I do not think I understand the program....

[kkaisu]

I have just been reading about this DVC and I do not think I am understand correctly at all?

Using price found for re-sales for OKW
Buy at $80 per point, buy 140 points = $11,200

I stay in a Studioat OKW July 30 thru August 4 = 70 points using points calculator, this equals 70 * 80 = 5,600 for 5 nights.

This comes to 1,000+ a night? I feel I am obviously missing something? Could somone please help me out here. We love Disney, but $1000 a night seems crazy.

 

[bongo59]

you get points every yr...............until 2042 at OKW...........and the point values for all rooms can never change since 1991............no inflation at all.............now crunch your numbers...........

 

[rocketriter]

Your initial investment buys you an automatic refill on that 140 points every year until 2042. During that time, however, you pay membership dues (on top of your initial investment) which are currently about $4 per point but which slowly go up with inflation. That means that your initial investment (paid only once, when you join) plus about $550/year gets you 140 points per year until 2042.

 

[simpilotswife]

When you buy the points you get 140 pts every year. Simplistically what you should be doing is this.....

$80/37 yrs (time remaining on contract) = $2.17 pt price per year

$2.17 (pt price per year) + $4.00 (maint fee per pt) = $6.17 total pt cost per year

70 * $6.17 = $431.90 cost for 5 nights in an OKW studio.

There are other factors to add in such as The actual cost of money (loss because you not investing it, etc) and I approximated the maintenance fees (they are lower than $4 for OKW) but it still shows that DVC is an economical choice for someone who goes frequently and wants to stay in a deluxe hotel.

 

[bongo59]

you were nice to do her math homework.............once they do the math people start think why the heck would not every join..........that is why i want them to do their homework.........LOL............it will make our waits longer at MS..................

 

[kkaisu]

On my way home from work, it dawned on me that the 11,200 is a one time thing. I thought " Boy are they gonna think I am a ditz". DUhhhh! Yes it makes much more sense once you "crunch" your numbers. If you went every year or every other year this could be a great deal.

Thanks eveyone for answering.

 

[Caskbill]

Think of it as it the same way as if you were buying a car. You find a nice car for $15,000. You pay the $15,000 and also have to pay for gasoline, insurance, registration tags, maintenance. You use the car for a year and drove 10,000 miles. If gas, license, insurance and so forth cost you $1400, then your cost the first year is $16,400. Or $1.64/mile. That's kind of what you're thinking when you come up with over $1000/night for DVC.

But the $15,000 is only paid one time, not over again every single year.

So the next year, you don't pay the $15,000 again, you've already done that. You just pay for the taxes, gasoline, insurance, mainatenance, and registration. Say insurance etc.l was $1400 again, and again you went 10,000 miles. This year your costs are 14-cents/mile. Big difference.

Now imagine that car will last for until 2042 or 2054. You never pay the $15,000 again, ever. Only the annual expenses.

Typically dues today are around $4.00/point. The 70 points you mentioned comes to about $280 in dues. That's all you pay the 2nd year, and the 3rd year, and so on. (It will go up slightly due to inflation)

For all the geeks out there, I figured the car gets 30mpg, so 10,000 miles is 333 gallons @ $2.35/gal, equals $783. Insurance is $350/year (hey, it's not a brand new car, and you're a good driver, over 55 years old, and llive in a small town in the midwest so insurance is fairly cheap... ), and approximately $265 for registration and maintenance. Your costs may vary.

Edited to add: kkaisu, looks like you posted your reply directly above the same time I was writing this one. Looks like you figured it out. Don't worry about it, we all go brain-dead once in awhile....

 

[bonnielynn]

I am just curious about what will happen with your points in 2042?

 

[Caskbill]

The program ends on Jan 31, 2042 for all resorts except SSR which is Jan 31, 2054. Nobody knows for sure how DVC is going to treat all the points people will be receiving in their 2041 Use Year. For example someone with a December Use Year gets their points only 2-months before the program ends.

It won't be practical for everybody to 'borrow' all their points ahead of time and use them. That basically would be having everybody try to cram two years worth of points into a single year. There just aren't enough rooms for that.

My guess is even Disney doesn't know for sure how they're going to handle points when the program ends.

Keep in mind that there is no January Use Year, so nobody will ever receive 2042 (or 2054) points. The last year points are actually received are 2041 (or 2053).

 

[OnMedic]

My best guess is that they will be turned into rental units for a few years until owners use up banked points and the like. Then while they are rentals, they will start tearing down and rebuilding one at a time and starting the sales game all over again!

 

[gppnj]

I am just curious about what will happen with your points in 2042?

You know, I was thinking about this the other day. On one hand, it will be sad that my "ownership" has come to an end and that that little piece of Disney no longer belongs to me. On the other hand, I can be grateful that I lived long enough to see my contract expire (assuming I do!), and I can look back on all the memories I had from all the years I had my points.

 

[unixadm]

You know, I was thinking about this the other day. On one hand, it will be sad that my "ownership" has come to an end and that that little piece of Disney no longer belongs to me. On the other hand, I can be grateful that I lived long enough to see my contract expire (assuming I do!), and I can look back on all the memories I had from all the years I had my points.

Yeah...in 2054, I will be 87 years old .....it will be my two son's and if they exist, my grandkid's problem as to what happens in 2054

 

[dianeschlicht]

That's my sentiment too! In 2042, I'll be 95 years old, and I am quite sure I wont be around to care! Heck, my "kids" will be 75 and 69!

 

[1000th happy haunt]

In 2042 I'll be 90, and my husband's two daughters will be 69 and 65. Hopefully someone will be around to use our DVC property until the end.

 

[mydogdrew]

My best guess is that they will be turned into rental units for a few years until owners use up banked points and the like. Then while they are rentals, they will start tearing down and rebuilding one at a time and starting the sales game all over again!

Members will not have a day after 1/31/42 to use their points. We will only be paying dues through 2041 and DVC will not allow us to use points beyond this date.

 

[lovewdwdvc]

Members will not have a day after 1/31/42 to use their points. We will only be paying dues through 2041 and DVC will not allow us to use points beyond this date



looks to me like this is a very good reason to plan double trips to WDW next year and borrow points for the rest of the life of the DVC contract

 

[tjkraz]

Members will not have a day after 1/31/42 to use their points. We will only be paying dues through 2041 and DVC will not allow us to use points beyond this date.

That's my guess as well. According to the POS, ownership reverts back to DVD on 1/31/2042. There's no guarantee that owners will be able to use all of their points. It's been suggested that DVC may have to resort to a lottery system to ration reservations in the waning years. That sounds logical to me.

We may also see banking and borrowing rules change in those latter years.

 

[kmebee]

On my way home from work, it dawned on me that the 11,200 is a one time thing. I thought " Boy are they gonna think I am a ditz". DUhhhh!

Don't feel like a ditz! I was thinking the same thing until I started reading this thread. I couldn't figure out how/why anyone would buy into this. Now it makes much more sense.

 

[rayelias]

Don't worry about it, we all go brain-dead once in awhile....

Considering your profession, it's kind of profitable for you when people go "brain-dead", huh? (Sorry, couldn't resist.)

(I've got a lot of class. Unfortunately, it's low.)