Am I a dope for purchasing a 2042 contract?

[Chili327]

People often talk about cost per point on a yearly basis, but a better metric is actually your cost per point over the life of your contract. For example, if you’re buying 100 BW points, you’re actually buying 1800 total points. If you buy 100 at RIV, you’re actually getting 4600.

Yep, that’s how you get “ppp” price per point, is by factoring time left on contract.
That’s the only way you can compare value on contracts and is exactly how people do compare resorts/contracts against each other.

Resort	Avg. Cost Per Pt.	Years Left	Cost Per Pt. Per Year from Price	2024 Dues	Total Cost Per Pt. Per Year	Rank: Spring 2024	Rank: Fall 2023	Rank Change
Copper Creek	$136	43	$3.16	$8.09	$11.25	1	1	—
Bay Lake Tower	$132	35	$3.77	$7.59	$11.36	2	2	—
Riviera ***	$126	45	$2.80	$8.85	$11.65	3	4	+1
Saratoga Springs	$102	29	$3.52	$8.14	$11.66	4	5	+1
Grand Floridian	$164	39	$4.21	$7.57	$11.78	5	3	-2
Polynesian	$158	41	$3.85	$8.23	$12.08	6	6	—
Animal Kingdom	$105	32	$3.28	$9.08	$12.36	7	8	+1
Aulani *	$97	37	$2.62	$9.76	$12.38	8	7	-1
Disneyland Hotel***	$155	49	$3.16	$9.53	$12.69	9	NA	NA
Old Key West (Extended	$116	32	$3.63	$9.87	$13.50	10	9	-1
Boulder Ridge	$93	17	$5.47	$8.68	$14.15	11	11	—
Old Key West	$82	17	$4.87	$9.87	$14.69	12	10	-2
Hilton Head	$67	17	$3.94	$11.31	$15.25	13	13	—
Boardwalk	$116	17	$6.82	$8.67	$15.49	14	12	-2
Grand Californian	$260	35	$7.43	$8.55	$15.98	15	15	—
Beach Club	$129	17	$7.59	$8.63	$16.22	16	14	-2
Vero Beach**	$58	17	$3.41	$13.86	$17.27	17	16	-1

 

[atthebeachclub]

Yep, that’s how you get “ppp” price per point, is by factoring time left on contract.
That’s the only way you can compare value on contracts and is exactly how people do compare resorts/contracts against each other.

Resort	Avg. Cost Per Pt.	Years Left	Cost Per Pt. Per Year from Price	2024 Dues	Total Cost Per Pt. Per Year	Rank: Spring 2024	Rank: Fall 2023	Rank Change
Copper Creek	$136	43	$3.16	$8.09	$11.25	1	1	—
Bay Lake Tower	$132	35	$3.77	$7.59	$11.36	2	2	—
Riviera ***	$126	45	$2.80	$8.85	$11.65	3	4	+1
Saratoga Springs	$102	29	$3.52	$8.14	$11.66	4	5	+1
Grand Floridian	$164	39	$4.21	$7.57	$11.78	5	3	-2
Polynesian	$158	41	$3.85	$8.23	$12.08	6	6	—
Animal Kingdom	$105	32	$3.28	$9.08	$12.36	7	8	+1
Aulani *	$97	37	$2.62	$9.76	$12.38	8	7	-1
Disneyland Hotel***	$155	49	$3.16	$9.53	$12.69	9	NA	NA
Old Key West (Extended	$116	32	$3.63	$9.87	$13.50	10	9	-1
Boulder Ridge	$93	17	$5.47	$8.68	$14.15	11	11	—
Old Key West	$82	17	$4.87	$9.87	$14.69	12	10	-2
Hilton Head	$67	17	$3.94	$11.31	$15.25	13	13	—
Boardwalk	$116	17	$6.82	$8.67	$15.49	14	12	-2
Grand Californian	$260	35	$7.43	$8.55	$15.98	15	15	—
Beach Club	$129	17	$7.59	$8.63	$16.22	16	14	-2
Vero Beach**	$58	17	$3.41	$13.86	$17.27	17	16	-1

Then add on point charts and the time value of money to account for interest rates and you can make a full comparison! Oh…and convenience. If transport is not walking, boat, or bus (in that order), the location is not as valuable (for me). This part is subjective.

 

[Chili327]

Then add on point charts and the time value of money to account for interest rates and you can make a full comparison! Oh…and convenience. If transport is not walking, boat, or bus (in that order), the location is not as valuable (for me). This part is subjective.

Well everywhere has a bus, so it should be a dead tie as far as transportation?

