Cost of Vacation Club vs. renting points?

[mkellym]

How can the purchase price of vacation club be better than renting points? Let me explain. I am a local. (30 miles) We have a big trip in May (8+ nites) and a few throught the year. We buy points for $9-10 for our May trip. This is far less than maintenance fees per year. Then we book mod or better for the other trips. I think we still come out money ahead. I am looking for a reason to buy into the vacation club but just can't figure it. Am I wrong?

 

[Mrs. Snowgod]

Only one thing in your post is actually "wrong":

We buy points for $9-10 for our May trip. This is far less than maintenance fees per year.

Maintenance fees (dues) for DVC points run about an average of $4 per point, depending on the resort.

If you are happy with your vacations, good for you!

 

[Maistre Gracey]

Hi, mkellym.
If you spread the cost of a DVC point over 39 years, it comes to about $2/point. If we add our maintenance fees of roughly $4/point, we can easily see that our points are costing around $6 per point.

Does that help clear it up?

 

[mkellym]

Sorry, I should have clarified. We rent points from Sunday to Friday. last few days are paid by our employer( even if ths stops, but we have a 12 yr contract) and no money up front.

 

[Maistre Gracey]

Originally posted by mkellym
Sorry, I should have clarified. We rent points from Sunday to Friday. last few days are paid by our employer( even if ths stops, but we have a 12 yr contract) and no money up front.

The cost of $6 per point, per year still stands. How you decide to use your points will not change the amount they cost you. A point costs a renter $10, and a member $6.

 

[Dean]

Originally posted by mkellym
How can the purchase price of vacation club be better than renting points? Let me explain. I am a local. (30 miles) We have a big trip in May (8+ nites) and a few throught the year. We buy points for $9-10 for our May trip. This is far less than maintenance fees per year. Then we book mod or better for the other trips. I think we still come out money ahead. I am looking for a reason to buy into the vacation club but just can't figure it. Am I wrong?

If you will go every year, you will be better off buying than renting. If you will just go some years, you may be better off with cash rentals or renting from a DVC member.

Assuming the 5 days S-F in a 2 BR for May, that's currently 135 points at OKW and 170 at many of the resorts. I'll use 150 points for the sake of discussion. Purchase price resale at OKW around say $11,000. Yearly dues around $3.50 at OKW and $4 at others. The $6 pp number is reasonable if you'll go every year, don't finance your purchase and wouldn't invest the money otherwise since you're vacationing anyway. You could also expect the cash and rentals to rise far more than the dues over time.

Bottom line is you're very likely to save money in the scenario I've drawn out. OTOH, if you enjoy the non DVC resorts, won't use 150 points consistenly or have cash flow problems you probably shouldn't purchase.

As a DVC member there are a few perks and discounts not available otherwise including some restsaurant discounts, activity discounts and valey parking.

 

[Cruelladeville]

Once you pay for the rented points, the money is gone, the same way it's gone once you stay at any hotel. When you pay into DVC, the only money that's gone are your dues, your $11,000 investment to buy into DVC can be recouped any time you need it/want it back. This makes DVC very inexpensive. For those members who have owned their points for 6 years or more, the cost of selling our points would be approximately equal to our original investment plus the cost of our dues over the years, meaning that 6 years of vacations cost us nothing. I don't think you can get a better deal than that

 

[koslo]

I came to the same conclusion that I could sell my current points through resale for much more than I paid, recouping much of my maintenance fees

What I am a little concerned about is that since our ownership expires in 2042, this cannot going forever. At somepoint the price will start to go down. Any economists out there care to try to speculate in what year the price will peak?

-Jim

 

[Dean]

The price will peak when DVC stops buying back contracts, plain and simple. The real question is when will they start to go down? My prediction, with about 26-28 years left on the contract.

 

[Claudia Kellenberger]

Now for me, I would much rather rent someone else's points rather than buy into DVC.

My reasoning ? I have no children at all, therefore no grandchildren. ( I am almost 50 ). My Husband is considerably
older than I am, and he truly hates to travel. I have no sisters
at all, and my two brothers would never even think of going to WDW. Most people I know cannot afford WDW at all, so essentially, I have no one to travel with. I myself, cannot afford DVC because I'm still making car payments.

BUT..........I am obsessed with getting to WDW every year, hopefully for the rest of my life !

For me....renting the points for a one-bedroom villa seems like a really perfect solution ! ( and I get that hot tub in my room )