$178,364.60

[unclescrooge_0707]

So why not buy 160 points instead of 300, and bank one year then go to Disney every other year? If that is more in line with what you otherwise want to do then you'll pay a lot less and save a lot in the process...

I did the math for 160 points as well, on page 2 of my spreadsheet. The DW mentioned 300 points, so that's what i went with so I could see the "I'm an idiot for spending $X for the next 50 years" look at things. And I totally agree with the numerous posters about family togetherness isn't something you can calculate on Excel (or Numbers for any Mac users ). And the Grand Villas are really why we (I) are considering DVC in the first place.

Any time you look at something over that long a time period, you are going to get huge numbers.

Currently, I eat lunch out every day. It costs me $8.50 in the downtown area where I work, or $2,125 a year, assuming I eat five days a week for 50 weeks a year. Assuming a 3% rate of inflation, that works out to $239,693.34 for 50 years, just for lunch!

In any event, with respect to my lunch, I'm not at all likely to still be eating lunch at work (or working, for that matter) for the next 50 years, so it doesn't really make sense to take the calculation out that far. Similarly, I doubt that most people are still going to be paying for their DVC membership 50 years from now--most people will either sell it or turn it over to their children.

I'll be 32 during my trip this december, so i really am hoping that I'm going to be the only one that ever has to "worry" about DVC ownership.

 

[jarestel]

The difference between calculating the cost of normal consumer items over 50 years and looking at the cost of DVC is the upfront cost of DVC. Most of us aren't pre-paying for years of coffee, butts or lunches.

So it's not exactly the same thing, and it seems perfectly reasonable to me that someone would carry the DVC expenses out to the max, just to see what it looks like. However, the annual dues payment is the "wild card" in the mix, since we can only assume increases will be fairly small. But who really knows?

Bottom line, IMO, not everything has to be about cost savings and deficit neutrality anyway. We bought DVC because we liked the idea. We've already spent WAY more in 10 years of DVC ownership than we ever would have pre-DVC. But it's been fun and that's all I ever expected out of this DVC thing anyway.

 

[Corwin]

The difference between calculating the cost of normal consumer items over 50 years and looking at the cost of DVC is the upfront cost of DVC. Most of us aren't pre-paying for years of coffee, butts or lunches.

True, but using the figures in the OP, the upfront cost ($33,600) is only 18.8% of the figure that was giving them sticker shock ($178,364.60).

Plus, you can dramatically decrease the up-front purchase price by buying resale.

Finally, if you were ever to sell, you could likely recoup much of the initial up-front purchase price (especially if you bought resale), depending on how many years were left on the contract.

 

[charvel67]

I may only have a few posts on this board, but I am consistantly monitoring it for the great information shared here. My view is it costs what it costs. The look on the childrens and our faces alike when we are at Disney are priceless. There are plenty of places we could vacation with family and friends, but none compare to Disney. It's worth every penny. Just my two cents.

 

[ToddyLu]

At 41 I wanted a resort, not All Stars or Pop. Values are great and WDW is fantastic at allowing people travel at different price points. But becomming a Disney Addict over the last 8 years has been fun. So DVC is my hobby. DH doesn't fish, hunt or golf, we don't own a boat and are both in professional careers. I have no real hobbies, so I spend a lot (I am talking hours) on the DIS learning. It keeps me intact with my happy place. I don't drink lattes and hate to cook. I am a career minded female who is not domestic. DH and I do not have children. DVC and planning our annual trips is my hobby. DVC is my Rolex !! The expression on my husbands face when he leaned over that balcony to see the cattle on the savannah...was worth $2,000,000.00. The fact that we had the best trip ever and actually enjoyed going back to our room made it a completely different vacation. That is why we bought DVC.

And darn it----I just wanted to feel like I owned a piece of Disney, even if it is only for 47 years.

 

[dbs1228]

And darn it----I just wanted to feel like I owned a piece of Disney, even if it is only for 47 years.[/QUOTE]

HAHA DH and I have said we "should" own a piece of Disney after paying for Ft Wilderness Cabins for 15 plus years and we MUST OWN at least 2 golf carts at this point! Now I can say as a dvc owner I do own a piece!

 

[stefanospops]

I did not take the length of the contract into consideration at all. I think the most important thing for me is knowing that I can sell my contracts if I am no longer using the product. If I use all my point regularly for the first 7 or 8 years then I've at least recouped my up front costs. Since the oldest of my 3 children is only 5, chances are Disney will still be a destination for my family for at least the next 7 to 8 years (and I suspect longer, but let's use this for now). As such, with my up front costs likely recouped all that is left for me to worry about are annual dues. If the vacations are no longer warranted by my family then I simply sell the contracts and relieve myself of the annual dues. Even if I get no money back in return I have already saved over the type of vacation I am likely to take at Disney.

My first visit was at the Poly and the second at the Contemporary, both deluxe type options. I took the total up front cost and assumed my rack rate was about $5,000 per week (conservative) for my family of 5 for the times I want to go (March). Based on this my break even point comes at 7 to 8 years. So for every year thereafter my family continues to want Disney I save money.

