284 DVC Points Versus $3375

[lugnut33]

I was just curious and looked at how much cash it would cost to book the same stay we currently have booked through DVC. I was surprised that using the avg. $10 per point that there isn't much difference between points and cash for a 1 bedroom std. view at Kidani Village in August. The total difference is only $535, which doesn't go real far in helping me justify my membership.

Previous trips we have taken (stayed at AKL and THV) have seen a huge difference in the points versus cash ratio. When we stayed in the THV for 5 nights we saw over a $3000 difference (again, using $10 per point average).

For me, instead of looking at DVC as an investment, I look at it as a supposed savings on deluxe lodging, but this year not so much.

 

[pumpkinboy]

Well, if you slap the 11.5% room tax on in Osceola County (for AKL & AKV), then divide by the number of points, it comes to $13.25 per point.

You can do your own long-term breakeven analysis, but when I did it when we bought in 2003 I came out with a 7 yr breakeven period if paying cash, 10 yrs if financing (my assumptions included at 5% annual opportunity cost and compared the cost to rates at Mods). So we've broken even on our BWV contract and can now sell it, even tho we've had >7 yrs worth of vacations, and can now sell our points for about what we paid for them.

And nobody should ever consider any timeshare purchase an investment, but rather a pre-paid vacation, which is what OP is doing here. If the discount is not working for you, then perhaps it's not for you since it is a substantial outlay. Do a discounted cash flow on it and come up with a breakeven point; if it works, then go for it, and if not, don't.

Good luck!

 

[RobDoc]

... and if you use your actual maintenance fee instead of an arbitrary $10 per point you will also see a bigger difference. In addition, with the discounts currently being offered, the cash room rates may not reflect what can be expected going forward.

$10 is fine to use when comparing cash rates to DVC rental rates since that pricing can be easily found, but the actual maintenance fees may present a clearer comparison. In our case our utilization of our OKW points took us to a break even points back in 1997 - so every trip since then has cost only the number of points used times our annual fee per point and we can still sell our contracts for more than we paid at purchase.

 

[lugnut33]

Wasn't really trying to do a breakeven analysis, just looking at points versus cash. I think $10 per point is a pretty accepted number.

And no matter what, it's not money out of my pocket (other than my dues)!!

 

[dgaston]

And don't forget that if it's on DRO, you have the privilege of paying $25 extra per night for anyone over the age of 18 after 2 adults. That's a great benefit of DVC for us with only adult children.

 

[disneymath]

The only thing I can think to add is that is it even possible to get a Standard View at AKL through CRO? I would imagine these rooms types tend to get snapped up by DVC owners and so aren't readily available to the GP. (I can't see why DVD would keep many of these types of rooms in their inventory when they can get more money for pool/savannah views.)

(I know at that at BLT it is next to impossible to book a Standard View for cash, so any "cost comparing" I've done has been with Lake View points and costs.)

 

[mybabesuz]

I'm not sure what discount you are using?

My number are 50% more than your.

To get to your 284 points for a standard view 1-bedroom...
I couldn't figure out a combination of nights to equal that but it must be like 9 nights...

That came out to $6644.90 CRO without tax ???

Where are you getting your number?
A standard view 1-bedroom is only 228 points for a week in the first half of August and only 200 points per week for the second half of August.

 

[MOM POPPINS]

Well, if you slap the 11.5% room tax on in Osceola County (for AKL & AKV), then divide by the number of points, it comes to $13.25 per point.

You can do your own long-term breakeven analysis, but when I did it when we bought in 2003 I came out with a 7 yr breakeven period if paying cash, 10 yrs if financing (my assumptions included at 5% annual opportunity cost and compared the cost to rates at Mods). So we've broken even on our BWV contract and can now sell it, even tho we've had >7 yrs worth of vacations, and can now sell our points for about what we paid for them.

And nobody should ever consider any timeshare purchase an investment, but rather a pre-paid vacation, which is what OP is doing here. If the discount is not working for you, then perhaps it's not for you since it is a substantial outlay. Do a discounted cash flow on it and come up with a breakeven point; if it works, then go for it, and if not, don't.


Good luck!

Hi pumpkin boy I have not seen you around in awhile and wanted to say hello! We have enjoyed our purchase very much since 2005, thanks for helping us understand the process.

 

[lugnut33]

It's for Aug. 16-26, one bedroom std. view at Kidani Village.

For the CRO I went through the website and used the current promotion available and that's the price that came up for exactly the same 1 bedroom std. view.

 

[KAT4DISNEY]

I'm not sure what discount you are using?

My number are 50% more than your.

To get to your 284 points for a standard view 1-bedroom...
I couldn't figure out a combination of nights to equal that but it must be like 9 nights...

That came out to $6644.90 CRO without tax ???

Where are you getting your number?
A standard view 1-bedroom is only 228 points for a week in the first half of August and only 200 points per week for the second half of August.

284 points would be required for a 10 night stay between Aug 16th and 31st 9Dream Season) and would only have 1 weekend.