Using Points Outside of DVC

[DVCOwner]

I know that using your DVC points at resorts and vacations outside of the DVC resorts is not the most cost effective way of using your points. Still, in September I will be using points to stay at Disneyland Paris where we got three rooms reserved for three nights each. It is just not worth the trouble of "renting" the points and than using that cash to get the rooms we need in Paris. Anyone else planning on staying at a non-DVC location using your DVC points?

 

[TAMarie]

We used it on DCL and would do it again combining cash and pts. We also dont want to bother renting pts. Have a great trip to France! Would live to hear about it.

 

[bgraham34]

More than likely I would just rent out my points unless it were a good deal to use my points.

 

[Ralphlaw]

We plan to use points next year at Disneyland Paris. The conversion doesn't seem as bad, cost-effective-wise, there as it is elsewhere. It's about 40 points a room per night in June at the Sequoia. Not a bargain, but not bad considering comparable 1 bedrooms in WDW during that time. A studio would certainly be cheaper, but a 1 bedroom at WDW during June would definitely be more points, depending on where you stay.

 

[ScoutN]

I know that using your DVC points at resorts and vacations outside of the DVC resorts is not the most cost effective way of using your points. Still, in September I will be using points to stay at Disneyland Paris where we got three rooms reserved for three nights each. It is just not worth the trouble of "renting" the points and than using that cash to get the rooms we need in Paris. Anyone else planning on staying at a non-DVC location using your DVC points?

Honestly, I feel it comes down to what your price per point was. My father and I both had an extremely good point cost for each of our accounts. Because of that we have no issue using them elsewhere.

 

[toolsnspools]

WARNING: MATH CONTENT AHEAD.

For BLT in 2013 each of my points cost $4.4972 in dues, $899.44 for all 200. Before I use the points outside DVC, I make sure I'm at least breaking even.

A few years ago I spent 328 points on a 4 day cruise. The points cost me roughly $1,100 in dues and I saved roughly $3,100 on the cruise tickets. Today I could rent the points on David's for $11/point for $3,608. I'm sure the rate was similar back then, but I didn't want the hassle of renting them. I'd use points on non-DVC rentals again, but I'd consider renting them for the extra $500 too.

 

[ParentsOf4]

WARNING: MATH CONTENT AHEAD.

For BLT in 2013 each of my points cost $4.4972 in dues, $899.44 for all 200. Before I use the points outside DVC, I make sure I'm at least breaking even.

A few years ago I spent 328 points on a 4 day cruise. The points cost me roughly $1,100 in dues and I saved roughly $3,100 on the cruise tickets. Today I could rent the points on David's for $11/point for $3,608. I'm sure the rate was similar back then, but I didn't want the hassle of renting them. I'd use points on non-DVC rentals again, but I'd consider renting them for the extra $500 too.

You need to factor in the purchase price and closing costs too. This is more difficult to do because it takes some guesswork. Simplistically, let's say you purchased BLT for $150/point and plan to sell 10 years later for $100/point. That's an extra $50/point over 10 years or $5/point. Thus, when you use your points outside of DVC, you really should be using an exchange rate $9.4972/point.

Considering that a BLT Theme Park View Studio is 25 points midweek in July, you're effectively paying $237/night (25 X $9.4972) in DVC points while Disney charges $627/night for a similar room at the Contemporary. Even with a 35% "Room Only" discount, that's $407/night so paying $237/night represents real savings. The most cost effective use of DVC points is to stay at a DVC resort.

If you have a loan for your DVC, then you also need to factor in that cost as well. David's DVC Rental might offer $11/point but for anyone with a sizeable loan, there's a decent chance their total cost is more than that.

P.S. Yes, I know the actual calculation is more complicated. Just trying to keep it simple here.

P.S.S. Don't use the deed expiration date of 2060 either. You might absolutely love WDW and can't imagine ever vacationing anywhere else today but, seriously, that's 47 years from now.

 

[toolsnspools]

You need to factor in the purchase price and closing costs too. This is more difficult to do because it takes some guesswork. Simplistically, let's say you purchased BLT for $150/point and plan to sell 10 years later for $100/point. That's an extra $50/point over 10 years or $5/point. Thus, when you use your points outside of DVC, you really should be using an exchange rate $9.4972/point.

Considering that a BLT Theme Park View Studio is 25 points midweek in July, you're effectively paying $237/night (25 X $9.4972) in DVC points while Disney charges $627/night for a similar room at the Contemporary. Even with a 35% "Room Only" discount, that's $407/night so paying $237/night represents real savings. The most cost effective use of DVC points is to stay at a DVC resort.

