Buy from Disney or resale???

[Briana Venturo]

To determine if buying in make sense at all it's really fairly simple. First you determine if you're going to go routinely and stay only at DVC resorts. Second you decide if it's financially feasible/reasonable and to me that pay cash. Then there's only two metrics that are reasonable to compare cost wise and that is what one would have spent not owning and the cash rental price for private rentals.

So I did some math and after my analysis I would be saving about ten thousand dollars by buying vs renting but that didn't include the extra points every year that I wouldn't use say I'm purchasing 150 points at BRV it would only cost me 91 to stay in a studio so if I banked the extra points or sold them to my parents or something to make up the money.. idk I guess I could sell it either way but we wanted a definitive financial analysis. So with the cost being 13k for 150 points and if dues went up by 33 cents a year vs renting going up 91$ every year..?

 

[Dean]

So I did some math and after my analysis I would be saving about ten thousand dollars by buying vs renting but that didn't include the extra points every year that I wouldn't use say I'm purchasing 150 points at BRV it would only cost me 91 to stay in a studio so if I banked the extra points or sold them to my parents or something to make up the money.. idk I guess I could sell it either way but we wanted a definitive financial analysis. So with the cost being 13k for 150 points and if dues went up by 33 cents a year vs renting going up 91$ every year..?

I'd look at 100 pts for simplicity. Assume you buy 100 pts at $100 a point with dues of $6.54. So you'd have to run the numbers for just accommodations in this way assuming you'd invested the up front amount with earnings (I'd use 8%) and dues increase at inflation (3-4% reasonable assumption). This assumes of course that you'd rent if you didnt' buy, that you can afford it (to me that's pay cash), that you'll go at least every other year and that being on property is worth a premium to you. Or if you're do a regular hotel room, comparing to that would be an even better comparison. I likely would buy 150 in this situation but I'd run the numbers on a more like to like comparison for simplicity. If you do this and it's not premier time you'll likely save a little over moderates and a lot over deluxe but remember that even at VGF it's not really deluxe. You just have to decide if the compromises are really a compromise to you, they aren't to me. I'm not where i can do more in dept financial analysis and spread sheets at the moment. When. You do this the savings will likely be much smaller than you're projecting currently and you'll have the long term commitment. Still the best option for many but one has to be OK with the limitations and aggravations as well as the ongoing costs. Remember even doing this it's roughly a best cash scenario.

 

[4luv2cdisney]

I'll chime in with my "how I decided it's worth it"... and I'm going to round / estimate / guess, because I don't have my exact #s handy.

I have 2 trips planned at 11 months apart and I figured (best case scenario - if I wasn't even considering DVC) I'd be booking 2 rooms at POR with Free Dining and tix at a cost of $10,000.

I can buy 60 points direct at OKW, use the current AP promo and pay oop for only the food we eat (not the excess we get with free dining) at a cost of about $13,000.

So, assuming some future non DVC 3rd trip several years from now would cost me over $5K, even with a new set of tickets and annual dues, I'm close to breaking even on trip #3. After that, it's costing me annual dues for my room.

Since this is spending a relatively small amount of money and I can still break it up / spread it out a bit, I'm not even going to try to calculate interest I'm losing, etc and so on. I was spending $10K over the next 2 years no matter what and it's not coming out of an investment fund, it's coming out of my checking account and a little savings.

Done. I'm in.

Truth be told, I've been holding out in case the perfect resale came along. Then I'd likely be buying 75 points (50 resale, 25 direct), not 60 and all my numbers would change (but I'd have a little more wiggle room with points) and I'd buy at BWV instead of OKW. Even if I buy BWV direct, I think I will about break even in 4 trips, so I'm still good with that. Then I was looking at Copper Creek...... lol. You get the idea. I'm going to have to pull the trigger soon! Decisions, decisions....

 

[Dean]

So I did some math and after my analysis I would be saving about ten thousand dollars by buying vs renting but that didn't include the extra points every year that I wouldn't use say I'm purchasing 150 points at BRV it would only cost me 91 to stay in a studio so if I banked the extra points or sold them to my parents or something to make up the money.. idk I guess I could sell it either way but we wanted a definitive financial analysis. So with the cost being 13k for 150 points and if dues went up by 33 cents a year vs renting going up 91$ every year..?

Using the numbers above assuming you invested the $10K with an 8% return and inflation was 3% against both dues and rental costs; you wouldn't come out ahead owning until year 25. Obviously every variable will change the numbers but if you dropped return to 6% and increased inflation for the other items to 4%, you would still be over 20 years in before break even with renting 100 pts vs owning and the numbers should hold with any points amount. That's the most pure comparison but it'd be easy to run against direct room costs for non DVC as well using a discounted rack rate, I usually use 20% in that situation as it's unlikely to be less than that discount on average long term. IMO the best single metric $$$ wise is what you would do not owning. Using DVC rack rates is a fools comparison IMO unless that's what you'd do or the suites.