25th anniversary offer - 10% more points "free"

[whitebear08]

25th anniversary special to receive 10% more points for "free". Offer reads, "From February 19 through March 14, 2016, when you add on at least 100 Vacation Points (up to 1,000 Vacation Points) with this special offer, you'll receive up to 10% more Vacation Points that you can enjoy for the life of your Membership" https://disneyvacationclub.disney.go.com/25th-anniversary/member-exclusive-offer

How often does DVC offer such a deal? We are newbies to DVC and we're wondering if this is a good offer. Do offers like this happen every couple of years? Seems like Disney rarely offers anything for "free"....

Thanks for the help!!

 

[miTnosnhoJ]

It is a good deal if you were planning to buy Poly direct anyway. If Poly is currently selling at $168 per point, then this offer essentially reduces the price to $152.73 per point. The math works out to a 9.09% discount.

Poly is a great resort, but appeals mainly to those who only need studios. The bungalows are nice, but are priced high relative to other 2 bedroom options.

 

[disneynutz]

There were more "deals" offered under DVC's old management, they come up with something when sales are slower than projected. They raise the prices then discount price, people love "free".

Resale is still less expensive.

Bill

 

[_auroraborealis_]

If you want to stay at Poly 75% of the time and use the 11-month booking window, or buy a fixed week, it's a perfectly okay offer.

If you want to buy DVC but want to stay in 1BRs, or 2BRs, or have the option regularly, Poly is never a good deal no matter how many offers get attached, because you will still pay premium rates and not get an 11-month booking window of merit.

 

[Snurk71]

Seems like they did the additional points as an incentive a couple years ago - that was the first I remember seeing it.

Previous years (in recent times) they offered $s off /point based on the number of points, or a cruise (length of cruise dependent on the number of points).

 

[ziravan]

If you want to stay at Poly 75% of the time and use the 11-month booking window, or buy a fixed week, it's a perfectly okay offer.

If you want to buy DVC but want to stay in 1BRs, or 2BRs, or have the option regularly, Poly is never a good deal no matter how many offers get attached, because you will still pay premium rates and not get an 11-month booking window of merit.

Not a perfectly ok offer for fixed weeks, they are excluded.

Otherwise, we would have bought a companion fixed week to our current one.

 

[_auroraborealis_]

Not a perfectly ok offer for fixed weeks, they are excluded.

Otherwise, we would have bought a companion fixed week to our current one.

Well, then. Drop the fixed week, but leave the rest of my advice, with the caveat: If you want to stay at Poly 75%+ of your trips, have an 11-month booking window, and those stays are not between roughly weeks 48-52, or a holiday weekend, it's not a terrible offer.

If you want to stay at Beach Club regularly, book 1 BRs, or standard views at BLT or BWV, it's not a good offer.

 

[jmmess]

They don't often do this to answer your question. The reason it is being offered now is that Poly has not sold as well as they hoped and they are trying to sell it out. While it's great to save on the initial buy-in, you still have to pay the dues on the extra points!

 

[ziravan]

I don't think it's a good offer. If you have to buy at least 100 points then you're in spitting distance of a fixed week that start at 131.

I think there are definite advantages to owning a fixed week over the fifty year life of a near park resort.

Look how many changes to booking patterns have occurred in the first 25 years and project that twice as far into the future with likely four times as many owners of DVC overall.

I wouldn't buy at Poly unless I was adding 50 or less or buying a fixed week.

 

[supersnoop]

They don't often do this to answer your question. The reason it is being offered now is that Poly has not sold as well as they hoped and they are trying to sell it out. While it's great to save on the initial buy-in, you still have to pay the dues on the extra points!

I don't think they're trying to sell it out with this promotion. They've only sold 25%-30% of it so far, and there's nothing completed to start selling next. They aren't in a hurry to sell out or they wouldn't keep raising prices.

 

[jerseyduke]

To me the Poly is hands down the worst effort put forth by DVC, and the worst offering. And it is my favorite resort, which makes me sad. (It is also old buildings with bad sound proofing)

However, I did some Polyneasian math.

