Thanks and: cash vs.points for weekends?

[JALaP]

First, thanks to all for your patient and so helpful answers to all my questions, as we plod towards our first purchase at BCV (New yorkers, still waiting). Hope you can help with this: As we've been trying to figure out how many points to buy, some people have mentioned using cash instead of higher points for Fri and Sat stays, making points last longer. But I'm confused as to how you calculate how much you can spend on a hotel room, and still have it make sense. I mean, if we switched to a $300 nite room at BCV, instead of using the 22 points....If you've bought the points for say, $70, and the dues are 3.77, is there some rule of thumb to use to decide when cash is better than points? Hope this makes some sense. If not, pls tell and I'll try to rephrase. Judy

 

[Chuck S]

IMO, cash MAY be better than points when you can get the room for less than the equivalent of $10 per point. Before we did our add-ons years ago, we stayed off-site during weekends. It was just too much of a hassle checking in and out (for us - I know some folks LIKE to resort hop). If you can 1) stay in the room you currently have by linking the ressies so you don't have the "moving" hassle and 2) you get a good buy on the room. Otherwise, I'd recommend getting enough points for weekend stays, assuming you'll be vacationing more than "Monday to Thursday" stays.

 

[JeffreyH]

Since you can "rent" your points for $10 each or so, that is probably a good amount to use when deciding cash versus points. Take a one-bedroom at BCV during "Magic Season". It's 30 points on a weeknight, 60 on a weekend. Using your points on a weekend is like using something you could have "rented" for $600. But if you can get the room at Embassay Suites for $200 (including 11% taxes), it might be worth moving.

I've looked at the numbers from 75 different angles. One way I thought about it is that the resale for these is pretty strong...I wouldn't be surprised if you can resell for $70/point in 5-10 years. So lets assume that your points hold their value. What are you out? You have to pay the main. fees (say $4.10 on average over the next 5-10 years) and you either pay interest on the money you borrowed to buy DVC or, if you had the cash available, you've given up earning interest by investing that money somewhere else. The bast rate you can borrow money through Disney is 10.95%, but this is tax-deductible. A little over 7% after-taxes for most DVC buyers I would guess. That's probably a pretty-good after-tax "what I could have earned on my money" amount as well.

So....$70/point * 7% per year = $4.90.

Main. fees of $4.10.

You're at about $9/point average cost to you making all of those assumptions.

So....the one-bedroom during "Magic Season" goes for 60 points on the weekend. Is it worth $540/night to you to stay in the one-bedroom on Friday or Saturday night? Because if you buy 60 extra points to have enough points to cover that room for that night, that's pretty close to what your annual cost of getting that night is worth if those assumptions are correct for you.

If you're borrowing money at 4% after taxes (e.g. 6% home equity loan), then the longer-term cost per point might be more like $7/point ($420/year to buy 60 extra points). But if you're putting it on a charge card and won't pay it off for years, the cost is much higher.

I've also looked at this over the full forty years, and come to a pretty similar conclusion.

Hope this helps!

 

[EROS]

We chose to buy sufficient points to allow a 7day stay once/year. For us, it's just not desirable to be checking in and out during our vacation. Each to his/her own. Clearly one can stay off-site MUCH cheaper on weekends than at DVC. Of course, the same could be said for weekday stays as well.

My point: If one really wants to minimize expenses, then DVC is NOT the answer. Orlando offers a wide range of much, much less expensive accomodations. DVC purchase really is only justified if one feels that staying on-site has some merit. JMHO

 

[Richyams]

We have been members since '92 and I would never dream of switching hotels for the weekend.

You need to look at the cost of your total vacation in points. I have never even asked what the weekend price in cash is.

 

[caverill]

We have been staying on points during the weekends, but in the future we will use the weekends to try other resorts like GF, AKL, Poly, etc.

We really would like to stay at these resorts, since they all offer different experiences, but the cost in points is much to high.

 

[Regina]

Uh-oh, I have to agree with Rich and Eros.

We always stay on points. We look at our membership as a total vacation, one that gives us the time that we need without any cash outlay.

Everyone is different, and the amount of points available to each of us varies. You would be the best one to assess your needs and make the decision that's right for you.

 

[JALaP]

Thanks all for your input. The #'s especially are just what I was looking for and I'd appreciate any other calculations.
Just to clarify, I was only thinking of using cash for weekends at Disney, especially, if possible, at the same property where we'd be using points. Never fear: we are buying DVC because we go to Disney at least 2x a year and ALWAYS stay on property--most always at the Beach Club. I did just think that in trying to figure out how many points to purchase, it would be worthwhile to consider some cash nites to stretch the points. Hope that kind of thinking is consistent with DVC ownership and doesnt exile me off-property! Judy

 

[ncligs]

dvcreg said it best, everybodys situation is different. We always stay on points, don't like the hassle of moving once we are there.
But I can understand why some people do it (weekends-pts).
Thats why DVC is great.........flexabilty.

 

[Terry S]

I think what JALaP is saying is that they would like to stay at the BCV in the same room they were staying on points for cash instead on the weekends.

I am a new DVC member and I know this is possible based on availability but, I am curious as to how far in advance you can book on cash at a DVC resort, who is best to book through, CRO or MS and what kind of price and availability there is?

I purchased 600 points with the intention of using the points for weekend stays because I don't like to pack up and move resorts in the middle of my vacation, but I am already wondering it I have enough points and trying to come up with other scenerios like spending cash at BCV for the weekends or just buying an add-on already.

 

[DebbieB]

Watch for codes and AP rates for those weekend nights. When we stayed at BWV last December, I found out that they had our room on Travelocity for 40% off. It was only about a week before, so it was too late to cancel without a holding account for the Saturday night we were there (41 points, travelocity rate was about $250 with tax). We go Saturday to Friday so that we only have 1 weekend night. Need the Saturday night stay for airfare.

 

[JALaP]

My last post crossed with several others- thanks for the reassurance that different 'strokes' are possible--I know there are a lot of factors in deciding whether to go cash or not- just wanting some help in figuring out the #'s. Thanks again, Judy