Curious? Do you factor in buy in costs to figure out how much each DVC vacation cost?

[dianeschlicht]

I have no idea how to do a poll. I have wanted to do that before for other questions. I am sure it is relatively easily huh??

yes, pretty easy. When you make a post, it asks you if you want to post a poll. If you click yes, it will go to the poll page, and you just follow the directions there.

 

[Tiger926]

I'm the OP from the other thread - first time back as it was a busy day at school, and I'm off to funeral home tonight, so not much computer time except this minute.

Just as point of clarification - as per my other thread, we factor in our buy-in and add to our dues to come up with our total vacation cost total.

As other point of clarificaition, since someone mentioned that perhaps people who've not paid cash would do this, our contracts have long been paid as well. We paid cash, so no loans over here either.

It's interesting to me to see how people factor in costs - I seriously thought that everyone would count their buy-in. I'm pretty stunned that most people don't count it as accommodations aren't just comprimsed of dues, they are compromised of both buy-in and dues. If you just count dues (which I'm sure Disney will love for all to do!), then you are overinflating your value. Here is our example for 2010:

Buy In $800.00
Dues $1750
17 nights = $150/night

Dues only $1750
17 nights = $103.00/night

Although these 2 figures are much cheaper than rack rates, or even discounted Deluxe/DVC rooms, there is still a difference between both. I'm sure Disney's Marketing Dept would love everyone to use the last figure - LOL!

Very interesting...Tiger

 

[dianeschlicht]

Tiger926, we purchased "prepaid" accommodations. Beyond that, what we are doing is doling out the "time" to make those prepaid accommodations come out to vacations. All the other parts are negotiable and able to be changed and balanced. Does each vacation cost more than our OOP costs each trip? Heck yes, but it's still less in the long run when my accommodations stay the same. The variable part is in the maintenance fees, travel expenses, entertainment expenses and food.

 

[ssawka]

Yes, I did for our first DVC trip, but it is actually a tricky topic because it all depends on if you are going to keep your DVC contract(s) for the full term. If not, then it is hard telling what the resale will be when you go to sell.

 

[edk35]

yes, pretty easy. When you make a post, it asks you if you want to post a poll. If you click yes, it will go to the poll page, and you just follow the directions there.

THANKS I will have to try that.

 

[edk35]

I'm the OP from the other thread - first time back as it was a busy day at school, and I'm off to funeral home tonight, so not much computer time except this minute.

Just as point of clarification - as per my other thread, we factor in our buy-in and add to our dues to come up with our total vacation cost total.

As other point of clarificaition, since someone mentioned that perhaps people who've not paid cash would do this, our contracts have long been paid as well. We paid cash, so no loans over here either.

It's interesting to me to see how people factor in costs - I seriously thought that everyone would count their buy-in. I'm pretty stunned that most people don't count it as accommodations aren't just comprimsed of dues, they are compromised of both buy-in and dues. If you just count dues (which I'm sure Disney will love for all to do!), then you are overinflating your value. Here is our example for 2010:

Buy In $800.00
Dues $1750
17 nights = $150/night

Dues only $1750
17 nights = $103.00/night

Although these 2 figures are much cheaper than rack rates, or even discounted Deluxe/DVC rooms, there is still a difference between both. I'm sure Disney's Marketing Dept would love everyone to use the last figure - LOL!

Very interesting...Tiger

By the way what grade or subject do you teach??

 

[Tiger926]

By the way what grade or subject do you teach??

Special Education English - all grades, Tiger

 

[Sandisw]

We looked at buy in costs when we were deciding to purchase DVC. Now that we bought and that initial amount is paid for, I don't figure it in to my vacation budget.

I do, however, figure in the MF's when I budget for the year. I teach at the college level part time and it is this salary that is used to cover vacations.

So, when I plan, I look at what I have and then subtract MF's, airfare, food, tickets, car rental, and spending money. Prior to DVC, I always put away $5000 - $7000 to cover our vacations for the year. Typically, we go on one vacation, either to WDW or the beach and most years, I spent that much!!!

Now, my yearly costs have gone down because I no longer have to budget for rooms costs. And, we will now vary our trips by a week so we only have to buy AP's every other year.

This year, my costs for our 6 night summer trip will be $680 for MF's, $750 for airfare, $185 for car rental, $290 for DH's ticket (my DD 14 and I have AP's from last year when DH didn't come so we will only get him a MYW pass), $666 for the QSDP/DDP, and $300 for spending money. The total DVC trip will be $2900.

Now, I had $700 in referral credit that I put toward the MF's this year and DH's ticket as well as have $600 in Disney Reward dollars to use so my total OOP costs are estimated to be $1600!!!--feels like SUCH a bargain!!!

