Do you ever think of it this way?

[Dean]

I think if one takes into account either the lost income on investment and/or the interest paid, the dues and the upfront costs, current retail purchases are near or over the $10 per point level many speak of for rentals. Personally, I'd count the principle cost over no more than 20 years, not the entire lenght of the contract. IMO, many try to justify their purchase with the numbers rather than the other way around. I feel that one needs to save at least 20% over projected discount prices to make the purchase reasonable due to the long terms risks that are involved and that's inclusive of dues, interest, lost income on principle and upfront costs. Remember one can always rent and get the same points structure benefits.

 

[TenThousandVolts]

DH and I are considering our DVC purchase- a luxury item, not an investment. This is money we would use for something fun, along the lines of a diamond ring, or jet skis, or a vacation. With this theory there is no opportunity cost associated (since we would have just spent the money- not invested it) and so- it makes the numbers look better.

 

[casper]

Initiat buy in price at SS $15,050 (175 pts at $86.00)

Closing costs: $124.70

2007 annual dues at $4.12: $721.00 and going up most every year at the cost of inflation.

Knowing that I have a great room and a fantastice resort: Priceless
Knowing that I can take my extended family along: Priceless
Knowing that I can bring people whom otherwise can't offord it: Priceless
Knowing that I will be able to reduce my friends rate to stay on site while
giving myself "free" lodging in the process: Priceless.
Knowing I will be at Disney at least one week a year: Priceless
Knowing that I will have memories of special vacations there for the rest
of my life: Priceless

One must be a good steward of their money and plan ahead. But I want my money to live "for" me and not me "for" my money. Spending this much money for DVC is an investment in a great life! How can you put a price tag on that?

 

[Pa@okw95]

I would never look at DVC as a savings over the long run. The reason being you will be going more to WDW than you did before. Second there are always specials for rooms especially during the slow seasons. Don't let any guide tell you will be saving money if you buy into DVC. Remember the cost of rooms is just one element of going to WDW. I have been a member since 95 and it has cost me plenty and I was one of the lucky ones that got my tickets to the parks for free for a few years.

 

[Rpsemont]

I usually do the simple math...
Total $$ of financed purchase price divided by Total points bought (all years)
In my case, it came out just under $2.00 point.
Add in maint fees $4.?? (I can never remember - BWV)
I round off to $7 per point.
Except for during F&W - we usually don't use our DVC points for weekends.
This is because I reason studio points - Magic season 27 times $7 = $189
If I can get a room rate for $50 less than $189 (and we are Ap holders) we stay somewhere else.

As I said, this is the simple. If I tried to factor in inflation or anything else, I'd probably also have to factor in that we now buy Ap's, go three times a year (additional airfare and rental car) and usually still pay for some accomodations. MY DVC is, in reality, costing me alot - but I love it!

After all, I'm sitting at my desk right now wearing my Mickey Santa Hat!
And besides Santa, we've arranged for Mickey to bring everyone presents this year

 

[disneynutz]

Initiat buy in price at SS $15,050 (175 pts at $86.00)

Closing costs: $124.70

2007 annual dues at $4.12: $721.00 and going up most every year at the cost of inflation.

Knowing that I have a great room and a fantastice resort: Priceless
Knowing that I can take my extended family along: Priceless
Knowing that I can bring people whom otherwise can't offord it: Priceless
Knowing that I will be able to reduce my friends rate to stay on site while
giving myself "free" lodging in the process: Priceless.
Knowing I will be at Disney at least one week a year: Priceless
Knowing that I will have memories of special vacations there for the rest
of my life: Priceless

One must be a good steward of their money and plan ahead. But I want my money to live "for" me and not me "for" my money. Spending this much money for DVC is an investment in a great life! How can you put a price tag on that?

I agree that they are great rooms and the resorts are fantastic.
We may be related somewhere down the line.
We are broke and can't afford it.
I will be your friend.
Don't know if we can do a week per year but we can try.
We too want memories of special vacations there for the rest of our life.

When is our next trip... good buddy

 

[DisneyDVCdad]

I was always too lazy to figure out the math on my DVC points. Thanx to all of you for doing it for me! I am now even more sure than ever that DVC was the right way to go for my growing family!

 

[crisi]

You can do a fairly complex ROI calculation where you make assumptions about the time value of money (how much interest that money will earn), break even rate, regular CRO inflation, dues inflation. IMO, in the end, you've made so many assumptions (I'll only earn 10% on my money, there will be 8% room rate inflation, room taxes will never increase, dues will go up an average of 5% a year, I'll never waste points, nor will I ever add on) that the model can slip a lot over 40 years. So I do the "basic" calculation, too -- ((price per point/years on contract) + dues)* points for room night for DVC ROOM TYPE < or > CRO room rate plus tax for ROOM I'D STAY IN ON CASH)- ignoring both interest and the time value of money - then throw all those savings out the window because I'm not staying in a studio any longer, because we treat friends to rooms, because we have changed the cash flow for a vacation and therefore spend more when we are down there (no room bill! Might as well spend that money on Cirque!) - and haven't saved a dime - more of our money goes into the Mouse's pockets with DVC than if we were CRO guests.