Suggestions on how to make an irrational decision less costly?

[grubens]

We just closed on our first DVC purchase (resale) after two unsuccessful attempts and thinking we should buy for the better part of 20 years. Ended up with 400 BCV points and a December Use Year. While our points are not yet loaded, I got access to the DVC site today and see all the Member benefits to which we are not entitled. I absolutely understood this going in to the resale purchase, but now have the irrational desire to be a full "member." I say irrational because we ended up with more points than I think we can use (hopefully we can rent them out) and as I run the numbers I do not think there is a financial case (at least that I can make) to buy 75 BCV points at $225/pt direct (assuming I can even get them) based on the discounts I'll receive. I therefore write to ask if anyone has any suggestion on what is the cheapest way to get there. I would consider buying more than 75 points on the theory of renting them more out like an "investment" if a case can be made for it. Hopefully I'll just get over the desire for the Blue Card and enjoy what we now have, but in case I cannot, please let me know if there is a "best" way to get one.

 

[CraigInPA]

Unfortunately, there is no economic justification for buying an additional 75 points just for the benefits, nor is there an economic justification to purchase extra points just to rent them out. The current economic benefit for direct purchases primarily revolves around being able to buy a Gold annual pass. It only works if you are buying many passes per year over a multi-year time period. In order to make an annual pass work for you, you need to go at least 12 days a year. And, that benefit could disappear tomorrow. The DVC discounts on dining and merchandise often overlap with Annual Pass and Disney Visa discounts. The Moonlight Magic events have to coincide with your scheduled trip, and are often difficult to get in to (because numbers are limited).

So, buy the 75 points to feel good about having a blue card, but don't expect it to "pay for itself".

 

[rg35]

You just spent in the neighborhood of $60,000 on DVC points (assuming you paid ~150/pt) and are looking at $2700 a year in MFs. What are the benefits that you feel you are "missing out on?" that would make you want to throw more money at DVC direct? I guess if you have the cash laying around, no big deal? But I think you need to take a deep breath and think about things rationally.

None of us have time machines, but it seems like the best course of action for you would have just been to buy fewer points direct. You had 20 years to think about it -- I do not think you should be second guessing your choice at this point.

The rental market is currently robust, but that could change at any time (DVC rule changes about points rentals, an economic downturn, etc.), so while you'll probably have no trouble renting your points now, that might not always be the case. You should not buy DVC points as an "investment" -- that is simply not a good idea.

 

[jerseyduke]

For member benefits you could buy 75 points at SSR - it will be the cheapest.

How many in your family? The biggest benefit imo is the discounted APs.
If your family is big enough (and you would be buying APs anyway, that SSR contract can get paid for pretty. Plus if you rent them out....

You currently save about 400$ a piece if a gold pass works for you (and you would have to buy the platinum as non members). that runs up towards 2000 a year for a family of 5.

Figure out your AP savings by being a member and compare it to 75 SSR points and think about it.
Might clear another 400 to 500 renting out your SSR points.

I do not really see any other benefits other than the AP discount that even makes direct a consideration.

 

[Marionnette]

We just closed on our first DVC purchase (resale) after two unsuccessful attempts and thinking we should buy for the better part of 20 years. Ended up with 400 BCV points and a December Use Year. While our points are not yet loaded, I got access to the DVC site today and see all the Member benefits to which we are not entitled. I absolutely understood this going in to the resale purchase, but now have the irrational desire to be a full "member." I say irrational because we ended up with more points than I think we can use (hopefully we can rent them out) and as I run the numbers I do not think there is a financial case (at least that I can make) to buy 75 BCV points at $225/pt direct (assuming I can even get them) based on the discounts I'll receive. I therefore write to ask if anyone has any suggestion on what is the cheapest way to get there. I would consider buying more than 75 points on the theory of renting them more out like an "investment" if a case can be made for it. Hopefully I'll just get over the desire for the Blue Card and enjoy what we now have, but in case I cannot, please let me know if there is a "best" way to get one.

You don’t need all of the points that you already own. Buying 75 direct points (that you don’t need) just to say that you are a full-fledged member doesn’t make good financial sense. There are no guarantees that the rental market will remain strong. There are already grumblings on another message board about the inability to rent out SSR points. If the economy takes a downturn or, God forbid, another 9/11 event occur, even coveted BCV points will be difficult to rent out.

The member benefits can change at any time. Don’t buy points you don’t need just to get a blue card.

 

[jerseyduke]

(SNIP)
In order to make an annual pass work for you, you need to go at least 12 days a year. And, that benefit could disappear tomorrow.
(SNIP)

how did you come up with this 12 day number? a 4 day park hopper costs about 500 from disney. A discounted Gold AP is like 650. To me is was always 2 trips or more a year = AP

 

[Marionnette]

For member benefits you could buy 75 points at SSR - it will be the cheapest

Actually, OKW is cheaper direct at $156/point vs. SSR at $160. And it would have a 2057 expiration date. SSR is 2054.

But that aside, I don’t recommend it for someone who admits to having too many points already.

 

[zavandor]

Is there such a thing like too many points?
Don't worry, you'll find plenty of ways to use them all

 

[grubens]

Is there such a thing like too many points?
Don't worry, you'll find plenty of ways to use them all

That may be. I bought thinking I would need 309 points for a 2 bedroom for Thanksgiving week each year. My two attempts to buy close to that amount were taken by Disney. When this one came along I figured it was not perfect, but that we can either use the extra points or rent them out. Of course, if we end up using them, it makes the AP purchase that much more desirable.

