Did another DVC meeting

captainkidd

captainkidd

Well-Known Member
Original Poster
This time, my wife (who is a banker) came with me. This isn't meant to be another anti-DVC thread (actually, none of them are), but here are the numbers I got, and I wanted to run them by here and see if we're both crazy, or this is correct.

We've been buying 431 points for the past few years. So, we're looking at those numbers. To buy into AKL right now would be $135 per point. So, initial purchase price would be $58,185. Dues at AKL are $5.42 (I believe) per point, so yearly dues would start out at $2,345. To finance that purchase price (best case scenario) over 5 years, we'd be spending a total of $67,000. In that 5 years, we'll also have spent $11,725 in dues. I'm not counting any inflation either way here. So, in the first 5 years, our grand total is $78,725. Most likely case, we'd have to finance for 10 years, so we'd be looking at $85,736. In that 10 years, we'll have spent $23,450 on dues. Grand total now is $109,186.

I've been spending around $4,500 a year for the points I'm renting. By my calculations, it would take about 24 years for us to break even, before we got to a point where we could compare money spent renting points versus money spent in annual dues.

Does that sound right?

If so, resale definitely sounds like the way to go, or, possibly buying one of the older contracts. Problem with those is, you can only buy what's available, which may not suit our yearly needs.
 
wilkeliza

wilkeliza

Well-Known Member
captainkidd said:
This time, my wife (who is a banker) came with me. This isn't meant to be another anti-DVC thread (actually, none of them are), but here are the numbers I got, and I wanted to run them by here and see if we're both crazy, or this is correct.

We've been buying 431 points for the past few years. So, we're looking at those numbers. To buy into AKL right now would be $135 per point. So, initial purchase price would be $58,185. Dues at AKL are $5.42 (I believe) per point, so yearly dues would start out at $2,345. To finance that purchase price (best case scenario) over 5 years, we'd be spending a total of $67,000. In that 5 years, we'll also have spent $11,725 in dues. I'm not counting any inflation either way here. So, in the first 5 years, our grand total is $78,725. Most likely case, we'd have to finance for 10 years, so we'd be looking at $85,736. In that 10 years, we'll have spent $23,450 on dues. Grand total now is $109,186.

I've been spending around $4,500 a year for the points I'm renting. By my calculations, it would take about 24 years for us to break even, before we got to a point where we could compare money spent renting points versus money spent in annual dues.

Does that sound right?

If so, resale definitely sounds like the way to go, or, possibly buying one of the older contracts. Problem with those is, you can only buy what's available, which may not suit our yearly needs.
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How much do you typically spend on your Disney trips for rooms? Take that figure and divide it into the grand total and see how many trips it would take you to be saving. If you pay more for rooms for your yearly trips then you would in your payments+dues then it is worth it. If you initial payments+dues is more than perhaps Disney DVC isn't worth it for you.

Also think you want to add in any life changes in the next 10 years that might make your trip more expensive such as another child or bringing another family along.

My boyfriend and I are at the point where since we could buy in at so little it is worth it for us but if you have to buy in a high points I couldn't tell you what to do.
 
captainkidd

captainkidd

Well-Known Member
Original Poster
That's the thing - It's not even close. Disney says "It pays for itself in 7 trips", but that wouldn't ring true for us. Needing so many points that is. On the other hand, although it would take 24 years to reach the break even point, we'd still have another 21 years of vacations, so no doubt, it makes sense from that angle. Plus, if I can manage to pay it off sooner than 10 years, it just puts me that much further ahead of the game.
 
wilkeliza

wilkeliza

Well-Known Member
captainkidd said:
That's the thing - It's not even close. Disney says "It pays for itself in 7 trips", but that wouldn't ring true for us. Needing so many points that is. On the other hand, although it would take 24 years to reach the break even point, we'd still have another 21 years of vacations, so no doubt, it makes sense from that angle. Plus, if I can manage to pay it off sooner than 10 years, it just puts me that much further ahead of the game.
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That is another true factor to look into. Also this isn't just for you. Your kids could use it after you are done (aren't contracts 50 years or are they lifetime?) and then you can find peace in the fact you left something that you kids can use for entertainment.
 
bgraham34

bgraham34

Well-Known Member
Personally I would go the resale route. I see Beach Club of 400 points for just under 30k or 600 points at Old Key West for 34k.
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
alissafalco said:
$109,186 for 10 years, thats just insane!!
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I would be if it was just for 10 years. The contracts for new purchases start at around 45 years. That 109k in 10 years pays off principal and interest. After that you would be left with just maintenance dues.
 
