DVC Math 101 Does Buying 2042 DVC Contracts Still Make Sense?
When the Disney Vacation Club program debuted in 1991, people circled a date on their calendars. It wasn’t for another 51 years, though.
On January 31st, 2042, some DVC resort ownership interests will expire. That’s less than 20 years from now, which may cause you to wonder. Does buying a DVC contract with a 2042 end date make sense?
How to Evaluate DVC Contracts Ending in 2042
We’re talking about a financial purchase involving thousands of dollars. As such, an integral part of the conversation comes down to math.
Will you save money by buying into the DVC program? Specifically, can you still turn a profit on a contract with less than 20 DVC Points refills available?
Six DVC resorts fall into this category, as they will expire in 2042. So, these are the ones that require deeper evaluation.
Let’s establish some parameters here. First, we will assume that you’re contemplating a 150-point purchase. I’m choosing that because it’s enough to stay a week at several DVC properties with 2042 end dates. The lone exception is the peak season of Christmas Week.
Obviously, the type of room you book, room types, when you stay, and other factors come into play. Still, vacationing for one week at Disney is the simplest evaluation. I’ll also show you the math so that you can adjust it to fit your needs.
When Is the Breakeven Point at Old Key West?
Let’s start with the oldest DVC property, Disney’s Old Key West Resort. You can find rack rates for this property at various Disney sites. For this reason, I can say with confidence that a room here will cost from $442-$729 per night.
That equates to $586 per night on average before we factor in taxes. I’ll keep it simple and exclude those and inflation for the moment. When you do your calculations, please be aware that the tax on most Walt Disney World resorts is 12.5 percent, though.
A week at Old Key West will cost $4,102 plus tax when you pay out of pocket. Obviously, some discounts are available. So, let’s keep the numbers simple and say $4,000 a week for the next five years.
That’s a total investment of $20,000, with room taxes adding another $2,500. So the out-of-pocket expense for five week-long Disney vacations from now through 2026 would be $22,500.
Conversely, one of the currently available 150-point Old Key West contracts costs $18,000. However, I must add the caveat of membership dues. This is an essential aspect of all DVC calculations.
You can read the current annual dues here. Old Key West charges $8.81 per point for 2022, which would be $1,321.50 for the first year. After that, membership fees rise by about three to five percent each year.
Since we didn’t add inflation room rates, we won’t worry about that here. In short, we’re looking at about $6,600 for annual dues plus $18,000 or so for the contract. That’s $24,600.
According to these calculations, you’ll break even in year six. You’ll go over $27,000 on your pay-per-trip vacation budget that year.
Conversely, you’ll be at just $26,000 on DVC. So that gives you 13 full years of free (just paying the dues) Disney vacations at Old Key West despite the 2042 expiration date!
What Is the Breakeven Point at BoardWalk Villas?
Does the math work out similarly at Disney’s BoardWalk Villas? I’ll tell you right now that the answer is yes because the hotel costs more. A nightly stay ranges from $574 to $980. So for a week, the average room would cost $5,500.
Over a five-year period, you’d pay $27,500 plus tax. Once we factor that part in, we’re talking about roughly $31,000 for five years of weeklong stays at the BoardWalk.
DVC strikes me as a massive bargain comparatively. The current DVC Resale Market listings hover in the $22-$23k area. Even at $23,000, you’ll come out way ahead.
I say this because dues are lower at $8.08. For the next five years, you’ll pay roughly $29,000 for DVC ownership at BoardWalk. So you’re already ahead of the game during year five! That gives you 14 years of free (just paying the dues) Disney vacations!
What Is the Breakeven Point at Boulder Ridge?
The other resort we will evaluate is Boulder Ridge Villas at Disney’s Wilderness Lodge. At this resort, guests pay as little as $439 per night or as much as $857. I used $645 per night for my calcs.
At that price, a week’s stay would total $4,515. So after tax, you’re looking at $25,500 for five years of Disney vacations.
Conversely, Boulder Ridge contracts are quite reasonable. A current listing costs $18,600. Meanwhile, membership dues currently cost $8.15, totaling $1,222.50 for the year. For five years, we’re talking about $6,100 more.
That’s a grand total of $24,700 from now through 2026. So you’re already saving money in year five! And again, I must stress that I haven’t included room price inflation here.
At Disney’s current trajectory on hotel room pricing, the gap grows even more significant. You could feasibly turn a profit after just three years!
For this reason, I believe that buying a DVC contract with a 2042 expiration date absolutely makes sense. Now that you know how to do the math, you can search for the best deal for your needs.
Finally, here’s the latest episode of the DVC Show. It features an additional conversation on the topic.