 

[mecllap]

I'd say I'm in the Yes column. When I bought I figured how many years it would take me to "amortize" the cost (how many vacations it would take until I'd feel it was financially "worth it") -- and at my age [64 at time of purchase] I wanted to feel that I'd live long enough to make it worthwhile for me, then DD and DGS will just have to deal with the MFs for the rest of the contract as part of their vacay costs.

I just do a rough guesstimate for each vacay tho (including a percentage of the purchase cost and the MFs). But the trips are so much more pleasurable than the old Travelodge/Motel 6 days -- it's hard to compare that.

It does boggle my mind that people don't account for their purchase cost, when they're counting how much they're spending for their trips, tho -- except for those who bought years ago, and have "used up" their initial cost. Not sure how to say that so it makes sense. Some people don't even seem to add in their MFs -- considering that part of their sunk costs.

 

[Anal Annie]

As I posted on the other thread, no, we do not continue to include our initial purchase price in each vacation. When I tally up our trips I include annual maint. fees, airfare, AP's (for the first trip we get them) and misc. expenses (meals, groceries, beer & booze). Our first trip per year always costs more because that's when our AP's start. Then our 2nd & 3rd trips cost significantly less because I've already written off the AP's. I do often consider what the rack rate WOULD'VE BEEN without DVC... I think pre-DVC we'd spend about $4K for a week long vacation. Maybe more. Last year we spent approx. $5K for 14 nights (3 trips). So even figuring in 3 round trip flights we're WAAAY ahead with DVC. That's all I need to know.

 

[Sammie]

Considering that DVC did not give me my points, yes it is most definitely considered as a vacation cost, even if it is paid for.

 

[Tiger926]

Considering that DVC did not give me my points, yes it is most definitely considered as a vacation cost, even if it is paid for.

I showed my hubby this thread, and he said that he hopes their 1st DVC vacations were spectacular as they cost a mint! Like $15,000!

Tiger

 

[marynvince]

If it's just nice to know, it's probably not worth considering. The initial buy in, once paid for is no longer a "cost" per vacation. It doesn't need to be budgeted for and is simply "nice to know".

 

[crisi]

I was thinking about this last night. We don't do the type of "every trip" budgeting that involves knowing what our points cost. We don't really budget our trips - certainly not to the extent in that inspired this post.

Besides, DVC does not SAVE us money, and we acknowledge that. We'd be WAY better offsite financially.

But I do figure buyin costs for the purposes of discussion around here. Our cost of capital when we bought was something around $2.63 (I'd have to look it up or redo the calculation) a point over the years remaining on our contract. Add dues.

 

[edk35]

If it's just nice to know, it's probably not worth considering. The initial buy in, once paid for is no longer a "cost" per vacation. It doesn't need to be budgeted for and is simply "nice to know".

Exactly!!! To me it is like a paid off vehicle. We pay money to keep it running/maintenance. Just like we pay MF for our DVC purchase.

 

[kirstenb1]

Denise, yes----I was thinking of a car too. Once it's paid for, my attention shifts to how much it's costing me in annual maintenance. As long as it's reasonable, I keep it. If it starts getting expensive, or has lost it's "value" for me, it's time to sell it. Which is exactly how I currently assess our DVC value for the family.

 

[PoohNFriends]

We don't really figure trip cost anymore. I have no idea how much meals cost us last time we went, nor am I busy budgeting for this time - we'll just spend it. I don't even know what my dues were this year - I could look it up.

But, I'm an accountant by training. If you are going to figure trip costs "right" you are going to amortize your purchase price over the years of the contract. Otherwise you don't have any idea what the cost of capital is.

But while there is a "right" way to do this if you were figuring ROI out for a company, there is no "right" way to value DVC as an individual. Figure your costs however it makes you comfortable. Unless you enjoy doing TVM calculations, after you bought, its pretty much an intellectual exercise anyway.

I can do math, but not so much when it comes to any sort of accounting or amortization so definitely will have to skip trying to figure out our true vacation costs!
I know we'll break even at some point (assuming we few to none unused points and don't sell it before the break even point), but I guess I personally don't care when or how much we put into it. But, if I did calculate costs I would add in the initial buy in costs. Even though this number is small compared to tickets, transportation, and food it would still add up over many nights of stay.

 

[Goofy DVC]

If you factor in the buy in cost for each vacation, what do you do if you sell the contract, especially at a profit? Do you go back and recaculate the cost of each vacation? MFs are lost but not the value of the contract. Although I don't look at DVC as an investment, it does have some value.

 

[mel&me]

Exactly!!! To me it is like a paid off vehicle. .

That was exactly how I thought about it when I started to read this thread. I've spent more money on just one vehicle then the entire DVC buy in cost and had nothing to show for it in the end. At least I have something to show for it now with DVC membership. One day it will have run out of its usefulness and be gone. Paid it off in less than a year, have not thought about it since.

 

[WDW LifeLong Fan]

Yes, we factored in our initial costs and MF.