Glad to be a test subject
- Mar 17, 2008
This is the exact reasoning of the argument that the OKW extension cost too much or was done too early. At that time it was purchasing points for use 35-50 years from that offering and a lot of owners did not see enough value in that offer and/or pricing.This is a good example of an assumption I disagree with. While the paper towel example makes sense, it is not transferable to DVC points.
Let me ask it this way: How much would you pay for a RIV contract in which you do not receive points until 2054? Meaning you pay a price today, then receive/pay nothing for 34 years, and then your point usage & MF's begin in 2054 through 2070.
Here is an even clearer example: What if they sold two types of Riviera contracts?
Which contract would sell for more today? Both contracts cover the same time period of 25 years. Does that mean that should sell for the same amount of money today? The obvious answer is no. So just averaging out the purchase price doesn't make sense to me.
- Contract A includes points in years 1-25
- Contract B includes points in years 26-50
This is why I do not believe you can attribute the cost of the points evenly across the entire length of the contract. Points that are available to use sooner are worth more. Points that aren't available to use for 34+ years... how can we really place a value on those points today? I've decided that I can't. If you can, then more power to you (honestly; that's what I was saying earlier). But I can't.
Beyond that, when you factor in the extra cost of RIV through:
...RIV simply costs more. If you instead invested the difference of what you would have spent on RIV points, you end up with a sizable pile of cash in 2042, 2054, etc. I would rather have the cash at that point in time, and then decide if I want to buy in again at current market rates... Because as I've previously mentioned, 20-35 years is a very long time, and while I hope my family and I still love Disney then, I really can't say that with any degree of certainty.
- More points needed through the points charts
- Higher MF cost per point
And if you don't want to use the point charts, then that's another area we simply disagree on... I think you have to use them. If your plan is to use RIV as sleep-around points then there are definitely more affordable options.