Is using DVC points for non-Disney trips wise?

[Figment*Fan]

DH and I took the DVC tour on our last vacation to WDW, and are really leaning towards DVC.

We are considering a 250 point contract at SSR, because we would ideally like to stay at OKW or SSR in a 2 bedroom. We usually stay at a moderate resort, but would really like the extra space of the 2 br esp as ds gets older (and my mom has noted she wants to come along with us from now on).

A big selling point for DH is that the guide giving us the tour said the points can be used via an exchange worldwide. BUT I thought I read on the Dis boards here that doing so isn't the best use of points.

We have been going to WDW at least once a year, but are also looking to stay elsewhere (Puerto Rico, Hawaii, are two on our list).


Is it wise to use dvc points for things like exchanges or DCL?

 

[mountainjourno]

We bought 300 SSR points with the intention of using them both at Disney and elsewhere. My mother, who lives in Australia, also bought points (160 SSR).

In her case, the points needed to be for both, because she certainly can't go to Disney very often living so far away. But she has already stayed in Vienna and LOVED where she stayed on the points. She is a travel agent and believes the points gave her a much better deal than if she paid cash.

Now - is it the BEST use of points? No - you can definitely get more bang for your buck by staying at Disney all the time. But then - if you work out how much you are paying for the points, divide it by how many years you'll have the points, and then add on the annual maintenance fee per point, you'll get a good idea of actual point cost for each vacation. Multiply that by the number of points you'd need for your chosen vacation by that number, and you'll find out how much it is actually costing you. We do that, and always find it is a good deal.

That said - if you weren't planning on going to Disney at least every other year, you might be better off with a different timeshare/points company. But for us, we know we'll be going every two or three years and love that we can use our points elsewhere.

Good luck whatever you decide!
Cheers
MJ

 

[Marshay]

We just bought but our attitude is that once it's paid, it's paid, so enjoy it however YOU wish to do so! It's not like you are really going to go out and buy another timeshare, are you? If not, then use your points and have a great vacation.

I LOVE, LOVE, LOVE Disney but do not plan to use them every year ... I need variety in other places, too....(sort of a 'absence makes the heart grow fonder thing')

Have fun!

 

[tidefan]

Now - is it the BEST use of points? No - you can definitely get more bang for your buck by staying at Disney all the time. But then - if you work out how much you are paying for the points, divide it by how many years you'll have the points, and then add on the annual maintenance fee per point, you'll get a good idea of actual point cost for each vacation. Multiply that by the number of points you'd need for your chosen vacation by that number, and you'll find out how much it is actually costing you. We do that, and always find it is a good deal.
MJ

I tried out your analysis on our situation.

We are using our 200 SSR first year points (2007) that we are getting this Dec + the 200 UY 2006 points that were given to us when we purchased this April to go on the 7-night Eastern Caribbean cruise next January. Now it is the value season, so it was a total of 327 points (133 for me +133 for DW +61 for DD).

So, using your calculations at $94 per point with 48 years left on contract with 2006 points...

94 x 200 = 18,800

Now, divide that by 48 - 18800/48 = 391.66

Now, divide that by 200 points yearly = 1.958 per point over the years for my initial investment.

Since I am using 327 points, that is 1.958 x 327 = 640.37498

Now, add in the MF that I had to pay for the 127 2007 points (I had no MFs on my 200 2006 points)

4.12 x 127 = 523.24

Total Cost (adding in the $75 Exchange Fee):

640.38 + 523.24 + 75 = $1,238.62

Now, comparing that to current Category 11 cash prices of $999 per adult and $599 per 3rd passenger plus port fees of $152.43 (included in the DVC points exchange) comes to:

999 + 999 + 599 + 152.43 = $2,749.43

So, I figure that I am saving the difference of $1,510.78 by using my DVC points. Now, granted, this would be different if we didn't get the 2006 points MF free, but supposing we had paid those, we still would have been $686 ahead, so I don't really think that IF YOU GO IN THE "VALUE" SEASON, cruising is a bad deal.

 

[mountainjourno]

You got it, tidefan! Enjoy your cruise

(By the way - remember you don't have to use points for everyone in the cabin. We usually use points for the two adults in the cabin, and pay cash for the kids' cruise, preferring to use their points to stay at WDW after the cruise - cheaper to pay cash for them on the cruise, than to pay for the same number of points' worth of accommodation at Disneyworld. )

I hope that made sense...

 

[Dean]

Of course any member can participate in any options they chose to. But is buying in with the idea of using points for non DVC trips a good idea, that's an easy NO. You will come out ahead both financially and hassle wise if you buy less points and look to other options for the non DVC trips. Cash works best for most, a non DVC timeshare works well for many of the options and actually can work better than using DVC for this portion.

As for taking the fees and purchase price and dividing by the years left as the "cost", that is far too simplistic and really short changes the buyer in this decision. One should at least consider any interest paid if financed and the earnings lost on the money if in savings.