Or maybe I’m reading that wrong, sounds like a double negative. lol
Are you saying skyliner or monorail is king?

 

[atthebeachclub]

Well everywhere has a bus, so it should be a dead tie as far as transportation?

Or maybe I’m reading that wrong, sounds like a double negative. lol
Are you saying skyliner or monorail is king?

I am saying I don’t want to take the Skyliner. And I am indifferent to the monorail. My favorite transportation is walking. Followed by boats, then busses as the last of the options I don’t mind. But walking is always the very best!

 

[jimmymc]

If you want that 11 month access to Boardwalk and Beach Club, then it's definitely a smart move. Most of the cost of DVC is in the dues, so you aren't actually paying that much more per point, per year.

 

[Sandisw]

You bring up an interesting point, which I wanted to mention on this thread. My other properties have an April use year, but should I really be concerned with maintaining that if I add on at crescent Lake? I’m thinking maybe not since these points would exclusively be used for those properties I would imagine.

If you don’t ever see combining them, then the second UY is not as big of a deal. We have three and we simple use each for different trips..but if we have to use on the same trip, at the same resort, we simply book some nights on one and some on the other.

 

[Chili327]

I am saying I don’t want to take the Skyliner. And I am indifferent to the monorail. My favorite transportation is walking. Followed by boats, then busses as the last of the options I don’t mind. But walking is always the very best!

Ok I read it right. Then you are in great shape. We’ll see you at the Boardwalk!!!

 

[smileyanna]

You are better off just renting for those resorts. When you calculate what you are paying for the total points you are receiving for 18 years, they are very overpriced.

People often talk about cost per point on a yearly basis, but a better metric is actually your cost per point over the life of your contract. For example, if you’re buying 100 BW points, you’re actually buying 1800 total points. If you buy 100 at RIV, you’re actually getting 4600.

You aren’t getting 4600 points at RIV. You are getting 100 points a year for 46 years.

This isn’t a trivial hand-wave difference; it’s the crux of DVCs structure. Ask your DVC guide if it would be ok if you split your RIV contract payment up into 46 pieces and pay it back in even annual installments. I’m guessing they won’t go for it.

 

[ClaraOswald]

Not a dope, IMO!

I purchased 2 resale contracts for BRV this year and I'm really excited about them! We considered CCV for a longer contract but at this point, we honestly aren't sure if we'd want a contract that long. (Plus, I just like the current BRV rooms better than CCV.)

 

[Chili327]

You aren’t getting 4600 points at RIV. You are getting 100 points a year for 46 years.

But you are paying for 4600 points.

 

[smileyanna]

But you are paying for 4600 points.

You are paying for 100 points a year for 46 years. I’m not saying RIV vs BWV are over/undervalued. Just that we can’t compare straight 4600 points to 1800 points.

 

[MikeOhio]

You aren’t getting 4600 points at RIV. You are getting 100 points a year for 46 years.

This isn’t a trivial hand-wave difference; it’s the crux of DVCs structure. Ask your DVC guide if it would be ok if you split your RIV contract payment up into 46 pieces and pay it back in even annual installments. I’m guessing they won’t go for it.

This doesn't make any sense. Can you try to rephrase it? 100 points per year for 46 years is clearly 4600 lol.

In that scenario you are buying 4600 points in total over the life of the contract. If you buy 100 points per year at BC or BW, you are only getting 1800 points over the life of your contact. This is clearly relevant when considering a purchase.

 

[Chili327]

You are paying for 100 points a year for 46 years. I’m not saying RIV vs BWV are over/undervalued. Just that we can’t compare straight 4600 points to 1800 points.

This doesn't make any sense. Can you try to rephrase it? 100 points per year for 46 years is clearly 4600 lol.

In that scenario you are buying 4600 points in total over the life of the contract. If you buy 100 points per year at BC or BW, you are only getting 1800 points over the life of your contact. This is clearly relevant when considering a purchase.

I’m a little confused too. lol

I agree you are paying for 4600 points, you just aren’t getting all of them at once, but you are still paying for all of them upfront.

It’s what I posted earlier, that is why we determine what each point cost so you can compare things like 4600 vs 1800.
They are $11.65 vs $15.49 per point or whatever the number is for each.

 

[Counting Stars]

so tommygunn, what are you going to do? You are really the only person who can determine if this purchase makes sense for you. DVC is not an investment, its a luxury item. One that has held its value surprisingly well, but still a want, not a need. Edit to add: I don't think there is a wrong answer here. Life is short- do what works for you.

 

[smileyanna]

I’m a little confused too. lol

I agree you are paying for 4600 points, you just aren’t getting all of them at once, but you are still paying for all of them upfront.

