Renting points to go on DCL!?!?!? How?? Is it worth the headache??

[rescuetink]

I have read many threads that say it is better to rent your points for DCL then it is to use your points. Never having done this I am skeptical as to doing this since I have :confused3 NO IDEA :confused3 how to.

Here is my break down: We plan to sail 11/2011 and for the 4 of us it would cost 561 points. I'll have 167 points left over from 2010, 200 points from 2011 and borrow 194 points from 2012 (I have 200 pts a year at BLT).

To pay cash it would cost us $3,669.73 for just the cruise, I wanted to compare apples to apples so I did not include ground transportation or insurance.

I have no idea how much I can get for my points, or how to go about renting them. Is it really worth doing this if I don't know how? Or would I just be causing myself unnecessary headaches attempting to?

(PS. Since we'll be in WDW in May 2010, and on the DCL in 2011, we don't plan to travel in 2012 so my points lost there aren't a concern!!)

PPS. WE LOVE DCL!!!!

[yitbos96bb]

I have read many threads that say it is better to rent your points for DCL then it is to use your points. Never having done this I am skeptical as to doing this since I have :confused3 NO IDEA :confused3 how to.

Here is my break down: We plan to sail 11/2011 and for the 4 of us it would cost 561 points. I'll have 167 points left over from 2010, 200 points from 2011 and borrow 194 points from 2012 (I have 200 pts a year at BLT).

To pay cash it would cost us $3,669.73 for just the cruise, I wanted to compare apples to apples so I did not include ground transportation or insurance.

I have no idea how much I can get for my points, or how to go about renting them. Is it really worth doing this if I don't know how? Or would I just be causing myself unnecessary headaches attempting to?

(PS. Since we'll be in WDW in May 2010, and on the DCL in 2011, we don't plan to travel in 2012 so my points lost there aren't a concern!!)

PPS. WE LOVE DCL!!!!

TO rent points, you would post how many you have on the Rental thread and then you would be able to either call and reserve specific resorts for people or if someone wants to buy a large majority and are DVC owners, you could just transfer them to that person. I recommend one of the boiler plate contracts floating around to help with ease of mind.

After you make the ressies, you send them the conf #'s and collect the money. I usually PM them close to the trip to see if they need anything changed or added.

If you want to do this, you will want to bank your 2009 points and go into 2010 and then you'd have to borrow your 2011 points... although you probably won't need them.

Points generally go from 10-13 a point, although some people who are desperate will low ball. However, given the amount of time until you sale, I'd say charge $11 or 12 and wait it out. Reserve the sailing with the deposit and then pay it off with each sale. But at $10 a point, DVC is basically charging $5600 for the cruise cost. Renting that number of points nets you a ton of extra dough for the trip... or you rent only what you need and save your points.

That's the long and short. Read the FaQ on the Rent/Trade board for further details.

[yitbos96bb]

I missed it was at BLT... Definitely hold out for the bigger dollars. I'd honestly start trying right before the 11 month Christmas window as I'm betting that MK view during that time will get you 11-12 with no problems. Just my opinion though.

[supersuperwendy]

We are currently debating the same thing..whether to use points for DCL or not. I think we should go ahead use our points. Phil thinks we should save our points and use $$ for a cruise. I disagree. We have 4 kids and the cash rate is tremendous for us. I think since we have the ability to cruise with our points and save our cash we should do it!

Stay tuned....

[Crystal_27]

We went back and forth on this issue for several months before deciding to just use our points to book our upcoming 2011 cruise. I'm sure that renting points would have netted us some cash after paying for the cruise, but it's just too much hassle involved (plus, deadling with whatever tax implications are involved would be another headache, I'm sure...). Still, a lot of people do it successfully and it works for them. For me, though, it's difficult enough being responsible for my own vacations; I certainly don't want to be responsible for someone else's - LOL. Good luck.

[AnimalPrincess]

We just went through the same thing! I have rented once before so that was our first idea. I tried for a little while with no success and then we decided that we wanted to be sure that we could cruise, we didn't want to wait. Plus I didn't want to borrow the points hoping to get a renter and then be stuck with the points. I am really glad we booked because we got the last room in our category. Bottom line it is true that if you rent out the points you are coming out ahead, moneywise, however it is not a done deal so you have to be prepared for that. Good luck!

