To Buy or Not To Buy ... Continues to Be the Question (Need to Convince Husband/Dad)

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~Magical Princess~

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Hi, we've always been firm believers in "renting" points as it seems the most economical way for us to have top notch vacations at way cheaper than they would cost (cash). Not to say we've not been fans of the Value or even Moderate resorts, but after staying in the deluxes, we feel that we'd never pay those kind of prices when you can pay much less and get a "home" to stay in!

All that being said, I know I've seen the posts where they go round and round about if it's a good move to buy into DVC, and obviously 50,000 + people can't be wrong!!! ;)

Here's our situation: We will be able to buy DVC and pay for it in cash - so there's no worrying about interest lost etc., etc., That being said, we'd probably buy around 300 - 330 points (At OKW mind you) - yielding around a little more than $1k in dues each year that will go up.

Your job is to convince me to buy or not to buy.
 
Just think how much money you have spent renting that could have gone towards DVC already.
 
Assuming you love WDW and the accomadations at the home away from home resorts ie:OKW,BWV,VWL and BCV - and assuming you will continue to go on 1 trip/yr and stay in an average points time of year- say DREAM SEASON - and stay in a 1bdrm you would need an average of 252pts at an average of $9.00/pt (remeber the price to rent points will always go up and the amt of pts to stay in a certain size accomadation does not) so $9.00x252=$2268.00 x10yrs=$22680.00 the cost of 330pts resale (base price) is an average $21450.00 which would leave you ahead plus you would still have 78pts left per year to maybe get a studio for a sun-thurs in Sept. So the amount of vacations you take will increase, it cost less, and its good until 2042 so BUY!:smooth:
 
Thr math is simple

$22,000 up front divided by 40 years is $550 divided by 330 points is way under $2 per point added to mantainence fees is going to be less than $5.50 per point....are you renting them for cheaper than that? Can you be sure that you will be able to rent them for less than that for the foreseeable future?

If you can be sure of renting for less than $5.50 a point for the next forty years, don't buy.

If you like the flexibility of having your own points and saving money doesn't bother you too much, buy.

Let me congratulate you on your obvious wisdom in deciding on OKW. Many consider it to be the only 'true' DVC resort.
 

We (Ok, honestly, it was just me), crunched numbers and played with spreadsheets and did other obsessive exercises to find out if we were getting a worthwhile bang for our buck.

Ultimately ...

It just came down to following my heart. And while I'm not advocating being fiscally moronic, we collectively decided that our first trip home (to OKW) was something we couldn't put a dollar value on.

Joining the DVC ultimately came down to an emotional decision for us. I'm persuaded grinches, grouches, and other malcontents who can't experience wonder need not apply.

P.S. - for us, it is a good financial move. That's just the icing on the cake!
 
If that's not a big hint, I don't know what is!! Go for it - just knowing you've got the points makes you SO happy!!!

Becky
 
That's exactly the one I'm looking at, however, I can't read it and see what's banked or not. I'll try calling them and see if possible to get an offer in at $58 per point and see what happens. I'm still having a hard time convincing my dad though, but we'll see after he sees OKW for the first time in September.

As far as renting, we've been lucky enough to rent for $7 per points and that's a pretty fair price. Most people want to hold out for $9 or $10 but I've been lucky so far all the while hanging onto that steep purchase price.

I really want to join though, and we are in the position like I said to put out the amount (my father that is) in full, and my hubby and I will split the cost and probably cover the dues, but not sure of all the specifics yet. I wish I could make them see things from alll of YOUR standpoint!! ;)
 
Just spoke with the Timeshare store and apparently that 330 contract is a mistake and it's not deletable from their website :(. However they said they'll keep me on their call list in case a contract of that size comes along! YA! :)
 
I feel your pain! I never thought my husband would go for the DVC, but once we hit OKW on rented points, HE was the one who wanted to go to the meeting!
For us, it was also a mental health decision, as well as a way to give a great gift to family members. We have a very big, very generous family, and it's going to be nice to take them all on a trip to WDW in Feb. (and we only have 150 points!) Of course, I'm already thinking that it won't be enough...
Anyway, good luck with your decision-- keep us posted!
 
