Should I buy our AP's now (for next year)?

[noname70]

Regarding the price increase, I won't be needing an AP (2 adults 2 kids) until next year since I'm using up some old hoppers. Should I buy our AP's now (and hang on to the voucher) or just wait?

 

[Modog814]

It depends....

1) Do you have the money laying around?
2) What would you do with the money if you didn't buy AP?
3) Would you put it on a CC and carry the balance for a while?

Think of it this way, if the AP price rises lets say 3%, you can think of it as getting an interest rate of 3% on your money.

For example, lets say it would could you $1000 today to buy the AP's, but if you wait til one year from today it would cost you $1030.

Now, if you :

a) put that money into a savings account (or whatever) that nets you 3% interest a year, it doesn't matter what you choose to do because the end result is the same. You can put $1000 into the bank and it will accumulate to $1030 in a year and then buy your tickets or you can buy them now.

b) if you can't get 3% return then you'd be better of buying the tickets now.

c) if you can get greater than 3% (say 12% from paying off some of the balance on a CC) then you're better of waiting to buy the tickets.

Of course a and c only work if you're not going to go into those savings and use that money for something else (or put the balance right back onto your CC by buying something else).


d) if you don't have the cash laying around and plan on putting it on a credit card only do so if 1) you're getting 0% interest or 2) You plan on paying it off immediately (within 2 months)

 

[bradisgoofy]

It depends....

1) Do you have the money laying around?
2) What would you do with the money if you didn't buy AP?
3) Would you put it on a CC and carry the balance for a while?

Think of it this way, if the AP price rises lets say 3%, you can think of it as getting an interest rate of 3% on your money.

For example, lets say it would could you $1000 today to buy the AP's, but if you wait til one year from today it would cost you $1030.

Now, if you :

a) put that money into a savings account (or whatever) that nets you 3% interest a year, it doesn't matter what you choose to do because the end result is the same. You can put $1000 into the bank and it will accumulate to $1030 in a year and then buy your tickets or you can buy them now.

b) if you can't get 3% return then you'd be better of buying the tickets now.

c) if you can get greater than 3% (say 12% from paying off some of the balance on a CC) then you're better of waiting to buy the tickets.

Of course a and c only work if you're not going to go into those savings and use that money for something else (or put the balance right back onto your CC by buying something else).


d) if you don't have the cash laying around and plan on putting it on a credit card only do so if 1) you're getting 0% interest or 2) You plan on paying it off immediately (within 2 months)

Yes, if you know you will use the AP for more then one trip, buy them now. I bought APs for the first time this past April because we will be there in October and again in March '09. For us, it was a great value.

 

[CraftyMouse]

We purchased our APs yesterday but will not use them until Dec. If you have the cash for them now I"d say go for it. If you are going to be putting the purchase on a credit card and not paying it off right away then it won't save you any/much money to buy them now.

 

[Modog814]

Yes, if you know you will use the AP for more then one trip, buy them now. I bought APs for the first time this past April because we will be there in October and again in March '09. For us, it was a great value.

Sorry if that was confusing.

Basically I was saying if prices go up 3% (or whatever) then if you can get a return of greater than 3% then you should not buy now and instead wait.

Example: Lets say you can get 5% over the next year in your bank. Cost of the AP in 1 year goes from 1000 to 1030, while your 1000 in the bank goes to 1050. At the end of the year you can buy your AP AND have $20 leftover. In essence your getting your annual pass for $980 in 1 year.


If you Can't get a return greater than 3% (or whatever tickets go up) then you should buy them now.

Example, say you get 2% in the bank. AP in a year still costs 1030 your money grows to 1020, you'd have to come up with another $10, so essentially you're paying $1010 for the AP's.

I'm not sure why you think how many times you plan on using the pass has an influence on when you should actually buy it.

 

[Hibernians]

Regarding the price increase, I won't be needing an AP (2 adults 2 kids) until next year since I'm using up some old hoppers. Should I buy our AP's now (and hang on to the voucher) or just wait?

So....have you decided to buy now or wait ?

With the economy tanking and the increased cost of jet fuel and gasoline, I'm wondering if Disney will raise prices at all ?

 

[Caskbill]

.... If you are going to be putting the purchase on a credit card and not paying it off right away then it won't save you any/much money to buy them now.

But if they waited until next year and put them on a credit card, and didn't pay it off right away at that time, then the credit card charges would be the same for both cases, so they'd still save the price increase that's coming up soon.

 

[noname70]

I'm going to wait. I wouldn't "finance" the AP's but I decided I should use the hoppers I have now and worry about the next pass I get when the time comes.

 

[SuzanneSLO]

Looking at the DVCMemebr site, it says that the cost of the AP with $100 DVC discount is $369 plus tax and the PAP is $474 plus tax. When you link to the WDW Ticket store, the price shown is $348 and $454. That makes me think that the price increase rumored to go into effect on Sunday will be $21 for the AP and $20 for the PAP. -- Suzanne

 

[CraftyMouse]

But if they waited until next year and put them on a credit card, and didn't pay it off right away at that time, then the credit card charges would be the same for both cases, so they'd still save the price increase that's coming up soon.

Yes. I was just thinking that the poster might pay cash if the purchase didn't occur until a later date. I was just saying that if this was an unanticipated expense that would have to go on a credit card it wouldn't be worth it.