$10- too cheap for resort rooms!!

[icydog]

I wonder why everyone rents their points for $10. I just bought at BCV and the cost per point is close to the $10 when I figure in the cost of the loan and maintenence. I think a higher number should be in effect for the newer resorts and BWV preferred view. How do you feel about this??
Maybe it should be changed for all DVC resorts. It's an artifical number and if we all agreed to rent at a higher price this can be done.

 

[InstImpres]

Check out this thread
http://www.disboards.com/showthread.php?s=&threadid=423120

The bottom line is it is up to each renter and could be different with each agreement. I have rentedseveral times and have done different rates based on what is available at each resort for that time.

Price fixing however, will never happen here. As mentioned in a post a few weeks ago, you can start high and always lower your price if no takers. (This was for a mid-December ressie discussion)

Good luck
Sandy

 

[CarolMN]

FWIW, the owner of this site has requested that it not be used to organize/promote petitions, email campaigns or other "group actions" similar to what you are suggesting.

The market for points seems to be pretty much a matter of supply and demand. There are several posters who have reported renting their points for quite a bit more than $10 each. Most of those seem to use ebay, though. There are also several posters who believe $6 or $7 per point is the right price.

IMHO, those who rent their points are really competing with Disney, not each other.

Good luck and best wishes.

 

[Maistre Gracey]

I think people can charge whatever they want, and let the market determine who sells and at what price.

That being said, DVC was not designed for its members to go into business renting points.
I think being able to recoup lost money due to cancellation (or other unusual circumstance) is fine, but I am not an advocate of making it a profitable business.

 

[nuthut]

Originally posted by icy-dog
I wonder why everyone rents their points for $10. I just bought at BCV and the cost per point is close to the $10 when I figure in the cost of the loan and maintenence. I think a higher number should be in effect for the newer resorts and BWV preferred view. How do you feel about this??
Maybe it should be changed for all DVC resorts. It's an artifical number and if we all agreed to rent at a higher price this can be done.

No most members do not rent thier points for $10 because they are losing money if they do. The only members renting at $10 or less are either in a pinch with points to dump or can not calculate the true cost of owning DVC. I rent mine for $12.50. Let see your buy in cost are $84 so at 10% your interest cost is $8.40 plus annual dues of $4.11 equals $12.51. The new cost of $89 at SSR will increase everyone's cost.

 

[JimC]

Our average cost per point is $5.46. I don't know how anyone could say their cost is anywhere near $10 per point. You would need to pay $235 per point to get a $6.03 per point over the remaining contract, what you need to say your cost is $10 when you add the $3.97 maintenance fee. I don't see how that is possible.

People rent at $10 because that is what they want for their points, there are renters willing to pay that amount and it is much less than you would pay for equivalent accommodations through Disney.

If members want or need to rent points that is up to them. It is fine with me as I see renters as likely future members. If I were renting to members I would charge less than what I would to non-members. But I would rent only if I needed to. I don't seem to be having trouble using all my points so far.

I bought DVC to enjoy as a prepaid vacation. It will save me money over discounted cash reservations, give me better acccommodations and provide an opportunity to make some new friends.

 

[Regina]

Originally posted by Maistre Gracey
That being said, DVC was not designed for its members to go into business renting points.

That's what I thought, until I went to the DVC presentation on the Disney Magic earlier this month.

We missed the "add-on" presentation so we went to the new member talk to see what was being said about Saratoga Springs.

You can imagine my surprise when the the DVC staffer told prospective members that they can rent their points. This was said a couple of times.

I'm still kicking myself for not asking "really, where?" It simply wasn't the right time.

 

[Dean]

Originally posted by dvcreg
That's what I thought, until I went to the DVC presentation on the Disney Magic earlier this month.

We missed the "add-on" presentation so we went to the new member talk to see what was being said about Saratoga Springs.

You can imagine my surprise when the the DVC staffer told prospective members that they can rent their points. This was said a couple of times.

I'm still kicking myself for not asking "really, where?" It simply wasn't the right time.

Regina, not be designed to rent points and being acceptable are 2 different things. As the POS clearly states, members can rent their points. Those that try to quote the "commercial use" are definitely reading too much into this section. It is only designed to protect Disney, not to prevent renting. Not that they could legally prevent one from renting what they own anyway. Still, it's an age old timeshare ploy and I'm sorry to see DVC has gone that route. I had a rep in MX tell me I could buy there, rent out and use the proceeds to stay in the area and have money left over. He must have been smoking something. At least with DVC there is some truth to it.

 

[ripleysmom]

I hate these threads......

edited to add:

It really pains me to know that there are DVC members out there who make it a point of profiting from their memberships and would even go so far as to fix the rate with other members in order to make additional money.

 

[Doctor P]

I would hate to have anyone who thinks the COST of their points is anything approaching $10 as an investment partner because they obviously are clueless as to how to figure the cost of an investment. With 40 years to go, an initial point cost of $100 works out to $2.50 per point and dues of $5.00 per point is still $7.50 total. Figuring in opportunity cost, interest, etc., to get to $10.00 per point per year, one has to argue that these cost factors account for another $2.50 per point (actually more, because I used inflated costs for the $7.50 figure) which means that you are paying more in these costs than the points themselves!!!!! NOT! For example, the OP obviously is not spreading the costs of their loan over the entire contract.

