Cost to Rent Points

[disneycrazed139]

Shamus-
Thanks for that explanation.

 

[Richyams]

The antitrust laws are actually pretty interesting. There are three things you can't do.

1. You can't make you price higher than everyone else's, that is gouging.

2. You can't make your prices lower than everyone else's, that is dumping.

3. You can't make your prices the same as everyone else's, that is collusion.

An interesting set of laws indeed.

 

[KANSAS]

I feel that very few people, that own non disney timeshares, ever get any economic value, of their timeshares, thru rental, because of the inflexiblity, of the one week commitment

one of the things,that I value most about about DVC Points. I feel that once every three or four years. I can rent out my points, with no trouble and make $5.50 per point profit, at least.

scary question? could disney stop up the ability to rent our Dvc pts, say one years worth of points, to several people at $9.50-$10.00 per point, which is not unusual??

 

[Doctor P]

Got to defend Richyams on this one. We've got a lot of people here who appear to be ignorant/naive of antitrust law. BTW, efforts to collude (whether successful or not) can also be punished.

 

[Zurg]

This is right up there with hallway lenght IMHO. Your milage may vary.

Most folks are not in DVC to rent.

My home resort is sold out. There is a fixed numebr of points it isn't going to increase the number of people in the resort if someone rents.

I am in DVC for quality time away from the phone with my family. If DVC doesn't fill that need I'll sell it.

Price is what it is. As was said above it is a market.

Maybe some folks want to make a buck renting points but not many. What do I care? We have been able to find points when I deeded a few more. Great.

As for all the anti trust stuff two thoughts. There is a lot more improtant stuff of the attorny generals office to look into and I lean towards less layers not more.

 

[disneycrazed139]

Well, my initial question was really how was the price determined in the first place. It seemed there must have been discussion about it at some point amongst some people. Thank you again Shamus for providing an answer that made sense!

 

[LBurg93]

Originally posted by disneycrazed139
Well, my initial question was really how was the price determined in the first place. It seemed there must have been discussion about it at some point amongst some people. Thank you again Shamus for providing an answer that made sense!

I have some questions.

How much does each point actually cost the buyer?

Does it depend upon each DVC resort?

If so, then what are the price differences?

 

[Dean]

Originally posted by LBurg93
I have some questions.

How much does each point actually cost the buyer?

Does it depend upon each DVC resort?

If so, then what are the price differences?

Part of the problem is that price is dependent on the variables and what one tends to include. Absolutes are the purchase including closing (if applicable) and the dues. Many of us would include lost income if you took money from savings OR interest paid. If you include the latter, you get real close to $10 pp but it depends on when you bought (the price paid) and which resort (dues variability).

Of course there are other variables including what one would have paid not being a member, savings on meals, how well one is at saving money in general. There's another aspect that we rarely discuss here on DIS and that is that DVC is the golden handcuff. It forces us to go to WDW where we spend money on tickets, food, etc. To many this is a good thing but not to everyone. It does tend to put a dent in the wallet though.

 

[StevieD]

While I agree with the general comments/info on collusion, let me point out one industry which seems to have been able to set prices industry-wide without (apparently) violating anti-trust laws and such - Real Estate sales! How many here think real estate commissions are "set by the market"? As for the rental points, I have always thought people on this forum have used the old $10/point far too quickly - folks ought to be testing the market, charge more, see what kind of demand there is, etc. I've heard that some people are charging more for high demand reservations (spring break and the like) - that's the way rental pricing should be determined. Charge as high as the market will bear!!

 

[Dean]

Originally posted by StevieD
While I agree with the general comments/info on collusion, let me point out one industry which seems to have been able to set prices industry-wide without (apparently) violating anti-trust laws and such - Real Estate sales! How many here think real estate commissions are "set by the market"? As for the rental points, I have always thought people on this forum have used the old $10/point far too quickly - folks ought to be testing the market, charge more, see what kind of demand there is, etc. I've heard that some people are charging more for high demand reservations (spring break and the like) - that's the way rental pricing should be determined. Charge as high as the market will bear!!

Actively conspiring to set the prices is illegal. Seeing what everyone else is charging and setting your prices in line is absolutley legal and the American Way. The end result is usually about the same. Why else would that TV you want be the same price at all the stores in town?

 

[vernon]

When I first started seeing rentals on this board the asking price ranged between $8-10 and often settled on a deal at a lower price. Before 9/11 it seemed the asking price was sneaking to $10-11 and didn't often go lower than 9 unless it was a fire sale (use it or lose it).
Since 9/11 there has been downward pressure for two reasons, less DVCers are going, therefore there are more points available also there are less people in general going to WDW so there are more discounts available and less people looking to rent points. Supply and demand has meant the price has remained stable at a time when it looked it was ready to rise.

IMHO there needs to be a couple of things change for the price to rise
1)Once the economy gets back on line ( which I think it will by the end of this/start of next year, so I think Xmas will be a busy time at WDW)
2) If the dues price starts edging up and goes above the next $ figure (i.e. if its 3.80 per point and goes to $4.10)
I think once it starts to move up it will jump to $15 as the "standard" asking price and trading down to $11/12

 

[2thdr]

There is risk and work in renting points, as well as cost.