[rescuetink]

Crystal and Princess, you both hit on my concerns!! I figured I can make a few bucks to cover my air and transportation, however I wonder if the hassle or taking the chance of renting the points was worth it!! Especially since I have never tried this before!! Are there really tax implications too, I never even considered that!?!? Do you have to claim that money as income?? :confused3

[rescuetink]

[QUOTE=yitbos96bb;34813282]I recommend one of the boiler plate contracts floating around to help with ease of mind.QUOTE]

Excuse my limited knowledge... but what's a "boiler plate contract"???

[vicki_c]

[QUOTE=yitbos96bb;34813282]I recommend one of the boiler plate contracts floating around to help with ease of mind.QUOTE]

Excuse my limited knowledge... but what's a "boiler plate contract"???

That just means that there are existing contract templates floating around that you could use -- and edit as you needed to fit your situation.

"Boilerplate" in contracts-speak just refers to the standard terms and conditions of agreements -- things that apply in most cases.

[rescuetink]

[QUOTE=rescuetink;34819582]

That just means that there are existing contract templates floating around that you could use -- and edit as you needed to fit your situation.

"Boilerplate" in contracts-speak just refers to the standard terms and conditions of agreements -- things that apply in most cases.

Are there samples to use? And if it's a "contract" should I have a lawyer or someone more knowledgable look at it first?? That would be a new expense!!!

PS. Thanks!!

[rkwier]

Crystal and Princess, you both hit on my concerns!! I figured I can make a few bucks to cover my air and transportation, however I wonder if the hassle or taking the chance of renting the points was worth it!! Especially since I have never tried this before!! Are there really tax implications too, I never even considered that!?!? Do you have to claim that money as income?? :confused3

Yes, I do believe that you have to claim it as income.

We have cruised on points and would do it again in a heartbeat. I understand the option of renting and the potential for income, but I have no desire whatsoever to rent my points. I bought them to use and enjoy. We were recently able to do a 3-day on points. We had airline miles for the airline tickets, so we basically got a great and much needed get away for very little out of pocket expense. It was so worth it.

[Crystal_27]

so we basically got a great and much needed get away for very little out of pocket expense. It was so worth it.

I know - - it's indeed a great feeling to know that I got a $2,500 cruise for a mere $95 booking fee using my DVC points for the year. :banana:

[rescuetink]

I am sooooooooooooo leaning on just using my points!!

Although I know my points are worth more in cash, I did buy them to make vacationing simple!! And if all I have to do is call and pay a $95.00 booking fee and it's done, that's simple to me!! All I have to do is get there from the Philly area!!! Any suggestions??? Going my way??? :rotfl2: We may drive since it's a heck of a lot cheaper then flying with 4!!!

[yitbos96bb]

We are currently debating the same thing..whether to use points for DCL or not. I think we should go ahead use our points. Phil thinks we should save our points and use $$ for a cruise. I disagree. We have 4 kids and the cash rate is tremendous for us. I think since we have the ability to cruise with our points and save our cash we should do it!

Stay tuned....

I think you might have missed the point of the thread... She's asking about renting your points and then using the cash to pay for the cruise... not using your own cash instead of your points. Renting and then paying with Cash is a lot more work, but it will save you vs using points for DCL... In the case of the OP, using a $10 pp estimate value, using Points would cost her over $5600, while renting and using the cash would cost her $3600... Saving her $2000, OR giving her $2000 to use for the trip if she rented all 560 points out. Its more work, but for the most value, Renting and then paying Cash is the BEST way to go.

[yitbos96bb]

Crystal and Princess, you both hit on my concerns!! I figured I can make a few bucks to cover my air and transportation, however I wonder if the hassle or taking the chance of renting the points was worth it!! Especially since I have never tried this before!! Are there really tax implications too, I never even considered that!?!? Do you have to claim that money as income?? :confused3

1st off, Renting is WAY more risky for the person renting than the person who is the rentor. You control the points and can always cancel a reservation if someone doesn't pay. Usually, I get 50% up front, especially if I am borrowing or the ressie is within the holding account window, so I have some compensation if they don't pay the rest. Honestly, if they are paying 50% of it, I doubt they will back out. Even if you Did borrow and they backed out, you can just try to re-rent... if you do it far enough ahead of the end of your use year, you'll be fine. Again, with BLT, I don't think you'll have any issues getting someone wanting an 11 month BLT window.

In your case, you can pay for the whole cruise without borrowing... just bank 2009 and then sell them with 2010 and use the cash to pay for the cruise. Later on, in 2011, you can use your points to get cash for the plane tickets and excursions, etc. Yes, its a little more work. But you are maybe talking 3 hours of time at most from the time you put it up to rent to the time they take their vacation. Many have done it on here and I can't think of anyone I have heard of who is the person renting the points having any problems. Even the renters rarely have an issue.

