There are two factors affecting value. In July 2010 we decided to take the plunge - we bought 240 points per year, home resort Bay Lake Tower.
After discount was applied, the cost was 26,400 dollars for a 50 year contract. Value factor 1 - don't take Disneys credit - we found UK loan rates 2 or 3 % cheaper meaning less interest. Disney were quite happy with this. They even allowed us to use their Internet facilities to research finance options on UK websites to compare against their own. Indeed, we opted to sign up, pay nothing except the initial legal arrangement fee. UK customers have a 14 day cooling off period and 60 days to settle the finance. This allowed us to go home and shop for credit further, and time the payment to favour the exchange rate.
Value factor two - the exchange rate. We budgeted for a pessimistic exchange rate of around 1.50 dollars to the pound. Had we signed in May, the 240 point deal, 26400 dollars would actually have cost us around 18500 pounds, plus credit interest. Had we signed in November, exactly the same deal would have cost us only 16200 pounds, all due to the exchange rate fluctuation. In the event, we paid 17,200 for our 240 points.
On the point of exchange rate, DON'T transfer the money from your High Street Bank! Yes, they will say it's safe and convenient, but the Royal Bank of Scotlands exchange rate was dire compared to the official base rate at the time. Around 1.45 dollars, compared to 1.54 base rate (from memory). had we simply accepted the banks rate, the difference would have cost us around an extra 1000 pounds. No. Get your finance, by loan or otherwise, and find a specialist currency trading company that will transfer your hard earned money from UK to US for much closer to the official base rate. We chose torfx.com based in sw England. They provided an excellent efficient service and a great base rate and sound advice regarding trends and timing.
So...17200 pounds buys us the equivalent of two weeks accommodation at world class hotels around Disney properties or other venues around the world through exchange each year for 50 years. for the money, you get a far more spacious and classy accommodation than you might get by chancing a package holiday each year, and you know exactly the sort of standards you are getting.
We were given the previous years points for free in our deal with Disney to put towards out first holiday next year....so...in 2011 we will be spending two weeks at WDW in Florida - one week with a savanna view room at the DVC only Kidani Village and the second week at the Bay Lake Tower, lake view, both one bedroom sleeping five of us.
The equivalent cost of this standard of holiday in July 2011 we have searched and found to be around £8000 as a package from UK. We chose Virgin flights, which are costing 3000 pounds for next year, so we can conservatively say the accommodation element is worth around 5000, therefore if we take this sort of holiday on four occasions it will have paid for itself and more!
We can then look forward to a further 46 years of " free" holidays, and can pass the deal down to the kids in future years, should we choose. Unforeseen circumstances? Sell it! I think you can't lose with this deal, provided you want a high quality regular annual holiday, or holidays.... Because the points deal seems very flexible.
then there's the bonus of exclusive access to certain accommodation and facilities around your Disney accommodation, plus discounts here and there. My only wish is that they look at deals for park tickets, dining and possibly UK flights. Still, it's not cheap but I honestly think it's a steal. Last July we stayed in international drive...the hotel was ok but disappointing and there are so many hidden costs like parking, associated with being outside Disney. Then there's the sheer time saving by being close to the action!
Having made such a massive investment (we have a joint income of 49000 salary), I know I'm already looking forward to my holiday next year, because I know for sure what we are going to get, and you cant put a price on that. It's not cheap, but my conclusion is it's easily worth it!!
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