Disney Collection on points confussion

[pinnocchiosdad]

I am no newbie, but I feel like Im missing something on this one. I was just looking at the Disney collection point charts for 2014. To stay a week at the Poly in a garden view room during regular season would cost 417 points. Say these points are worth$12 on the rental market, thats $5004 plus the required $95 transaction fee. So to use my DVC points to stay at the Poly would cost me:

$5099


Am I missing something here? What is the rack rate?

 

[Deb & Bill]

I am no newbie, but I feel like Im missing something on this one. I was just looking at the Disney collection point charts for 2014. To stay a week at the Poly in a garden view room during regular season would cost 417 points. Say these points are worth$12 on the rental market, thats $5004 plus the required $95 transaction fee. So to use my DVC points to stay at the Poly would cost me:

$5099


Am I missing something here? What is the rack rate?

So rent out your points if you want to stay at the Polynesian.

But the true value of the points would be your cost plus your dues, not $12.

They don't really want members using points to stay at the Polynesian. DVC has to sell the villa you traded to pay for the stay.

 

[pinnocchiosdad]

But the true value of the points would be your cost plus your dues, not $12.

I disagree. The true value ofanything is what people are willing to pay. I know I can rent for $12 PP. Would you expect to sell an old car for what you paid for it? (I suppose that would exclude a 1965 Mustang)

 

[chalee94]

I am no newbie, but I feel like Im missing something on this one. I was just looking at the Disney collection point charts for 2014. To stay a week at the Poly in a garden view room during regular season would cost 417 points. Say these points are worth$12 on the rental market, thats $5004 plus the required $95 transaction fee. So to use my DVC points to stay at the Poly would cost me:

$5099


Am I missing something here? What is the rack rate?

the best value in using DVC points is at DVC resorts. all the regulars here seem to say that over and over. did you not believe us?

yet some people are willing to pay double the price (plus a 12%-ish financing rate) to have the option to overpay for the type of stay at the poly that you are discussing...go figure...

 

[pinnocchiosdad]

the best value in using DVC points is at DVC resorts. all the regulars here seem to say that over and over. did you not believe us?

yet some people are willing to pay double the price (plus a 12%-ish financing rate) to have the option to overpay for the type of stay at the poly that you are discussing...go figure...

I would never consider using my points for anything besides a DVC resort. I have posted numerous times about not seeing a value on cruising on points. The intent of my post is just to resurface the fact of just how expensive it would be to use your points for anything beside a DVC resort stay. I write in hopes that those considering a purchase who troll these boards for info will realize that in the DVC sales presentation there are many options bought to light on how you can use your points. In reality, and as many have learned the hard way, there really is no way (IMO) to gain a value in point use other than at a DVC resort.

 

[RobDoc]

I disagree. The true value ofanything is what people are willing to pay. I know I can rent for $12 PP. Would you expect to sell an old car for what you paid for it? (I suppose that would exclude a 1965 Mustang)

If you can find anyone willing to pay $5099 for a week at the Poly from you then go for it.

You are correct, the value is what someone is willing to pay, but I seriously doubt you will get any takers for a non-DVC option using points when they can get the same accommodation for less directly thru Disney and have a much more flexible cancellation policy.

There are times when even a stay at a DVC resort can be found for less through Disney directly than at $10 per point from a member - mostly due to the higher point costs on weekends but also due to seasonal variation in point costs at some resorts.

The "cost" to you, as a DVC member, for that Poly reservation is what your dues cost on those 417 points, the $95 fee and the value of the $$ paid for purchasing the DVC contract. Use of the same 417 points in off season at HH (take a look at January) would get a whole different value.

 

[mort1331]

I am no newbie, but I feel like Im missing something on this one. I was just looking at the Disney collection point charts for 2014. To stay a week at the Poly in a garden view room during regular season would cost 417 points. Say these points are worth$12 on the rental market, thats $5004 plus the required $95 transaction fee. So to use my DVC points to stay at the Poly would cost me:

$5099


Am I missing something here? What is the rack rate?

Your actual cost would be 417 x 4.4972 + 95 = 1970.33
now yes you could the rack rate with or without the going discount when you are going and that actual rate will vary.
But if you take your 417 points and even rent those out for $10per then you have $4170, to play with for the rack rate.
You could actually end up ahead with extra cash or getting a better room/view,
but to say that It will cost you 5099 isnt even close.

If as some might add, do a whole formula for your inital buy in then that would get into another discussion

 

[Greysword]

I would never consider using my points for anything besides a DVC resort. <snip> In reality, and as many have learned the hard way, there really is no way (IMO) to gain a value in point use other than at a DVC resort.

I will contradict this point with two words: Disneyland Resort

Using points to stay at the Paradise Pier Hotel or Disneyland Hotel is a decent trade vs room cost (even at discount), especially given the Grand Californian has very few villas and booking for short-planned trips is very difficult at all times of the year. Plus, the $95 fee is not applicable for these trades.

In the end, this post is to caution anyone against using absolutes and platitudes stated on the boards time and again without investigating all options within the collection .

 

[DebbieB]

Polynesian Garden View during regular season is $485 plus tax = $546 per night weekdays, $530 plus tax = $596 weekends. Total 7 nights = $3,922. At $10 per point, pretty close.

 

[Chuck S]

Actually, the 417 points for the Poly would "cost" me what I paid for the initial contract/the number of years on the the contract+annual dues * 417 + $95

So, considering I purchased OKW in 1992, my cost would be $53/49 + $5.34 *417 +$95

or ($1.08 + $5.34)*417 +$95

$6.42*417= 2677.14 + $95 = $2772.14

I just priced a Poly standard view room for mid April Sunday to Saturday, (6 nights) $554.06 per night, $3324.36 plus tax.

