Hard to pass on such good incentives

[iluvthsgam]

Looking for 200 or 300 points. I was comparing buying direct versus resale and wanted to post my math and see if anyone had any comments or hopefully it helps someone else too.

For 200 points direct $186 plus closing = $37,996.35 ($189.98/point)

Compared to 200 resale, I take the following into account:

• Direct allows pay by credit card and I can earn 4.5% cash back with Chase Sapphire Reserve (or points but using cash back to keep it simple). This saves $1,709.84 and is worth $8.55/point.
• Direct saves 6 months dues (assuming buying a loaded contract and seller wants buyer to pay for all 2022 dues). This saves $701 and is worth $3.51/point.
• On average, it appears that closing costs on resale are about $100 per 100 points more. So I assume direct saves another $200 in closing costs which is another $1/point.

This gives me a direct “cost” of $176.92 per point. So any resale $177 and above direct is the obvious favorite as it is cheaper.

Then consider the intangible benefits to buying direct (discounts, unrestricted points, speed and time to close and get your points, options to pick your exact UY and contract splits) and depending how you value those things, resale price for 200 points needs to be, IMHO, in the $160 range.

For 300 points the direct cost is $54,760.28 ($182.53/point). Minus cash back ($8.21/point), dues savings ($3.51/point), closing costs ($1/point) gets to direct “cost” of $169.81/point. Now resale for 300 points should be in $150 range.

Thoughts? Comments? Errors?

 

[KAT4DISNEY]

Looking for 200 or 300 points. I was comparing buying direct versus resale and wanted to post my math and see if anyone had any comments or hopefully it helps someone else too.

For 200 points direct $186 plus closing = $37,996.35 ($189.98/point)

Compared to 200 resale, I take the following into account:

• Direct allows pay by credit card and I can earn 4.5% cash back with Chase Sapphire Reserve (or points but using cash back to keep it simple). This saves $1,709.84 and is worth $8.55/point.
• Direct saves 6 months dues (assuming buying a loaded contract and seller wants buyer to pay for all 2022 dues). This saves $701 and is worth $3.51/point.
• On average, it appears that closing costs on resale are about $100 per 100 points more. So I assume direct saves another $200 in closing costs which is another $1/point.

This gives me a direct “cost” of $176.92 per point. So any resale $177 and above direct is the obvious favorite as it is cheaper.

Then consider the intangible benefits to buying direct (discounts, unrestricted points, speed and time to close and get your points, options to pick your exact UY and contract splits) and depending how you value those things, resale price for 200 points needs to be, IMHO, in the $160 range.

For 300 points the direct cost is $54,760.28 ($182.53/point). Minus cash back ($8.21/point), dues savings ($3.51/point), closing costs ($1/point) gets to direct “cost” of $169.81/point. Now resale for 300 points should be in $150 range.

Thoughts? Comments? Errors?

It wouldn't be a stretch to get 2021 points with a resale and pay the 2022 calendar year dues. Depending on the UY you could potentially get banked 2020 points (not common but not unheard of either) with a few months yet to use them so anywhere from $20-$40/pt rental income. Most UY's other than Feb & March are still in their 2021 UY so that would be current points.