Enthusiastically looking into DVC; how should I prepare?

[_auroraborealis_]

Yeah I can't argue with that. The convenience of it is for sure nice.

It's good to understand that it's a convenience use, not a value use.

And Imma sticking with my statement that the economics of direct points and their use has changed. When a point cost $48 vs. $200, there is clearly a shift, and it doesn't take a lot of fancy-pants math to demonstrate that! (I can do the math, but why bother.)

 

[KAT4DISNEY]

Yeah I can't argue with that. The convenience of it is for sure nice.

Kind of convenient. They don't always have availability. And a few years ago they actually stopped allowing exchanges to DCL for a period of time.

 

[Ben E N]

Some people will make the argument that they are comfortable with not maximizing the value for each use. And that is a legitimate thing.

But absolutely anybody who buys direct right now would be making a very financially foolish decision to use those points for anything but DVC rooms. It is also more comfortable to just throw my money in the garbage than to take it to the bank, but it is not the responsible thing to do.

 

[frabjous]

It's good to understand that it's a convenience use, not a value use.

And Imma sticking with my statement that the economics of direct points and their use has changed. When a point cost $48 vs. $200, there is clearly a shift, and it doesn't take a lot of fancy-pants math to demonstrate that! (I can do the math, but why bother.)

It’s not really that significant of a difference, since the purchase cost covers the length of a 50 year term. So for those numbers it’s $4 a point vs $0.96 a point. That constant 3 dollar difference per point pales in comparison to the 3x multiplier difference per point in value.

If you use the OKW dues (6.7) on 100 points for non DVC you get:
48 strike = $352 value gain (subtracting dues + purchase per year)
200 strike = $48 value gain

With DVC it’s a $2404 gain with a 48 strike and $2100 with a 200 strike

So the significance with strike price was only $304 wheras the DVC factor made a difference of $2052

(EDIT - I meant to note that this is assuming buying in at the start, there is more of a difference if you buy resale late in the term for a significantly larger value. Also to be fair the newer prices should probably use a larger due cost which adds a little bit more, but those seem to vary a lot between resort)

 

[TCRAIG]

I appreciate everyone's feedback!! It has been helpful.

Do other's believe that the primary benefit if DVC are for WDW rooms, and not other things such as DCL or staying elsewhere? Is the 'exchange rate' of DVC essentially a rip off? (That is the only criticism I have heard of DVC, and I have heard it several places)

ABSOLUTELY - DVC is best used for DVC - anything else is not worth the $$...

 

[frabjous]

It is also more comfortable to just throw my money in the garbage than to take it to the bank, but it is not the responsible thing to do.

ROFL. Well isn’t that what buying a timeshare instead of investing those funds all about? (j/k)

 

[Ben E N]

ROFL. Well isn’t that what buying a timeshare instead of investing those funds all about? (j/k)

It would be more like buying candy instead of spending that money on vegetable seeds.

 

[frabjous]

It would be more like buying candy instead of spending that money on vegetable seeds.

I like that analogy. Perhaps they should put a DVC booth in the Main Street Confectionery. You can buy something sweet with something even sweeter (DVC points).