 

[mountainjourno]

As for taking the fees and purchase price and dividing by the years left as the "cost", that is far too simplistic and really short changes the buyer in this decision. One should at least consider any interest paid if financed and the earnings lost on the money if in savings.

As I didn't pay any interest, it was not necessary for my calculation and I would expect others with costs involved to include that and any other charges in their overall sums. As for working out money lost on savings, I disagree there because as the years go on, the costs of vacations generally go up, but as you paid for your points this year, and the points generally don't move, the costs stay the same, with the exception of the maintenance fee. I see it as cancelling the other out.

At any rate, this was the maths I used to make my buying decision and so far, we are very happy. Yes, we could have bought another timeshare to do the other vacations, but opted instead to have one rather than two to manage. Further, I doubt we could have afforded two.

 

[tidefan]

Of course any member can participate in any options they chose to. But is buying in with the idea of using points for non DVC trips a good idea, that's an easy NO. You will come out ahead both financially and hassle wise if you buy less points and look to other options for the non DVC trips. Cash works best for most, a non DVC timeshare works well for many of the options and actually can work better than using DVC for this portion.

As for taking the fees and purchase price and dividing by the years left as the "cost", that is far too simplistic and really short changes the buyer in this decision. One should at least consider any interest paid if financed and the earnings lost on the money if in savings.

Dean, I agree with you 100%. We had a unique situation in the availibility of points and the fact that our DD will be starting kindergarden in August '08 sort of moved us to use our points this way right now. Also, with the cruise, I think that the more you move from VALUE to PEAK seasons, the less of a deal it becomes. Of course this is true for DVC properties as well. Anyway, we plan to mostly be on WDW properties (maybe HHI or VB sometime as well).

Also, we wanted to try the Disney cruise once while our daughter was young. However, similar to your argument about Timeshares, I would add that cruising is probably similar. If you just want to cruise and didn't care about the Disney Experience then Princess, Carnival, RCI, etc. would give you much more bang for your buck...

 

[Dean]

Dean, I agree with you 100%. We had a unique situation in the availibility of points and the fact that our DD will be starting kindergarden in August '08 sort of moved us to use our points this way right now. Also, with the cruise, I think that the more you move from VALUE to PEAK seasons, the less of a deal it becomes. Of course this is true for DVC properties as well. Anyway, we plan to mostly be on WDW properties (maybe HHI or VB sometime as well).

Also, we wanted to try the Disney cruise once while our daughter was young. However, similar to your argument about Timeshares, I would add that cruising is probably similar. If you just want to cruise and didn't care about the Disney Experience then Princess, Carnival, RCI, etc. would give you much more bang for your buck...

It's nice to have options just in case if you are a member. And you may find that right situation that is actually better on points than cash at times. But they are few and far between. Use or lose points are a good situation to look at for these non DVC options. Another is if you aim high with II.

 

[4DisneyGolfnuts]

I crunched numbers for months before I purchased and actually starting looking at DVC years ago. I came to $864 dollars for 150 points resale. This of course includes dues and contract with no interest, but I did lose a little interest by paying cash. That said it was a good deal from my perspective. I decided to buy a small contract and see how it worked for me and my family.

The bottom line for me was paying cash for the points, planning on vacationing at Disney every few years or until my kids are grown, and then if I decide to use it at different places, I doubt I will be worrying about a few dollars.

I look at DVC as a pre-paid vacation plan and if you do that it always makes sense.

I have also read where people encourage you to transfer or rent points to pay for vacations outside of DVC. By doing this, everyone wins. The renter gets a great deal at Disney and you pay cash for your other vacation.

I think it is just easier to buy it and forget it. Life is too short to worry about a few dollars here and there and I am not a person who says that about too many things.

I just got my member number yesterday and can't wait to get going.

 

[WolfpackFan]

The way I look at our DVC membership is that it is basically prepaying for future vacations. I know that now we are retired if I had to pay out of my pocket for all our future vacations (whether at a DVC resort or some type of exchange), we would never be able to afford to take the trips. At least now we know we can take 3-4 good vacations every year and not worry about where the money is coming from. Now whether or not we would have done better by not joining DVC and saving the money and then used that money to pay for future trips I don't know. I just like the peace of mind knowing we don't have to come up with gobs of money to travel now.

As far as whether doing an II exchange is a good use of points, I don't really care. To me using 160 points to stay in a nice 1 BR exchange unit is a good trade. I would never rent points, I just don't like the entire concept. We plan on using our points mostly to stay at DVC units, but we also plan to do the occasional exchange.

 

[hellerjw]

We recently bought into DVC with the expectation that we will use our points each year or every other year for a weekend exchange somewhere. We live within a few hours of several nice hotels (Grove Park Inn, Charleston Place, etc) and plan on doing some quick jaunts to those for special occassions.

We still plan on going to WDW or HH at least once a year, but it is this flexibility that made DVC the mose appealing to us. Even if it might not be the best use of points we felt that by paying into DVC we were taking care of all our vacation and weekend trip needs for the next 50 years.