I used 150 points for my scenario.

150 points (with current promotion, you have to buy 137 points + 10% bonus = 150)
137*168 per point = 23K

150 points at SSR at 85 per point - 12750

difference of 10,250
David's currently pays 11.30 per non premium point, so rent out your SSR points, and in turn rent Poly Points (and pay 16 per point). that means, each year, you can convert your "SSR" points to Poly points for a price of 4.70$ per point.

Subtract the difference in Maintenance Fees and it is 4$.

So, for your 150 points, you would have to pay 600$ per year to convert them from SSR points to Poly points. Based on todays numbers.

Now, if you pull 600$ per year from your 10,250$ savings it will take you about 17 years to exhaust that 10,250.

Going a step further, I factored in a 4% annual return on that 10,250$
10,250 - 600 to pay your point conversion fee brings you down to 9,650$
Repeat over and over and your 10,250$ resale savings will be depleated in 28 years!
If you up your return from 4 to 5% it would take 34 years to deplete the 10,250$ (this assumes the spread on point rental remains constant);
6% and it is 58+ years



Now, I admit, this would be quite a hassle. But if you factor in the idea that you can probably book the Poly at 7 months most of the time you do not even have to jump through these hoops!

And in the event that Poly is hard to get at 7 months, you can "convert your points", or sell SSR and buy Poly resale.

I can not justify the Poly being a good buy.

If the poly incentive goes away, and you have to buy 150 points to get 150 points, at 168 per points the numbers become:

4% - 41 years to deplete savings
5% - 90 years to deplete savings
Even at 3% it would take 31 years




***This post was edited, as originally I had 400$ as the cost of the yearly point conversion in my spread sheet and posted bad numbers******

 

[ColinBlair]

To me the Poly is hands down the worst effort put forth my DVC, and the worst offering. And it is my favorite resort, which makes me sad. (It is also old buildings with bad sound proofing)

However, I did some Polyneasian math.

I used 150 points for my scenario.

150 points (with current promotion, you have to buy 137 points + 10% bonus = 150)
137*168 per point = 23K

That would be 140 points + 10 points = 150. That is why it says "Up To 10% bonus", not flat 10% bonus.

I agree that the Poly is a bad deal from the financial point of view. My calculations have the VWL, Poly, GFV, and BCV at about the same value with VWL at the low end and BCV at the high end. If I was planning on spending Poly level money, the intangibles of the other three would be more attractive to me.

 

[supersnoop]

150 points (with current promotion, you have to buy 137 points + 10% bonus = 150)

I think your math unfolds here. I don't think it's a straight 10%, but rather, 10 points when you buy 100, and maybe another 5 per 50 purchased.

 

[ziravan]

We really love the Poly and we bought a fixed week F&W Lake View. Given a good deal, we'd buy a companion week and hold them to "all but guaranteed connecting".

But. I also have a great BCV contract with over 250 points to help offset needing a kitchen and w/d on some trips.

I don't know if I would consider Poly a good deal without our BCV to supplement other needs/booking wants. But. Since we do have that BCV contract:

We LOVE Poly.

 

[jerseyduke]

I think your math unfolds here. I don't think it's a straight 10%, but rather, 10 points when you buy 100, and maybe another 5 per 50 purchased.

On the contrary, it swings it slightly more toward the "point conversion" idea. You have to buy 140 points, so the difference is the price of 140 points - SSR contract, which means your nest egg starts at 10770. (It is only a 3 point difference from my base assumptions) It swings the math as follows.

That ups the 4% ROI from 28 to 29 years before the savings is exhausted.
5% goes from 34 years to 39.
6%, it never exhausts itself, it grows over time.
3% ROI, savings exhausts itself after 25 years.

My assumption about the points being wrong, swings my concept further against the Poly.

 

[dizfan]

Since the promotion is only for existing owners, it will have a minimal impact on sales.

VGF started at $145 for owners and $150 for non-owners while it's monorail neighbor was priced at $165 per point. $15-$20 per point less than other monorail resorts would have a much larger impact on sales.