Originally posted by Richyams
Thr math is simple

$22,000 up front divided by 40 years is $550 divided by 330 points is way under $2 per point added to mantainence fees is going to be less than $5.50 per point....are you renting them for cheaper than that? Can you be sure that you will be able to rent them for less than that for the foreseeable future?

If you can be sure of renting for less than $5.50 a point for the next forty years, don't buy.

If you like the flexibility of having your own points and saving money doesn't bother you too much, buy.
...
I agree with this logic completely.

note: I edited out the OKW part...;)
 
This may help... or not... LOL

I just posted a spreadsheet to try an calculate when DCV becomes a better buy than buying for cash. Check this post and see if it helps. [DVC vs. non-DVC for Cash... ®¿®]

I can also provide you with the original sheet if you wish to change any of the parameters.

BTW, my wife and I are debating whether to buy into BCV. Maybe we'll make the same leap about the same time....

EC
 
It sounds like roadtripper and I have something in common with our DHs-converts to DVC. I wish I could find my post from several days ago which would tell you about the effect of DVC on DH. The original DVC purchase was completely my "thing", until we made our first trip home. The difference in him is incredible!
 
1) The annual AVERAGE cost will be about $1,986.
2) The TOTAL cost will be about $77,455.
3) If you are using logic, then weigh the costs.
 
~Magical Princess~

Anither factor to consider is CONTROL.

If you definetely want to stay at the DVC resorts, there's nothing like having the ability to pick up the phone and calling MS yourself. Unless you have a steady DVC point supplier ;) who is willing to make numerous calls for you to check availability, add requests, switch ressies at 7 months, and make last minute changes and trips. In that case, can I have his name? :p

Renting points (usually) is cheaper than making ressies with CRO. But in the long run, buying is less expensive than renting.

Even if you don't use it for the next 40 years, you can sell it 10-15 years from now at a much lesser loss than other timeshares. And you would have used it for those years. The difference between your buy price and the sell price plus the dues paid over the years wil stilll probably be less than the costs of your yearly vacations.

IMHO, there is a big difference between renting points and owning points!! :p Paying $$$ to BUY the points seem more satisfying than paying $$$ just to RENT them!! LOL!
 
Magical Princess, it sounds like you have rented points several times. I would think you may have been doing that for about 4 years, more or less? Then consider this: had you purchased 4 years ago, your vacations would essentially have cost you nothing. I bought 4 years ago and paid $54 per point, when BWV opened, they are selling for $70 per point today. When we originally took the tour in 1992 at OKW DH was ready to sign on the dotted line, and I was the hold out, and I said the same things most DHs say: we have 2 college educations to pay for, I was finishing my doctorate on credit, and I just couldn't see squeezing our budget even more. It took two tours at BWV before we finally bought, and it's been a terrific decision for us. It's the only place DH looks relaxed. Tell DH to just try it, you can always sell in a year or two if he doesn't like it, and all he would have lost is the amount of a vacation. i can pretty much guarantee that he'll never sell once he's an owner,
 
OK...big believer in cost benifit analysis...but lets put money aside for a minute. Anyone who conducts a proper cost benifit analysis will tell you that there are certain intangibles that need to be assigned monetary values so here goes.

1) peace of mind knowing you have points every year...$1000

2) having the flexibility to go anywhere in the world...$1000

3) seeing your kids and grand kids light up like a christmas tree when they see mickey mouse for the first time....PRICELESS!!!!


Cost benifit analysis lesson over!!!!!;) ;) ;)
 
Snickerdoodles post slightly above yours finally convinced her DH to buy. My response to them went this way:

My DD piano teacher is big DIS fan. Her family stayed at WDW in Oct. 1971 at Comtemporary $25 per nite.

Cost 30 years later, same month is $244-$510 and more depending upon room, according to Birnbaums 2001 edition.

At that kind of jump in price, wonder how much it will be 40 yrs. from now. I am 37 now with kids 7 and 9 and just told DW how much I am looking forward to continuing 100% guaranteed trips to WDW with the family in the future.

And if God so blesses us, with their kids one day also.

If you really love WDW you wont regret it.

GOOD LUCK and hope to say Welcome Home real soon. Keep us posted.
 
