Is This A No Brainer?

[Laura24]

Can someone (I know you can) make sense of this. I think I have it figured out.
Seriously.... 2004 pts. for DCL regular season quote from MS:

Behind door number one is-
--Cat. 9- pts. per person....199 x 2 = 398
Behind door number 2--
--Cat. 9- 1 person points...199 and one person cash *1529.00*
and I also got this quote from DCL...
Behind door number three--
Cat. 9-paying cash w/ins. and fees-*1247.77* p/p no transfers included yet.
Doesn't door number 3 hold the better deal? I just can't get over the difference in the cash price when paired up with a points passenger.

 

[Maistre Gracey]

I know some here don't agree, but I value my points at approx $6/pt. If I do the math, this is wahat they actually cost me. That being said, I would not choose #3 (although impossible to say until we know the other fees).

Example: if #3 (after fees) cost two people $2600, then you divide that by 398 points, you can see that you are loosing money. Of course, per point cost varies depending on when you bought, and how you financed.

Good luck.....

 

[Richyams]

With the low occupancy rates at Disney, our points just aint worth that much. The cruise points have gone down in the past and if and when occupancy picks up, they will go down again.

Occupancy at WDW resorts dictates what cruise and other non-DVC jaunts will cost in points.

 

[Doctor P]

If you are indeed able to rent your points, and if you are able to get $10 per point for them, you will have some extra money for the cruise. However, remember that you will need to rent the points, in all likelihood, well after, or at least somewhat after, you have made your cash cruise deposit. I personally chose option one because of the ease of making the reservations and no hassle of renting points (it also spreads the $75 fee over more cruisers).

 

[Johnnie Fedora]

Behind door number four:

Rent out 227 points at $11.00/pt and pay for the cruise with cash.

That will give you a more realistic point price for the cruise.

They're your points and you can use them as you please, but The populatiry of DCL with DVCers has given the impression that DVCer will pay any number of points to cruise.

As long as DVCers are willing to spend 2-3 years of points to cruise, we will never see a better points chart.

Good Luck!

 

[Laura24]

I can thank you and then also say this, the fees are included in the door number 3 scenario. If I value my pts. at say $10 p/pt and figure that on 398pts....$3980 to cruise on pts. (+exchange fee) is way out of the ballpark in comparison to the cash price quoted. Am I missing something in this mathematical equation? I guess I am just in for some education here . I can see the biggest deciding factor is knowing what your pts. are worth and for each of us the variables will be different.
Why is there such a difference in the cash prices quoted- 1529.00 with passenger on points and 1247.77 p/p if paying both passengers cash?
Does DCL really feel they are losing $$ if one passenger is using points and jack up the cash price when combined with points?
I'm sorry if I am beating this horse dead, but the ol' wheels are turnig on this one and until I get a handle on this, it won't go away.

 

[Maistre Gracey]

Originally posted by Laura24
If I value my pts. at say $10 p/pt and figure that on 398pts....$3980 to cruise on pts. (+exchange fee) is way out of the ballpark in comparison to the cash price quoted. Am I missing something in this mathematical equation? I guess I am just in for some education here .

Many folks figure the worth of their points at $10/pt. That is legitimate as long as you will rent your points for the cash, instead of using them for things like weekends, and cruises.

On the other hand, what did the points actually cost you?

Example: You pay $80/pt. You can use that point 39 times, so you can spread the cost over 39 years- 80 divided by 39 = $2.05. We add to that your mtc fee of $4.00/pt. Your points actually cost $6.05/pt.

Of course you would plug in your actual numbers to get your exact cost. You can also adjust for interest if you wish (I do not adjust for interest for various reasons).

This will work when figuring whether to trade DVC points or pay cash for any of the collections. Of course, mtc will increase every year, but so will the prices that you are comparing it to.

Good luck......

 

[BOBinMI]

Laura24,

Where did you find the DCL 2004 reservation point chart? I just checked the DVC web site and couldn't find the 2004 chart. We want to go on another 7 day cruise in 2004.

Thanks
Bob

 

[Laura24]

Originally posted by BOBinMI
Laura24,

Where did you find the DCL 2004 reservation point chart? I just checked the DVC web site and couldn't find the 2004 chart. We want to go on another 7 day cruise in 2004.

Thanks
Bob

Bob,
I had to call for the points. I had called two weeks prior and was told they would have the chart in their hands last Thursday(6th). True to their word they had the charts. Now wouldn't you think they would post it ASAP to save a ton of phone calls from their anxious members.

 

[Laura24]

Originally posted by Maistre Gracey
Many folks figure the worth of their points at $10/pt. That is legitimate as long as you will rent your points for the cash, instead of using them for things like weekends, and cruises.

On the other hand, what did the points actually cost you?

Got cha.....thanks for the help.

