Help with my math on purchasing DVC?

[djmeen]

Howdy everyone!

The wife are in the final stages of purchasing into SSR from DVC. My question is around promotions.

The option our rep from DVC reviewed with us was the following:
$98 per pt.
$3.83 per pt. maintenance
150 pts. Minimum

Purchase price 200x $98 = $19600
20% Down payment $ 3920
-----------
Incentive 200x$8 =$ 1600

This is then applied completely to the downpayment calculated above leaving our portion of the downpayment at:
$2,320 (this is $3920 minus $1600)
-----------
Financed amount $15680

Additionally we are also going to receive 2005 points that can be banked into next year. We will receive points annually 6/1.

I'll figure value of these points based on current rate of $8/point for a year use based on lowest end of board discussions. So - value of 200 banked points would be 200 x $8 = $1,600. This is "money" we are being given to I'll track it as a deduction in our total cost.

So in this scenario I have our total costs as follows:
$15680 + $2320 - $1600 = $16,400 (adjusted for value of points)


Now the other option is through the referal program (byt the way - the boards have been great for this - THANKS to everyone who offered to help us out here).

In the referral program, here's what I'd think we're looking at:
$83 per pt.
$3.83 per pt. maintenance
150 pts. Minimum

Purchase price 200x $83 = $16600
20% Down payment $ 3320
-----------

-----------
Financed amount $13280

So in this scenario I have our total costs as follows:
$13280 + $3320 = $16,600


So while we end up financing more money - the total value of the DVC offer comes out $200 better than the referral option.

Does this sound right to you guys?

I guess another kicker is the financing option with the discount applied completely to the downpayment which means out out of pocket expenses at startup are about $1,000 smaller.

Please check my math on this if ya'll have a chance.

Given those numbers and the jump start in points, it looks like the DVC deal is better.

Now the real question is whether we can get it all from DVC - the referral rate AND the bonus points. But I don't think that'll be an option.

We talk to our DVC contact tomorrow so I wanted a different set of eyes to check me on this.

Many thanks in advance....

- Chris

 

[bunny]

With the referral price, you will also receive the 2005 points. The referral price is $83.30. Both deals are done with DVC direct, so I believe everything else remains the same. You just get a better price for having a referral. Definitely go with the referral. For a 200 point contract you will save $1,340. It's a no brainer.

 

[pouncingpluto]

Yeah, I think your math is off somewhere... you're not applying the discount the same way... pre-financing... which is how it is applied in both incentives.

There is basically no way that the standard incentive (approx. 8%) will beat the 15%.

 

[bunny]

I just rechecked your math. Either way the initial cost is $19,600. If you are required to put 20% down for financing, that amount is $3,920. With the $8 per point incentive, you will get $1,600 towards your down payment. With the 15% off incentive for a DVC referral, you will get $19,600 x .15 = $2,940. So your down payment will only be $980. All points available and use years remain the same. It is a sale for DVC members to refer friends or purchase add-ons.

 

[disney-super-mom]

I was under the impression that you also received 2005 points using the DVC owner referral incentive.

Maybe I'm wrong about this?

 

[djmeen]

So far so good - I wasn't sure how they would apply the discount for the referral so you are all right - if they apply the discount in whole to the downpayment - then out of pocket is even lower.

Throw in the points and you all are very right - it works out great.

Only question I have is whether or not anyone has done it this way?

I want to know in case DVC says it's either - or for the offers.

Thanks again!

 

[Daddio]

We just purchased 150 at SSR and this is how it worked:

150 x $98.00 = 14,700.00

15% promo as down payment = 2,205.00

Cash paid = 12,495.00

If you finance, they want 10% real money down = 1,470.00

So the total down payment would show as 2,205.00 + 1,470.00 = 3,674.00

Balance to finance would be 14,700.00 - 3674.00 = 11,026.00

 

[cobbler]

I just rechecked your math. Either way the initial cost is $19,600. If you are required to put 20% down for financing, that amount is $3,920. With the $8 per point incentive, you will get $1,600 towards your down payment. With the 15% off incentive for a DVC referral, you will get $19,600 x .15 = $2,940. So your down payment will only be $980. All points available and use years remain the same. It is a sale for DVC members to refer friends or purchase add-ons.

Not exactly. YOu have to have 10% out of pocket so the minimum down payment no matter what he does.

So if you bought at 83.30 a point it breaks down like this:

98/point x 150 = 14700
- 10% of your down payment of 1470
- Disney's down payment 2205
Leaving you to finance 11025
with the 9.75% interest rate over 10 years you will have monthly payments of 144.17/month plus dues.

Dues are about to go up. Figure 4% increase means about 3.98 per point = 597 for the year or 49.75 per month.

 

[pouncingpluto]

I'm pretty sure 2006 dues are 3.98, like cobbler said. My guide said yesterday that he had just gotten the 2006 rates, and that number sounds like the figure he gave me.

 

[disney-super-mom]

If you look at it in simple terms;

Disney's $8.00 off per point will yield a savings of $1600. (for 200 points)

Whereas DVC member referral of 15% off will yield a savings of $2940. (for 200 points)

Always look at the bottom line.

Although, I'm not sure if they would qualify for the member referral discount anymore if they didn't mention it up front to their guide?

 

[pouncingpluto]

We said we didn't know anyone when we went on the tour, but then I heard about the referral discount and remembered that I do actually have a real-life acquaintance who is a DVC member (and has been since 1992!). My guide told me yesterday that it would not be a problem to switch incentives.

 

[djmeen]

Thanks for info. on 10% real money down no matter what. That's not a problem at all.

The only scenario the other offer made more sense was if DVC did not apply discount against downpayment and if there were no points.

No doubt the referral incentive is best case scenario if we can put 10% down and apply 15% discount back against deposit and principle. And if we get the points for 2005 applied as well, there is nothing else for us to work through.

We haven't signed a thing to date with DVC, but we met with our rep when we were in California and we've been talking things through so he's kept our "ticket" open since then.

He's supposed to call us back tomorrow, but I had already updated him via email about a "family friend" actually being a member of DVC and we understood there was a referral discount.

So from what I've gathered so far thanks to all of you:
- 15% off is better than 8% off
- they should also offer us the 2005 points as part of our signing
- we have to pay 10% downpayment "real cash"

Did I mention this board has become a very very serious addiction for me?



Thanks all - ya'll are all friends of the family!