Calculating real price of an add-on. Help!

[bunny]

I spoke with my guide this morning and I can buy a 100 point add-on at AKV for $104 per point. The use year of my original contract is April so I would get the same use year for my add-on. Upon purchasing, I would receive 300 points (100 for my use year and 200 developer points which need to be used within 7 months). So my total upfront cost is $10,400. From the rent/trade boards it seems I could rent the AKV points for $11-12 per point. If I rented all 300 points at $12 per point, I would net $3,600. So the true cost of the 100 point add-on would be $6,800 or $68 per point. If so this is a great bargain. Am I calculating anything wrong? I have rented before, so I am not worried about that aspect and I am already taking a trip this year so I really don't need this year's points. Is there something I am overlooking? TIA.

 

[Anthony1971]

Although your math is correct there is still a risk of not being able to rent all of them or at that price but you will still gain by doing it this way.
You may as many wnat to consider 2 50 point contrcats in case you need to sell it is always better to give yourself a lot of options.

 

[salmoneous]

From the rent/trade boards it seems I could rent the AKV points for $11-12 per point. If I rented all 300 points at $12 per point, I would net $3,600... Is there something I am overlooking? TIA.

Renting all 300 points for $12/point is going to take a lot of work on your part. I haven't looked at the rent/trade boards for a while, but there is always a price differential for "distressed" points - those that have to be used in a limited time. And there is always the worry of a rental deal having problems.

Those developer points are going to bring your costs down, but I wouldn't plan on getting $3,600. Me? Just to pull numbers out of a hat, I'd assume I could rent 280 of the points for $9 each. I'd shoot for and try to get more than the $2,520 that yeilds. But that's what I'd figure in my decision.

 

[zalansky]

Are there closing costs involved witht his transaction? I am assuming no, since its through Disney, but want to make sure. This is a good deal.

 

[extremesoccermom]

You may as many wnat to consider 2 50 point contrcats in case you need to sell it is always better to give yourself a lot of options.

With 2 50 point contracts would you still get the incentive?

 

[DisneyMomOK]

I originally purchased AKV in March and, at that time, 2 50 point contracts would get you the developer points. As far as renting, I believe with the 7 month limit, you should look at $10 a point, not the $12. There appear to be a lot of those developer points for sale (although not described as such); too many people are selling points for $9 a point.

Sharon

 

[ttepsich]

What is the minimum amount of AKV points you need to purchase to get developer points? Want to do a small add-on to my main contract that has an October use year.
Thanks,
Tina

 

[edcarmo]

What is the minimum amount of AKV points you need to purchase to get developer points? Want to do a small add-on to my main contract that has an October use year.
Thanks,
Tina

The minimum is 100 points (to earn developer points)...