Intricate question regarding renting points

[TisBit]

Booking with Disney involves no risk, daily housekeeping, discounts which can be up to 42% off, and easy cancellation.

Renting involves risk, no daily housekeeping, and no cancellation.

The price therefore reflects that.

The risk is a huge thing. There are certain perks you get for going through disney as well. You get daily housekeeping, cancellation, resort change, no going through a third party to get stuff like the dining plan.

You also have to look at owners are competing to rent points. As long as there are a lot of people renting, there is a lot of supply, keeping the chance for increases low. A lot of people also seem to buy with the intent to rent out their points quite a bit and vacation/cruise with the money. There were even posts in the past about people thinking of it as a for profit side business, and the ability to occasionally use the points themselves.

 

[sweetdana]

There are tons of extra points right now. Go to the rental board, pretty much any resort, any UY, any amount.

Price = Supply + Demand.. Due to total risk on renters part... IE Rentee could cancel ressie 3 days before a trip. Or what if rentee didn't pay MF, renter could show up 3 months from now and.. not have a room. You have to pay less, all risk on renters end. If renters want a last minute change .. no options, unlike with an actual Dis ressie. Some renters will not even allow for changes at all.

Comes down to risk verses lower price. If you have a friend or relative you could prob get more, as they would trust with less risk.

 

[Deb & Bill]

You could find someone who shows interest in your points and the next day be told they were no longer interested. Most likely the reason would be they found someone else with cheaper points and they already found out from you the reservation was available.

People always talk about renting out points, but it isn't all that easy and can be a lot of work. Unless you go to someone like David who does a lot of the work for you.

 

[dianeschlicht]

So then why don't we, as owners, drive the market up some more?

For one thing, we aren't able to offer the 'buyer' the same considerations they get when booking CRO. There is always that element of "trust" where they have to trust that the owner of the points isn't going to pull the reservation at the last minute. There is also the fact that they never actually own the reservation, but have to trust someone else to make all the arrangements like DME, DDP, etc., and assume it was done correctly. Then on top of that, they can't even call and check to make sure they have the reservation. All of those things are some of the reasons renting is cheaper than booking with CRO.

I seem to remember a long time ago hearing something about the actual value of a booking point being something in the $6-7 range. If the owner is charging $10 (the going rate for non-compromised points), that is probably a fair price for the product they can offer.

I've never rented my points out, but I'm quite sure I wouldn't feel it was enough for me to go through the hassle. Renting points out isn't as simple as it sounds unless you are transfering points to another member.

 

[JimMIA]

This question is neither original nor complicated nor difficult. An easy search will show that the question of rental rates comes up every few months...always with the same simple answer: supply and demand. If anything, rental prices have been declining rather than rising in the last year.

OP, you also seem to be focusing on the minutiae of DVC, rather than the main purpose. I assume that's because you already understand the basics of how our accounts work, etc. But if you are looking for additional justification for a purchase, I'd be very careful what you look at.

If DVC doesn't fit your family's needs for vacation stays in DVC resorts, renting your points isn't going to make the transaction any better. If you anticipate years where you will have extra points, you may be considering too many points or may need a better understanding of banking and borrowing.

Also, I agree with you that $10 is too low a rental price. But that may mean that renting DVC reservations is a better alternative for your family than purchasing...especially if you don't plan on visiting WDW every year.

Don't try too hard to justify a purchase; you'll be sorry if you do.

 

[crisi]

Another factor is that different owners have different cost of good sold and different motivations for renting

We bought for around $60 a point. We've had enough good vacations to get our "ROI" and feel like that $60 per point has been made up. At this point, if I had points I couldn't use, getting anything more than dues for them would be profit. And if all I'm doing is to not throw money away on dues, that's reasonable.

If you bought for $90 a point and are still paying on a loan, your "cost of good sold" is going to be different. But the person renting doesn't care that you bought recently, but my points are ten years old.

If everyone's motive were maximizing profit, the price would probably be higher. But some people's motive is "just pay for a cruise" or "get rid of points they can't use with a minimum of fuss."

 

[TagsMissy]

!!!!

I just wanted to give a better "exclamation"! (Sorry to tease you Hunclemarco - I couldn't resist!)

ROFL I didn't even notice the typo originally! Good catch vicki!

 

[mbc]

Everyone has already hit the points that I would have made but I have one thing to add. I had a Floridian contact me one time when I was renting points. I had posted something like 100 points at $10.00 per point. She contacted me and told me she would pay $3.00 per point. It was getting close to their expiration and she was helping me. She was horrified when I told her that I would rather lose the points. I think some of the people out there figure that you're the one in a bad situation so they are going to benefit from it.