 

[westjones]

How do you figure the 'cost of points' based on your purchase price? I bought 150 points at $70 a point. Do you add in the dues? Do you take it out over a certain number of years? Like if you take the $70/point and divide it over 10 years, that is $7 a point (without figuring in cost of dues). Or do you take the $70/point and divide it over 40 years and add in annual dues?

If I do it that way (dividing by 40 years and then adding in cost per point of dues), it would come up to around $6 a point (or a little less). Is that how you did it?
DJ

 

[Maistre Gracey]

Originally posted by westjones
.....Or do you take the $70/point and divide it over 40 years and add in annual dues?

If I do it that way (dividing by 40 years and then adding in cost per point of dues), it would come up to around $6 a point (or a little less). Is that how you did it?
DJ

Yes, that's exactly how you do it.
Now, with that figure we can compare 'apples to apples' when deciding whether to use points, or cash for cruises, or Disney hotels ect...

If one night at The Polynesian will cost 40 pts, then we know the cash equivalent would be $240. If you can't get the room at The Poly for $240 (including tax), than you are better off using points for the room.

Every year the cost of the points will change as dues go up, but that's okay because the cost of what you are comparing it to will increase as well.

Some choose to factor in some interest on the point purchase. I do not figure interest, as I was going to blow the money on a luxury item one way or another! Besides, the way the market has been going, DVC has been one of the best investments around!

 

[Laura24]

OK DJ,
I am shakey when it comes to numbers, but here goes...please correct me if the need be. I worked on this after all the replys I received.
I have two contracts...added up the total out of pocket purchase of the two contracts.
I then took that total and divided it by the # of pts.-then divided that number by 39 yrs. remaining in membership.
This will give you your cost per point. (I pray)
Then take that number and add your maintenance cost per point to it.
Now as for the cruise costs....that final number I multiplied by the total points needed to cruise.
My next question is this- does the $ amount of converting points to $$ include the gov.fee and tax (I am pretty sure it does.) The only other expense would be the 75.00 exchange fee..correct?
So...how'd I do???

 

[Maistre Gracey]

Originally posted by Laura24
...I then took that total and divided it by the # of pts.-then divided that number by 39 yrs. remaining in membership.
This will give you your cost per point. (I pray)
Then take that number and add your maintenance cost per point to it.

Don't necessarily divide by the number of years remaining, divide by the total number of years you will have the points. Those who bought early would divide by 50, as they can spread the cost over 50 years. How long ago did you buy?

Now as for the cruise costs....that final number I multiplied by the total points needed to cruise.

Correct.

My next question is this- does the $ amount of converting points to $$ include the gov.fee and tax (I am pretty sure it does.) The only other expense would be the 75.00 exchange fee..correct?

Yes, I would think it does, but I have yet to cruise so I am not an authority on that. I am sure others here can answer that for you.

So...how'd I do???

GREAT JOB!!!!!!

 

[Laura24]

Originally posted by Maistre Gracey
Don't necessarily divide by the number of years remaining, divide by the total number of years you will have the points. Those who bought early would divide by 50, as they can spread the cost over 50 years. How long ago did you buy?


What a can of worms I opened up..and I should change the title to.."IF I ONLY HAD A BRAIN!!."
With that being said....we purchased in '98.....so that gave me 44 years of magic!!! Back to the drawing board!!!
You guys are the best and I'm sure many of us were in the dark about how to figure this out. Where is that calculator.....

 

[westjones]

I think you did great, in fact this is the first time this whole 'cruise with cash or points' debate has made sense to me. If you look at your 'cost' the cruise isn't so bad. If you think you can rent out points for a profit, then you may do better that way. I have no interest in getting into the 'renting' thing. We only have 150 points and I don't mind borrow points that I might need (if I run out, we will skip a year or pay cash for what we want).

We are cruising on points this year, and I am happy to not have to come up with the money.

NOW, I suppose if you also add in the cost of 'interest' is you take out a mortgage, that could change your final answer. We only financed for 10 months (paid off early), so we didn't pay much in interest. I think you have to consider interest costs in the formula is you are figure the 'cost per point' if you have a mortgage.

But now I think I finally have a better picture of the value of points and using them for the cruise.

Thanks!
DJ

 

[Laura24]

DJ,
You don't know how looooong I've been wanting to ask about this subject, but just kept putting it off. I've cruised twice before on pts. and the $$ didn't seem to matter then, but I just had to get a handle on the point value and what it actually costs to cruise with Disney. The topics that are discussed on this board are so vast and varied that I sometimes turn away and just have to absorb it all to come back to it. This has to be one of the hottest topics....POINTS VS. CASH!!! We all want a good deal, and who doesn't want to spend as little as possible for some enjoyment and entertainment? I do think, however, that DCL is not the best priced cruise line if you compare other cruise lines with the same itineraries, but I for one know that if I were on another ship in port looking over at The Magic.....I'd be in tears and wishing I were there.