Contract watching

[DisAround]

Is it a normal thing to look over contracts regularly with consideration for how the current/banked points might be used for an upcoming trip or trips with the intention of using what is needed and then dumping the contract? Has anyone done the math on what their break even is based on available points and quick use (given closing cost, CAF, etc.) with the intent of selling shortly after?

 

[DisAround]

Another thought is could a contract be financed and used and sold quickly enough and still be worth it for the point usage? I'm thinking not but if it could be bought at the right timing and low enough...?

 

[Brian Noble]

Is it normal? No idea. Do I do it? No. Would I now that you've mentioned it? No.

I mean, it probably pencils out---there is a reason that some of the larger rental organizations buy-strip-flip contracts---but I can't see myself spending the time it would take to do this to save money on personal vacations.

 

[cruisehopeful]

I don't know if anyone has done that. Something to keep in mind is that when you buy, you pay closing costs and the $500 new fee. When you go to sell, you'll pay commission and Estoppel and notary. Could it pan out? Maybe, but so could gambling in a casino.

 

[intamin]

I'd be willing to bet it's easier to just rent points for that trip and avoid being stuck with the contract or being forced to sell it under value to dump it. It would also be much faster to rent and you wouldnt have to wait for ROFR and then closing and then have to go through the process again to sell it. Even if I did somehow save money doing that, I can't imagine it's worth the hassle.

 

[Tatebeck]

I look at contracts all the time! But not to strip and flip them...

 

[IsDVCForMe?]

I started looking at them more. Would buy a fully loaded contract knowing those extra points would be worth it. But wouldn’t dump it after.

 

[pzw90]

You face a bit of inventory risk, you might just be stuck with it after stripping. Selling it too low to get rid of it then could be a worse proposition than renting or cash stays.

With the other points above, the juice just may not be worth the squeeze

 

[airjay75]

Well, I haven't done that nor do I plan to do it, but have I thought to myself with each resale contract, ok, if get a deal at $X/point, and then decide after a year or two that I don't really want that contract, can I likely sell it without much, if any, loss? Yeah, that math has gone through my head with each resale contract. But, I haven't bought any of my contracts with this being the plan.

That said, I could see this making sense with a small contract where you're not out that much money, are able to secure a really good deal, have a plan to pretty quickly use the points, and then sell it. I could see that effectively being a way to acquire some OTUPs. Of course, it's not without risk, and I'd probably only do that if I was also ok keeping the contract longer to ride out any ups and downs in the resale market.

 

[PolyRob]

I will admit I was interested in a points transfer and considered doing this.

I would check the DVC Resale Market instant sale price to see the easiest way to get out of a contract when running your numbers. https://www.dvcresalemarket.com/selling/instant-sale/