 

[bumbershoot]

I am no newbie, but I feel like Im missing something on this one. I was just looking at the Disney collection point charts for 2014. To stay a week at the Poly in a garden view room during regular season would cost 417 points. Say these points are worth$12 on the rental market, thats $5004 plus the required $95 transaction fee. So to use my DVC points to stay at the Poly would cost me:

$5099


Am I missing something here? What is the rack rate?

Well, would it *cost* you that? No. Might you miss out on getting that? Sure, if you were going to rent them out otherwise.

If a person really really really wanted to stay at the Poly, had the points to burn and was going to lose them otherwise, and didn't have whatever ready cash was needed to book through WDW at the Poly, then if it feels like a good use of points TO them, it's a good use of points BY them.

Or maybe they TRIED to rent them out but got no takers. They aren't missing any money, because no one was willing to give them that money. Might as well use the points on the place they want to stay.

 

[Novakm]

New to the board, this is my first post.

I would think a 2br suite at a dvc resort would be better than a studio at Poly, or am I missing something? Never stayed at dvc, but did stay at poly many years ago. It was nice, but I hear the dvc's are nice too.

 

[Dean]

I am no newbie, but I feel like Im missing something on this one. I was just looking at the Disney collection point charts for 2014. To stay a week at the Poly in a garden view room during regular season would cost 417 points. Say these points are worth$12 on the rental market, thats $5004 plus the required $95 transaction fee. So to use my DVC points to stay at the Poly would cost me:

$5099


Am I missing something here? What is the rack rate?

It's the nature of the beast and just one example of many where using DVC points is far more costly than having less points and paying cash for other options. We can argue cost and value. True costs would be yearly fees plus a prorated amount of the purchase price adjust for inflation appropriate for the situation. OTOH, one is giving up real value similar to the situation you'd find when you went to sell a house that had appreciated, you wouldn't just sell it for what you gave if you could get more. The one and only thing that makes DVC different than FF miles and other timeshare who do similar things is simply the liquidity of both the yearly points and the ownership.

The process bleeds out the money. Not all rooms traded for the DC (etc) are sold, many are at a discount and CRO takes apparently 50% of the proceeds up front. That's why you get approx $6 a point credit toward the cash purchase.

 

[Greysword]

New to the board, this is my first post.

I would think a 2br suite at a dvc resort would be better than a studio at Poly, or am I missing something? Never stayed at dvc, but did stay at poly many years ago. It was nice, but I hear the dvc's are nice too.

to the boards!

You are correct that a 2BR is a better room, with more space and amenities. However, location also needs to be considered as well as personal desires. A Poly DVC has been on many member's wish list since I joined the discussion in 2004, and quite a few members stay at the Poly instead of points each year. If the choice is a 2BR at Saratoga Springs Resort or a standard room the Polynesian Resort, some choose the Poly for proximity to MK, the restaurants, and general theme. This is especially applicable for a couple versus a family.

As such, I guess it just depends.

 

[tjkraz]

Am I missing something here? What is the rack rate?

Rack rate during Regular Season at Poly is $485 weekday, $530 weekend.

A week's stay at Rack would be $3485 or $3920 with the 12.5% tax.

$3920 vs. 417 DVC points equates to a value of about $9.40 per point. That's actually one of the more favorable returns I've seen. Usually you get about $7.50 - 8.50 worth of value for points traded out of the DVC resorts.

As for why people do that...the answer is "because they want to." You wouldn't have to look far to find someone who admitted to using points for non-DVC destinations. (Although people don't freely volunteer such information due to threads like this.)

To many owners, the points are long paid for and they have no desire to micromanage use. If they want to stay at the Poly or go on a cruise, they'll do it and offer no apologies.

You're better off trying to explain why people trade their cars in with a dealer instead of selling privately or why folks drop off their old clothes at the Salvation Army instead of holding a yard sale.

The answer is "because that's what *I* want to do."

 

[Sammie]

As TJ said for us it would be for convenience. So much less hassle and worth to use them, than rent them.

Our initial investment in DVC has been paid for so many years, i would not even factor in that cost.

So to me personally the cost would be the points times my dues plus 95 which is less than rack rate.

So would I ever do it, sure.

And yes we are the trade in old cars, and give to Goodwill people. For us at times convenience is worth more than the extra possible money.

 

[Dean]

Rack rate during Regular Season at Poly is $485 weekday, $530 weekend.

A week's stay at Rack would be $3485 or $3920 with the 12.5% tax.

$3920 vs. 417 DVC points equates to a value of about $9.40 per point. That's actually one of the more favorable returns I've seen. Usually you get about $7.50 - 8.50 worth of value for points traded out of the DVC resorts.

As for why people do that...the answer is "because they want to." You wouldn't have to look far to find someone who admitted to using points for non-DVC destinations. (Although people don't freely volunteer such information due to threads like this.)

To many owners, the points are long paid for and they have no desire to micromanage use. If they want to stay at the Poly or go on a cruise, they'll do it and offer no apologies.

You're better off trying to explain why people trade their cars in with a dealer instead of selling privately or why folks drop off their old clothes at the Salvation Army instead of holding a yard sale.

The answer is "because that's what *I* want to do."

Tim, almost everything I've looked at has been between $6-7 a point. This is mostly DCL and some CC options. One would have to account for any likely discounts to compare prices which is a minimum of 10% most of the year but up to 30-40% at times.