DVC Value in Constant Dollars

[Bellecruiser]

So I took a look at the Sticky thread showing the price history of DVC, and wondered what the prices would be in 2014 dollars. Below is the result of my research. I'm not sure about what I discovered except the "product" has definitely become more expensive, both in a real and relative sense. People who bought in the beginning definitely got better "deals."

I used BLS data to find the current value of what was spent per point over the years.

Year. Original dollars. Resort. Current dollar.
1992. 51 to 56. OKW. 86 to 95.
1993. 57.50. OKW. 94.34.
1995. 62.75. 97.61.
1995-1999 Vero, HHI and BWV opened and price was stable at $62.75.
1999. 65. WLV. 92.50.
2001. 72. 96.38.
2002. 75. BCV. 98.83.
By the end of 2002 BCV was selling for $84/point.
2004-2006. 95-101. SSR. 117.
2008. 112. BLT. 121.
2009. 120. BLT/VGC. 130.
2011. 120-150. BLT. 140-155.

After 2011 we are too close in terms of constant dollars to make a substantial difference.

Hope you find this interesting. Sorry my columns didn't come out. The periods separate each topic of the column. I am sure there are mistakes here...they are all mine.

 

[LisaS]

If you want to post information in table format, here's how I do it. If you use Windows, bring up Notepad and lay out your data using tabs and spaces to separate your columns. If you don't use Windows then find some application on whatever operating system you use that uses a monospace font and preserves whitespace.

To post it here, go to Notepad and select and copy your text. Here on the DIS, paste your text between "CODE" tags (click on the hash tag symbol in the post editor -- it will generate the CODE tags for you.)

Save your original text in a file because if you want to add more data or edit it and repost it, it's easiest to do that back in Notepad where the monospace font will help you align your columns.

Your table will end up looking something like this:

Year  Original dollars  Resort     Current dollars
1992      51 to 56       OKW         86 to 95
1993      57.50          OKW         94.34
1995      62.75                      97.61

1995-1999 Vero, HHI and BWV opened and price was stable at $62.75

1999      65             WLV         92.50
2001      72                         96.38
2002      75             BCV         98.83

By the end of 2002 BCV was selling for $84/point

2004-2006 95-101         SSR         117
2008      112            BLT         121
2009      120            BLT/VGC     130
2011      120-150        BLT         140-155

The text inside the CODE tags can be formatted so once you have the spacing worked out you can add tags to bold and/or underline the column headings:

[B][U]Year[/U]  [U]Original dollars[/U]  [U]Resort[/U]     [U]Current dollars[/U][/B]
1992      51 to 56       OKW         86 to 95
1993      57.50          OKW         94.34
1995      62.75                      97.61

1995-1999 Vero, HHI and BWV opened and price was stable at $62.75

1999      65             WLV         92.50
2001      72                         96.38
2002      75             BCV         98.83

By the end of 2002 BCV was selling for $84/point

2004-2006 95-101         SSR         117
2008      112            BLT         121
2009      120            BLT/VGC     130
2011      120-150        BLT         140-155

 

[Sur]

Sometimes I feel quite stupid.

 

[Bellecruiser]

Thanks LisaS! The way you wrote it is much more readable. I should add in the data for AKL, & BWV.

 

[nalajms]

Sometimes I feel quite stupid.

Same here. I'm not sure I understand the numbers. Take the first line... if what you're saying is OKW sold for $51 in 1992, but that $51 is worth $86 in 2014 dollars, how did they get a good deal? OKW sells in the $60s on the resale market. To me, that means the value of OKW has gone down. Maybe I'm missing something

 

[Minniesgal]

Same here. I'm not sure I understand the numbers. Take the first line... if what you're saying is OKW sold for $51 in 1992, but that $51 is worth $86 in 2014 dollars, how did they get a good deal? OKW sells in the $60s on the resale market. To me, that means the value of OKW has gone down. Maybe I'm missing something

I would have expected the OKW price to have gone down since the points have 22 Years less possible usage now

 

[supersnoop]

It's interesting that the relative price seems to have remained constant until they moved the RTO expiration dates.

 

[MagicJourney]

Interesting topic. Despite the DVC hype these days, data shows timeshare is just like a luxury car. It only make sense when you enjoy the ride, perhaps never be a good investment for most people.

 

[Bellecruiser]

I thought the data was interesting too.

What I saw, even though people who bought OKW paid $86/pt in today's dollars, they were way better off than I am buying VGF at $145/$155 or $165 per point. Even if OKW isn't selling close to what people bought it for in today's dollars (and some of the resorts are), owners have still used their points over the years and benefited from it.

What does it mean? Don't you think it is probably a combination of factors? It could mean they are pitching DVC to a different market. Or it may mean that it costs way more to build the same level of quality into a project than it did when they built OKW. It could mean they are trying to maximize profit for the shareholders. ( I wish I owned Disney stock...)

" Interesting topic. Despite the DVC hype these days, data shows timeshare is just like a luxury car. It only make sense when you enjoy the ride, perhaps never be a good investment for most people."Magic Journey

Well said. I think the data shows it really is a luxury purchase, just more so now than 22 years ago.

 

[Millionaire2K]

I justify the my DVC cost real simple. I don't stress over all the details. I go to Disney all the time. I just look at what I would have paid if I used cash based on my many years of not owning DVC. I don't look at DVC as an investment to make a return. I just look at DVC as a way to get a cheaper/nice Disney trip.

If I sold my contract 20 years from now for $1 I would divide the loss by the years of fun.

So...

$20k buy in (BLT)
$40k HIGH dues estimate for 20 years (2014 dues cost me $900)

Total cost for 20 years of trips = $60k

EVEN if I sold my contract for $1 my yearly cost is $3k.

And seeing that for the 15 years before buying DVC I paid well over 4k a year for an = Disney hotel, I see DVC as a good deal.

I know there are other $ factors such as investments and interest I lost for spending the 20k. However I figure me selling for $1 in 20 years a good way to account for that. I'm sure in 20 years I will be able to sell a BLT 200 points contract for more then $1. Heck there would still be about 25 years left on the contract.