Do the points come out to about $10 per point?

[imgoingtodisney]

When using your points do you figure that if a week is 100 points it is actually "costing" $1000 for that week? If a cruise is 340 points it is actually "costing" $3400 for that cruise? How do people figure what they are "spending"? Does it come to about $10 per point?

 

[PamOKW]

$10 per point was the going rate that people used to rent out their points. For some folks, that includes a profit, for others it might not break even. Costs are hard to determine but lots of factors come into play.....How much per point did you pay? Did you finance? At what rate did you finance and for how long? Some people like to figure in the interest they are losing on the money they paid out to DVC. When did you buy....how long will you have use of the points?

Bottom line -- The cost of your points is different for everyone. At the current price it may be close to $10 per point for the owner...I'm not sure.

 

[PKS44]

there is cost and there is value...If you can rent the points at $10 per point then that is their value...the cost is how much you had to pay for the points as PamOKW says, that differs from person to person. It really is only relevant when you might use cash INSTEAD of points and are planning to rent the points or use them later. Example- a night at the Plaza hotel might be 55 points...If you were to pay cash that might be $350. Which is the best use of points? Could you rent the points or use them for something else? How much are the points WORTH to you? What about the hassles of renting? For most people the cost is probably around $5-$8 a point, so 55 points might not be a good deal for a $350 a night hotel...

 

[kem330]

For simplicity's sake, I figure the cost of ownership as follows:
Purchase price: # points x cost per point
Add in cost of dues: points x dues cost/point x # years ownership
Add total finance cost
Divide by number of years of ownership this is your cost/year
Divide by # of points you own , that is your real cost/points at this time.

I figure that inflation of room rates more than covers inflation on dues- Also opportunity costs are ignored- how can you place a value on all those trips to Disney compared to what you might have made investing.

 

[caracarn]

We are just about the buy our first 200 points in DVC at VWL. I spent a while figuring this out. With 200 points and using magical beginnings, you have 40 years of points, or 8000 points over the life of the club. If you figure it as straight purchase (maining no finance) it comes out to $5.51 per point. If you figure in a full 10 year disney finance it is $6.80 per point. If you finance and pay off early, it is somewhere in the middle. Tuck this number away and use it to make your choices. If I was to stay at VWL at a studio and it cost me 14 points a night, that's about $77- $95 per night, depending on which way you pay for teh fun. Compare that to the listed rate of $250 a night for that same room if I paid cash, and I have my decision. The hard part is really the trades, becuase you need to know what it costs to stay there and then how many points you'll use. In the above example fo 55 points for a night at the Plaza that goes for $350, if you can pay cash. Hope this makes sense.

Oh, and realize that on that $250 you are also going to pay another 11% tax and the decision becomes a little more crystal clear.

 

[Candace]

Last week I was talking to my sales person for an add-on, and we were discussing the current cash rental rates for accomodations at the various DVC resorts. She quoted the "per night" price to the general public for different size villas NOT reserved by DVC members. For instance, a Grand Villa goes for 1300 - 1500 per night depending on season, according to her. Points, on the other hand, are worth roughly $5.45 each. That would mean 5 nights in a GV at OKW would "cost" a member $1389.75 for Sun-Thurs in July. Whereas, those non-members paying full price would pay around $6500. I forget how she came up with the $5.45 per point, but I have heard something similar elsewhere on this board, I think. Interesting. I know for sure, I wouldn't have spent those 5 nights last July if I had had to pay $6500 plus tax! Or even without the tax!

 

[Granny]

Originally posted by caracarn
We are just about the buy our first 200 points in DVC at VWL. I spent a while figuring this out. With 200 points and using magical beginnings, you have 40 years of points, or 8000 points over the life of the club. If you figure it as straight purchase (maining no finance) it comes out to $5.51 per point. If you figure in a full 10 year disney finance it is $6.80 per point. If you finance and pay off early, it is somewhere in the middle. Tuck this number away and use it to make your choices.

caracarn....I guess your figures include the annual dues? That adds about $3 - $4 per point to the purchase price per annual point. It's still a good deal, but those dues, they keep on coming!