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View Full Version : For those who have rented their points...

Mperry
02-07-2001, 04:34 PM
I guess I'm confused... I am a DVC member, but I think we'll end up buying more points. Since we've bought into it, in June 2000, we've been twice and have two more trips planned for this year.

I have been venturing over onto to this board to maybe grab a few points by renting. I guess the part I don't understand is how the member is compensated by "renting" for only \$10/pt. Is it just that they'll lose their points if they don't use them so they figure they'll get a little bit for them instead?

Anyone who can clarify would be greatly appreciated... :D

PamOKW
02-07-2001, 07:30 PM
The price is set by what people will pay. It seems like \$10 is pretty standard although some people have gotten more.

Cap
02-07-2001, 07:49 PM
Assume that you bought your points at \$72 / point. Each year you will have out of pocket costs of dues. Assume \$4 / point (a bit high, but let's use this for the example).

Also, each year you will have the lost opportunity cost on your \$72. If you don't use the point, it's not giving you any value. If you had instead invested the \$72, you would have earned some interest. Let's assume a safe money market rate of return of 6.25%. \$72 * 6.25% = \$4.50.

Also, you'll have some time used in renting your points and some paperwork to do (e.g cashing the renter's check). Let's assume \$1.50 / point for this work.

So, you've got the following:

- Cover annual dues \$4.00
- Lost interest or value \$4.50
- Rent hassle (time, etc.) \$1.50
-----
TOTAL \$10.00 / point

Renting at about \$10 / point covers your out of pocket costs and gives you some "interest" or lost opportunity value for your points that you will not use.

Cap

dvcdudes
02-08-2001, 04:47 AM
I only wish I would have known about renting points years ago. Before we became DVC members, we spent quite a few nights in the All Stars. If I had know that I could have been staying in OKW or BWV for just a few bucks more a week, I would have jumped on it.

DVCDUDES
Owner BWV Feb 2000

PamOKW
02-08-2001, 04:57 AM
Years ago there wasn't the ease of renting through the Internet and fewer members were involved in renting of points to strangers.

dvcdudes
02-08-2001, 06:38 AM
Good point. I guess you can't look back. Actually I would have purchased DVC back then if I had known about it. Talk about going through with blinders on. We only found out about DVC on our trip Feb 2000. The only reason we went on the tour was because my son got sick and we had some time to kill. I guess everything happens in its own time.

DVCDUDES
Owner BWV Feb 2000