HIRyeDVC
DIS Veteran
- Joined
- Apr 17, 2021
$0.51pp TOT and free parkingOpen question: What incentivized price per point would get you to buy?
$0.51pp TOT and free parkingOpen question: What incentivized price per point would get you to buy?
Hahaha, I did qualify near zero and I meant to say “near zero chance we will buy at VDH tomorrow.”
If Disney does a dramatic flash sale I’ll pick up points for sure. Going to make my first pilgrimage to StarView Station on Friday— at least a 10% chance I leave with more points.
Your numbers are probably right. What you’re probably missing is that for most people looking to buy, the Disneyland Hotel is purely emotional nostalgia. It’s not rational. But often times, are passion for a Disney isn’t. It’s all emotional.I'm looking for any reason to buy, but am struggling with the numbers.
I view all purchases through the lens of "break even point." The shorter, the better. I realize others approach this differently. But still, I can't make the back-of-the-napkin math work for me on this. Maybe someone can show me the error of my ways...
If we buy 100 points, I'd want to do it in two contracts (50 points each). For simplicity, lets say total closing costs are $1k, so the total initial investment is $24k (at $230 per point).
Based on the points charts, that likely gets us about 4 to 4.5 stays per year (call it 4.25). If we assign a pre-tax value of $700 per stay, that is $2,975 per year of value. However, between yearly dues (- $900), ToT (-$275), and parking (- $150), the yearly value changes as follows: $2,975 - 900 - 275 - 150 = $1650 of yearly value.
If we divide the initial investment by the yearly value ($24k/$1,650) the break even point is 14.5 years from now. That seems like an awfully long payoff period for a non-essential purchase.
Happy to listen to anyone who crunched the numbers and came up with a better way of looking at it.
Hmm I did my calculations yesterday to see about when I wound break even and it was around 8-9 yrs for me for 75 points. My way may not be as accurate but I punched in data for 2023 and 2024 since I have those numbers (I calculated my cost per room at $16.68pp and compared it to what I would book with cash) and it’s about $2k saving each year. I didn’t include parking cuz it better be included! If I’m way off on my numbers, please don’t correct me ppl because I’m ready to buy this weekI'm looking for any reason to buy, but am struggling with the numbers.
I view all purchases through the lens of "break even point." The shorter, the better. I realize others approach this differently. But still, I can't make the back-of-the-napkin math work for me on this. Maybe someone can show me the error of my ways...
If we buy 100 points, I'd want to do it in two contracts (50 points each). For simplicity, lets say total closing costs are $1k, so the total initial investment is $24k (at $230 per point).
Based on the points charts, that likely gets us about 4 to 4.5 stays per year (call it 4.25). If we assign a pre-tax value of $700 per stay, that is $2,975 per year of value. However, between yearly dues (- $900), ToT (-$275), and parking (- $150), the yearly value changes as follows: $2,975 - 900 - 275 - 150 = $1650 of yearly value.
If we divide the initial investment by the yearly value ($24k/$1,650) the break even point is 14.5 years from now. That seems like an awfully long payoff period for a non-essential purchase.
Happy to listen to anyone who crunched the numbers and came up with a better way of looking at it.
I also look at the cost *without* DVC. . . What is the rack rate of the room? Am I saving money?I'm looking for any reason to buy, but am struggling with the numbers.
I view all purchases through the lens of "break even point." The shorter, the better. I realize others approach this differently. But still, I can't make the back-of-the-napkin math work for me on this. Maybe someone can show me the error of my ways...
If we buy 100 points, I'd want to do it in two contracts (50 points each). For simplicity, lets say total closing costs are $1k, so the total initial investment is $24k (at $230 per point).
Based on the points charts, that likely gets us about 4 to 4.5 stays per year (call it 4.25). If we assign a pre-tax value of $700 per stay, that is $2,975 per year of value. However, between yearly dues (- $900), ToT (-$275), and parking (- $150), the yearly value changes as follows: $2,975 - 900 - 275 - 150 = $1650 of yearly value.
If we divide the initial investment by the yearly value ($24k/$1,650) the break even point is 14.5 years from now. That seems like an awfully long payoff period for a non-essential purchase.
Happy to listen to anyone who crunched the numbers and came up with a better way of looking at it.
Guides here at DL are telling me that incentives are generous. Take that with as much a grain of salt as you would like. We will see tomorrow.
"Generous" incentives probably won't start unless you buy more than 300,000 points....Guides here at DL are telling me that incentives are generous. Take that with as much a grain of salt as you would like.
Since you are including the ToT and parking in your DVC room, you need to include the 17% tax and parking to your cash room.I'm looking for any reason to buy, but am struggling with the numbers.
I view all purchases through the lens of "break even point." The shorter, the better. I realize others approach this differently. But still, I can't make the back-of-the-napkin math work for me on this. Maybe someone can show me the error of my ways...
If we buy 100 points, I'd want to do it in two contracts (50 points each). For simplicity, lets say total closing costs are $1k, so the total initial investment is $24k (at $230 per point).
Based on the points charts, that likely gets us about 4 to 4.5 stays per year (call it 4.25). If we assign a pre-tax value of $700 per stay, that is $2,975 per year of value. However, between yearly dues (- $900), ToT (-$275), and parking (- $150), the yearly value changes as follows: $2,975 - 900 - 275 - 150 = $1650 of yearly value.
If we divide the initial investment by the yearly value ($24k/$1,650) the break even point is 14.5 years from now. That seems like an awfully long payoff period for a non-essential purchase.
Happy to listen to anyone who crunched the numbers and came up with a better way of looking at it.
I think your calculations sound correct. I was using $230/50 years = $4.6 (base cost). Then add that to $2.73 (tax) + $9.06 (annual dues) to get $16.39 per point.Hmm I did my calculations yesterday to see about when I wound break even and it was around 8-9 yrs for me for 75 points. My way may not be as accurate but I punched in data for 2023 and 2024 since I have those numbers (I calculated my cost per room at $16.68pp and compared it to what I would book with cash) and it’s about $2k saving each year. I didn’t include parking cuz it better be included! If I’m way off on my numbers, please don’t correct me ppl because I’m ready to buy this week
Plus resale value?Since you are including the ToT and parking in your DVC room, you need to include the 17% tax and parking to your cash room.
I wouldn’t include resale value. That’s the worst case scenario.Plus resale value?