Breaking even thoughts...

[Laurabearz]

This trip I spents a lot of time watching the DVC channel at the villa (anyone else do that? lol) and they were talking about how you could 'break even in 4-5 years' and that got me thinking....

As you know, we own a hefty amount of points, and we plan on using them all until 2042... at some point we will 'break even' and I guess breaking even sooner is better than later..... and the quickest way to get to that golden point is using DVC points for DVC resorts, since trade outs (con collection, Disney collection) are costly.

BUT trade outs, esp thru the concierge collection are not garrenteed for the life of our contracts... it is a perk....

So in my twisted thinking.... since we plan on holding onto our points for the duration, why not blow some on CC and DC and DCL for that matter, as it only pushes back our break even date, but we will still, at some point, break even and towards the end come out ahead... and we may not always be able to book Concierge collection hotels....

Just rambling.... please poke holes in my thinking... so I can get it out of my head!

 

[rocketriter]

The only hole I would poke is that it might not be worth the brainpower to overanalyze the subject of breaking even. By introducing actions that you might not have taken without a DVC contract, you're probably making that impossible to calculate anyway.

DVC is a discretionary purchase that you make in order to bring pleasure to family and friends. Used as it was intended, it even makes some financial sense. Beyond that, I'm not sure how one truly calculates a break even point on pleasure. So enjoy! Use the points however you like as the years go by, based on how much happiness they can bring. A little pleasure is good for you.

 

[spiceycat]

Laura when I joined there was only DVC (OKW) period - nothing else - no wait - there was the RCI (then they change to II) - then they added the WDW resorts, DL resorts - then concerige, then Paris, then the cruises and safaris.

do what you want - they are your points.

the important thing is to have fun!!!

 

[bobbiwoz]

Yes, over on the cruise board there are so many people who preface their sailing on cruise points with "I know it's not the best use of points...but." Perhaps over the years there have been debates and flames thrown. People are getting defensive about spending what's rightfully theirs, or perhaps they're just trying to ward off words of wisdom from people who know best. These points are ours to enjoy, spend them, give them away, but if you hoard them, they disappear, there's a lesson in that, I think.

Bobbi

 

[RobDoc]

I'd also agree that it's easy to overanalyze "breakeven". Just accept it as a given and enjoy the program- however you choose to use your points.

By accepting that there is breakeven point (whether it's financial, emotional ... or both), you can then choose to assign a yearly "value" for your points equal to what was actually paid for the year. That method really simplifies justifying using points for non-DVC options (and really makes the DVC resorts look like a bargain!).

Some will still insist that lost interest, financing costs and other complex economic computations need to be figured in (and those are all honorable pursuits), but by accepting the breakeven, other factors can be set aside (at least temporarily) in order to devote all attention to simply enjoying the program!

Your plan sounds great to me!!

 

[childsplay]

I agree with Doc (at least in the not over analyzing aspect). The "breakeven" can be figured in an almost infinite number of ways depending on the variables you choose to incoroporate into the equation.

For us the "breakeven" came the day I saw our 2 year old daughter (now 6) give Winnie the Pooh the biggest hug you ever saw at the Cyrstal Palace.

 

[DennisP]

When my wife and I joined DVC in '94, the CM told us that ownership in the DVC was purely for enjoyment; not for profit. We have always taken this attitude toward our membership.

But if I had to calculate our break-even point, I would say that it was somewhere in the 4 to 5 year range after we purchased our ownership.

 

[Towncrier]

Back in 1994 and 1995, the break even point was a lot easier to figure out. We got complimentary park passes during our stays. And there was only one DVC resort. I figured that the park passes alone for our ownership from 1995 through 1999 easily paid for the points (although my calculations may have been a bit simple minded). It is so easy to overanalyze this aspect of DVC membership and I gave up trying to figure our a break even point when we bought our resale in late 1999. I have been too busy enjoying our annual trips to WDW.

Good luck with your calculations.

 

[Dean]

Some don't want to think about this issue, they can skip over if they want. If you take the emotional aspects out, I think even the talked about 7 years or so to break even is unrealistic. It really depends on what you compare it to. Compared to off property timeshare, one will never break even. Compared to on property deluxe, maybe 7-10 at the best. Compared to moderates, more in the 12-15 year range assuming one stays mostly in studios.

My assumptions are:

• Buying now not OKW with free passes 10 years ago
• using points only for DVC (not DC, II, CC, DCL)
• not doing long weekends
• figuring lost income on the dollars invested
• looking for discounts and codes
• ignoring food costs
• ignoring the extra costs indirectly associated with so many WDW trips.

If you change he assumptions, the numbers change dramatically. If one exchanges much, they will never break even either. I think he reality is that DVC members will spend far more on vacations over the life of their membership than they ever would have without DVC. But they will have more fun trips and memories.

 

[jaysue]

Dean, very good post especially:

I think he reality is that DVC members will spend far more on vacations over the life of their membership than they ever would have without DVC. But they will have more fun trips and memories.

Laurabearz, I too flip the DVC channel on especially to show DS#1 where we are staying = he thinks that is cool to see where is staying on TV

thanks
jaysue