2042 Direct Prices

[Judique]

They’re still selling points at these prices so I don’t think its off the table.

Also if inflation goes nuts, everything will increase in price.

So my answer I suppose is maybe.

'when' inflation goes more nuts than it already is.

And as for the piggy back ride, I'm in line for that.

 

[jolynne28]

I'm also wanting to add on to our BWV points, but dang the resale prices are higher than what I paid in spring of 2024 for a smaller contract. It's frustrating b/c the years are ticking off quickly on 2042s.

 

[CastAStone]

'when' inflation goes more nuts than it already is.

And as for the piggy back ride, I'm in line for that.

Inflation is not particularly high right now based on the number released Friday, at least in the US. Certainly not as high as the depreciation of the annual remaining value of the contract.

Inflation would need to be more like 7%+ and sustained for multiple years to overcome the downward momentum of the annual reduction of remaining years. Inflation a few years ago briefly peaked at about 7% but we haven’t seen sustained inflation like that in about 50 years.

 

[Jameson416]

Inflation is not particularly high right now based on the number released Friday, at least in the US. Certainly not as high as the depreciation of the annual remaining value of the contract.

Inflation would need to be more like 7%+ and sustained for multiple years to overcome the downward momentum of the annual reduction of remaining years. Inflation a few years ago briefly peaked at about 7% but we haven’t seen sustained inflation like that in about 50 years.

While that may be true on paper, many good/services/etc are 50-100% (or greater) more than what they were just a few years ago, and with no end in site. Not surprisingly, salaries, atleast for the working class, are not keeping up. This trend has shown no signs of easing, as prices have not (and probably will not) go down, as tthings usually tend to go up, by more than the actual listed inflationary numbers.

 

[Brian Noble]

None of that is true.

Yes, I am sure you can cherry-pick something that has doubled in a few years, but overall inflation certainly has not done that. For example, my grocery bill is not double what it was a few years ago, and that's not because I'm suddenly buying much less expensive things. At the same time, "real wages" (in other words: inflation-adjusted) for non-supervisory/production workers is up 1.1% over the past year. Those are constant-dollar numbers, which means wages for non-supervisory/production workers has grown faster than inflation over the past year.

There are certainly problems with the economy, but this is not one of them. A much bigger problem has been a persistent negative consumer sentiment pretty much since the pandemic. http://www.sca.isr.umich.edu/files/chicsr.pdf

 

[Cfabar1]

If annualized and continues at the same pace, wouldn't the most recent inflation report show that we are heading towards 6% inflation again? I believe the number last time was .5%? My understanding is we want to be at 2% and haven't gotten close yet... closest we've gotten to is somewhere around 3%, which is off the goal by 50%...

I feel like in some ways buying DVC is a hedge on Inflation, making tomorrow's trips more affordable by paying for part of it today... I actually don't think that DVC or any timeshare is a good investment, and possibly not even a good use of spending money, but it is a way to lower the vacation bill each year, if you want to be at Disney each year since part of the cost Disney charges you for the hotel cash room is the room itself...

All in all, I hate inflation.... Not sure if others are fond of it, but I worry about how it will prevent my family from being able to do things we enjoy like trips to Disney, DCL, supporting organizations we want to help, etc. if too much of our expenses get caught up in rising auto costs, homeowners insurance, food costs, energy costs, etc. and of course planning for retirement becomes a total short in the dark as well....

 

[CastAStone]

While that may be true on paper, many good/services/etc are 50-100% (or greater) more than what they were just a few years ago, and with no end in site. Not surprisingly, salaries, atleast for the working class, are not keeping up. This trend has shown no signs of easing, as prices have not (and probably will not) go down, as tthings usually tend to go up, by more than the actual listed inflationary numbers.

I’m not sure what that has to do with the *overall value of American money* which is what would need to dramatically change to impact Disney's DVC pricing decisions.

Yes a Jr Bacon Cheeseburger at Wendy’s is 4X what is was in 2010 but an 86” flat screen TV is 1/10th the price. The overall picture is what matters.

 

[Jameson416]

If annualized and continues at the same pace, wouldn't the most recent inflation report show that we are heading towards 6% inflation again? I believe the number last time was .5%? My understanding is we want to be at 2% and haven't gotten close yet... closest we've gotten to is somewhere around 3%, which is off the goal by 50%...

I feel like in some ways buying DVC is a hedge on Inflation, making tomorrow's trips more affordable by paying for part of it today... I actually don't think that DVC or any timeshare is a good investment, and possibly not even a good use of spending money, but it is a way to lower the vacation bill each year, if you want to be at Disney each year since part of the cost Disney charges you for the hotel cash room is the room itself...

All in all, I hate inflation.... Not sure if others are fond of it, but I worry about how it will prevent my family from being able to do things we enjoy like trips to Disney, DCL, supporting organizations we want to help, etc. if too much of our expenses get caught up in rising auto costs, homeowners insurance, food costs, energy costs, etc. and of course planning for retirement becomes a total short in the dark as well....

Thank you for understanding and further explaining the point I was making, whether you intended it or not. The bottom line (and put most simply), I don't care what the powers that be want to try to push to the masses, life costs more these days, and the rate in which it has risen is higher than that of most Americans wages. Period. If you are not experiencing that, whether in your own home, or with those around you, you aren't living in the same middle class America as the rest of us.

Are things a little better in the past 6 months? I'd like to think so, but its not like we have seen significant reprieve in life costs. We can only plan for the future as best we know how, and hope things get progressively better over time. However, simply accepting that things are "good" based on governmental consumer/inflationary reporting does not work for me.

 

[Jameson416]

I’m not sure what that has to do with the *overall value of American money* which is what would need to dramatically change to impact Disney's DVC pricing decisions.

Yes a Jr Bacon Cheeseburger at Wendy’s is 4X what is was in 2010 but an 86” flat screen TV is 1/10th the price. The overall picture is what matters.

While not a direct reflection or exact science, I think we can both agree that higher prices in everyday life expenditures (rent, gas, groceries, etc) lowers discretionary budgets. While that is not a direct reflection of Disney's DVC pricing decisions, it does impact the number of people who will be willing and able to buy. I see your point about flatscreens, but thats more discretionary than necessity, much like DVC. That bacon cheeseburger and every component that is required to make it, (for those who would cook/eat at home rather than go to Wendy's) are significantly more expensive than before. Yes, wages have increased, but not anywhere close to the same rate, and you best believe Disney will continue to push the needle trying to maximize profits.

Again, I'm not questioning governmental inflationary reports or what they are claiming, rather simply stating real cause and effect that many middle-class American families are feeling. The majority of American voters said as much at the polls, as the economy was the #1 topic if I recall.