Help---I'm on the fence and need a push

[mjc2003]

I have a contract in hand for 200 BVC points. I'm about to fax it back. I did a cursory run of some numbers. We are basically paying $17k. We stay in a 1 bedroom villa when we go. We figured we will go 8-10 times over the next 15 years, with our 200 points covering the cost. Some of that includes staying for 8-9 days, some of that includes a 2 bedroom villa (sparingly).

After 15 years, I will have paid approx $33-$34,000 including fees. With current rack rates of about $510 a night, 8 trips for 7 nights will cost me $28k. If prices go up a bit that will probably be off-set by discounts, but I'll round it up another $1000.

Where am I saving money? Even if I go 10 times over 15 years, I am barely just breaking even? Is this really for those that are going every year? What am I missing? Should I just say that for those 15 years I'm not saving money, but the 15+ years after I am?

(Disclaimer: I have the contract and cannot envision not sending this in, I'm just making a big decision and double checking my thought process)...

Thanks....!

 

[sleepydog25]

I have a contract in hand for 200 BVC points. I'm about to fax it back. I did a cursory run of some numbers. We are basically paying $17k. We stay in a 1 bedroom villa when we go. We figured we will go 8-10 times over the next 15 years, with our 200 points covering the cost. Some of that includes staying for 8-9 days, some of that includes a 2 bedroom villa (sparingly).

After 15 years, I will have paid approx $33-$34,000 including fees. With current rack rates of about $510 a night, 8 trips for 7 nights will cost me $28k. If prices go up a bit that will probably be off-set by discounts, but I'll round it up another $1000.

Where am I saving money? Even if I go 10 times over 15 years, I am barely just breaking even? Is this really for those that are going every year? What am I missing? Should I just say that for those 15 years I'm not saving money, but the 15+ years after I am?

(Disclaimer: I have the contract and cannot envision not sending this in, I'm just making a big decision and double checking my thought process)...

Thanks....!

If you only plan to use DVC for the next 10 years, and then only going on average about once every two years, then, no, it makes little financial sense to purchase. I've taken two trips the past several months and have another planned for late fall (with a one-day stay over in late summer), and for the foreseeable future, will continue to visit the World for a variety of reasons. At this pace, my contract will be "paid" within a few years, so it actually works for me.

 

[searlproudbottom]

This is one my rules of life. I am sure it won’t work for everyone but it works for me.

You can justify anything.

What I mean by that is if you sit down with pen and paper you can give yourself 25 reasons why you shouldn’t buy into DVC. On the next page you can write down 25 reasons why you should buy in to DVC.

At the end of the day if you want it bad enough and can afford it, Do it!

Remenber you only live once.
You Can't Take with you.
I could go on but that's your job (-;
Good Luck to you
Searl

 

[Cee]

A little buyer's remorse is normal for any major purchase. Just trust yourself. You'll do the right thing. If it doesn't work out for you, there's always resale.

Is a "Welcome Home!" premature?

 

[mjc2003]

thank you all. "Welcome Home".....not yet (but inevitable!). I have the contract, I signed it, my wife is in NYC so I am awaiting her return. She'll laugh at me and say, "Stop over-thinking, fax it back"...!

I think part of my hesitation is that I really wanted to stay at BCV this Nov 5th week. We have several family members who will be there. I already have a 2 bedroom reserved which I would cancel if we joined. We are also paying for a family member to go. There will be over 25 members of my family, we REALLY want to be there at Beach Club. However, once this goes through and is settled, I fear we won't find a room with points. I'm NOT staying elsewhere, just this once. However, if I'm to keep my room and pay out of pocket, its going to cost me a lot.

I know one cannot make a decision on a 30+ year investment based on an isolated situation, but it's having an affect on my thought process, and it is a $4-$5000 swing. If I knew I'd get a 1 or 2 bedroom that week, I'd join right now. But we'll be inside 7 months, and with W&F I imagine all those rooms will be gone.

