Cruise on points/I don;t think so!!!

[flying_tigger]

There is no reason to calculate the food and entertainment because they are included in the cruise either way.

That's right, but they're not at WDW. If one is set on going on a cruise no matter what, it wouldn't matter; but if deciding whether to use points for a WDW vacation or a cruise, it certainly would.

 

[Dean]

That's right, but they're not at WDW. If one is set on going on a cruise no matter what, it wouldn't matter; but if deciding whether to use points for a WDW vacation or a cruise, it certainly would.

I guess that's a personal decision but I don't see how it would affect the decision of whether to do points or cash for cruise, only whether to cruise or do something else. It's not like it's use them for a cruise or lose them with DVC, there is a viable rental market and other options.

 

[LIFERBABE]

This does not get talked about often here, but Federal and Local taxes may apply when you rent points.
Transferring for money is prohibited in the POS.

There are risks to renting points. We give enough information to a stranger that they can pull public records and contact neighbors and friends.

I've paid cash and used points for our 8 DCL cruises.

You definitely have to weigh it all out and be aware of the pros and cons of each.

IMO, the risks are pretty much equal except with DVC they already know who I am.
I rent points, but mostly to those I know.

 

[CruznLexi]

Last year when I booked the PC cruise I pad cash with AAA and had a outside cabin with transfer from Kidani and to DL with Gratuities came to almost $6000. After final payment I got a gty 5 with $1500 credit back to CC and did get a catg 4 not bad..

 

[mickeys girl 52]

I really enjoyed reading all the posts with so many different opinions on the subject . One thing is for certain;"Our DVC" gives us all a lot of flexibility to use our points however we want. In the end that is all you can really hope for. For me I am glad I took the time to compare,because it was an Amazing difference in price. Maybe because I booked so early and the cash price was lower than it will probably be a year from now. I have been on many Disney Cruises before I became a DVC member.So I always used cash.Would I use my points to cruise?Yes, I probably would if the price was closer. But not $7000.00

 

[edk35]

I really enjoyed reading all the posts with so many different opinions on the subject . One thing is for certain;"Our DVC" gives us all a lot of flexibility to use our points however we want. In the end that is all you can really hope for. For me I am glad I took the time to compare,because it was an Amazing difference in price. Maybe because I booked so early and the cash price was lower than it will probably be a year from now. I have been on many Disney Cruises before I became a DVC member.So I always used cash.Would I use my points to cruise?Yes, I probably would if the price was closer. But not $7000.00

Isn't this thread also on the Cruise board?

 

[mickeys girl 52]

Yes, it is..I mentioned on the cruise board that I was also posting this on the DVC board since it was DVC related.

 

[CarolAnnC]

Just a reminder here to be respectful of everyone's personal viewpoints.

Argumentative postings, no matter which "side" your position is on regarding cruising on points will not be tolerated and may result in infraction points being awarded, and/or the closing of this topic/thread here. Thanks everyone!

 

[DonDon]

If revenue received from the renting of points are subject to tax considerations, doesn't this alters the landscape of comparing cash vs point reservation?

If the true profits from the renting of points are to be reported on your 1099 forms as capital gains (anybody know if it would be considered as short or long term gains?). You would potentially be taxed anywhere from 8%-30% or more on your net profit.

If you rent out your points for $10 pp,
minus your MF (depending on your home resort of course from) lets use MF as $5 pp for the sake of simplicity.
$10(gross revenue) - $5 (MF) = $5 profit pp.
This $5 pp profit would be subject to tax (I presume as capital gains, if anybody knows the actual percentage, please correct me).

After everything is said and done, if you're renting out points for $10 PP, you're really only getting $8.50- $9.60. In the OP's example of using or renting out 1800+ points, there's no way you can not report it and still fly on the radar.

Either way, I still greatly appreciate the flexibiity of DVC points.

 

[living la vida mickey]

I understand the reasons that people think that renting points and paying cash is better for them than using their DVC points to cruise. On the other hand, I feel that using our points to take a cruise is a perk for us. I don't have time to bother with renting points and I don't want to deal with renters. That's my choice. In the end, my vacation is paid for and for July of 2012 we're taking the Canada cruise out of NYC. I bought my points in 1993 and they've been paid for a long time. I have 190 and we've used them to our advantage for 18 years with very little pay out on dues. Just do what's best for you and your family.

 

[LIFERBABE]

If revenue received from the renting of points are subject to tax considerations, doesn't this alters the landscape of comparing cash vs point reservation?

If the true profits from the renting of points are to be reported on your 1099 forms as capital gains (anybody know if it would be considered as short or long term gains?). You would potentially be taxed anywhere from 8%-30% or more on your net profit.

If you rent out your points for $10 pp,
minus your MF (depending on your home resort of course from) lets use MF as $5 pp for the sake of simplicity.
$10(gross revenue) - $5 (MF) = $5 profit pp.
This $5 pp profit would be subject to tax (I presume as capital gains, if anybody knows the actual percentage, please correct me).

After everything is said and done, if you're renting out points for $10 PP, you're really only getting $8.50- $9.60. In the OP's example of using or renting out 1800+ points, there's no way you can not report it and still fly on the radar.

Either way, I still greatly appreciate the flexibiity of DVC points.

DVC rents points for $13.33 each (up to 24 per UY) The tax is $1.67 each point which is why they charge $15 for 1 time use points. That's the 12.5% local tax they are paying for each point.

They're called "one-time-use" vacation points and are available for a fee of $15 ($13.33 plus $1.67 tax) per vacation point.

