Fidelity Resales Blog

DVC Cost Per Point and the Long-Term Value of Disney Vacation Club Ownership

Posted by Ryan Pittman on Oct 30, 2019, 9:00:00 AM

Disney Vacation Club isn't cheap, especially seeing the rise of the average DVC cost per point. Between the initial cost and annual dues, DVC members easily end up spending thousands over the course of ownership. More than anything though, it is the initial purchase price that concerns interested buyers. It's a valid concern, especially considering the rapidly depreciating value of some of the best vacation clubs. However, after extensive research, we have some surprising discoveries. Not only do DVC points generally retain their value, but some have also appreciated overtime.

Are DVC Points Worth It?

Before diving into the numbers, it's important for us to clarify some very important points. Disney Vacation Club is not a financial investment. It is not a real estate investment. DVC members should not expect to make a profit on their purchase. Instead, consider Disney Vacation Club ownership as an investment in quality family vacations, fond memories, or even mental well-being. If magical family vacations are what you are looking for, you'll probably be extremely satisfied with the "investment."

That being said, the emergence of the resale market has added new dimensions to the value of DVC points. Savvy buyers are already aware that DVC points can be purchased on the resale market at savings over buying directly from Disney. However, surprising new data reveals that selling DVC points on the resale market can actually earn back the initial expense of joining Disney Vacation Club.

Evaluating the Growth of DVC Cost Per Point

Our research begins with a simple question: do DVC point values depreciate similarly to less popular vacation ownership programs? We have a few different guesses, but in order to find a legitimate answer based on factual data, we first took a look at the original Disney Vacation Club prices.

Take a Look back at the DVC Cost Per Point 2015 Research

Resort Original Price Per Point 2018 Price Per Point 2019 Price Per Point
Animal Kingdom $101 (2007) $171 $176
Aulani $120 (2010) $182 $188
Bay Lake Tower $112 (2008) $191 $225
Beach Club $75 (2002) $185 $225
BoardWalk $62.75 (1996) $171 $190
Boulder Ridge $67 (2000) $171 $190
Copper Creek $176 (2017) $182 $210
Grand Californian $112 (2009) $235 $260
Grand Floridian $145 (2013) $220 $245
Hilton Head $62.75 (1996) $121 $121
Old Key West $48 (1991) $151 $156
Polynesian $160 (2015) $220 $235
Riviera $188 N/A $188
Saratoga Springs $89 (2003) $151 $160
Vero Beach $62.75 (1995) $100 $110

*Note that these figures do no include any specials or exclusive deals that DVC is running.

As normal, Disney generally charges more per point as time passes. This makes sense, even if you choose to ignore inflation because the DVC program continues to grow in both popularity and size. As more DVC resorts open, the value of membership increases. It can cost more points to stay at certain resorts than others, but there are also more vacation opportunities available.

How the DVC Resale Market Changed Everything

Meeting an unhappy Disney Vacation Club owner is rare. The void of negative reviews across the web is a testament to the quality of DVC and services they provide. However, life-altering events and changing lifestyles sometimes prompt DVC members to sell their points. This gives rise to the DVC resale market which enables current owners to sell their DVC points.

As the market develops, Disney continues to raise the cost of ownership, and the price of DVC resale keeps pace. This eventually eclipsed the original purchase prices at some resorts.

Comparing 2018 DVC Resales to Initial Cost Per Point

Resort
2018 Average DVC Resale
Price Per Point
Animal Kingdom
$107
Aulani
$84
Bay Lake Tower
$130
Beach Club
$129
Boardwalk
$112
Boulder Ridge
$104
Copper Creek
$153
Grand Californian
$148
Grand Floridian
$144
Hilton Head
$68
Old Key West
$86
Polynesian
$138
Saratoga Springs
$98
Vero Beach
$61

Upon Old Key West's opening in 1991, Disney was selling points at about $51.00 per point. By examining Fidelity's DVC resale purchase prices for 2014, we found that Old Key West sold for an average of $60.98 per point. In 2018, this soared to $86 per point. That means that someone who first bought into Disney Vacation Club in 1991 could sell DVC points today at 168% of the initial purchase price! To put it in perspective, imagine purchasing a brand new car for $25,000 and selling it 27 years later for $42,000.

Differences in Value Among DVC Home Resorts

Resort
Fidelity's Average 2018 DVC Resale Value
As Percentage of Initial Cost
Animal Kingdom
106%
Aulani
70%
Bay Lake Tower
116%
Beach Club
172%
Boardwalk
178%
Boulder Ridge
155%
Copper Creek
87%
Grand Californian
132%
Grand Floridian
99.3%
Hilton Head
108%
Old Key West
179%
Polynesian
86.25%
Saratoga Springs
110%
Vero Beach
97%

Those familiar with the DVC resale market know that not all resorts are equal in cost. A 200 point package at the Grand Floridian sells for substantially more than 200 points at Vero Beach. Similarly, DVC points at certain resorts have more worth over time than others. Keep in mind that newer resorts also take time to catch up in growth and popularity than DVC's classic resorts.

As you can see from the chart above, our research shows that 9 out of the 15 resorts not only retained their value but have actually appreciated since first opening to DVC owners. The rest of the resorts that we examined did not appreciate but are still worth up to 86% of their original purchase price.

So why do some resorts retain their worth so much better than others?

There is no smoking gun, but long-term value appears to be determined by the desirability of the resort. Boardwalk and Beach Club are particularly sought after due to their unique amenities and proximity to EPCOT. Old Key West villas are slightly larger than the units at the other resorts. Grand Californian is set apart as the only DVC resort at Disneyland and availability is extremely limited.

Can I Make Money Investing in DVC Resales?

An expectation of financial returns is not a wise reason for purchasing Disney Vacation Club ownership. Disney may extend expiration dates to buoy the value of DVC membership, but there's a great deal of uncertainty about what the future holds. Selling DVC membership requires a licensed real estate broker, so you'll pay commission charges and closing fees. Clearly, Disney Vacation Club resales are not a financial investment, but it's good to know that after enjoying years of terrific family vacations, a large portion of the initial purchase price may be recovered down the line.

Topics: Disney Vacation Club, Timeshare Resale, Disney Vacation Club Resale, Disney Timeshare Resale