Why buy DVC if I can rent points: So, you’ve been renting DVC points and getting a great discount off the cost of booking a reservation with Disney.
You may ask yourself:
- Should I consider buying DVC now that I’ve discovered I enjoy staying at a DVC resort?
- What exactly is the benefit of dropping in a large chunk of money to buy DVC?
- Or, to use a colloquial phrase: “Why buy the cow if the milk is already discounted?” (No, I am not referencing a typical male response to marriage, so don’t flame me!).
REASONS TO RENT
Major reasons not to buy DVC but to continue renting include:
The primary reason is that your money remains liquid and available, versus tied up in an ownership interest in DVC, and it’s available if your financial situation changes. If you invest in a diversified stock fund, you have much better liquidity.
If you decide to stop going to Walt Disney World or Disneyland, it’s as simple as just stop booking trips.
When you rent, you are paying 2-3 times the annual dues figure for those points. But you have no “down payment” represented by the ownership purchase. It’s like leasing a car instead of buying one. It may not be the most economical way to own a vehicle for most people, but it does provide some flexibility and avoidance of the big up-front cost of ownership.
REASONS TO BUY
Major reasons not to continue renting but to buy DVC include:
Renting involves risk. If you own DVC, you have peace of mind since you have more direct control over your vacation plans and specifically, your reservations. Beyond peace of mind, there is more ease of use – you just go online and book. Renting points can take more time and effort.
Renting typically has more restrictions surrounding cancellation policies and non-refundable payments, compared to the DVC policies an owner is subject to.