Hi Friends, first post here, as we explore DVC. Family of five, all three kids elementary age. Historically have visited 1x/3yrs, could see us going as frequently as 1x/yr, but probably not more than that. The past couple times we've rented DVC points and stayed in a 1BR, and then 2BR, Deluxe. That's the level we would stay at going forward.
I can't get the math to work. I understand there are all sorts of non-financial benefits to DVC; for the purpose of this post, let's exclude those. I also understand that there are peripheral financial benefits (AP and dining discounts). For our family, we probably wouldn't go frequently enough to warrant the AP, so "best case" (?) assume a 10% discount on meals for 1 week/yr.
If I only compare the membership cost (including maintenance) vs. the point rental cost, I get a breakeven around my 5th trip. But when I add in lost investment gains on that upfront investment, I never breakeven, and it gets worse over time. And that's with a relatively modest 4% assumption on investment gains. It helps if you assume we sell out halfway through to recoup some dollars, but even then I still come out behind, and that's assuming that the contract holds its full value (all math adjusted for time value of money).
I've read other posts indicating that if you are staying at Value Resorts, DVC may not make sense. But we are the opposite end of that spectrum and I still can't figure it out. I also have read the comments that suggest DVC members spend more money because you go more often, etc. - not even worried about that right now. Just trying to understand if there's some financial benefit of this timeshare, from a lodging-only perspective, that I am missing.
Appreciate your thoughts and guidance!
I can't get the math to work. I understand there are all sorts of non-financial benefits to DVC; for the purpose of this post, let's exclude those. I also understand that there are peripheral financial benefits (AP and dining discounts). For our family, we probably wouldn't go frequently enough to warrant the AP, so "best case" (?) assume a 10% discount on meals for 1 week/yr.
If I only compare the membership cost (including maintenance) vs. the point rental cost, I get a breakeven around my 5th trip. But when I add in lost investment gains on that upfront investment, I never breakeven, and it gets worse over time. And that's with a relatively modest 4% assumption on investment gains. It helps if you assume we sell out halfway through to recoup some dollars, but even then I still come out behind, and that's assuming that the contract holds its full value (all math adjusted for time value of money).
I've read other posts indicating that if you are staying at Value Resorts, DVC may not make sense. But we are the opposite end of that spectrum and I still can't figure it out. I also have read the comments that suggest DVC members spend more money because you go more often, etc. - not even worried about that right now. Just trying to understand if there's some financial benefit of this timeshare, from a lodging-only perspective, that I am missing.
Appreciate your thoughts and guidance!