Ways to determine economic value of buying DVC points

[HarlanE]

I'm curious how people have made sense of evaluating the economic benefit of buying DVC points? I've modeled three different ways to compare the cost of purchase: to present value of renting those same points for the life of the contract, to present value of staying in a moderate resort every year for the life of the contract, and to present value of never using the points and instead selling them to a broker each year at $14.50 per point for the life of the contract. Of course each scenario takes into account future price inflation and maintenance fees. Not surprisingly, each resort shows positive net present value when compared to the first two scenarios and even a few show positive NPV when compared to the third scenario (ie selling points each year through broker). This analysis was largely comforting.

I'm curious whether others have evaluated economic benefit in different ways or reached different conclusions than I did using the scenarios I modelled? thanks

 

[Sandisw]

We bought in 2009. All we did was use cash rate for a room at the CR using a 35% discount and compared that with what is would cost to buy enough points at BLT.

It was a very simple calculation and realized that it made sense for us long term.

I know others use more complicated figures but for us, this made sense.

Since then we have added on a lot of points and we stay more often. We no longer look at what savings it could be offering. We feel we get our moneys worth and then some.

 

[LYSE]

I mostly compared cost to cash rates and then cost to renting, 3rd I calculated it as a rental property (renting privately on the dis) as a rental my contracts do amazingly well.

 

[PrinceRaki]

Based on our yearly trips and considering what we spend every trip on dining and merch (though discounts are never garanteed). Many people say you should not compare to rack rates at the villas bc I would never stay there cash but I do use them as a reference too since I am staying at a Riviera 1-2 bedroom not a Pop standard room.