I think I know the answer to this, but if I already have a room on hold to pay cash can I switch to use points once the deal is closed? I'd imagine not, otherwise this loophole would be exploited regularly.

 

[KAT4DISNEY]

I think I know the answer to this, but if I already have a room on hold to pay cash can I switch to use points once the deal is closed? I'd imagine not, otherwise this loophole would be exploited regularly.

As you said - you already know the answer to this. Cash and point inventory are separate and you cannot switch from one to the other. It's also so hard to say if there would be inventory for you or not but I also would have a hard time justifying the purchase now only to spend cash for a reservation. I'm not certain why you are unwilling to try a different resort if there isn't BCV inventory but since you seem set on that it does add another difficult layer to your purchase. If I were buying in this scenario I'd be willing to stay somewhere else this year or I probably wouldn't buy at this particular time.

 

[tjkraz]

The easy answer to your question is that the BCV contract is good for 31 years, not 15 years.

Most numbers I have looked at tend to show a break-even closer to 10 years rather than 15 but ultimately the numbers vary depending upon resort, season and usage patterns.

If you only think you will be going to the Disney parks for another 15 years, then you have a tough decision to make. The BCV contract will retain SOME value so you should be able to sell it for a return in 15 years. But since there will only be 16 years of use remaining when you sell, that value certainly remains to be seen.

If you actually plan on using the points for all 31 years then you should expand your analysis rather than simply focusing on the first 15 years.

Don't forget to include annual rack increases of 3-5% and the 12.5% resort tax that Disney charges on all cash reservations. DVC owners are charged a property tax, which is included in our dues assessment, but there is no added resort tax for most locations (Aulani is the exception.)

 

[gretchen265]

Maybe you could keep your current reservation, and rent/transfer your points for this year to cover/help with the current cost of your reservation?

Or if no rooms are available with points, (and maybe a veteran can answer this better), don't we get a 25% discount off of cash rate if you need to go that route?

Good luck!! You'll make the right decision either way! (but I do REALLY love my DVC!!!)

 

[Kerchak]

We just purchased an OKW DVC of 210 points for £8k including 2011 dues. This included 56 points banked from 2009, 210 from 2010 and 210 from 2011. In May11 we have booked in at AKV Kidani Savannah View for 6 days, BWV Boardwalk View for 3 days and SSR for 5 days. In Sept11 we return for another 14 days staying at BWV Boardwalk View for 5 days, SSR for 4 days, AK Jambo Sav View for 3 days and BLT MK View for 2 days.

The rack rate for the 28 days would have been approximate £7k.

We will also buy an annual pass, which is good for both trips saving us c.£500 compared to the cost of buying 14 day Ultimate passes for each trip.

Therefore, the DVC will nearly (£500 difference) pay for itself in year 1. Then we get to enjoy luxury accommodation for the next 30 years for the cost of the annual dues (c.£650) - a bargain if you ask me.

"Your here for a good time not for a long time, so live every day"

 

[mjc2003]

I'm not certain why you are unwilling to try a different resort if there isn't BCV inventory but since you seem set on that it does add another difficult layer to your purchase.

Reason being, we have about 25 family members staying at the Beach Club on our recommendation and our urging. It would be a bit strange if we were elsewhere.

Thank you all for the response. We sent back the contract, so we are in...for better or worse! I appreciate the analysis over 31 years, and no, we don't think we're going to stop going. I also know I can sell points, etc...Just going through some last minute buyers angst, no big deal. We have the cash, we want to do this....it's done. Now we will make the most of it.

I just hope through some minor miracle that there is availability at BCV in Nov when our contract is signed.

One more question to all, is it worth looking into trading points now for that week since it's still outside 7 months with another BCV member? Not to get ahead of myself, we're just going into ROFR tomorrow....

