I called MS and asked about a
DVC discounted cash reservation for the first weekend in Aug 2010. A BLT lake view studio was $615+ tax for 2 nights (fri-sat) and it would save me only 58 points. Not worth it. Same 2 nights at BCV is $510 + tax and saves 54 points. Both end up over $10 per point after taxes. I could rent points cheaper I believe. I think we're gonna stay off site on Friday and Saturday nights.
Yeah, I don't think it really makes sense for studios. I think it makes the most sense for the high value point view categories, in value season for rack rates, for a one bedroom villa. The reason this is so is that the difference between rack rates for studios and 1BR villas is usually not a very large spread -- that's because a studio needs to stay comparable to the hotel at the associated resort, but then they only charge a relatively smaller premium to kick up to a 1BR. The jump in rack rate to a 2BR villa is steeper.
Just to give you a sense. Take your very same dates (first weekend in August). For a 1BR lake view at BLT, the cash total, including tax, for the two nights with the discount would be $810. (Rack rate is $480. With 25 percent discount it's $360. With tax, it's $405/night.) By comparison, this reservation would cost you 118 points. So, about $6.80 per point.
It's even more dramatic if you look at a 1BR MK view. The cash rate with discount, including tax, for two nights is $877.50. By comparison, this reservation would cost you 136 points. That's $6.45 per point.
For a 1BR at the BCV for your dates, the price for cash for the two nights, with discount and tax, would be $784.65. Points for those nights: 120. Cost per point: $6.54.
The cash rates for a 2BR are a considerably better bargain pointswise than a studio, but not quite as good (usually) as a 1 BR. For example, MK view for the same dates. Cash rate, with the discount and after tax: $1274. Points required: 176. $7.24 per point. (For a 2BR at BCV for these dates, it comes out about $7.31 per point.)
Grand Villa you ask? MK view GV for your dates: $2961.56. (I'm not even sure you can really book these for cash or, if you can, whether you can get a discount, so this is mostly for fun.) Number of points: 400. So, $7.40.
Note that these $6 to $7 deals can really only be had when:
1) There's a difference in "seasons" between rack rate and points, such that points are a higher season.
2) The 25 percent discount is available.
3) You book a 1 BR, tending to be in a higher view category.