All I can tell you is this... some purchases are made with a calculator, and some purchases are made from the heart. For us, DVC has been a purchase from the heart that, for the reasons stated so well above, makes sense to the calculator.

You just can't put a price on the feeling you get when you walk into a DVC resort and know "I own a part of this". I can't describe how nice it is to know that the Disney memories we've made with our family and friends will continue to happen for the next 40 years. One great thing about DVC is that it "forces" you to make time for a vacation. We've made many luxury purchases that didn't look so good a few years later. DVC is not one of them. It's a purchase that every member of our family - from the youngest to the oldest - truly enjoys. Good luck with your decision!
 
Aw, why not... there's plenty of pixie dust already in this thread! I'll "play devil's advocate." ;) After all, if you want to be sure you won't regret a decision, it's wise to consider both sides, isn't it? :)

Posted by Magical Princess:
...obviously 50,000 + people can't be wrong!!!
There are a lot more people who tour timeshares, including DVC, who choose not to buy than who do buy. Make sure everyone with a say in your family is in agreement that it's right FOR YOUR FAMILY and don't let others sway you. It's not worth driving a wedge between loved ones.

Your job is to convince me to buy or not to buy.
This is a DVC forum with lots of happy owners. It will not provide an unbiased view... that's not its purpose. But perhaps you don't really want that anyway. ;) Nothing wrong with that.

I'm still having a hard time convincing my dad though, but we'll see after he sees OKW for the first time in September.
You've already rented before. What does DH think? Why are you trying to convince your Dad - doesn't DH have a greater say in a matter like this? Just seems curious. Does your Dad pay for your and DH's accommodations when you vacation now?

Posted by SleepyatDVC:
Anither factor to consider is CONTROL... If you definetely want to stay at the DVC resorts, there's nothing like having the ability to pick up the phone and calling MS yourself.
That's true to a point... pending availability when and where you want it. If someone plans to stay annually at the DVC resorts, it probably makes sense to join. But the greatest control (flexibility) for vacationing options will always be with cash.

Even if you don't use it for the next 40 years, you can sell it 10-15 years from now at a much lesser loss than other timeshares. And you would have used it for those years.
Careful here. There is absolutely no assurance of this. If DVC stops selling new resorts in 10-15 years, they may stop buying back resale contracts. This could lead to a significant drop in resale prices as with most timeshares, especially RTU timeshares like DVC. Further, depending upon where one would otherwise stay, the size unit, time of year, alternative cash prices available at the time, etc., their breakeven point may not even come for 10 years. It's not a financial investment.

Posted by jimmytammy:
My DD piano teacher is big DIS fan. Her family stayed at WDW in Oct. 1971 at Comtemporary $25 per nite. Cost 30 years later, same month is $244-$510 and more depending upon room, according to Birnbaums 2001 edition. At that kind of jump in price, wonder how much it will be 40 yrs. from now.

Perhaps that was a discounted, grand opening rate. Here's a link to an item for sale that says:
"Walt Disney World Resort Hotels Rate Card (© 1972) - Card advertising the WDW resorts (Contemporary and Polynesian) and affiliated hotels (Dutch Inn, Howard Johnson's, Royal Inn and TraveLodge); rates listed at $32, $38 or $46"

Assuming that the lowest hotel rates were the Disney Marketplace hotels, the 1972 Contemporary room rate of $46 seems realistic. To get to $244/nt by year 2001, it's an average increase of 6% yearly. This is probably pretty accurate. A lot has been said about how fast room rates rise, but maybe economic changes provide some checks & balances after all.

FWIW, Magical Princess, if you are anticipating annual trips to WDW and staying onsite in deluxes, you probably are a good candidate for DVC.

OTOH, if you are a young couple and cannot afford to buy in, yourselves, perhaps while also hoping to buy a house and perhaps have children in the next several years (who change our finances dramatically!), think carefully again about whether you really need to press the issue of a longterm commitment to DVC and/or deluxe hotels. It isn't that bad to stay at value or offsite properties if DVC doesn't work out for you. The parks are still wonderful! :)

If you can afford it and other high priorities will not suffer, great! Hope this helps. :)
 



















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