 

[Sandisw]

Reason being, we have about 25 family members staying at the Beach Club on our recommendation and our urging. It would be a bit strange if we were elsewhere.

Thank you all for the response. We sent back the contract, so we are in...for better or worse! I appreciate the analysis over 31 years, and no, we don't think we're going to stop going. I also know I can sell points, etc...Just going through some last minute buyers angst, no big deal. We have the cash, we want to do this....it's done. Now we will make the most of it.

I just hope through some minor miracle that there is availability at BCV in Nov when our contract is signed.

One more question to all, is it worth looking into trading points now for that week since it's still outside 7 months with another BCV member? Not to get ahead of myself, we're just going into ROFR tomorrow....

One thing you could do is see about renting a DVC reservation now and then when you are a member, trying to rent your own points or do a transfer to recoup the cost of the rental.

 

[LawChic]

I have run the DVC numbers yearly for the last 10 years. It never made sense financially. We just bought a small resale contract. It was a purchase I made with my heart and not my brain. I hope to enjoy it with my family for many years. I figure worst case scenario, it will become my go to gift for weddings and graduation!! I say, if you have the cash, join and enjoy!

 

[mjc2003]

I have run the DVC numbers yearly for the last 10 years. It never made sense financially. We just bought a small resale contract. It was a purchase I made with my heart and not my brain. I hope to enjoy it with my family for many years. I figure worst case scenario, it will become my go to gift for weddings and graduation!! I say, if you have the cash, join and enjoy!

LawChic, we made the plunge. I scrapped the fiscal analysis, and did it for a myriad of reasons.

1) We won't necessarily go every year, but when we do go we'll have enough points for a 2 bedroom or grand villa, so we can take parents/family, etc...

2) We have spent a lot of money at the Beach Club over the last few years renting villa's, and don't want to stop going.

3) We have the cash, we wouldn't do it if we had to borrow the money.

4) We are moving next year into a bigger house, and with this comes all the additional expenses. We figure by doing this now, we are pre-paying for vacations that we might not otherwise take in the near future. In other words, we probably wouldn't be as comfortable paying $5000 for a 2 bedroom villa in 2013 when we're a year into our new house and need new furniture. But, with out points we'll be able to do it.

5) We have two small girls, age 5 and 2.5. We want to have at least 1 more, so we are just beginning our years of Disney travel. The kids love it. They have princess suitcases, and about every other day they pack for a made up Disney trip. I grew up going to Disney, until I went off to college, and never let go of the memories. I am forever grateful to my parents for making the sacrifice, every year for 10+ years, and I want my kids to feel the same.

6) When I did my cost analysis, I failed to include the possibility that, in 15-20 years, I could turn around and sell the membership. I won't count on that, especially since at that point BVC memberships will only have 10-15 years left, but even if I recoup 1/3rd of my investment, that'd be cool with me.

 

[tgropp]

I have a contract in hand for 200 BVC points. I'm about to fax it back. I did a cursory run of some numbers. We are basically paying $17k. We stay in a 1 bedroom villa when we go. We figured we will go 8-10 times over the next 15 years, with our 200 points covering the cost. Some of that includes staying for 8-9 days, some of that includes a 2 bedroom villa (sparingly).

After 15 years, I will have paid approx $33-$34,000 including fees. With current rack rates of about $510 a night, 8 trips for 7 nights will cost me $28k. If prices go up a bit that will probably be off-set by discounts, but I'll round it up another $1000.

Where am I saving money? Even if I go 10 times over 15 years, I am barely just breaking even? Is this really for those that are going every year? What am I missing? Should I just say that for those 15 years I'm not saving money, but the 15+ years after I am?

(Disclaimer: I have the contract and cannot envision not sending this in, I'm just making a big decision and double checking my thought process)...

Thanks....!

