newbie question ... cheaper to pay than use points sometimes?

[mikayla73]

I am new to DIS and a new DVC owner I have been reading the boards, and have gotten lots of great info already. So just a quick question here ...

I have read where many people have said it was "cheaper to pay for the room than use points". Sometimes it was even for a DVC resort. How do you know which way is better? Is there a formula?

I hadn't even really thought about it until I read it on here. I thought using points would be a better deal since we have really already paid for them. I know that staying in one of the non DVC hotels, Disney hotel or not, uses more points than staying in a DVC generally speaking of course, but how do you know if it would be "cheaper" to just pay for it out right? I know it is a case by case thing, just trying to understand

 

[Caskbill]

DVC members get a cash discount when they get DVC rooms. (Subject to availability). Sometimes, with the discount, it makes more sense to pay cash than use points. This occurs on weekends, especially during higher seasons when the points can get pretty high.

It all depends on how much value you put on your points. Some only put the cost of the maintenance fees toward the 'value' of the points, while others may include the purchase price pro-rated somehow.

If you consider your points cost you $7 each (maintenance plus purchase), and a 1-B/R for a Friday at BCV during magic season is 60 points, then you would value that at $420. If for some reason you can get the room for cash for less than that, then some will do that instead of using points.

 

[missymouse]

Or for example Hilton Head Island for a Saturday night stay 2-bedroom in Premier season is 99 points. The going rate for the room this year appears to be $420 so if you valued your points at $7 you would be paying significantly more. Others take what they could rent the points for currently approx. $10/pt. so those points could be rented for $990 which would give you 2 nights of accomadations.

 

[mikayla73]

OOO IC - thanks!