It’s what I posted earlier, that is why we determine what each point cost so you can compare things like 4600 vs 1800.
They are $11.65 vs $15.49 per point or whatever the number is for each.

Apologies! I’m not phrasing this well.

It is true that you get 4600 points at RIV vs 1800 points at BWV over the lifetime of the contract. But those points are not all equivalent to each other. Thousands of those RIV points aren’t available to you until the 2050s, 2060s etc. They aren’t worth as much. If we just compare the full lifetime allotment of points and equate a point available today to a point available in 2070, we are waving our hands at the whole point of DVC.

For the purposes of this thread (and apologies for moving away from the main question), equating future years points to todays makes 2042 resorts look like awful values and super DOPEY. 4600 vs 1800, right?

I don’t know if OP should buy a 2042 resort but I definitely don’t think it’s a dopey move. It can make sense if you value this years points a lot more than 2067’s.

 

[atthebeachclub]

Apologies! I’m not phrasing this well.

It is true that you get 4600 points at RIV vs 1800 points at BWV over the lifetime of the contract. But those points are not all equivalent to each other. Thousands of those RIV points aren’t available to you until the 2050s, 2060s etc. They aren’t worth as much. If we just compare the full lifetime allotment of points and equate a point available today to a point available in 2070, we are waving our hands at the whole point of DVC.

For the purposes of this thread (and apologies for moving away from the main question), equating future years points to todays makes 2042 resorts look like awful values and super DOPEY. 4600 vs 1800, right?

I don’t know if OP should buy a 2042 resort but I definitely don’t think it’s a dopey move. It can make sense if you value this years points a lot more than 2067’s.

I did a deep dive into this quite a while back and basically came to the conclusion that resale values for all DVC properties, including the 2042 resorts, are essentially priced correctly at this moment in time. The market is very efficient.

 

[GramMo]

We bought a VB contract direct in 2003. Only visited VB for 2 nights when we first bought, all other trips were on property. It was fine for the first 8-12 years, never had a problem booking BWV or BC 7 months out. It started to become more difficult and we would find ourselves at SSR or OKW (both lovely resorts) but a little too far from the action for our then teen kids. Fast forward to 2018..we bought a BCV direct contract. VBV annual dues were through the roof so we decided to sell it and buy a BWV contract via resale last year. It was a great deal ( didn’t really shop around though) same use year, fully loaded. We can now book either resort at 11 months and it’s exactly the location we want. Did I spend too much on BCV direct? Probably. We were unaware of resale at the time. We still have direct membership benefits. We are now retired and expect that the end of our Disney trips will coincide with the end of the contracts.
We never think of selling them but if we need to rent them for whatever reason they are both very desirable.
So, Nope, not a dope!
I don’t think you’ll regret buying either or both!

 

[Tatebeck]

As time goes on and more newer resorts keep having higher point charts and worse location, more and more people will want to use their points at BW and BC. They are already hard to get at 7 months so owing at one of the locations for the 11 month window just makes sense if you want to stay there regularly between now and 2042. I would bet that securing rentals for these locations that aren't insanely overpriced will keep getting harder and harder as well. Owners of these resorts will be looking to stay at these resorts or rent them for a good profit, not rent their premium location points (that they have less of due to the early 2042 expiration) for the same per point price that other resorts go for.

 

[tommygunn]

so tommygunn, what are you going to do? You are really the only person who can determine if this purchase makes sense for you. DVC is not an investment, its a luxury item. One that has held its value surprisingly well, but still a want, not a need. Edit to add: I don't think there is a wrong answer here. Life is short- do what works for you.

If the right one comes along I think I’ll grab it.

 

[Ruttangel]

Apologies I’m a bit late to this thread
You are not a dope if you pay the right price but as someone who bought 3 2042 contracts and has now sold 2 of them worth adding some background to that

I bought a small point 35pt OKW 2042 a 70pt BWV and a 125pt BCV

Then came the offer of VGF direct last summer and getting 150pt for $160 was a bit irresistible and so BCV had to go. OKW had gone a year earlier as I got worried about future value of that and the dues were going up much faster than other resorts, luckily sold it stripped for $109 which was a win.

So, don’t get 2042

• if you wish you’d held off for a great direct deal
• if you go a quieter time of year and could just waitlist the room
• If you will worry about future value

I’m never selling BWV, love that one for cheap STD rooms near Epcot.
Staying in BWV SS in 2 weeks time for 56pts for 4 nights then over to Poly for 5 and then AKV Club for 7, can’t wait