New Poly/Aulani Offer Cash Rebate

[ziravan]

Latest Email DVC Member Insider I got today has link to offer:

 

[ziravan]

I'm fairly certain there's a similar offer for new members at about half as much rebate.

They still exclude fixed weeks, who knows why, because nobody wants to buy one but me. So. I won't be buying a matching fixed week to my current one with this offer, either.

I didn't see it posted.

 

[KAT4DISNEY]

Doing cash discounts until Oct but increasing the price June 1st. That's some crazy marketing psychology.

 

[ziravan]

Doing cash discounts until Oct but increasing the price June 1st. That's some crazy marketing psychology.

Well.

Here's some math: 150 points for $168 is $25,200.

$2000 discount brings effective cost per point to $154.67.

IF you buy a June UY, you should have immediate access to 2015 and 2016 points. Rent those out immediately for $15/point equals $4,500 and now total cost is $18,700, or:

$124.67 per point. And. You can borrow against 2017 points for as soon as June for personal use. That means you can use your own Poly points to book Dec before the 7 month window.

That's almost a deal.

 

[KAT4DISNEY]

My puzzle is over offer a discount (implies not happy with sales) then raise the price. I get the psychology of buy in the next 2 months for the best deal but still makes me shake my head.

 

[freediverdude]

Seems like the extra points for free deal was much better. I just added on 50 points though to avoid the price increase. (Although I'll probably end up paying it next year if I buy another 50.)

 

[miTnosnhoJ]

My puzzle is over offer a discount (implies not happy with sales) then raise the price. I get the psychology of buy in the next 2 months for the best deal but still makes me shake my head.

It is the same principle as when grocery stores offer coupons (or double coupons). For people who use coupons, it drives their behavior, but for people like me, who can't be bothered with coupons, I still pay full price. This can be cheaper for the grocery store than lowering prices for everybody (although places like Walmart are competing based on everyday low prices, challenging this model.)

For DVC, current owners who might be persuaded to add on would respond to this offer, while new buyers who are going through the parks and unaware of all the nuances would not be persuaded by a few dollars off. They must be sold on the value, and how it works for them, the magic of great vacations with family, etc. and a price discount is counter to the magic. You don't discount magic!
But for current owners, who already buy in to the magic, and are looking for a bargain, a discount works.

 

[jerseyduke]

Well.

Here's some math: 150 points for $168 is $25,200.

$2000 discount brings effective cost per point to $154.67.

IF you buy a June UY, you should have immediate access to 2015 and 2016 points. Rent those out immediately for $15/point equals $4,500 and now total cost is $18,700, or:

$124.67 per point. And. You can borrow against 2017 points for as soon as June for personal use. That means you can use your own Poly points to book Dec before the 7 month window.

That's almost a deal.

Dont forget to deduct the annual dues of of the point rental profit. 4500 becomes about 2700.

 

[ziravan]

Dont forget to deduct the annual dues of of the point rental profit. 4500 becomes about 2700.

2015 points won't have MFs for the most part. Prob only May.

 

[wdrl]

DVD prorates the maintenance fees when you add on points. The member is only liable for current year MFs beginning with the date of purchase OR the first day of the Use Year, WHICHEVER IS LATER.

If a member adds on 150 PVB points as of April 2, 2016, there are 273 days left in calendar year 2016. The computation is 273 divided by 366, times $6.09, which is the 2016 MF amount for PVB. Therefore, the member would pay a prorated 2016 MF amount of $4.54 per point, or about $681 on a 150-point PVB deed.

It doesn't matter whether the member is adding on points from the June 2015 UY or the April 2016 UY. The MF liability will be exactly the same.

 

[pangyal]

And of course, add the closing costs too!

 

[ziravan]

So, considering about a grand in dues and closing fees, a stripped (rent out 2015 and 2016 points) contract, with a little work, can be had for a bit more than $130/pt.

Not a bad deal for direct points at a monorail resort, relatively speaking.

Looked at another way, $4500 in rental fees would almost cover down payment (2320.00), dues (681.00) and loan (325 x 7 mos = 2375.00) for the rest of the year. Well, within a grand of it.

Since this is an add-on offer, most takers should have some familiarity with renting.

 

[wdrl]

I don't understand why DVD is excluding Guaranteed Week deeds from this promotional offer. Whether a member adds on 168 PVB points for a GW deed for a Week #42 Studio Lake View, or 168 points in a traditional deed, they should both qualify for the $2,000 developer credit. In my mind, points are points.

Maybe there is a rational explanation why Guaranteed Week deeds can't qualify for the developer credits, but it escapes me. Instead, this appears yet another example of where it seems DVD doesn't want anything to do with its own Guaranteed Week product.

 

[BeckyV]

DVD prorates the maintenance fees when you add on points. The member is only liable for current year MFs beginning with the date of purchase OR the first day of the Use Year, WHICHEVER

If a member adds on 150 PVB points as of April 2, 2016, there are 273 days left in calendar year 2016. The computation is 273 divided by 366, times $6.09, which is the 2016 MF amount for PVB. Therefore, the member would pay a prorated 2016 MF amount of $4.54 per point, or about $681 on a 150-point PVB deed.

It doesn't matter whether the member is adding on points from the June 2015 UY or the April 2016 UY. The MF liability will be exactly the same.

DVD prorates the maintenance fees when you add on points. The member is only liable for current year MFs beginning with the date of purchase OR the first day of the Use Year, WHICHEVER IS LATER.

If a member adds on 150 PVB points as of April 2, 2016, there are 273 days left in calendar year 2016. The computation is 273 divided by 366, times $6.09, which is the 2016 MF amount for PVB. Therefore, the member would pay a prorated 2016 MF amount of $4.54 per point, or about $681 on a 150-point PVB deed.

It doesn't matter whether the member is adding on points from the June 2015 UY or the April 2016 UY. The MF liability will be exactly the same.

So just to clarify, signing a contract April 1 but September 2016 Use Year, would fees be prorated from April 1 or September 1?

 

[KAT4DISNEY]

So just to clarify, signing a contract April 1 but September 2016 Use Year, would fees be prorated from April 1 or September 1?

In that case when buying direct from DVC the MF's would be pro-rated from Sept 1, 2016 because that is when you would first receive points. However, DVC isn't currently selling anything that wouldn't come with current points so MF's will be calculated from the date of signing.

 

[BeckyV]

In that case when buying direct from DVC the MF's would be pro-rated from Sept 1, 2016 because that is when you would first receive points. However, DVC isn't currently selling anything that wouldn't come with current points so MF's will be calculated from the date of signing.

Thank you.

 

[CraigInPA]

I laughed when I got the offer. Act now and we'll knock off $2000 on a 150 point purchase that costs $24,750 today. And, by acting now, you'll save $450 because we're planning on raising the price later. That's almost a 10% discount (by their math).

Nice discount, but I can do the math. It's still $151 per point. If you want to interest this tightwad, you'll need to get it down to where it's as cheap as buying BLT resale.

 

[suebeelin]

I agree the direct point prices are too high now....

 

[pangyal]

I wonder if the offer expires October 31st because that's when they're planning to start selling VWL2?

I was tempted by this offer to be completely honest, for 100 points to match what w bought for PVB by resale, using @ziravan's great math of renting out current and next year's points and brining it down to about $130pp...but I think we would rather wait for a promo for the new VWL if we are going to buy anything direct. So far, they haven't given us a compelling reason to do so.