 

[bwvBound]

It's not like you are really going to go out and buy another timeshare, are you?

Why not? We own 5 and love each one!

 

[Snookies]

It's nice to have options just in case if you are a member. And you may find that right situation that is actually better on points than cash at times. But they are few and far between. Use or lose points are a good situation to look at for these non DVC options. Another is if you aim high with II.

Consistent with the last sentence in this quote, I have regularly followed advice Dean posted a long time ago about always having at least one ongoing DVC search with II for high value trades (Marriott and Westin in Hawaii for example; Marriotts in Vail for another). This strategy has worked well for us. Having said that, however, we did not buy DVC to trade and regard exchanges that have worked out (about once every three years or so) as gravy in that we use them to extend trips to other locations by a week, paying cash for other nights.

 

[Marshay]

Consistent with the last sentence in this quote, I have regularly followed advice Dean posted a long time ago about always having at least one ongoing DVC search with II for high value trades (Marriott and Westin in Hawaii for example; Marriotts in Vail for another).

OK, either snookies or dean - -can you expound on this further? Particularly if you already have points for an upcoming Disney stay, what happens when II says you can go to Westin Hawaii in January and you don't plan to do BOTH Disney and Hawaii in the same use year?

Pls also remind me, if you decline an offered trade, you are out $75??

 

[Dean]

OK, either snookies or dean - -can you expound on this further? Particularly if you already have points for an upcoming Disney stay, what happens when II says you can go to Westin Hawaii in January and you don't plan to do BOTH Disney and Hawaii in the same use year?

Pls also remind me, if you decline an offered trade, you are out $75??

If they offer you an exact match and you decline, you are supposed to forfeit the $75 exchange fee. If they offer you something that's similar but not an exact match, you do not forfeit your fee. As for comflicting reservations, that is a risk. But you can manage it if you pay attention. Say you wanted to go to HI next June and put in a request now. Then when 11 months comes, you schedule a DVC week for the exact time you want to travel. If you let both sit there you do have some risk. But you can cancel or alter your II reservation later if you want and the fee is still refundable at that point. I'm not totally sure how DVC does with short terms matches, II cuts off at 38 days and won't match you without your OK. DVC usually follows the II rules unless there is a contractual rule difference as in the lower fee and search first routinely options. IMO, scheduling a specific week with an II search and a DVC back up is a great way to do this. HI is a probem though due to air as is anywhere you want to use FF miles. IF you do match, you can cancel the DVC reservation and use those points in this situation.

 

[Marshay]

Ok, so it sounds like I should be more specific on an II trade and not just say something in the caribbean from Oct - Mar if I am also planning a trip to Disney...that way I can reject it if it doesn't work...or accept and enjoy two vacations (assuming I have enough points).

thanks!

 

[Dean]

Ok, so it sounds like I should be more specific on an II trade and not just say something in the caribbean from Oct - Mar if I am also planning a trip to Disney...that way I can reject it if it doesn't work...or accept and enjoy two vacations (assuming I have enough points).

thanks!

Any trade situation is a balance. I'd actually keep the request as open as possible early on then narrow it down as you get closer and have less personal options. Take HI for example. If one is trying to use FF miles, that may be a much larger issue than the accomodations and therefore locking in the time when the FF miles window opens might be the best choice.

I'd highly discourage the "I'll take anything" request because that's what you'll get. Look at the options and imagine the worst resort and week on your list and that's what you'll get. I'm not just talking Murphy's law but that the lower rated weeks and resorts will be available far more often than the rest. I'd suggest one give them a list of resorts and dates that you will be happy with. For example, if you say anything in the Caribbean Oct to March you'll match somewhere like St. Marteen, Aruba at a lower resorst or Cancun in Oct to mid Dec. Yes Cancun is in II's Caribbean grouping.

 

[eliza61]

DH and I took the DVC tour on our last vacation to WDW, and are really leaning towards DVC.

We are considering a 250 point contract at SSR, because we would ideally like to stay at OKW or SSR in a 2 bedroom. We usually stay at a moderate resort, but would really like the extra space of the 2 br esp as ds gets older (and my mom has noted she wants to come along with us from now on).

A big selling point for DH is that the guide giving us the tour said the points can be used via an exchange worldwide. BUT I thought I read on the Dis boards here that doing so isn't the best use of points.

We have been going to WDW at least once a year, but are also looking to stay elsewhere (Puerto Rico, Hawaii, are two on our list).


Is it wise to use dvc points for things like exchanges or DCL?

Depends on what you deem wise. To get the greatest monetary value for your points it's best to stick with the dvc resorts. My philosophy is that the best use of the points are whatever will give us a great & magical vacation, which is in essence what we brought them for. We have used them all over the place (London, Hawaii, NYC, Washington D.C and were thinking about using them for the new disney expedition) and never, ever once regretted it or felt we did not get the "best" use out of them.