 

[jade1]

Or you could sell your BLT in 10 years at $150 a point and get your investment and dues back-and have stayed for free.

 

[unclescrooge_0707]

I have been reading along all day, and i again wanted to say thanks to all of the posters. but that many multi-quotes confuses me. So, this is my blanket thanks.
I KNEW I could count on the DISers to let me know that if I buy DVC, I'll love it, and if I don't, I won't miss it, so really, untimately, the decision is mine.
I got my DREAM book (and accompanying point chart) today, and 1) I'm a little upset at how much BLT is ($120 per point (discounts are there, but i'm not looking at it like that yet)) and 2) it takes a LOT of points to stay at BLT. Still, one VERY important thing is that if DW says NO, the answer is NO. For now, I'm just filling my head with data and information, ready to share it when it's asked for, and keeping my mouth shut until then. (Aside from arranging the tour when we go to WDW at Christmas time)

 

[ercrbc]

Or you could sell your BLT in 10 years at $150 a point and get your investment and dues back-and have stayed for free.

I wouldn't bet the farm on that. Although it sounds great in theory, a lot could happen in the next 10 years. Including the rumored South Tower addition, that will no doubt have an impact on resale values (if it actually happens) But it sounds good in theory

I have been reading along all day, and i again wanted to say thanks to all of the posters. but that many multi-quotes confuses me. So, this is my blanket thanks.
I KNEW I could count on the DISers to let me know that if I buy DVC, I'll love it, and if I don't, I won't miss it, so really, untimately, the decision is mine.
I got my DREAM book (and accompanying point chart) today, and 1) I'm a little upset at how much BLT is ($120 per point (discounts are there, but i'm not looking at it like that yet)) and 2) it takes a LOT of points to stay at BLT. Still, one VERY important thing is that if DW says NO, the answer is NO. For now, I'm just filling my head with data and information, ready to share it when it's asked for, and keeping my mouth shut until then. (Aside from arranging the tour when we go to WDW at Christmas time)

I think you have given rise to some very interesting considerations in terms of the actual vs emotional "value" of buying a DVC membership at BLT right now. We have been researching DVC for over 6 months and finally decided that a resale at BWV was worth the investment for us. We figure if it matters we can extend the contract (given the option from Disney), or buy another contract at a newer resort. By 2042 there would be tons to choose from. Good luck and enjoy your trip this Christmas

 

[dbs1228]

I have been reading along all day, and i again wanted to say thanks to all of the posters. but that many multi-quotes confuses me. So, this is my blanket thanks.
I KNEW I could count on the DISers to let me know that if I buy DVC, I'll love it, and if I don't, I won't miss it, so really, untimately, the decision is mine.
I got my DREAM book (and accompanying point chart) today, and 1) I'm a little upset at how much BLT is ($120 per point (discounts are there, but i'm not looking at it like that yet)) and 2) it takes a LOT of points to stay at BLT. Still, one VERY important thing is that if DW says NO, the answer is NO. For now, I'm just filling my head with data and information, ready to share it when it's asked for, and keeping my mouth shut until then. (Aside from arranging the tour when we go to WDW at Christmas time)

Keep filling up with data, I wish we did this prior to buying. I still would have bought but we would have done things differently. After paying 115.00 pp for BLT (I was told prices will only go up which they only have gone down!) we bought a resale at SSR for 69.00 pp. I can see us liking the THV more then BLT but for now we will have to take multiple trips to Disney just to check out the different resorts!

 

[robertdangelo]

I view DVC as one of our best purchases. It's an investment in quality family memories that last A lifetime.
I would prefer to "Brown Bag" lunches at work than not be a DVC member. I like the Starbucks comments. Life's too short to not enjoy every moment!

 

[Tigger031266]

Another way to look at the 178K is as a % of your salary. So if you make 75K per year now and your salary increases 3% per year over 50 years you will make abou $8.5M (do that in Excel).

So $178K / $8.5M is 2%.

2% of your income for a lifetime of vacations, memories and fun. It is a bargain!!! A steal!

 

[nolanboys]

We did a spreadsheet too. My husband is a math guy. We realize it is a lot of money up front, but we see ourselves going to Disney every other year for a long time. We just purchased a resale SSR 200 pt contract - just passed ROFR and sent in closing documents. We went this past Feb and stayed at OKW. It was buy4 get 3 free. So a 2 bdrm villa with tickets for 8 was only $4800. A good deal, but we stayed there 4 years ago with 8 in October and the same package was over $6000. We are going under the assumption that Disney will stop offering substantial discounts as the economy recovers. We also would like to be able to try different resorts, but discounts generally only apply to OKW and SSR. We know we may not be able to get other resorts at the 7mo window, but once in a while it would be nice. Our kids are getting older as well, so pulling them out of school is getting more difficult. Soon, we will only be going over Christmas break, Spring Break, or summer. Disney never offers deals over Christmas or Spring break, and when we priced trips out for that time of year, we knew we'd never be able to justify paying that much for just lodging. We're excited and know that with our busy lives, DVC will force us to set aside family time, which is priceless!

