Timeshare point system a good value to the right family?

[disneysteve]

One thing I remember from the sales pitch was the lady trying to convince us that having a paid for vacation meant that our family would still be able to vacation even if we had less money because someone was out of a job one year. It seemed so ridiculous. If my family suddenly had less money coming in, I'd rather have the option of saving money by not going on a vacation.

It's sleazy stuff like that that contributes to their awful reputation. Sure, lost your job, no problem, just keep paying your annual fee and come anyway even though you'll need airfare and meals and other expenses while you are here.

A far better option if you do happen to own a timeshare and run into trouble is to rent it out. We've rented timeshares numerous times. Every single time it was cheaper than if we actually owned the place (which is part of why buying makes no sense).

[disneysteve]

Or, if I just couldn't predict my schedule more than 7 months in advance

One of many reasons why we wouldn't own a timeshare. We don't plan our vacations that far in advance. We typically plan Disney World trips about 6 weeks in advance, sometimes less. I think it was only about 4 weeks in advance for our trip last month.

[Like2Plan]

Can you expand on this math?

I believe you buy a set number of points. How many did you buy and how much did that cost? You are using a "per year" price for the upfront cost. How many years is that based on? How many years do you have to pay it off and at what interest rate?

So, BWV had 40 years left on the contract when we purchased. I believe we paid $79.00 per point. So, $79.00/40 years= roughly 2.00 per point per year. This assumes a zero value at the end of the contract and ignores any resale value (because I expect to take the contract to the end anyway. ).

[bigdaddybus]

My family kicked around the idea of getting a timeshare as the cost for a family of 6 can get expensive. We arent ones to pile in a room, so adjoining rooms or 2-3 bdroom suites is the way we go or we would rather stay home.

We ended up getting an RV, as we didnt want to be locked into something we couldnt get out of. Good luck

[james.hendrickson]

Hence the reason I always specify that DVC should be excluded from any conversations about timeshares. They are very much in a class by themselves.

Steve, so whats the thinking behind this? Are you saying that Disneys brand value makes the Disney timeshare different? e.g. Inherently more valuable because it is Disney?

[Like2Plan]

How many years is that based on? How many years do you have to pay it off and at what interest rate?

So, it was DVC that really got me to thinking about the interest rates and so on.

As you know--financing a timeshare is not a good idea. If financing is required--it's best to just wait. At a time when interest rates were at a historic low--I believe Disney was offering a "preferred" interest rate of 15%. That's like credit card interest, right?

Then, I was reading on the Dis board where someone reported they got 4% interest on a signature loan through their bank. So, I set a goal- to get less than 4% interest (for less than 6 months). Also, Disney will sell ownership in increments as low as 25 points--(and back then they didn't charge closing costs if you bought direct.) Also, smaller contracts are easier to sell on the resale market.

So, I figured it was a short term cash flow problem. Back when I purchased, Disney wouldn't close on the contract until the resort was open (and I purchased pretty soon after it was offered)--so, it gave me additional time to come up with the money..

The last purchase we made was the Grand Cal. (You will love this.) We put it on the Disney CC which at the time I believe gave 2% back on Disney purchases and 6 months interest free. So, we bought what we could afford in increments to be paid off within 6 months.

Back then, there wasn't much difference in price between direct Disney and resale. Not like it is today.

[Like2Plan]

One of many reasons why we wouldn't own a timeshare. We don't plan our vacations that far in advance. We typically plan Disney World trips about 6 weeks in advance, sometimes less. I think it was only about 4 weeks in advance for our trip last month.

Yup. It's very important to understand the rules.

Most timeshares are based on 100% occupancy (with a little leeway for breakage) and that means they are almost always filled up (Well, Disney is anyway).

Just recently I was thinking of making a last minute trip to Disney-- in March. Just onesies and twosies at the resort I wanted to stay.

[greenskeeper]

DVC actually has been a pretty good deal for my family. If it wasn't working out so favorably we would have sold our membership. Currently, we could sell 2 of our contracts for more than what we originally paid for them and the third one for the same price. It wouldn't make sense to keep them if it wasn't working out.

We prefer to stay onsite and within walking distance to at least one of the theme parks. Given our preference, our per night price of a room is considerably less expensive using our points.

Here is an example for Boardwalk Villas
Dues $6.48 per point (2017 dues)
Acquisition cost $2.00 per point (per year)
total: 8.48 per point

I can get a std view room studio for 10points per night (S-Th) and 14 points per night (S/S) during the food and wine season. (I like to visit Walt Disney World during food and wine and also early Dec). So, that is $84.80/night weekdays and 118.72/ weekends. I can use magical express for airport transfers (for no additional expense) and not book a rental car. I can walk to EPCOT and Disney Studios from BWV (which is probably the top reason I like to stay there).
I also receive a DVC discount off my gold annual pass.

Another example for Grand Californian (Disneyland)
Dues: $5.61 (2017 dues)
Acquisition cost: 1.78 per point (per year)
total per point: $7.39

I like to stay there in June, Nov or Dec. In June a studio is 20pts S-Th and 24 pts S/S. Cost $147.80 S-Th and 177.36 S/S. (Note: there aren't any other fees such as tax, parking fees and resort fees on the DVC points). I can easily walk to DCA, DL and DTD from my hotel. The Grand has its own private entrance to DCA. Some of the rooms face DCA and have a spectacular view--some with views of the world of color. One of the best benefits to staying at the Grand is the extra magic hour every morning.

