Co-worker wants to get 50 points, should they.

[bgraham34]

Hey guys a co-worker of mine was asking about DVC. They go every year for their Anniversary in October. They go for 4 days, no more no less. They are thinking of doing the DVC by purchasing 50-60 points via resale. They stay at the Beach Club, Old Key West or WL. They end up spending 800-1000 on hotels each trip. Do you think its an option for them.

I said I believe so but I would like other opinions.

Thanks.

 

[DVC Mike]

Sounds like they are good candidates to consider DVC.

They go every year and stay at resorts that are DVC or have a DVC component.

The only issue is if the 4 days are weekdays or weekends. Fri/Sat nights require substantially more points than Sun-Thu nights.

Since Oct is during F&W festival, they should buy BCV if that's where they want to stay.

 

[bgraham34]

She just old me the Usually get there on Saturday or Sunday night. She said it all depends on the Airlines and the pricing.

 

[Phonedave]

She just old me the Usually get there on Saturday or Sunday night. She said it all depends on the Airlines and the pricing.

Since they are very specific in what they want to do, they can do this fairly easily.

Have them look at the point charts - these very rarely change, and see what they think they will need per year. Make it 50/50 Sunday or Saturday start day. They would have to decide do they want a studio or a 1BR. This will determine the number of points they need.

After that, they need to determine finanaces - will they pay cash or finanace the deal.

It's straightfoward math after that. Off the top if my head it does sound like it will work out for them. They just need to see where their break even point is. And as Mike pointed out Octover is F&W, so they should choose their home resort carefully.

-dave

 

[bgraham34]

Thanks for your help. She said her break even point would be 6-8 years taking the annual fees into effect.

 

[George]

If they run the numbers and think they are going to go year after year after year, they'll find that they'll be getting their lodgings for roughly half price (some of this will depend on how often they check in on Saturday and Sunday night). I always include current hotel prices and maintenance fees and assume the same rate of inflation (somewhere between 2-4%) for both. This is actually pessismistic from a DVC perspective since hotel prices have historically outpaced maintenance fees in terms of inflationary increases.

 

[George]

Thanks for your help. She said her break even point would be 6-8 years taking the annual fees into effect.

A bit early for most break even points (most of the time I come up with a number around ten years), but it is within the realm of possibility if they always check in on Sunday and always check out on Wednesday and Thursday. Since I'm using some of my points for a family reunion (providing lodging for people) I've pushed my break even point back a bit, but I'm sure it will be worth it!