 

[Dean]

Instead of reading DIS during lunch, I used excel to figure out how much DVC would cost me. I used the following estimates
300 pts at $112/point, no interest on the $33,600, and a 2.5% increase on maintenence fees per year, starting at $4.12 for year 1.

Anyway, thanks to excel, I found my total-total after 50 years: I'm giving Disney $178,364.60. This breaks down to $297.27 per month.

I will still take the tour in December, but from a standpoint of i don't know what I'm going to be doing in 10 years, much less 30 or 40, I'm thinking DVC may NOT be right for me.

I also compared the Rack Rate to DVC (with the same 2.5 % annual increase.) The savings of a vacation every year is over $130,000. But if I didn't have DVC, I wouldn't go to WDW every year, so it isn't a fair comparison.
Just wondering if anyone else looked at DVC from a numbers standpoint like this.

There are many variables. I'd say your comparison is very favorable to DVC in that you used rack rates for non DVC options (a discounted rack rate is likely a more accurate assumption), you did not factor in the time value of money it does not appear and you did not include the interest charged if you finance. OTOH, 2.5% is likely a little low from an inflation standpoint, not unreasonable, but a little low. DVC, likely any timeshare, is a certain amount of gamble with built in risk. As you correctly noted, you don't know what you situation over the entire life of the ownership, likewise, you don't know where DVC will be over that time as well.

 

[jade1]

I wouldn't bet the farm on that. Although it sounds great in theory, a lot could happen in the next 10 years. Including the rumored South Tower addition, that will no doubt have an impact on resale values (if it actually happens) But it sounds good in theory

I agree, just pointing out as you said exactly "a lot could happen in the next 10 years". Therefore saying your locked into $178,000 makes just as much (or little) sense.

 

[thepops]

$178k ... that's a drop int he bucket... Have DVC Mike run his 1000 points through that. You'll be very happy with your tiny number.

 

[DVCGeek]

$178k ... that's a drop int he bucket... Have DVC Mike run his 1000 points through that. You'll be very happy with your tiny number.

I'd be very scared to see those! Morbidly curious, but scared...

 

[caracarn]

Instead of reading DIS during lunch, I used excel to figure out how much DVC would cost me. I used the following estimates
300 pts at $112/point, no interest on the $33,600, and a 2.5% increase on maintenence fees per year, starting at $4.12 for year 1.

Anyway, thanks to excel, I found my total-total after 50 years: I'm giving Disney $178,364.60. This breaks down to $297.27 per month.

I will still take the tour in December, but from a standpoint of i don't know what I'm going to be doing in 10 years, much less 30 or 40, I'm thinking DVC may NOT be right for me.

I also compared the Rack Rate to DVC (with the same 2.5 % annual increase.) The savings of a vacation every year is over $130,000. But if I didn't have DVC, I wouldn't go to WDW every year, so it isn't a fair comparison.
Just wondering if anyone else looked at DVC from a numbers standpoint like this.

We went through this when we bought 10 years ago. I approached it from the standpoint of getting the total cost down to a cost per point/per year, which works out to about $5.50 per point when you get down to it. Basically this allocates your costs that you will put in assuming a 3% increase per year of maintenance fees. This allows us to regularly take a look at any option (including using the points to trade out of DVC), so for example when we traded to a resort in Williamsburg a few years ago for the 270 points for a week, I was able to determine that the value of what I was trading was $1,485. Considerng the cash rate for that same week at that resort was over $3,500 this was a great deal!!! When I find a bad comparison (for example trading for hotel nights is usually a bad trade), then we pay cash and save our points for something else.

Also if you run the numbers with the typical 9-11% annual increase in hotel fees you find DVC greatly saves you money over time, whether you stay in DVC resorts or not. I'm not sure why the comparison is only done on going just to WDW as I think the plan holds up in other resorts as well.

Same issue as everyone, we're just sorry we did not buy sooner.

 

[Good Ol Gal]

Currently, I eat lunch out every day. It costs me $8.50 in the downtown area where I work, or $2,125 a year, assuming I eat five days a week for 50 weeks a year. Assuming a 3% rate of inflation, that works out to $239,693.34 for 50 years, just for lunch!

I have to show this to DH! Now I've got a good plan for another add-on!

Honey... if you stopped eating out for lunch we could do another add-on!

We've got what I consider is alot of points, 705 all PIF, but it is the memories that we're building that make it worth it.

We have 4 children, 15-9, and joined 6 years ago. We have so many wonderful funny memories from our trips. Prior to joining we hadn't gone on a "real" vacation. This forces us to go.

At home our children are getting older and spending more and more time with friends, at school activities, etc. At WDW we get a whole uninterrupted week or more with our children.

Sure we could do all that by calling CRO and booking a room, but I could also then call them up and cancel b/c something else came up and then never go.

I could count all the money saved by not joining and think of what else I could have bought with it......

but I already do that with all the money I could save if I didn't have 4 kids in braces right now! My orthodontist says he's naming his next wing after me