Sometimes we have an out of cycle stay (to Disneyland) in which we have already used all our points (or it's too late to book) and have to pay cash. Even with an annual pass discount, the Disneyland hotels have really gone up--way more than what we are paying for our DVC room. Over the years we have stayed offsite at the Hilton and Marriott convention center hotels, Marriott Fairfield, Holiday Inn, Best Western PPI and Desert Inn and Suites, but I still prefer staying at the Grand.

How much was the initial buy-in to the timeshare? You are listing yearly point cost only.

[Like2Plan]

How much was the initial buy-in to the timeshare? You are listing yearly point cost only.

See post #18

[GoodSteward]

My wife and I did the math on the way home using an online points book for Wyndham. They fall under the nearly 0 value for resell category, but that works to the favor of someone who plans to use it. The main reason I'm looking into the possibility is because trying to fit 6-8(8 with my parents) into a room is a joke, so once you start working up into suits or multiple rooms and such it gets 125+ a night. I know Steve mentioned how he got some really good deals, but that is not easy to come by from the research I'm looking at. You kinda have to luck up and hope there is something left over right before going where you want to, at least in a lot of the locations I would go like Asheville, NC. I might could have saved 25 a night on a 3bd in Orlando, but then there are add on fee's I've noticed like cleaning fees(90$) and resort fees. I think to get the even better deals you have to be part of II or RCI(which you get for free with a Wyndham account because they own RCI).

After doing the math it came down to something like this. Avg of 15 nights a year (including a yearly week long church event). I have looked online and I've found the points we would need for as little as 90/m in fees(which do go up a few % every so often like taxes). That is $1080 a year, with a buy-in of just a few hundred if not lesss(some are willing to give them away and pay the fees to transfer) I saw one on ebay that the seller is paying all fees to get our of it. That averages out to just $72/night for at least a 1bd villa in Orlando, Gatlinburg area, and several beach resorts. I do a lot of online shopping for rooms, and it is getting harder and harder to find those amazing deals. The only way to get them is to hope at the last minute there are some rooms open. In Orlando that isn't very hard because they are loaded with resorts, but other places we plan to go, not so much.

[rennigade]

The main reason I'm looking into the possibility is because trying to fit 6-8(8 with my parents) into a room is a joke, so once you start working up into suites or multiple rooms and such it gets 125+ a night.

Sounds good goodsteward. It sounds like you crunched the numbers and everything will work in your favor. After you purchase the timeshare let us know your experience.

[GoodSteward]

Sounds good goodsteward. It sounds like you crunched the numbers and everything will work in your favor. After you purchase the timeshare let us know your experience.

After your avid avoidance recommendations, I can't help but read some sarcasm built into that . As good as it sounds, I don't know if it will work out that easy and I don't like being locked into it. I'm still debating this, and probably will for a while.

I work with a guy who's grandparents bought a week at a NC resort, and they love it. They have had it for 22 years and their fees are lower than the people around them. I have been semi-active on the Tub forum, which is a forum for timeshares. The key is buying the right amount of points at the right price. It has to even out with what you already intend to do for it to be in your favor. They even pitch that in the sales presentation. The yearly fees need to match what you already pay on avg, but you just get upgraded for the money.

I left the sales presentation with a voucher for a 7-night stay at a Wyndham resort for $20(prepaid) that is good until next march with no blackout dates. The only downside is I have to use it like a last call, and book something within 30-45 days before the trip.

[disneysteve]

I saw one on ebay that the seller is paying all fees to get our of it.

This should tell you something.

[disneysteve]

So, BWV had 40 years left on the contract when we purchased. I believe we paid $79.00 per point.

And how many points did you buy?

You gave an example of needing 78 points for a week so that means you had to have paid at least $6,162 for those points, and probably more because I'm sure they didn't sell you 78 points. Maybe you bought 100, so $7,900 up front cost minimum plus another $648/year for the annual fee on those 100 points.

I realize offsite and onsite are different, but just to compare, we rented a 3-bedroom, 3-bath townhouse 5 minutes away last month. Total cost with tax and cleaning fee was $618 for 7 nights. It is incredibly easy to find rentals in the Orlando area for under $100/night because the market is so saturated. And the rentals are beautiful. Even timeshare rentals are readily available. We rented a 2-bedroom timeshare unit a year ago for under $60/night for a week.

Again, I'm not comparing equivalent properties. We can't walk to Epcot from our rental home or offsite timeshare, but we also didn't spend thousands of dollars up front to stay there and we aren't locked in to anything. We can go or not go as we see fit.

[GoodSteward]

This should tell you something.

I have thought about that, but most people buy too much or buy in the wrong way(retail for 10s of thousands). If I happened to go out west and bought a time share i would hate it and want to off load it because I couldn't use it. That's a lot of why people try to get rid of them. They don't or can't use it, so it's just a money pit. It's all about location and matching to your use. I have a ton of options around me for Wyndham, but if I ever move that would change. That's something else I'm thinking about. You never know what the future holds.

I have been asking why do people sell their timeshares, and it seems many it's just buyers remorse, buying into the wrong location or time, or not being able to use it like they thought. Even the timeshare forum recommends researching for MONTHS and be absolutely sure you will be using it as intended before buying. to me, it's about choosing the right product. You have to pick the right company (locations), right amount of time(even with what you already plan to use), and get it for the right price(close or less than what you already pay). If you can't match all of those buying timeshare probably isn't a good idea. I'll admit that part of this is to be able to travel a little more often each year. Right now, it's hard for us to justify many trips because of how much it costs us to get rooms. I really wish I could have someone with an RCI membership or similar to give me actual quotes to know if it is worth it to be in vs just renting.