Maybe I am not figuring this out right and if I am wrong I am sorry. You say that the rack rates are $510.00 a night for a 1BR which after looking up the rack rates at Deb Wills site, means that the choice season is when you are looking at. A seven night stay in a 1BR (Rack Rate $3,570.00 tax included) is 211 points or for a week which your 200 points almost covers. So if you do this 8 times over the next 15 years:

2011= 211 points
2013= 211 points
2015= 211 points
2017= 211 points
2019= 211 points
2021= 211 points
2023= 211 points
2025= 211 points

TOTAL= 1688 points
So 8 trips ( 7 nights at $510.00/night) with no inflation would cost you $28,560.00. You say that you would spend $33-$34,000.00 in the investment and you are wondering where the savings are. If my calculations are right those 8 trips would cost you 1688 in points BUT you get 3000 points over those 15 years so you would have an extra 1322 points to rent or use otherwise. I hope that this is right.

 

[BEASLYBOO]

Good luck with ROFR, the fact that DVC works for me really doesn't help you in the least! My only recomendation is:

Learn how DVC works, learn the banking, borrowing & cancellation rules and plan your vacations as early as you can, it's the only way to truly maximize your timeshare purchase. Resort and accomodation flexibility will also play a big part on how DVC can work for you!

Good Luck in Nov!

 

[mjc2003]

TOTAL= 1688 points
So 8 trips ( 7 nights at $510.00/night) with no inflation would cost you $28,560.00. You say that you would spend $33-$34,000.00 in the investment and you are wondering where the savings are. If my calculations are right those 8 trips would cost you 1688 in points BUT you get 3000 points over those 15 years so you would have an extra 1322 points to rent or use otherwise. I hope that this is right[/B].[/QUOTE]

You are right. I was missing something, namely the extra points. I think in my head I was figuring a 2 bedroom every two years, but used the rack rate for the one bedroom. either way, I re-figured it based on the totality of the points and, at the very least, I will come out a little ahead and my kids will be happy.

 

[mjc2003]

Good luck with ROFR, the fact that DVC works for me really doesn't help you in the least! My only recomendation is:

Learn how DVC works, learn the banking, borrowing & cancellation rules and plan your vacations as early as you can, it's the only way to truly maximize your timeshare purchase. Resort and accomodation flexibility will also play a big part on how DVC can work for you!

Good Luck in Nov!

Thank you. What do you recommend as a good way to learn the banking, borrowing and cancellation rules? I figure banking is pretty straight forward, just bank points you won't be using that year; borrowing seems a bit trickier....and I hope we never have to cancel! Any resources you would recommend are appreciated.

Thanks about Nov--I figure my only shot is an outside one--I need to close before 4/5, b/c that's the 7 months window. I think I will close near the end of March, but the question is going to be will it hit their system in time? One small consolation is, we were all set to go the week of 11/5-11/12, but some people have offered to switch to the following week, 11/12-11/19, which is a great week b/c it's after "Jersey week" and W&F. We've been there that week the last 2 years and find the weather to be fantastic, and the crowds a non-issue.

 

[BEASLYBOO]

What do you recommend as a good way to learn the banking, borrowing and cancellation rules? I figure banking is pretty straight forward, just bank points you won't be using that year; borrowing seems a bit trickier....and I hope we never have to cancel!

I bought in 2000, a loaded resale but I've been in a constant state of borrowing ever since, I simply refuse to add on. I think my contract will end 2 years after I've run out of points. The one thing that I learned quite a bit after I purchased is that even if you are out of points for the next use year you can still make reservations borrowing as long as the travel is .... Hard to explain. Here's my scenario - UY June - I'm out of points for 2010 (current UY) and out for 2011 but I still made a reservation borrowing from 2012 as long as the travel is after June 30, 2011, I reserved for Aug 2011.

Cancelling is tough because you're pigeon holed into making a reservation no more than 60 days prior to travel if you cancelled less than 30 days! I've only had to cancel once. I hope you enjoy your DVC as much as we've enjoyed ours!