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Purchase scenario question

brettskyg

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Whcih scenario do you prefer:

$100 purchase including closing
3400 annual points maintenance 719
Seaworld

OR

$720 purchase including closing
4800 EOY points maintenace 820.
I-Drive


What do you guys think?
 

SmithOp

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HGVC King's Land 2BR Premier 23.040K Points.
How big is your family and will you be staying during peak season or can you stay off season? Do you want to stay in HGVC every year, or every other year?

Both are what I would consider as bare minimum entry level ownership for HGVC. If you have a family, or will be having a family in the near future, then you will be trading this up for more points within 5 years. I'll even go so far to say it would be cheaper to rent until you can buy a 7000 point contract.


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brettskyg

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I also already have a 5k point package as well. I should have mentioned that previously. i am solo. Would be using this with friends, wh would eb reimbursing me for their part. I just know that the 5k points are not necessarily enough.
 

SmithOp

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I also already have a 5k point package as well. I should have mentioned that previously. i am solo. Would be using this with friends, wh would eb reimbursing me for their part. I just know that the 5k points are not necessarily enough.


In that case I'd go with the eoy 4800, you can borrow enough to make 7400 each year with the 5k existing. Even though the mf is slightly higher, you only pay it every other year, so that will offset the difference in buy in price.


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presley

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In that case I'd go with the eoy 4800, you can borrow enough to make 7400 each year with the 5k existing. Even though the mf is slightly higher, you only pay it every other year, so that will offset the difference in buy in price.

I agree with this.
 

elleny76

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Sounds like a good deal!...Never though about it.
( 7.4k if borrow points ) :)


In that case I'd go with the eoy 4800, you can borrow enough to make 7400 each year with the 5k existing. Even though the mf is slightly higher, you only pay it every other year, so that will offset the difference in buy in price.


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fernow

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3400 the better buy because...

The 3400 pt package may be the better buy.

Using 7000 points or 8400 points is easy to do. Using 7400 points (borrowing) is difficult and you may in reality waste 400 pts per year if you go with the EOY 4800 pt package. Yes you can move the 400 pts forward but at a price.

Using 1000 pts per night(7000 pts/wk for 2 bdm) and amortizing the purchase price over 15 years, your deals yield ON AVERAGE:

3400 pt package: $213/night.
4800 pt EOY: $190/night.

At 1200 pts (8400 pts/wk for 2 bdm):

3400 pt package: $256/night.
4800 pt EOY: $229/night.

BUT if you waste the 400 pts per year, which is likely IMO, the 4800 pt EOY is:

At 1000 pts/night: $229
At 1200 pts/ night: $274

Nothing is ever simple. Buy the 3400.
 

SmithOp

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A couple of issues with your analysis:

The per night cost in points is not linear, weekends are more expensive, weekdays are half price. He could stretch 7400 into three or four shorter stays by using the weekday discount.

Borrowing only occurs when a reservation is made, at no cost, so he won't necessarily need to rescue if the full 7400 is not used.


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fernow

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Correct but still

Almost answered that in my initial post anticipating the first line of my post may not be understood.

The first line of my post stated "it is easy to use 7000 or 8400 points..."

Yes borrowing is free.

Yes you CAN find a way to use 7400 pts per year but you will have to work at it.

IF the OP intends to vacation in 1 week blocks then makes no sense to buy the 4800 EOY. Even if the OP intends shorter vacations, 7400 pts every year or 9800 pts EOY are odd lots. High risk of wasted points IMO.

Just another way to look at it. OP should have all opinions to consider. Nothing wrong with the analysis. End of the day, the risk is less then $40/night.
 
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weems637

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shoot! Buy them both and invite more friends and let them cover the bar bill!
 

fernow

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Its all about yearly fee

To the OP.

As SmithOP points out, there are ways to extend the use of your points with HGVC. It is part of the fun but also a challenge.

Remember, however, it is not about points. People love to talk about how much they paid per point. But we don't want points. We want nights of lodging.

When looking at the purchase of HGVC, it is all about the yearly fee IMO. Both your deals are $0.21 yearly fee per point. I have seen deals for 7000 or 8400 points where the yearly fee per point is as low as $0.16. I such a case, you can pay as much as $1.00 per point plus closing cost and over 15 years be paying ON AVERAGE (using 1000 pts/night) only $160 per night.

Lot depends on what you want to do and how often you want to do it.
 

Jason245

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To the OP.

As SmithOP points out, there are ways to extend the use of your points with HGVC. It is part of the fun but also a challenge.

Remember, however, it is not about points. People love to talk about how much they paid per point. But we don't want points. We want nights of lodging.

When looking at the purchase of HGVC, it is all about the yearly fee IMO. Both your deals are $0.21 yearly fee per point. I have seen deals for 7000 or 8400 points where the yearly fee per point is as low as $0.16. I such a case, you can pay as much as $1.00 per point plus closing cost and over 15 years be paying ON AVERAGE (using 1000 pts/night) only $160 per night.

Lot depends on what you want to do and how often you want to do it.
If the room costs 400 bucks a night to rent and 220 bucks a night to the op by paying next to nothing or 160 a night by paying 7k...is it really a bad deal?

Op is still saving 180 a night... which by my math is a 45 percent savings.

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fernow

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??

Who said anything about a bad deal?

Guy is looking to buy more points and I am trying to be sure he gets the best deal for him which may not be the best deal for me or someone else.

Usually IMO, IMO, IMO, larger point deals are better then lower point deals because of the lower yearly fee per point.

But may wish to pay more for less if you don't want more.

Buying direct from HGVC is still a "deal" if you want to use $400/night as your baseline.

Given his two current options, both can work fine but the 3400 pt makes more sense to me.

Because there is soooo much focus on cost per point, folks don't often run the numbers to realize the yearly fee per point really drives cost of lodging.

Forums.
 
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