In discussing the pros and cons of the Disney Vacation Club, the obvious issue everyone latches on is the sticker shock. Ostensibly, a minimum of $13,000 is required to purchase directly from Disney. Even in an era of economic recovery, a lot of people will see that price tag and drop the subject completely. Make no mistake on the point. To most people, $13,000 is a lot of money.
When I wrote the initial trio of columns about joining DVC, I requested that readers keep an open mind. Today’s article should be the one where you make a final determination on DVC membership. The benefits of direct purchase through Disney as opposed to re-sale purchase via an online broker will be evaluated over the next two columns. And the short answer for the difference is that consumers get more when they buy directly through Disney while they pay much (much, much) less for a re-sale purchase. Let’s evaluate the direct purchase side of the equation in depth.
1. Understand your minimum points needs when you purchase
As I mentioned above and in a previous column, the cheapest way to join DVC through Disney is to buy 100 points, which each cost at least $130 for a Magic Kingdom or Disneyland property. The expense can be as high as $16,500 if you select one of the newer properties, which come with a heftier price tag of $165 a point.
I have noticed a couple of people on social media and in the comments point out that they can purchase as few as 25 points. Alas, that option is only available for current DVC members. Here is an updated list of current promotions that confirms the difference in minimum points purchase for new owners as opposed to existing ones. Since this conversation is focused toward people considering joining rather than current members seeking to upgrade, the fact remains that 100 points is the minimum to join, at least through direct Disney purchase.
What you must determine is the fewest number of points that you will need to enjoy DVC membership. I am firmly of the opinion that you should purchase the fewest possible, at least until you fully understand the program. After all, once you have joined, it’s easy to upgrade in 25 point increments afterward. Your mileage may, can and should vary on the points splurge, though. Pertinent questions to ask yourself prior to purchase are how often you plan to visit the park, your age, whether you have members of your immediate family who can make use of it if you do not, and how comfortable you are paying annual maintenance fees.
2. Know that you can try before you buy
If you plan to visit more often, you probably need more points. You are probably surprised that I did not add “definitely” as the qualifier. The reason why is that there are services on the web that will “rent” points to non-DVC members as well as DVC members. Dave’s DVC is such a business (editor’s note: at the time of publication of this article, we have no affiliation with Dave’s DVC). For $14 a point, you can have a current member make a reservation in your name, and the transaction will be protected by its facilitator (someone named Dave, in this example). I actually suggest this methodology for people who want to sample DVC membership before joining, as there is effectively no difference during your stay save for the fact that you do not receive any of the DVC membership discounts at the various stores and restaurants. A DVC membership card is required for them.
3. Learn the advantages to a direct DVC purchase
Prior to 2011, people who bought resold DVC membership were entitled to virtually identical advantages than those who purchased directly from Disney. Obviously, the company was not crazy about the way that such behavior ate into their bottom line. Since real estate laws govern over all timeshare transactions, Disney could only alter so many aspects of membership. Currently, there is one massive advantage for direct purchase owners…
4. Once in a Lifetime vacations are available via points
Direct Disney DVC purchases enjoy access to a special classification of Disney resorts. They are notated as the Disney Collection, The Concierge Collection and the Adventurer Collection. The list of hotels impacted is basically all of the ones that are Disney properties not included in the list of 13 current and upcoming DVC resorts. Are you a fan of EuroDisney? You can actually redeem DVC points for a stay at Disneyland Hotel in Paris, as well at other Disney resorts onsite. The same is true of Hong Kong and Tokyo’s Disney theme park hotels as well as the ones at Disneyland in Anaheim that are not already included, which is just the Grand Californian.
Similarly, there are exotic trips across the world that can be booked using DVC points. If you have ever dreamt of traveling to Alaska or the Galapagos Islands or Australia, a massive volume of DVC points will “pay” for your trip. Also, if your kids are massive Frozen fans – and let’s face it, if you have kids, they are – there is even a Norwegian vacation that tracks the lands from the movie.
The potential vacation to Norway brings us to another point. Points can be exchanged trips on Disney Cruise Lines including the Disney Fantasy, the Disney Magic, the Disney Wonder and the Disney Dream. Again, the cost in terms of points is exorbitant.
5. Determine how significant this advantage is to you
Let’s examine the cost to determine the intrinsic value of this DVC direct “advantage. As I mentioned in a prior example, a week’s stay at Old Key West in Orlando, Florida costs 99 points for a mid-May visit. A single night at Tokyo Disney costs 66 points while Disneyland Paris would cost at least 44 points. So, you can stay at Walt Disney World for a week or EuroDisney for two nights, using the same amount of points.
Obviously, the cost of points for the Disney Collection is absurdly high. You are probably wondering about cruises. The truth is that they are, if anything, an even worse use of DVC points. A three-night sojourn on a Disney cruise would cost at least 62 points for a standard inside stateroom. If you don’t want to have a room akin to Jack Dawson’s in Titanic, the cost jumps up to 94 points for a “deluxe stateroom with navigator’s verandah.”
If you want to compare apples to apples, a seven-night cruise to the Eastern Caribbean comes with a hefty price tag of 177 to 229 points. And by the way, that cost is per person, presuming double occupancy. So, double all of the cruise points mentioned above. Suffice to say that while you theoretically CAN take a cruise using your DVC points, you really, really should not.
In fact, the more financially viable solution that many members use is to exchange their points via a service such as Dave’s DVC above in exchange for $11 per point and then use that cash to purchase the same cruise. The same cruise that costs 400 points for a week would garner $4,400 in cash in a DVC points trade. When you pay for the room out of pocket, the current cost is roughly $3,360, a saving of over a thousand bucks, money that would pay for either your travel or your spending money on the trip. I think you can infer that I do not see this advantage as a meritorious one.
6. Know that the process is faster with zero chance of rejection
Another way Disney deters customers from buying is through a process known as Right of First Refusal. Effectively, if you try to buy via resale, Disney takes 28 days to decide whether they like the acquisition you are attempting to make. There is a chance that they will snag your timeshare right out from under you. Even if they do not, your ownership is delayed for a month for no good reason.
A good rule of thumb is to expect a 60 day delay from the point you confirm a resale purchase and sign the paperwork to the moment when your DVC points are in your account. During that timeframe, you cannot make reservations using your points, because they are not even in your account yet. It is a clever deterrent Disney uses.
Conversely, buying through Disney is a near-immediate transaction. There is no Right of First Refusal since you have ponied up on the higher price tag. You will have the points in your account within days, and the sales representative who handles the transaction can oftentimes make your reservations during the conversation. In fact, they even have the ability to provide you with a reservation that displays as booked via member services, the company’s way of rewarding people for paying full price.
All in all, I view the advantages of direct purchase through Disney as negligible at best, with one caveat. Many people simply love Disney. If you, like my wife, are one of these people, the sheer joy of buying through Disney may supersede all the other advantages listed here or the ones for resale purchase in the next column.
