Cost to Rent Points

[disneycrazed139]

I saw another thread discussing the possibilities associated with a lack of new codes/no AP rates and a suggestion made that this might increase cost of renting DVC points.

It got me thinking about more people buying into DVC, and the feeling perhaps that even SSR may try to attract many who have habitually reserved at moderates. (size of resort/ food court type option, etc.)

Anyway, my question is this...with the popularity of DVC growing, and with the lack of codes and some of the former discounts available, at what point does the general rental rate per point go up? I know that individuals ask their own price per point, but what would cause most people on the rental board to ask for $11-12 instead of $10 per point? Some sort of consensus among DVC members?

 

[Richyams]

"I know that individuals ask their own price per point, but what would cause most people on the rental board to ask for $11-12 instead of $10 per point?"

Nuthut finally getting his way.

"Some sort of consensus among DVC members?"

This is called "collusion" and is punishable by law.

 

[floridafam]

I think you make some good points.

Maybe we will see a rise in the cost to rent. I don't really pay much attention to that aspect of DVC.

Maybe SSR will be popular among people who usually reserve moderates and will now reserve a DVC property on rented points.

I guess we will see.

Maybe more poeple will buy into DVC at SSR.

 

[ncligs]

Originally posted by Richyams
Nuthut finally getting his way.

 

[disneycrazed139]

I don't mean a meeting where everyone decided that point costs should be higher....Do you think that discussion of it constitutes collusion? If someone said, "Point costs are really low considering what a renter gets. Does anyone else think they should be higher?" This is collusison? Others responses are collusion? How so? Do you think that the renter would then be being defrauded? You can still set the per point cost at whatever you think is fair, right?

 

[lenshanem]

I woudl think the price for rented points woudl increase over time as the price to buy into DVc increases? Has this been the case in the past? Or has it always hovered around $10?

 

[disneycrazed139]

I've only been lurking here for a year or two, but it seems to not go higher than $10 and often lower. It's a great deal anyway for would-be renters.

 

[ncligs]

Originally posted by disneycrazed139
I've only been lurking here for a year or two....

 

[JohnNJ]

Originally posted by Richyams
[B"Some sort of consensus among DVC members?"

This is called "collusion" and is punishable by law. [/B]

I don't know where you come up with some of this stuff.

Collusion does not apply here. There are 70,000+ DVC members. If all 300+ that frequent this forum got together and price fixed, it would all be perfectly legal. The people here don't amount to a wad of spit in the overall scheme of DVC things.

It's a matter of simple economics. More people want points, the higher the price will go. At some point it won't make $$$ sense to rent and the price will come down. Charge the highest you can get. Personally, I can't see anyone paying even $10 per point. I think the AP discounts are cheaper, if you can get them.

John

 

[ncligs]

Originally posted by JohnNJ
The people here don't amount to a wad of spit in the overall scheme of DVC things.

 

[Dean]

Originally posted by JohnNJ
I don't know where you come up with some of this stuff.

Collusion does not apply here. There are 70,000+ DVC members. If all 300+ that frequent this forum got together and price fixed, it would all be perfectly legal. The people here don't amount to a wad of spit in the overall scheme of DVC things.

It's a matter of simple economics. More people want points, the higher the price will go. At some point it won't make $$$ sense to rent and the price will come down. Charge the highest you can get. Personally, I can't see anyone paying even $10 per point. I think the AP discounts are cheaper, if you can get them.

John

I can't speak to this situation but I can tell you that in Medicine that if even two people get together that aren't directly in business together and agree on prices, it's absolutely illegal, no matter how small of a percentage they would be. Even with the thinking, this board might be a small percentage of DVC members but a very large percentage of those renting points. For what it's worth. I personally think the price was heading up until the economy hit the skids so I do thing the price will start up soon.

 

[Richyams]

I don't know where you come up with some of this stuff.

Umm, how about the real world?

I would advise you to check your understanding. Agreeing with a competitor on selling prices is collusion. Its a pretty basic concept, really not in any doubt at all. Sorry, but your protest is kind of like disagreeing that water is wet.

 

[childsplay]

Originally posted by ncligs

LOL, NCLIGS
After nearly three years I thought I'd seen them all!!
It's worth showing up here just to see that kinda stuff!

 

[disneycrazed139]

I have to disagree. You're taking a basic concept, yes, but there is a context here. Collussion implies secretes and a pact. There are no secrets and no pact. If anything on this board could represent collusion, then I suppose two real estate agents (umm..they're the ones who set the prices) getting together and discussing current prices of their inventory would also be collusion. I don't see any need for condecension.

 

[KANSAS]

this question is directed towards the long time dvc members

What is the history on rental price per point?

is $10 per point, the norm, for years

has it been higher or lower in previos years??

 

[JohnNJ]

Originally posted by Dean
I can't speak to this situation but I can tell you that in Medicine that if even two people get together that aren't directly in business together and agree on prices, it's absolutely illegal, no matter how small of a percentage they would be.

I think it's already being done. Managed care comes to mind, and the phrase "reasonable and customary".

 

[Dean]

Originally posted by JohnNJ
I think it's already being done. Managed care comes to mind, and the phrase "reasonable and customary".

It's not the same. Managed care doesn't necessarily contol doctors charges, only what they're actually paid. Regardless if 2 get together and agree to prices and they don't have a direct business relationship, they are in violation of the law.

 

[Shamus]

Originally posted by KANSAS
this question is directed towards the long time dvc members

What is the history on rental price per point?

is $10 per point, the norm, for years

has it been higher or lower in previos years??

KANSAS -
Back in 1998 rentals didn't seem to be as popular ( or publicized ) as they are today. At that time there was alot of discussion regarding the value of a DVC point. With 100's of different reasons why, most people thought about $10.00 and most rentals I remember back then where about that rate.

Then in late 1998 early 1999 DVC changed their "Magical Beginnings" program to offer a set amount for each point surrendered. Prior to this MB was a reimbursement for lodging expenses at a Disney Resort and the amount received per point surrendered varied by which resort you were staying at. Anyway --- The amount that DVC set for the new MB program was $10.00. This in a way affirmed people's opinion that a point was worth @ $10.00 to them, and thus the rental rate remained @ $10.

There was a little movement upward towards $11 prior to 9/11 but it's been about $9-$10 since then. This is what I remember -- others may have different thoughts and memories.

Also remeber - DVC is for Personal (Non-commercial) use and a patteren of rental activty may be considered "Commercial" by the Association at their discretion.


Shamus

 

[JimC]

Collusion:

1. A secret agreement and cooperation for a fraudulent or deceitful purpose; a playing into each other's hands; deceit; fraud; cunning.

2. An agreement between two or more persons to defraud a person of his rights, by the forms of law, or to obtain an object forbidden by law. --Bouvier. Abbott.

Source: Merriam-Webster Dictionary of Law, © 1996 Merriam-Webster, Inc.

 

[Richyams]

Water:

Wet


What does that have to do with anything?

Try reading about antitrust and how collusion is against the law and how it is defined.