 

[Dean]

Originally posted by Doctor P
I would hate to have anyone who thinks the COST of their points is anything approaching $10 as an investment partner because they obviously are clueless as to how to figure the cost of an investment. With 40 years to go, an initial point cost of $100 works out to $2.50 per point and dues of $5.00 per point is still $7.50 total. Figuring in opportunity cost, interest, etc., to get to $10.00 per point per year, one has to argue that these cost factors account for another $2.50 per point (actually more, because I used inflated costs for the $7.50 figure) which means that you are paying more in these costs than the points themselves!!!!! NOT! For example, the OP obviously is not spreading the costs of their loan over the entire contract.

Actually, if you finance for 10 years at around 11%, it makes it right at $10 pp or slightly more on at this time. Once the loan is paid off, the prices will change. If I were to buy an asset like DVC as an investment, no way I'd find it acceptable to get my principal back over the entire 40 or 50 years. I'd want to get it back in 20 at the most in addition to a reaonable rate of return.

Directed to the group. I find it interesting that those that have no interest in renting their points are willing to spend so much effort convincing everyone how little value DVC has. Personally I want DVC to have the most value it can. Renting or not. When I see points consistently offered at the lower prices, that's when it will have meaning. Those that want to say it's only $5-6 pp should post their points for rent.

 

[lat]

All I could say is that I was talking to this guy who is renting his pts on the Rent/Trade Board for $7.30 per point this weekend.

He said that he was flooded with offers and one person even paid via PayPal upfront. I think many people here say that the price should be lower. But I don't see the points being offered very often at those prices.

In this instance, I think it is crazy for someone to pay upfront, without knowing the DVC owner or verifying if the points and everything else is legit before paying. Then you have to worry if the pts would be transfered and all that. I am sure everything most likely will be OK, but for someone to take a chance to pay upfront for $1,300, I think there is such a pent up demand on this type of price, that people are willing to go out of their way to compete for the pts.

For those of you who advocate a lower price, anyone want to try?

If there are enough people who are willing to rent their pts for $7-$8, then the market price will come down.


ps Dean, I am saying what you just said

 

[JimC]

I still prefer to use them myself.

Lat, I hope he at least had a written agreement of some kind if he was paying up front. The pent up demand could be related with the decrease in discount codes.

 

[Dean]

Originally posted by JimC
I still prefer to use them myself.

Lat, I hope he at least had a written agreement of some kind if he was paying up front. The pent up demand could be related with the decrease in discount codes.

What good would a a written contract do. It all comes down to trust in the end, contract or not. The issue is to make sure that everything is clear to avoid misunderstandings between honest people. A written contract would not help as no one in their right mind would go through a legal proceeding for this low of a figure, all you'd have is a piece of paper..

 

[icydog]

I think that an owner who rents so cheaply is foolish unless it is a "fire sale" kind of thing.

I don't know why anyone should care why someone rents their points. People here seem offended that some rent their points rather than vacation. I think it is their choice.The more valuable points are to the outside world the more valuable to us as investments. I also don't know why some people take offense at seeing DVC as an investment. Okay it is a great way to prepay vacations at wonderful resorts but we should want to keep the value up. Someday we may wish to sell or rent and I for one think I should get the most money I can.

 

[JimC]

Dean, The primary reason for a written contract is to ensure that there is a correct understanding between the parties. The writing usually forces one to deal with the specifics, each parties responsibilities and the like. The whole purpose of written agreements is to avoid mis-communication or legal proceedings.

We reduce understandings to writing because experience teaches us that memories fade over time.

 

[Maistre Gracey]

Originally posted by Dean
Actually, if you finance for 10 years at around 11%, it makes it right at $10 pp or slightly more on at this time.

I don't have my calculator handy, but I have worked the numbers in the past. If you were to finance for 10 years, you are still paying less than double for your points. If memory serves me correct, it added about $1 per point, per year to the cost of a point. It brought the total cost to about $7/pt, per year.

 

[ClarabelleCow]

My first trip in a DVC room (OKW) was last November and I rented points - $8.50 a point. We emailed back and forth, I gave the women my dates and the resort over the telephone, she called me back that there was plenty of rooms available, she then booked the room and got a confirmation number, I sent her the money thru paypal, in full. Got the confirmation number and varified it. It was simple and painless, alot has to do with trust. Yes I couldn't have cancelled the payment, and yes once she got the money, she could have cancelled the reservation. So it comes down to trust on both ends. I think if you are going to rent, you need to know exactly what you want and paypal is wonderful!

 

[childsplay]

I personally think people should rent points for whatever the "market" will bear. If your market is the Dis rent/Trade Board then the price has been pretty well set at $10 a point.
If your "market" is Timmy Turtle down the street or a guy at work who doesn't know about the Dis Rent/Trade Boards then I guess your price per point might be higher.

Additionally, attempting to establish what is a fair, just, reasonable and equitable point price is contingent upon a host of variables which will differ considerably between menmbers.

 

[KNWVIKING]

It will make it easier to have this exact same conversation in about 4-6 weeks, cause that seems to be about how long it takes for the "$10.00 pp" thread to recycle.