 

[CollinRN]

Congrats on your purchase! It sounds like you only overbought by 91 points at current rates so you can easily use those to add a couple days to your Thanksgiving trip, bank and borrow a bit for an extra week every 3 years, or rent them out while the market is good to help cover some maintenance fees. Don't let fear of missing out on perks cause you to make another huge purchase before you are ready. Go out and enjoy your brand new to you points for a couple of years. Take tours of the other resorts to see what they offer, ride the gondola, maybe use some of your extra points to spend time at the other resorts; and then down the road when you feel like you are not at WDW nearly enough you can decide whether or not it is worth it to you to add direct or resale points.

 

[Deb & Bill]

Is there such a thing like too many points?
Don't worry, you'll find plenty of ways to use them all

Think about that at the end of December when the annual member fees bill come in the mail.

 

[cw62803]

Nothing like going overboard. I also thought I bought way too many DVC points, but I was wrong. Having a large number of points gives us lots of vacation opportunities we never would have considered before. If you can afford the 75 direct points, I suggest taking the additional plunge and buying them. Access to the Gold Annual Pass, Moonlight Magic, etc. is wonderful. Good luck!

 

[Matty B13]

The only benefit that is worth anything really is the access to the Gold AP, and only for large families, 5+ members

 

[CraigInPA]

how did you come up with this 12 day number? a 4 day park hopper costs about 500 from disney. A discounted Gold AP is like 650. To me is was always 2 trips or more a year = AP

You can get to $650 by buying tickets around Thanksgiving and Christmas, and other peak times of the year, with 10-12 day park hopper tickets. During lower priced periods, it would take 14-16 days to get to $650.

 

[jerseyduke]

OK....I am going to get flamed but here goes

You can get to $650 by buying tickets around Thanksgiving and Christmas, and other peak times of the year, with 10-12 day park hopper tickets. During lower priced periods, it would take 14-16 days to get to $650.

Oh, ok, so you were doing it all consecutive days?
Never been for that long in one shot, so I was looking at it in terms of trips per year, and 2 trips of 3 or 4 days is all it takes to get there.
So, one nice long trip, or 2 short ones = AP

 

[CraigInPA]

OK....I am going to get flamed but here goes

Oh, ok, so you were doing it all consecutive days?
Never been for that long in one shot, so I was looking at it in terms of trips per year, and 2 trips of 3 or 4 days is all it takes to get there.
So, one nice long trip, or 2 short ones = AP

Yes, it's the "magic" of Disney's pricing. If you don't buy at least 5-7 days, you're going to pay through the nose on a per-day basis. Several years ago we had a 16 day trip scheduled, and weather wiped out the first 2 days. We got a refund on our length of stay tickets for those 2 lost days. I believe it was something like $15 per day.

 

[chainkid]

I am of the mind that you can never have too many points. Only if you can afford the extra contract and dues without financing or going into debt you can't afford, would I buy direct. The benefits are not all that . I get the gold pass but with a swindling at home family it really wouldn't be a deciding factor unless my family were very large and lived at same address. I do like getting the Tables in Wonderland card for dining out as the dining plan is a lose lose in my experience . The moonlight magic events are very nice but if you travel with a large group like I Do , it becomes impossible to take everyone which can cause hard feelings. If you can easily spare the cash then buy direct but do not feel you are missing out if you don't.

 

[skier_pete]

The "cheapest way" to get there is probably buy 75 points at SSR - lowest price point combined with lowest MF.

The only way that getting the members benefit is "worth it" is if you use it to by APs and you live out of state. The gold AP for DVC members ($699 + tax) versus the Platinum AP for non-members ($1119 + tax) a difference of $420 per pass. If you are buying 4 APs (including kids) you can save $1600 a year. You also get 10% savings on some dining, and 20% on merchandise - but you would have to add up how much that is worth.

 

[kniquy]

cheapest way to get there.

The cheapest resort to buy with a fairly long contract would be OKW - I believe between $155-157pp. Certainly does not make sense to buy BCV at that direct price. So to get the 75 points you are looking at spending around $11,500+ =

I would let your purchase go through and start to use your membership. Hold off on any additional purchases. The perks - at least the ones that provide any savings are the AP, dining and shopping discounts. You can get similar dining and shopping discounts buy having at least one person in your party get an AP. Other than that - the lounges i think TOWL you can still get into and the Epcot lounge is basically a place to get soda for free. The moonlight magic events are far and few and would likely not be worth planning a trip just to go to one. Where your money would be better spent would be to just buy an after hours event -- there would be less people so it would be a more enjoyable event. The moonlight magic events are fairly busy so it isn't just walk on rides.

What perks are you interested in that make you think it is worth to spend and extra $11K+? Now i just bought a poly resale and saved $9000 compared to direct -- there are no benefits that DVC could offer (well maybe free AP) to make me want to hand over more money. That is why they offer the so called perks - to make people feel like they will get so many more perks buying direct. When in reality those perks don't hold much value.

You have to run the numbers and see what makes sense. If you are planning on buying yearly AP for multiple people living in your household then maybe the savings could add up, but you have to figure the numbers to see if it makes sense.

 

[cw62803]

The difference in price between buying direct and resale for me was approximately $60 per point. So buying 75 direct points would cost a buyer an upcharge in the neighborhood of $4500.

Like the OP, I have a large number of points - which allows me to take multiple trips to WDW each year, including summer stays of two to three weeks. The Gold AP saves me hundreds of dollars per person, per year, compared to buying the lowest priced park tickets. (It also provides other perks like free Photopass, free parking at parks, hotel room discounts, meal and merchandise discounts, etc.) For me, those savings are worth the $4500 one-time charge. It took me less than three years to recoup the upcharge I paid for my direct points.

Of course, Disney has the power to take away any perk. If they take away the Gold AP perk, I would consider selling my DVC contracts or giving them to a relative. It's that valuable to me.