In addition, using points to cruise may not give you the greatest return, but I manage my BFF Starwood points (Atlantis Harborside) and they wanted to use their points to cruise thru their exchange option for this summer. I called and the most they could get for their 2 bedroom June 23rd week at Atlantis was $1000 off of a full price Carnival cruise. That would not cover 1 person. So basically a coupon.
I dont know of any other program that allows you to fully exchange for a cruise.

 

[lilpooh108]

If revenue received from the renting of points are subject to tax considerations, doesn't this alters the landscape of comparing cash vs point reservation?

If the true profits from the renting of points are to be reported on your 1099 forms as capital gains (anybody know if it would be considered as short or long term gains?). You would potentially be taxed anywhere from 8%-30% or more on your net profit.

If you rent out your points for $10 pp,
minus your MF (depending on your home resort of course from) lets use MF as $5 pp for the sake of simplicity.
$10(gross revenue) - $5 (MF) = $5 profit pp.
This $5 pp profit would be subject to tax (I presume as capital gains, if anybody knows the actual percentage, please correct me).

After everything is said and done, if you're renting out points for $10 PP, you're really only getting $8.50- $9.60. In the OP's example of using or renting out 1800+ points, there's no way you can not report it and still fly on the radar.

Either way, I still greatly appreciate the flexibiity of DVC points.

I will venture a guess that most people who are occasional renters don't bother reporting their rental income. Good question, though.

 

[sissy_ib]

OP-how many people are you cruising with? I am using my points to cruise but it is just me and 1 other adult. Yes we could save a little money by renting our points and paying cash, but to me that is more hassel that it is worth. Using points to sail is probably going to be a one time thing for us. No way I would do it with kids or multiple cabins.

 

[mic_KY_mouses]

I always make the decision when I am ready to book the cruise. There are a lot of factors such as price out of pocket, $95 fee, number of points needed, will/will I not need the points for other trips, etc.

I think it's nice to have options and I think it's smart to check them all out. I have done it both ways.

 

[mwmuntz]

I don't rent points and I have no desire to do so. So when I figure out the cost of cruising on points, first I figure out how much I paid per point over the course of the lifetime of my contract, and add this to my yearly maintenance fees. This usually works out to about $6.50 per point.

 

[Dean]

I don't rent points and I have no desire to do so. So when I figure out the cost of cruising on points, first I figure out how much I paid per point over the course of the lifetime of my contract, and add this to my yearly maintenance fees. This usually works out to about $6.50 per point.

If you figure the rental value of the points traded compared to the cost in points, that too is right around $6.50 a point for most situations. I've seen as low as $4.50 a point and anything over $7.50 a point is unusual compared to early booking discount prices. If you're comfortable with that return, everyone should be happy. Personally I'm not willing to accept that return plus I feel the risks of using points for a cruise are far more than those of renting until you get to about 90-120 days out from the cruise.

 

[BWV Dreamin]

Yes, there should be a price assessed for that risk. Change the cruise date? Another $95. Can't get a room on points on the changed date? They become reservation points, can't rent them. Lose out on any OBC or reduction in cruise price.

If you figure the rental value of the points traded compared to the cost in points, that too is right around $6.50 a point for most situations. I've seen as low as $4.50 a point and anything over $7.50 a point is unusual compared to early booking discount prices. If you're comfortable with that return, everyone should be happy. Personally I'm not willing to accept that return plus I feel the risks of using points for a cruise are far more than those of renting until you get to about 90-120 days out from the cruise.

 

[mwmuntz]

Sorry if I'm straying off-topic here, but I don't know, I find the whole rental process intimidating. Like I said, I've never done it before, so maybe I have it over-blown in my head, but the whole process of listing your points, agreeing with a renter (do people negotiate price?), making the reservation, making any changes to the reserveration, collecting your money, keeping track of the profits for tax purposes, etc., seems pretty time consuming. You also run the risk of getting scammed along the way, which I know is very rare, but with my luck would happen to me. Multiply this by the number of rentals you would have to do to get enough cash to pay for a cruise. Not for me, not at this point anyway. Although..... it DOES sound pretty lucrative, even if I only make 3.00 or so profit per point, the amount saved can sure buy a lot of Konk Koolers! Right now, with 3 kids and a very demanding job, time is my most precious resource. I look to DVC to provide rest and relaxation, not cause more work for me. I'm just not sure if in my particular situation, renting is worth the hassle. I'd rather just pick up the phone and be done, and use my energy to plan my excursions. Maybe if my situation changes, I will start using the renting/cash strategy. But for now, I'm just happy that Disney offers the option of cruising on points.

Oh, and I always buy travel insurance for a cruise to mitigate the risk... add that to the cost. But I guess travel insurance is a whole other debate.

 

[AnnaS]

I always make the decision when I am ready to book the cruise. There are a lot of factors such as price out of pocket, $95 fee, number of points needed, will/will I not need the points for other trips, etc.

I think it's nice to have options and I think it's smart to check them all out. I have done it both ways.

Same here.

We have done 4 DCL cruises and reserved two cabins each time. We have done a combination of points and cash for each cruise.

 

[Anthony1971]

In general you can expect to get about 7.00 a point in exchange... with this most will still make out on the exchange.
There are some exceptions The Dream some cruises this year (booked last year) not only were some getting closer to 8.00 the price for cash thorugh DVC was about 150.00 less a person... of course you had to book at least one person using points..Which is what I did