applications for bank loans.
Disadvantages
- You lose the potential for tax-deferred compounding while money is out of the Plan.
- You have to repay the principal and interest of the loan with after-tax dollars.
- The interest you pay with after-tax dollars is taxable again at the time you withdraw the interest from the Plan.
- Loan repayments reduce your current take-home pay.
- If you lose your job, you’ll typically have 30 to 90 days to pay off the loan. If you can’t pay in time, the loan will be considered a cash withdrawal which means you will have to pay income tax on the amount of the outstanding loan balance. And if you’re under age 591/2, you may also be subject to an additional 10% federal tax, unless an exception applies.
Most people will tell you a timeshare is a bad reason to borrow money (even from yourself). But the only timeshare that actually holds any value over time is Disney Vacation Club. Check the resale markets!!
You should never look at DVC as an investment. But if times get tough and I can no longer afford the annual dues, I know I can recoup a % of my upfront costs and sell my contract. Are you still with me?? Last but not least, how bout those annual dues??
No. 4 How much are DVC annual dues?
So, you’ve figured out how to bankroll your points contract! Now we have to look at how much it’s going to cost you every year to keep those points.
Annual dues are used to cover maintenance, utilities, property taxes, resort operations, and reserve funds, to maintain DVC properties. They vary depending on the home resort you choose.
2024 Annual dues arranged from least expensive to most expensive:
| Disney Resort | Price/pt | Yearly Amount Due Based on 150pts |
| Grand Floridian | $7.5740/pt | $1,136 |
| Bay Lake Tower | $7.5902/pt | $1,139 |
| Copper Creek Villas | $8.0938/pt | $1,214 |
| Saratoga Springs | $8.1388/pt | $1,221 |
| Polynesian | $8.2301/pt | $1,235 |
| Grand Californian | $8.5544/pt | $1,283 |
| Beach Club Villas | $8.6256/pt | $1,294 |
| Boardwalk Villas | $8.6711/pt | $1,301 |
| Boulder Ridge | $8.6790/pt | $1,302 |
| Riviera Resort | $8.8508/pt | $1,328 |
| Animal Kingdom Villas | $9.0820/pt | $1,362 |
| Disneyland Hotel | $9.5307/pt | $1,430 |
| Aulani Resort | $9.7620/pt | $1,464 |
| Old Key West | $9.8666/pt | $1,480 |
| Hilton Head | $11.3140/pt | $1,697 |
| Vero Beach | $13.8628/pt | $2,079 |
This list shows that based on a 150-point contract, Vero Beach will cost you almost $1000 more every year vs The Grand Floridian. Something to consider when you might be paying this for 20+ years.
What’s your answer?
The only thing left to decide is your Home Resort and whether to buy resale or direct. For me, Riviera was the most magical of all the resorts. So, with the resale restrictions involved with Riviera, it was an easy choice to buy directly from Disney. I get first choice at my favorite resort, and I can still use my points at all other resorts.
If you have more questions about buying resale or direct, please Contact me!
Hopefully, I’ve given you all the info needed to make your final decision. Deciding to buy was stressful for me but also an exciting time. I’ve been a DVC member for 3 years now and have no regrets. Hope to see you on our next Disney trip!!
