A few questions from a DVC newbie

[kashkdz]

Hi--

We just made the plunge and recently purchased at Saratoga Springs, and we are just thrilled. We bought 150 pts to start. Now I've got a few questions.

1. Why do people sell their points? Why don't they just "bank" them for a later year. Is the situation that they have already banked them, and its either they use them that second year or else?

2. How is this $8-$9-$10 per point determined when I see people selling their points?

3. When it comes time to add-on, what is the advantage/disadvantage of adding-on to your "home" resort vs. another Disney resort?

Thanks in advance.

 

[michaeln]

Originally posted by kashkdz
Hi--

We just made the plunge and recently purchased at Saratoga Springs, and we are just thrilled. We bought 150 pts to start. Now I've got a few questions.

Welcome Home.. We bought there last month.

1. Why do people sell their points? Why don't they just "bank" them for a later year. Is the situation that they have already banked them, and its either they use them that second year or else?

Well some people do it because they aren't taking their trip this year and will not be able to take an extended vacation the next year. So they rent the points out to make a little off of them. It at least helps to pay the dues for the year and a little extra.

Others, unfortunately, buy a massive amount of points just to rent out as a business. I don't think this is right to other DVC owners.

Then there is what you said. They waited to long in the year to bank there points and need something to do with them. Basically there are various reasons for renting out points and it will vary from person to person.

2. How is this $8-$9-$10 per point determined when I see people selling their points?

Well everyone seems to have a different way coming to up with their price. The best way IMHO is to take how much you paid for the point. At SSR $79 after credit. Divide that buy the 50 years to get the per year cost. At the dues for the point which is approx $3.80 (which comes to $5.38), and then add a little extra in there for yourself.

3. When it comes time to add-on, what is the advantage/disadvantage of adding-on to your "home" resort vs. another Disney resort?

The important thing to keep in mind is if you are using your 11 month home resort advantage to book a stay you can only use the points you have at that resort to book the room.

I.E. You have 150 points at SSR and 50 points at BWV.
It is 9 months out and you want to book a stay at BWV. You can only use the 50 points you have at BWV to book the room. If it were only 6 months out you could use all of your points.

Thanks in advance.

Your welcome and I hope this helped.

 

[spiceycat]

1 - I think you mean rent them - so selling points you lose all rights - some people might need extra money for a while - don't necessary want to sell the points - so they rent them

there is another person who brought his points to rent them period.

2. the rental rate use to be $8 a point - then DVC started their back buy at $10 a point - so now they are valued at $10 a point - probably until DVC offers more money per point - everyone seems happy with $10 a point who renters and rentees (except people who own their points to rent)

3 - just depends upon what you want - some members only want to own one resorts - others like to do different things at different times - if you want the BCV or BWV for the food/ wine festavial it is better to own there - any WDW DVC resorts for the first two weeks of December - go then if you have the chance - everything is so beautiful - parks, DD, resorts, the special shows..... several websites have their convention then -

now the disadvantage to owning other resorts - is you have to kept up with your points there too - but in this age of computers and worksheet (123 or excel) - this is just not a problem - there are a couple of worksheet out there if you do have a problem

 

[Happy Birthday Cat]

Why do people sell their points? Why don't they just "bank" them for a later year.

Often people rent their points to take other vacations. I have rented points to use to pay for a Disney Cruise. If I had used points to crusie they would have been valued at around $7.50 per point. By renting them at $10.00 per point, I came out way ahead and had a great Disney vacation.

HBC

 

[Merilyn]

We started with 270 at OKW and added there to 450. We decided we wanted the ocean option so we added on at VB for 150. We wanted the 11 month window to have the option for the ocean view cottages. The 11 month window is important if you want something special like a GV or the VB cottages. They are almost impossible to get without the 11 month window. We have never rented out our points but may someday to take another trip. It is more expensive to use the points to cruise or trade to some other locations. I also think is wrong to buy points to make a business out of it. It is one thing to rent points you can't use rather than lose them or sometimes take another trip, but to make money off them as a business is not fair to any of our members.