$10 a point? What an insult!

[nuthut]

Seems to be a lot of people trying to rent. Maybe if they were willing to spend more than $10 a point they could find someone to rent to them. Why would any member give their points away for $10 each? $80 for a studio? Insane, when Disney charges $254 plus tax. I wonder if I can get someone to clean my room for $170 a day?

 

[Bigcat]

Damn Straight!!!

Off-Site 2/92
Coronado Springs 11/98
Swan 3/00
MOWC 7/00
BWV 1/01
Hilton Head Isl DVC 3/01
BWV 11/01

 

[Bumpy]

I agree!

 

[Joeblack]

I agree too, but $10 is what the market is paying right now. If you think about it, it covers more or less your annual cost in dollars. I would not want to rent out my points because TO ME they are worth a lot more. Unfortunately you might find it difficult at the moment to get a better price. Maybe if you try eBay you might get somebody to pay up to $17 like it was recently posted in a thread, but I am not a big fan of Ebay.

 

[Jimmac]

I purshased my points in DVC with one thing in mind- to enjoy our vacations using every one of those precious points for our family's enjoyment. Rent my points, NEVER!

 

[jennybobenny]

Actually Joe, nuthut and his son are our resident ebay experts. They've sold so many DVC vacations that Member Services considers them honorary Guides. (j/k)

Seriously though - nuthut it's no surprise that you'd like to see the rental price per point go higher as it would directly impact your sales and profit.

<font face="Class Garmnd BT"><font color="ff69b4"><big>Jennybºoº benny</big></font>
<font color="9400d3">~~DVC Member~~
Onsite: Poly '76, Contemp '98, BWV '99, CBR '00, BWV '00, CBR '01
Offsite: '74 '80 '82 '88
Next trip: BWV~June '01, ASM/BWV~Nov '01</font>
<a href="http://people.ne.mediaone.net/jsmith12/jillian&kylecharacterpage.html">Jillian & Kyle's Disney Character Website</a></font>

 

[Peterd]

Nuthut, I agree with you. Look at the rent trade board. How many points for rent vs. LOOKING for points do you see.

On the first page:
15 requests LOOKING for points and resv.

3 statements or questions (faq) regarding renting,

2 "points for rent" by same person, who has since sold his points, and

1 other 2 day resv. that will be lost in one week.

We went to another site to get some more points for an upcoming family reunion, and they're all gone.

Sounds like Demand high, supply low.

Have to hope I get lucky and my waitlist for add-on at the BW comes through.

 

[LauraS]

The fact of the matter is that as the news that DVCers are renting out points for 10 bucks a night keeps growing, that number will go up. Supply will be far lower than demand. It's already happening. Everyone really should bump up that number to $15 or so per point minimum. I'm not by any means suggesting that people should buy into the DVC to make a profit, however, 10 bucks a point vs. what Disney gets is a bit ridiculous. I hate the idea that there are folks out there buying 2,000 pt contracts purely for profit. I'm talking about the person who can't make it one year, or they have a bunch of points left over and need to get rid of them. Or, the person who is having a rough time financially and wants to rent their points for a year or so instead of selling their contract. We bought into DVC for ourselves and to take family and friends, but renting out for 10 bucks a night is really giving someone else a steal of a deal. That's great if you're only out to cover your dues, but you need to think of your original investment, lost interest...blah blah. You get the drift....it should be at least $15 a point easy.

Laura

 

[pluto109]

never rented never will

 

[nuthut]

Actually, most the rentals I do are to friends, family members and business aquaintetances (sp)
These people realize the "True Value" of Disney Points and don't have any problem paying for them.

Also about 40% of my renters have joined DVC during or after their stays. You better believe that DVC and my guide likes that. Oh, If only I could get something for a referal.

 

[chris1gill]

Someone in an above post said that 10 dollars is what the market rate is. Actually, if we ask for more, the renters will pay more! Do you see how many people are trying to rent points? The market will bare significantly more than ten dollars a point... at least 15.00...

 

[McGrane]

It is clear that Nuthut bought his DVC as an investment vehicle and is trying his hardest to drive the price of his product up. I personally hate when I've had to sell my points because vacation time with my kids is worth more than any money I have the potential to make. However, twice I've had to do partial sells and my rules are: 1. Sell ONLY to DVC members; and 2. Sell at a fair price, usually $7-$9/point depending on expiry. The sales have been quick, paid in full up front immediately, with someone I can trust because there is the link with DVC.