As for taxes, I'm not sure. I'm sure you are supposed to since Uncle Sam likes his money, but just like with Ebay and other things, I doubt most people do. If you have any questions, I'd ask an accountant. You are the only person who can decide what they should do (unless the accountant says no, then its pretty easy.)

[yitbos96bb]

Yes, I do believe that you have to claim it as income.

We have cruised on points and would do it again in a heartbeat. I understand the option of renting and the potential for income, but I have no desire whatsoever to rent my points. I bought them to use and enjoy. We were recently able to do a 3-day on points. We had airline miles for the airline tickets, so we basically got a great and much needed get away for very little out of pocket expense. It was so worth it.

And that's cool for you... in your case, the ease of use is worth the X amount of value you are giving up... I mean, there is no argument using points is equivalent to over paying... but some people pay for convenience and others bargain hunt to get the best value. Only the OP can decide which is best... The OP has to decide if the ease of booking is worth the $2000 she would be leaving on the table. For me personally, it would not. For you, it would be worth it. Neither answer is wrong and it can only be what is write for the OP.

[yitbos96bb]

I am sooooooooooooo leaning on just using my points!!

Although I know my points are worth more in cash, I did buy them to make vacationing simple!! And if all I have to do is call and pay a $95.00 booking fee and it's done, that's simple to me!! All I have to do is get there from the Philly area!!! Any suggestions??? Going my way??? :rotfl2: We may drive since it's a heck of a lot cheaper then flying with 4!!!

Ok... first off calm down. You are getting freaked out over something that is very easy. In fact, once you do it the first time, you'll never worry about it again.

As I said, you are in a much safer position than the person renting as you control the points. There is very little they can do to cause you a problem and even if they did, if you do it right, you'll have their deposit and could still rent their points. Rentals happen all the time with out any problems. If you want to try it with some of your 09 points, I will be happy to assist you in any way I can.

http://www.disboards.com/showthread.php?t=1523638&highlight=Tax+Implications+points+rental&page=2

Read this thread about the taxing. It's a mixed bag of advice, although I found BPMorley's (an ex IRS worker) post especially informative and entertaining. PM me if you want my opinion on it.

http://www.disboards.com/showthread.php?t=895654&highlight=dvc+rental+contract

Here is a thread on DVC Rental Contracts - As a Seller, I've only used them once and have never had an issue at all, even with an Ebayer I sold an existing reservation to that I couldn't use due to my wife's pregnancy (she would have been 36 weeks at the time of the trip... literally made the ressie a week before we found out). I've had great experiences with DISers and prefer to rent to them here... Ebay is only used because of the DIS's rule about existing reservations.

http://www.disboards.com/showthread.php?t=1709083

Here is the official Rental Board thread...

http://www.disboards.com/showthread.php?t=1255828

Here is the official Rental Primer - This is a MUST READ.

Ultimately, I like renting to DISers with an established reputation... at least 50-100 posts. But I have rented to Newbies too and had no issues.

The biggest thing to remember is you have a while for your cruise. If you want to try doing a small rental, I will be happy to help you in anyway I can. Once you do it, you'll find its very easy...

For me it consists of this:

1) Post the Rental Thread.
2) When someone agrees to the pricing terms, talk with them and find out what they are looking for... ME, DDP, etc. Call MS and verify availability.
3) Have them do a contract (Ok I'm bad about this step, but best practices state to use one) and give a 50% deposit.
4) Call and make the Ressie.
5) Wait for the confirmation letter, make a copy and mail to them.
6) This is optional, but at a month out, I'll email to see if they need any changes to ME, DDP, etc. Otherwise, that's it.
7) After their vacation, send an email followup... again its optional.

That's it. Seven steps...at most you'll spend 3-4 hours on it... probably less.

Remember the Hitchhiker's Guide to the Galaxy and Don't Panic!

[yitbos96bb]

I know - - it's indeed a great feeling to know that I got a $2,500 cruise for a mere $95 booking fee using my DVC points for the year. :banana:

That's funny... To me it would be a horrible feeling using something worth $4000 or so in value to pay for a $2500 cruise. It's amazing what bothers and comforts different people. No right or wrong way, just which is better for the person.

[Muushka]

That's funny... To me it would be a horrible feeling using something worth $4000 or so in value to pay for a $2500 cruise. It's amazing what bothers and comforts different people. No right or wrong way, just which is better for the person.