 

[DVC Dude]

Everyone has already hit the points that I would have made but I have one thing to add. I had a Floridian contact me one time when I was renting points. I had posted something like 100 points at $10.00 per point. She contacted me and told me she would pay $3.00 per point. It was getting close to their expiration and she was helping me. She was horrified when I told her that I would rather lose the points. I think some of the people out there figure that you're the one in a bad situation so they are going to benefit from it.

I am glad you stood your ground....congrats!

 

[dianeschlicht]

I'm beginning to think the OP is a "drive by poster". This is the second "controversial" topic he has started and then disappeared on.

 

[vicki_c]

I'm beginning to think the OP is a "drive by poster". This is the second "controversial" topic he has started and then disappeared on.

No, I think just new. rifleman only asked if he should buy DVC less than 2 weeks ago, and apparently he has now already purchased a resale.

 

[dizmom2mwjk]

This is just my opinion as a first time renter...I agree with everything said in the post so far...BUT probably will not rent DVC again...If DH will not buy after this trip, I will just let him continue to waste money on deluxe suites (we could have paid off DVC a loooong time ago with what we have paid in room fees for our family of 6 in the past 13 years...which is when I wanted to buy DVC) rather than go thru this...mainly because of the following:

There is an overwhelming feeling like we are "bothering" the DVC owner...I am renting pts for the first time in Dec. (made the arrangements in Feb)....I have purposely tried not to ask my owner to make too many changes/etc...and when I do, I try to have multiples at the same time, for example....right now, I need to add another person to my res., but also am waiting for flight info from 2 others to add on ME,...and deciding if we want to add on dining plan so that it can all be done in one phone call so that it will be easier on the owner and he will not have to make 3 phone calls...I don't like to feel like a bother to another person....

I have never felt this way when dealing with Disney directly because that is their job...and I was the one making the calls....

 

[vicki_c]

There is an overwhelming feeling like we are "bothering" the DVC owner...I am renting pts for the first time in Dec. (made the arrangements in Feb)....I have purposely tried not to ask my owner to make too many changes/etc...and when I do, I try to have multiples at the same time, for example....right now, I need to add another person to my res., but also am waiting for flight info from 2 others to add on ME,...and deciding if we want to add on dining plan so that it can all be done in one phone call so that it will be easier on the owner and he will not have to make 3 phone calls...I don't like to feel like a bother to another person....

I have never felt this way when dealing with Disney directly because that is their job...and I was the one making the calls....

I have never rented my points, only rented some from another owner. I know what you're saying though, if I did rent out my points and had to talk to my renter more than a few times, I would personally feel annoyed (not everyone might feel that way, of course, but I would). It seems to me like renting points is best for someone with a simple reservation that is not going to change. When we rented points, it was for 3 nights, no DDP, no ME. I talked to the owner only once after he sent the confirmation and it was a note to say "thanks."

 

[kimberh]

This is just my opinion as a first time renter...I agree with everything said in the post so far...BUT probably will not rent DVC again...If DH will not buy after this trip, I will just let him continue to waste money on deluxe suites (we could have paid off DVC a loooong time ago with what we have paid in room fees for our family of 6 in the past 13 years...which is when I wanted to buy DVC) rather than go thru this...mainly because of the following:

There is an overwhelming feeling like we are "bothering" the DVC owner...I am renting pts for the first time in Dec. (made the arrangements in Feb)....I have purposely tried not to ask my owner to make too many changes/etc...and when I do, I try to have multiples at the same time, for example....right now, I need to add another person to my res., but also am waiting for flight info from 2 others to add on ME,...and deciding if we want to add on dining plan so that it can all be done in one phone call so that it will be easier on the owner and he will not have to make 3 phone calls...I don't like to feel like a bother to another person....

I have never felt this way when dealing with Disney directly because that is their job...and I was the one making the calls....

Please let me encourage you to not feel this way. When I help someone with a rental, I encourage them to email me with their questions. I will gladly answer any and all that I can... I have always said that renting points is more than " just renting a room".

Now, to the topic, I feel the price should be higher, because it is a lot of hard work. I also think Disney sees this low balling point price as a major competitor. I contact my guests ahead of time (If I have not heard from them) for their Magical Express info, the last thing I need is for a guest to forget, and not be able to get the DDP or Magical Express. I guess even with DVC Rentals, you get what you pay for.