I find this Ebay selling to be outside of what was intended in the DVC guidelines. I also find it unethical for Nuthut to be putting posts out trying to boost point rate, using this Board just as an advertisment tool.

 

[bigdisneydaddy]

Since we havent seen one of these posts from you in a while, I was anticipating another one of your attempts to drive up rental prices.

 

[rsinj]

This is now the third time I've seen this thread started in as many weeks.

Why is it that you feel so insulted about a rental of $10/point? Do you feel you were overcharged for your DVC membership? If so many people feel this way, then sell your memberships (notice how the purchase price/point keeps going up yearly) and end your frustration - you can very easily resell. Do you see a lack of DVC memberships for sale? Do you see how the resorts are selling out one by one?

The fact of the matter is that you're paying significantly less than $10/point, so again, why do so many people have a problem? Because they can quickly calculate that at $10/point someone is paying "only" $80/night when Disney is charging a rack rate of $200 or $300? We have an economy based on supply and demand. Obviously if people are getting/paying $10/point, then that is what the market will bear.

What was your cost/point? It's quite simple to calculate:

(annual maintenance/point) + (present value of purchase price/point)

You paid roughly $65/point for 40+ years of ownership. That is about $1/point if you take the value adjusted for inflation. So you are paying less than $5/point as a DVC member. When you calculate that someone is paying $80/night, you are paying $40 a night for the same room. Again, where is the problem?

You have every right to feel insulted and I won't tell you otherwise. However, ranting just because you see $10/point posted for a rental is hardly something to be upset about - because you are still paying much less than that.

 

[bicker]

I attend a convention held at the Dolphin, Swan, YC and BoardWalk each January. A room at the BoardWalk Inn costs $225 plus tax per night during that convention. I would not rent my points so someone could stay there for less than $200 (no tax) per night. Well, the reality is a studio is 9 points -- that's $22.22 per point. I'd have no problem renting my points for that amount, if I weren't using the points myself.

Brian Charles Kohn
"in my own words"
Some Imagination, huh? - Mickey Mouse

 

[nuthut]

You forgot to include the biggest expense into your calculations. Interest. You would have gotten some kind a return on your money if had put it somewhere else other than DVC.

So I would calculate an annual point cost:

Interest 10% of $72.00 equals $7.20
Annual dues $3.80
Depreciation 40 years @$72 equals about $1.75 for a grand total of $12.75.

 

[Stinson]

A few weeks ago, as I was organizing our February 2002 vacation, I discovered that I was short 12 OKW points, even with borrowing. So I went to the Rent board and posted a notice that I wanted to rent 12 OKW points. I received three responses by e-mail. Two offered to sell me the points. But the surprise was that one person sent me an e-mail offering the points for free. He said that he was happy to do that for a fellow DVC member. As it turned out, I didn't need to accept his offer because I decided to split the number of days on our vacation between OKW and BWV. (4 days at OKW and 5 days at BWV). What a nice thing that was for someone to have done.

 

[rsinj]

If you buy outright, you have no interest expense. My purchase price was $67/point and that's the end of it.

However, if you finance the purchase of points and try to run a business reselling those points, it is very easy to see how you would be operating at a loss until you could get the $12.75/point you've calculated - and that's assuming you financed 100%, which doesn't ever happen.

But true, I hadn't even considered the cost to those who finance - but obviously that's their choice and I am sure that before purchasing, they did the necessary calculations to justify their own purchase.

 

[rsinj]

>
Interest 10% of $72.00 equals $7.20

Depreciation 40 years @$72 equals about $1.75 for a grand total of $12.75.
>

You forgot to include the effect of inflation over that time in your calculations. $72 today will be worth nowhere near as much 40 years from now. Same goes for that 10% interest - it is based on $72 in 2001 dollars. Time value of money.

 

[PamOKW]

Nuthut, you paid $72 per point?

The DVC board here was set up for use the way Stinson described. As a convenience for DVC members. If it's going to be used to force up the price of rental points for non-DVC (as well as DVC members) then it's really a commercial venture and Pete should be cut in on the "action". All the other resorts pay to advertise here on the DIS why should DVC rentals be free? In fact, DVC rentals on a large scale are in competition with his offsite resorts.

The fact remains that renting DVC points is not a normal reservation of hotel rooms. There is risk for the renter. If they are not getting a substantial deal on the price there is no reason to rent.