What bothers me even more than the value thing is the cancellation thing. You book a cruise months and in some cases, years ahead. You never know what can happen. And if it does happen that you have to cancel, the value is down even further. At least when you book with cash, you can cancel up until the 90 days out without any penalties.

[Inkmahm]

That's funny... To me it would be a horrible feeling using something worth $4000 or so in value to pay for a $2500 cruise. It's amazing what bothers and comforts different people. No right or wrong way, just which is better for the person.

I"m with you. Paying $4,000 for something worth $2,500 is heart attack zone for me!

Even easier than renting is transferring points. I've never rented to anyone but I have transferred points to a fellow member as well as had points transferred to me from a fellow member. That's even easier than renting!

[yitbos96bb]

What bothers me even more than the value thing is the cancellation thing. You book a cruise months and in some cases, years ahead. You never know what can happen. And if it does happen that you have to cancel, the value is down even further. At least when you book with cash, you can cancel up until the 90 days out without any penalties.

Fair points... One of the reasons I would always pay the fee for Travel insurance whether I went with Points or Cash for a cruise. Of course the points I believe are only paid out at $5 pp if cancelled, which is a big degredation of their value.

[yitbos96bb]

I"m with you. Paying $4,000 for something worth $2,500 is heart attack zone for me!

Even easier than renting is transferring points. I've never rented to anyone but I have transferred points to a fellow member as well as had points transferred to me from a fellow member. That's even easier than renting!

Agree 100% there. The only hard part with transferring is that Disney has hardened up on that lately and are really enforcing the once a year... at least in my experiences. So for the OP, it wouldn't be easy to find someone who would want 360 to 560 points transferred. But if she could, then absolutely, that's easy.

[rescuetink]

Here is my break down: We plan to sail 11/2011 and for the 4 of us it would cost 561 points. I'll have 167 points left over from 2010, 200 points from 2011 and borrow 194 points from 2012 (I have 200 pts a year at BLT).

To pay cash it would cost us $3,669.73 for just the cruise, I wanted to compare apples to apples so I did not include ground transportation or insurance.


Ok... first off calm down. You are getting freaked out over something that is very easy. In fact, once you do it the first time, you'll never worry about it again.

As I said, you are in a much safer position than the person renting as you control the points. There is very little they can do to cause you a problem and even if they did, if you do it right, you'll have their deposit and could still rent their points. Rentals happen all the time with out any problems. If you want to try it with some of your 09 points, I will be happy to assist you in any way I can.
http://www.disboards.com/showthread.php?t=1523638&highlight=Tax+Implications+points+rental&page=2

Read this thread about the taxing. It's a mixed bag of advice, although I found BPMorley's (an ex IRS worker) post especially informative and entertaining. PM me if you want my opinion on it.

http://www.disboards.com/showthread.php?t=895654&highlight=dvc+rental+contract

Here is a thread on DVC Rental Contracts - As a Seller, I've only used them once and have never had an issue at all, even with an Ebayer I sold an existing reservation to that I couldn't use due to my wife's pregnancy (she would have been 36 weeks at the time of the trip... literally made the ressie a week before we found out). I've had great experiences with DISers and prefer to rent to them here... Ebay is only used because of the DIS's rule about existing reservations.

http://www.disboards.com/showthread.php?t=1709083

Here is the official Rental Board thread...

http://www.disboards.com/showthread.php?t=1255828

Here is the official Rental Primer - This is a MUST READ.

Ultimately, I like renting to DISers with an established reputation... at least 50-100 posts. But I have rented to Newbies too and had no issues.

The biggest thing to remember is you have a while for your cruise. If you want to try doing a small rental, I will be happy to help you in anyway I can. Once you do it, you'll find its very easy...

For me it consists of this:

1) Post the Rental Thread.
2) When someone agrees to the pricing terms, talk with them and find out what they are looking for... ME, DDP, etc. Call MS and verify availability.
3) Have them do a contract (Ok I'm bad about this step, but best practices state to use one) and give a 50% deposit.
4) Call and make the Ressie.
5) Wait for the confirmation letter, make a copy and mail to them.
6) This is optional, but at a month out, I'll email to see if they need any changes to ME, DDP, etc. Otherwise, that's it.
7) After their vacation, send an email followup... again its optional.

That's it. Seven steps...at most you'll spend 3-4 hours on it... probably less.

Remember the Hitchhiker's Guide to the Galaxy and Don't Panic!

