At what level of savings would you rent your points and get a cash room instead?

[Snurk71]

Curious what people think (renters, mainly - as they are already comfortable renting their points)...

If you could save $X renting your points to someone and using those proceeds to get a DVC room from Disney, how much would $X need to be to do it?

I'm looking at a 4-night stay that I feel pretty confident I would ultimately pay $350 less for if I rented my points and got the same room from Disney as a cash guest (yes, I'm including tax). Would you do it? I doubt I would do it for under $100 savings. But $350 is looking like some real money to me.

I've rented a number of times, so renting is no big thing to me.

Thoughts?

 

[disneynutz]

IMO it's more about staying at your favorite resort, the savings is a bonus.

Bill

 

[Snurk71]

IMO it's more about staying at your favorite resort, the savings is a bonus.

Bill

Same resort, same room category.

 

[Minniesgal]

No level of savings i wouldn't give up my 1 bedroom for a hotel room anywhere at any price

 

[Snurk71]

No level of savings i wouldn't give up my 1 bedroom for a hotel room anywhere at any price

This is for a 1BR, same resort. It's just a question of DVC reservation vs. making a cash reservation for the room

Maybe I should have stated that more clearly in my initial post. This situation is for the exact same room category/resort - just a choice of using points or renting my points and banking $350.

 

[KAT4DISNEY]

Hmmmmm, interesting question. The $350 you mention puts it on the radar, especially if you had an easy rental. the length of the stay would matter and if you'd be looking at getting that $350 from a single rental vs multiple rentals.

 

[GrumpyInPhilly]

I don't follow. If you can save $ by renting out your points and paying cash why wouldn't the other person just pay cash and save $ as well?

 

[KAT4DISNEY]

I don't follow. If you can save $ by renting out your points and paying cash why wouldn't the other person just pay cash and save $ as well?

They wouldn't necessarily be renting for the exact same days.

 

[GrumpyInPhilly]

They wouldn't necessarily be renting for the exact same days.

Got it. Thanks.

 

[mort1331]

1. Done it multiple times, and got free dining to boot. I thought it was well known here. I would do it even for $100 savings, but thats me.

 

[pangyal]

Interesting- so you can get the free dining promo with a cash reservation for DVC? This I did not know.

 

[KAT4DISNEY]

Interesting- so you can get the free dining promo with a cash reservation for DVC? This I did not know.

Just depends on the CRO offers.

 

[Dean]

Curious what people think (renters, mainly - as they are already comfortable renting their points)...

If you could save $X renting your points to someone and using those proceeds to get a DVC room from Disney, how much would $X need to be to do it?

I'm looking at a 4-night stay that I feel pretty confident I would ultimately pay $350 less for if I rented my points and got the same room from Disney as a cash guest (yes, I'm including tax). Would you do it? I doubt I would do it for under $100 savings. But $350 is looking like some real money to me.

I've rented a number of times, so renting is no big thing to me.

Thoughts?

It depends on what it is. $350 savings on 300 points wouldn't be enough, $350 on 50 points likely would if it were truly savings if it's the same item or maybe to try something different. In part it'd be about the return on the points rather than the savings alone.

 

[CarolMN]

Interesting- so you can get the free dining promo with a cash reservation for DVC? This I did not know.

The DVC villas (but only selected resorts & villa types) are often available as part of a free dining offer. Anyone can call CRO/DRC and a book the offer. Of course, they also have to meet the offer's requirements, which usually include a minimum stay & a ticket of some type.

As you already know, free dining is NOT available when you book through MS (whether you pay with points or cash).

 

[DizBub]

Wouldn't the savings be eroded by the fact that you have paid MFs on your points? Or have you factored that into your calculations?

 

[hakepb]

Wouldn't the savings be eroded by the fact that you have paid MFs on your points? Or have you factored that into your calculations?

It would definately Impact a "professional" renter. And potential present value calculations.

This might be overly simple and miss something:
If we are talking 100 points, $6/point dues, your cash flow is -$600 to use your own DVC points.

If you rent those points for $15/point and book a $1150 cash room: -$600 (dues) + $1500 (cash from renter) - $1150 (cash room rate) = -$250 cash flow

-$250 is better than -$600

 

[CraigInPA]

Don't you have to declare the income from the rental, and pay taxes on it?

 

[DizBub]

If you rent those points for $15/point and book a $1150 cash room: -$600 (dues) + $1500 (cash from renter) - $1150 (cash room rate) = -$250 cash flow

-$250 is better than -$600

Yeah but OP is talking about a considerable "savings" by renting points to someone and paying Disney cash for the exact same accommodation. I just don't see it. What am I missing??

I recently looked into paying cash for 1 night for a 2 bedroom and it sent me screaming to the rental board. Cash price was $884, David's price was $672 and I secured a rental for $576. This is on 48 points. If I had used my own points the dues on that would have been $288 which is exactly half of the rental price that I paid.

Still not getting it.

 

[Snurk71]

Yeah but OP is talking about a considerable "savings" by renting points to someone and paying Disney cash for the exact same accommodation. I just don't see it. What am I missing??

I recently looked into paying cash for 1 night for a 2 bedroom and it sent me screaming to the rental board. Cash price was $884, David's price was $672 and I secured a rental for $576. This is on 48 points. If I had used my own points the dues on that would have been $288 which is exactly half of the rental price that I paid.

Still not getting it.

Let me see if I can better explain it.

I have VGF points, which are pretty desirable for renting. I am looking at making a reservation 2 months out, so VGF isn't available - only SSR is. Say the reservation I want is 4 nights/140 points. I can use my 140 VGF points and my net out of pocket (OOP) is $700 ($5/pt MF).

Alternatively, Disney is offering the same exact SSR room category for $400/night (inc taxes). So my OOP for the cash reservation thru CRO is $1,600. But now I look to rent my valuable VGF for 11 months out (different time than the 2 months out for my travel) at $15/pt - so I receive $2,100 income from my renter. I still have to pay the $700 MFs on those 140 points though. So my cashflow in this scenario is $2,100 rental income - $1,600 cash reservation thru CRO - $700 MFs = $200 total OOP.

Renting points from someone else doesn't make sense in this deal because DVC doesn't discount room points like CRO can/does - the room will still need 140 points. So if I rent someone's points from David or whoever at $14/pt, that would cost me $1,960 OOP. That's $360 more OOP than renting the room thru CRO for $1,600.

Math points me towards taking the path that costs me $200 OOP vs. $700 OOP.

Even if I drop my rental price expectation to $14/pt instead of $15, I'm still $360 ahead renting the cash room thru CRO vs using my points.

 

[hakepb]

Yeah but OP is talking about a considerable "savings" by renting points to someone and paying Disney cash for the exact same accommodation. I just don't see it. What am I missing??

I recently looked into paying cash for 1 night for a 2 bedroom and it sent me screaming to the rental board. Cash price was $884, David's price was $672 and I secured a rental for $576. This is on 48 points. If I had used my own points the dues on that would have been $288 which is exactly half of the rental price that I paid.

Still not getting it.

Without seeing the details, the member might get more per point renting out a, say, 11 month booked F&W October reservation than a 25% member cash discounted Labor Day room.

There should never be a specific week where the cash rate is less than the rented points rate.

Basically, use points to rent a high demand DVC week and pay cash for a low demand DVC week?