Value of a point?

[bcmba]

Has anyone ever tried to see what the equivalent cost of a point is? It seems like I should be able to pull out an old finance or accounting book and do some math magic and say that a point is worth some amount. But, that'd be way to hard.

All I'm trying to do is to say that if I spend 14 points a night for a room, how much did it cost me? I can then look at the published rate and see what I made or lost.

Suggestions on how to achieve this are welcomed!

 

[golfnut1264]

take your purchase price on a per point basis and divide by how many years you have than add maint per point price...than if you really want to get it close to reality you have figure the interest you pay on the loan or lost investment revenues if you paid it off up front...
example
$80/point by 40 years = $2 a point + $4.55/maint =$6.55 a point.
than you figure interest so you would be somewhere between $7 and $8 a point.....

 

[Dean]

I'd use the same method but I think the lost income adjustment I'd use would be 5% of the purchase price or current value, which ever is greater. That gives you more like a $4 add which gets you at or just over the $10 pp level. Of course there are many ways to figure this based on how you vacation, save and plan. Each person must make the decision for themselves.

 

[Scott H]

Cost of DVC points = $87.00 per point

Cost of DVC memories = priceless

 

[Lisa F]

I just put together a spreadsheet to figure this out. I took the total amount that we paid for our points (including interest, though we are attempting to pay off our loan sooner so that number is high) and divided by the number of points and the number of years then added in the maintenance fees.

I did not count "lost income" because for us, the income was not lost. We would have spent that money anyway on accommodations for our Disney vacation (actually we would have spent more. We know this because we did the year before we bought into DVC).

Our point cost has been between $5.94-$6.37/point from 1999 through 2004 (based on projected dues).

 

[jaysue]

I mentally think $8 for the value - no rational basis just the number that feels about right to me

 

[joepoe]

Originally posted by Lisa F
I just put together a spreadsheet to figure this out. I took the total amount that we paid for our points (including interest, though we are attempting to pay off our loan sooner so that number is high) and divided by the number of points and the number of years then added in the maintenance fees.
...
Our point cost has been between $5.94-$6.37/point from 1999 through 2004 (based on projected dues).

You are definitely thinking as we are as far as our COST. The value is whatever someone would be willing to rent them for, currently about $10 a point? (Of course the value to US is Priceless!)

 

[Lisa F]

Originally posted by joepoe
You are definitely thinking as we are as far as our COST. The value is whatever someone would be willing to rent them for, currently about $10 a point? (Of course the value to US is Priceless!)

Well, the OP's actual question talked about cost which is why I phrased it that way. You're right about it being priceless though. I feel like a mastercard commercial

 

[JimC]

Our average cost is $5.65 for 2004 and blending the two contracts.

I actually evaluate resales using this approach. I value the contracts based on the total number of points purchased over the remaining years of the contract including banked, borrowed and current year adjustments. I found a stripped contract that was priced (asking) low, even for its stripped status and negotiated away the closing costs as well. A few minutes of work saved me about $2,100.

 

[BillPA]

I look at it as just the cost of money plus the dues, at least for the next 15-20 years. Then I think the resale value will start to drop below the purchase price. So, my OKW points were $57 times 6% plus $3.39 dues, or $6.81 per point. At the current resale rate, I can sell at least for the purchase price, and maybe even make a few $$. I do NOT intend to sell.

My BCV points purchased at ave of $77 times 6% + 3.97 dues = $8.59 to that I need to add about $15per point for the current resale price divided by the 38 remaining years. So my cost for BCV is about $9.00

Just my way I comparing my out of pocket cost to rack rate or AP discount rates. And YES, I am way ahead with DVC.