Please help me convince someone to buy DVC

[MaMudduck]

Okay here's the scenario:

I, Wendy...being a confess Disney-Aholic am planning my 8+ trip to WDW this Oct (2005), I have a friend with 1 DS(7) who'll be joining me for 4 days. She wants to stay Poly CL. The price for this without considering my AP discount is $2029.36 (no tixs included), in 2 years, same friend wants to bring other son (who'll be 7 then) for a WDW vacation.

She was thinking each trip she was willing to spend $5,000.....so this got my motor running and brain in overdrive thinking "for 10Grand she could buy a DVC resale points" and it'll paid for itself in a few years....right???

Queue Mission Impossible theme....So my mission to you (should you choose to except it....) help me crunch the numbers to convince her that DVC is possibly the best dollar value for her.
And uncover any blind spots I might not have considered about this.

Thanks!

P.S- if this on the wrong board Mods please feel free to move it.

 

[bongo59]

well for 10K she can even get 150 points...........but she can easily buy a resale for 100-120...........at that price she would have to come up with her own financing but if she decides to go once every two yrs it is a slam dunk............but is she more likel than not going to want to continue going??? If yes buy a resale if not i would tell her to rent points from someone for her next two trips

 

[CarolA]

I see some other issues.
1. She wants to stay at the Poly CL. If that is the only place she wants to stay then DVC may not be good. If she really wants CL then I wouldn't go with DVC.
2. The "ongoing" cost. She may view the $5,000 as it. She is not like you, this is a once per child trip.

 

[DisneySpence]

We are staying at AKL CL next year on points we are doing it after watching a show on the travel channel about the perks from CL at AKL. We want to do trhe sunrise safari so we can get a better look at the animals hopefully.

 

[MaMudduck]

Thanks all....I'll run all your suggestions past her....ei. renting points & ongoing maintenance $.

What may appeal to her is that even if she on went twice, she could always sell it or rent out the points each year.

Financing isn't going to be an issue for her, but wanting the on going expense might be. Thanks again all.

 

[dizplanner]

Also, don't forget her $5000 per trip is her total trip cost. If she buys DVC, she still has the cost of airfare, tickets, food, etc. - say $3000 per trip (going your comment of spending $2000 on lodging). So she spends $10,000-12,000 on DVC and still needs $6,000 for the rest of the expenses. And include maintenance fees of $600 per year, so $1800 for the three years. Thus the total costs are closer to $20,000 or double what she planned. Now, she does own DVC at this point, but it is of value only if she plans to go back every year or two. She could sell at this point and probably get $9,000-$11,000 out of it (price reduced because of commissions, may get more if prices continue to go up).

 

[pumpkinboy]

Well I think it is a great idea. I'll take a 1BR over concierge any day. The best way to introduce it to her might be to stay in a 1BR or a 2BR yourselves and have her and her DS come and have a glass of wine with you there, perhaps on the balcony overlooking the BW...

Then again, maybe she's not suited to DVC after all, but that's her decision to make. I am all for scheming to get her to buy in. My spreadsheet put our breakeven point at about 7 yrs without financing costs (and I take it from you post that she would not have financing costs), taking into account the time value of money. If she gets a smallish contract and onl; goes once every 2-3 yrs she will have broken even around her third trip, so all her lodging would be gravy after that.

Good luck with your scheme.

 

[Happy Birthday Cat]

Well I think it is a great idea.

I do too. A $7,000.00 bill at the Poly about 6 years ago pushed me over the DVC edge and we are very happy that we did it.

HBC

 

[Cruelladeville]

I think it's a good idea, too! If she bought a DVC resale and paid $11,000, and 600 a year in dues, after 3 years she would have paid in $12,800. If she turned around and sold the contract at that time for $12,000 minus the 12% commission, the friend would only have paid about $740 for lodging for each of 3 trips!! Admittedly, she would have to be open to staying at a different resort than Poly, but she's getting a great vacation dirt cheap. And selling a contract is fast and easy.

 

[FLYNZ4]

I think it's a good idea, too! If she bought a DVC resale and paid $11,000, and 600 a year in dues, after 3 years she would have paid in $12,800. If she turned around and sold the contract at that time for $12,000 minus the 12% commission, the friend would only have paid about $740 for lodging for each of 3 trips!! Admittedly, she would have to be open to staying at a different resort than Poly, but she's getting a great vacation dirt cheap. And selling a contract is fast and easy.

The future price of a condo is very speculative... especially since it is a RTU with limited lifespan. At some point... the price has to come down.

/Jim