Thanks YITBOSS... I may just take you up on your offer!! It still seems very involved and confusing for a novice like me, however my wife will be elated if I can rent the points and cover the cost of our air fare for the four of us!!

I will be using my 2009 points for a WDW trip this may, so I have the points left as noted above. I have never PMed so I'll figure that out and contact you when I have more time!!

THANKS ALL!!! I love the opinions and information that your all willing to share here on the Dis!! :yay:

[Crystal_27]

That's funny... To me it would be a horrible feeling using something worth $4000 or so in value to pay for a $2500 cruise. It's amazing what bothers and comforts different people. No right or wrong way, just which is better for the person.

Actually, we only used 300 points for our cruise, so our points value was "only" worth about $3,000. For me, not having to deal with the renting was well worth the loss of $500 (or so) in value. Had it been closer to $4,000, I might feel differently... :rolleyes:

[WolfpackFan]

That's funny... To me it would be a horrible feeling using something worth $4000 or so in value to pay for a $2500 cruise. It's amazing what bothers and comforts different people. No right or wrong way, just which is better for the person.

Doesn't bother me at all. Our cruise next year "cost" 284 pts. total. For me, it's "worth" the 284 pts. Yes I could rent the points and then pay cash, but I just don't want the hassle. Paying the premium is worth the convenience to me. I've never done well in dealing with people and usually get taken whenever I buy a new car. In fact, I just bought a new Saturn and it ended up costing me a lot more than it's worth :rotfl2:. With my luck, I'd probably ask for $10 a point and folks would only offer me $5 and I'd probably take it :rotfl:. I guess the bottom line is in my mind I don't equate my points as having a dollar value, I look at it as a resource to book vacations.

[Anal Annie]

Here is my break down: We plan to sail 11/2011 and for the 4 of us it would cost 561 points. I'll have 167 points left over from 2010, 200 points from 2011 and borrow 194 points from 2012 (I have 200 pts a year at BLT).

To pay cash it would cost us $3,669.73 for just the cruise, I wanted to compare apples to apples so I did not include ground transportation or insurance.




Thanks YITBOSS... I may just take you up on your offer!! It still seems very involved and confusing for a novice like me, however my wife will be elated if I can rent the points and cover the cost of our air fare for the four of us!!

I will be using my 2009 points for a WDW trip this may, so I have the points left as noted above. I have never PMed so I'll figure that out and contact you when I have more time!!

THANKS ALL!!! I love the opinions and information that your all willing to share here on the Dis!! :yay:

WE cruised once on points and doubt we'll ever do it again. We did a 4 night cruise in July 2008 & back then it "cost" us 397 points for a Cat. 10. We only own 250 points so that was well over 1 1/2 years worth of points for just 4 nights. I didn't want to start borrowing points so then we did 2 DVC cash ressies in order to go to WDW. I told DH no more cash ressies - next time we do an add-on instead. Well, THAT plan wouldn't save us anything & really isn't a solution! :lmao: Once we got caught up on our points again last year we were able to take 3 trips on our measley 250 points for a total of 14 nights. Soooo we started weighing 4 nights to 14 nights. 4 nights....14 nights. Every year....every other year. Every year....every other year...4 nights vs 14 nights. OH and the cruise point charts have since gone UP - that same cruise in 2010 would've cost another 67 points!!

I do not want to mess with renting & claiming the money as income & deal with the worry I would have over our renters. After thinking about it I am NOT willing to lose 10 nights of vacation AND have to skip a year. The cash price of the cruise is a much better deal - esp. if you re-book on the ship for the rebooking discount & onboard credit. Personally, we don't want to give up 3 years of vacations for just one year (and for a shorter vacation at that).

With the Dream coming out in 2011 the cruise prices are becoming more reasonable & I think are a better value. We actually did back-to-backs on the Wonder that year - used points for the 4 n cruise & paid cash for the 3 night one in the same cabin. I think we paid some ridiculous price of like $3,200 for that 3 night cruise... MEANWHILE we now have a 10 n Med cruise booked with our rebooking discount in the same Cat 10 for just under $6,000!! Doing the math, our 3 night cruise was $1,066 per night while our 10 is only about $590 per night!!! We MAY flip the 10 night to one of the 7 night ones & that would only be $557 / night. I think that shows the shorter cruises are less of a value as well as a tremendous drop in prices for 2011 and would still rather keep our DVC points to use within DVC from now on.

Just my thoughts.:confused3