If you have a loan for your DVC, then you also need to factor in that cost as well. David's DVC Rental might offer $11/point but for anyone with a sizeable loan, there's a decent chance their total cost is more than that.

P.S. Yes, I know the actual calculation is more complicated. Just trying to keep it simple here.

P.S.S. Don't use the deed expiration date of 2060 either. You might absolutely love WDW and can't imagine ever vacationing anywhere else today but, seriously, that's 47 years from now.

Nope. I don't. I could get REALLY complicated and start to factor in the time value of money, and the savings on sit down meal based on membership, and the savings of doing laundry in the room instead of the laundromat, and the savings on PAPs when they offer big discounts, and that fact that I bought at $92/pp and I could currently resell at $105/pp, and the savings on my Richard Petty driving experience, and add the value of time spent with my family, and the ..., and the ... and the... but I like to keep it simple.

Here's how I like to do it. I need to (some day) save enough money on the rooms during each of the individual trips to cover the purchase price and closing costs. In the example I gave, I covered about $2,500 of the purchase price and closing costs. That's it. I'll easily break even in the first 10 years of ownership, and the rest is gravy.

 

[GoofGoof]

While using points outside of DVC resorts may not be the most economical use of your points, sometimes you need to just do what makes you happy. Life is not just a spreadsheet with numbers (and this is coming from a numbers guy who loves spreadsheets). One of the advantages to buying into DVC is the flexibility.

If you can rent your points and use the money to pay cash instead that may be a better economic option, but you have to weigh the effort vs the money saved.

 

[LivFreeorDisney]

We used our points in 2009 for a 3 night cruise and 5 nights in a two bedroom in AKV. I keep my math a lot simpler by saying...Will my trip cost more or less then what I pay towards my DVC yearly payment. I know the math people out there will roll their eyes at me but that's how I look at it. The answer for us was yes, going on the cruise and going to AKV would cost more then what we paid for that year. We plan on using our points again in 2015 for another cruise.

 

[Ralphlaw]

It's all about opportunity cost, and the ability to take multiple annual vacations. Many people can't take two vacations a year, so use them where you're going that year. Yes, there's banking and borrowing, but using them on something you like is better than potentially not using them, or squeezing in a rushed trip to use them for the sake of using them, or having unwanted hassles with renting them out.

 

[Phonedave]

You need to factor in the purchase price and closing costs too. This is more difficult to do because it takes some guesswork. Simplistically, let's say you purchased BLT for $150/point and plan to sell 10 years later for $100/point. That's an extra $50/point over 10 years or $5/point. Thus, when you use your points outside of DVC, you really should be using an exchange rate $9.4972/point.

Considering that a BLT Theme Park View Studio is 25 points midweek in July, you're effectively paying $237/night (25 X $9.4972) in DVC points while Disney charges $627/night for a similar room at the Contemporary. Even with a 35% "Room Only" discount, that's $407/night so paying $237/night represents real savings. The most cost effective use of DVC points is to stay at a DVC resort.

If you have a loan for your DVC, then you also need to factor in that cost as well. David's DVC Rental might offer $11/point but for anyone with a sizeable loan, there's a decent chance their total cost is more than that.

P.S. Yes, I know the actual calculation is more complicated. Just trying to keep it simple here.

P.S.S. Don't use the deed expiration date of 2060 either. You might absolutely love WDW and can't imagine ever vacationing anywhere else today but, seriously, that's 47 years from now.

Right, that shows the true cost of using points vs. paying cash, and I have never seen using points come out ahead.

As I have said, if you buy DVC with the intent of usings your points at a non-DVC resort on a regular basis, then you dhould not have bought DVC.

However, as others have said, sometimes you just do not want to do a WDW (or other DVC resort) trip. Thats understandable - in fact I think I will find myself in that boat (so to speak - since I thinking cruise) in a few years. Using the points for other than a DVC resort is loosing money, so now the question becomes how to minimize that loss.

If I can use my points to lower my cruise cost by $3,000 or I can rent them (fairly safe and easily via a third party) for $3,500 then I am going to rent them and use the cash. IF the savings are closer, then I will just use the points. Either way, I know I am loosing money on the deal. I have had my DVC membership for 6 years and except for using my developer points for a cruise (I had no other choice, other than a 2 story villa for me and my two kids) I have allways used my points for DVC resorts. If I use my points for a cruise in year 8 or 9, I feel that I am still using my DVC membership in a way that keeps me saving money on vacation, and still allows me to take advantage of the fliexibility that is built into the program.

-dave