It’s easy to find messages on DISboards from Disney Vacation Club owners who would swear off purchasing points at a 2042 resort, while other messages justify why such a purchase is the only way to go. Is there a right answer? Do emotional feelings towards a resort win the day, or could a 2042 resort be a better financial decision for a new member?
Worst Buy
First, let’s explore what might make someone steer clear of purchasing a contract at a 2042 resort:
- Time Left: Indeed, time isn’t on your side. These resorts are first up for expiration, and someone might be feeling the itch to look at a longer contract to not miss out!
- Financial Calculations: Our friends at DVC Resale Market publish a blog on the resorts that have the best economical value. As you’ll note, 2042 resorts are nowhere near the top of the list, potentially leaving a feeling of discomfort for those looking to get the best bang for their buck. There are many different ways to calculate the yearly cost per point or potential break-event point on a contract, but DVC Resale Market has done the hard work to give the best general picture of value.
- Emotional Connection: Do you have a young family with dreams of going to Disney for decades? A strong desire to bring your grandchildren to the magic someday? Or maybe you’re more established and wish to pass on a legacy to your children or grandchildren in the coming decades. It’s not uncommon to hear plans for either of these scenarios from DVC members as to why they chose a specific home resort with a later expiration date.
Best Decision
Finally, let’s think about what might make someone dive in and purchase a 2042 contract:
- Time Left: While we mentioned above how some might think 2042 is too soon, others might believe a commitment for 20 years is just long enough. For those new to DVC and others with different plans for retirement or their family vacations, a shorter contract can be attractive and seen as a more risk-averse option.
- Financial Calculations: Again for the risk-averse, with only 20 years left on a contract, you’re not locked into paying dues longer than that. Your transaction ends earlier than many other DVC resort contracts on the market right now.
- Emotional Connection: You’ll often hear “buy where you want to stay.” Some embrace this mantra while others search for the best financial deal. At the end of the day, some members wouldn’t be able to enjoy their vacation without staying at their home resort. It’s true — this feeling is priceless!
Would you purchase a DVC contract that expires in 2042? Please comment below with your thoughts!
We have contracts at both Boardwalk and Boulder Ridge, along with Saratoga Springs. We love all 3! The shorter contracts have never bothered us us. And we purchased all 3 in 2018. We have used the points to stay at Poly and Animal Kingdom Lodge on several occasions and loved them as well. But no WDW vacation is complete if we aren’t staying at Boardwalk for part of that stay. Sometimes it just has to feel like “home”!! Stay where you love!
Great article but very short!
Our family is weighing a 2042 resort vs a 2057. We absolutely love both resorts and aren’t really interested in the newer resorts for various reasons.
We compared 2 contracts and when you account for annual dues it came down to less than 50 cents per point for the entire life of the contract. If you get the 2057 contract you are on the hook for 14 additional years of dues plus the glaring upfront cost difference.
Makes us want this 2042 resort.
“Time left” is never a positive on a shorter contract. If you buy a 40 year contract, and want to be “done” after 20 years, you can always sell the contract. Even if the market collapses, you’ll be able to get something for the contract.
So take a 200 point contract —
2042 contract — Expires, you get nothing as of 2042. You just get to stop paying dues.
2062 contract — In 2042, no longer want to keep it…. Can probably recoup between $20,000 and $30,000 selling it.
I guess this assumes you have 35,000-40,000 to pay for a 40 year contract If you have to start adding in finance fees/ interest it may not be as clear cut.
40 year contracts run the same price as 19 year contracts resale. A Poly contract can actually be slightly cheaper than a Beach Club contract.
so spend $30,000 on a Beach Club contract, and get nothing in 19 years. Or spend $30,000 on a Poly contract, and get your $30,000 back in 19 years.
You of course must realize that recouping nearly half of what you paid after 20 years on a 40 year contract (possibly best case scenario) is the same thing as paying half as much for a 20 year contract except you don’t lose the return on capital you committed to it. The loss is exacerbated if you financed it.
I bought at Beach club and I wished I did it sooner. With that said, have I absolutely been eyeballing a Boardwalk contract? Yes! Why? Something about the entire Crescent Lake area feels like home. Plus, the Boardwalk studios (standard and Boardwalk view) are extremely hard to get unless you have home court advantage. I definitely want a small points contract.