wilkeliza

wilkeliza

Well-Known Member
Seems like with anything else that has a long term contract you should take the 50 years and figure out (including what you can assume for inflation) what it would cost over all 50 years. Then consider what an out of pocket trip for 50 years would cost at a hotel (also including the same level of inflation) and then see if they are even or one is more than the other. That is the best way to get your answer.
 
captainkidd

captainkidd

Well-Known Member
Original Poster
wilkeliza said:
Seems like with anything else that has a long term contract you should take the 50 years and figure out (including what you can assume for inflation) what it would cost over all 50 years. Then consider what an out of pocket trip for 50 years would cost at a hotel (also including the same level of inflation) and then see if they are even or one is more than the other. That is the best way to get your answer.
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It's funny, the DVC rep we met with was trying to convince us not to buy resale since we can't go on the cruise with DVC points via resale. We told him we weren't interested in the cruise, and his response was "Yeah, but how do you know how you're going to want to vacation for the next 50 years?" Um, yeah, not a very good line to use if your a salesperson trying to sell timeshares.:confused:
 
captainkidd

captainkidd

Well-Known Member
Original Poster
alissafalco said:
Yes, WITH room service yay!!
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You can get room service at DVC resorts, just not housekeeping (unless you pay extra for it.) We just stayed 11 nights in a 1 bedroom villa at Boardwalk, and didn't miss housekeeping 1 bit. You have a washer and dryer in the room. And housekeeping, whenever we passed them in the hall, always asked us if we were all set for towels, toilet paper, etc.

I'm an odd case. I'm the perfect candidate for DVC as I go to Disney every yer and love the Villas, but I'm a horrible candidate for DVC because the amount of points I would need make it way too expensive.
 
wilkeliza

wilkeliza

Well-Known Member
captainkidd said:
It's funny, the DVC rep we met with was trying to convince us not to buy resale since we can't go on the cruise with DVC points via resale. We told him we weren't interested in the cruise, and his response was "Yeah, but how do you know how you're going to want to vacation for the next 50 years?" Um, yeah, not a very good line to use if your a salesperson trying to sell timeshares.:confused:
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Why can't you use resell point for cruises? Does that mean you can't trade them in for anything but stays at Disney? One reason my bf and I looked into it as because if we decide not to go to Disney World one year then we can trade them in for an Adventures by Disney trip or for a hotel stay somewhere else.
 
captainkidd

captainkidd

Well-Known Member
Original Poster
wilkeliza said:
Why can't you use resell point for cruises? Does that mean you can't trade them in for anything but stays at Disney? One reason my bf and I looked into it as because if we decide not to go to Disney World one year then we can trade them in for an Adventures by Disney trip or for a hotel stay somewhere else.
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If you buy DVC resale, the 2 restrictions currently in place are you can not use your points for a cruise or for Adventures by Disney.

DVC also claims that they have the right to change other stipulations after you have bought resale, but I think that's a load of crap. I can't see how legally they could do that.
 
wilkeliza

wilkeliza

Well-Known Member
captainkidd said:
If you buy DVC resale, the 2 restrictions currently in place are you can not use your points for a cruise or for Adventures by Disney.

DVC also claims that they have the right to change other stipulations after you have bought resale, but I think that's a load of crap. I can't see how legally they could do that.
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Yeah it seems a little fishy. If you sign a contract even a resell contract they can't change it after the fact. Whatever your contract says is legally binding.

I guess this is their way of swaying you to buy directly form them but sometimes the resell market is the best and smartest idea. Honestly though if I'm not using my points for Disney related things in 50 years then I wouldn't want to buy it now anyways so I guess that is why I wouldn't do resell but of course I would only be buying in at 150 points.
 
Funfy

Funfy

Active Member
alissafalco said:
$109,186 for 10 years, thats just insane!!
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Not if you are staying for two weeks and it can run up to $11,000 a stay in a deluxe (depending on time of year-discounts offered, resort, etc.). And after the ten years if financed and not paid off early, it drops drastically-just dues.

But, it is a committment-a big one. We have 405 points. We have to usually go during peak times-hardly any or not discounts. We became members in 2003. Ours has paid for itself and several years into dues around the 6-8 year mark.

Every year that goes by, it becomes less and less of a good deal to buy in. I wish we had bought sooner.
 

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