Points renting for $6 per point on Rent board

[bunny]

I rented points 5 years ago before buying into DVC for $10 per point. And now the price range is anywhere from $6 (which I just saw today) to $10 but has steadily dropped in the last few months. DVC studios are officially cheaper than value resorts. For instance in October a value resort rents for $105 per night plus tax. A DVC studio at BCV from Monday to Friday is only 12 points a night ($108 at $9 per point). Even the price for a whole week (106 points) is only $954 at $9 per point and $636 at $6 per point. A value room would be $830. At $636 a BCV studio costs 25% less than a value room. This is madness.

I realize these super cheap points are probably developer points but even regular points are only fetching $8 per point on those boards. $10 points sit forever.

Has DVC really devalued that much? It is disheartening to say the least.

At this price point DVC is a super bargain.

 

[Deb & Bill]

I rented points 5 years ago before buying into DVC for $10 per point. And now the price range is anywhere from $6 (which I just saw today) to $10 but has steadily dropped in the last few months. DVC studios are officially cheaper than value resorts. For instance in October a value resort rents for $105 per night plus tax. A DVC studio at BCV from Monday to Friday is only 12 points a night ($108 at $9 per point). Even the price for a whole week (106 points) is only $954 at $9 per point and $636 at $6 per point. A value room would be $830. At $636 a BCV studio costs 25% less than a value room. This is madness.

I realize these super cheap points are probably developer points but even regular points are only fetching $8 per point on those boards. $10 points sit forever.

Has DVC really devalued that much? It is disheartening to say the least.

At this price point DVC is a super bargain.

They might be reservation points that cannot be used at a DVC resort. And the $95 fee would have to be paid.

 

[CarolA]

They are developer points that have to be used by Sept. Means a more limited resort selction (SSR only) and a shortening time window to use them.

(And at least some renters have already backe out due to lack of dates open)

While I don't think it's a devaluation... The example the OP gives is COMPLETELY invalid. The points can't be used for BCV. Redo the math using SSR and see what happens. (not that I care. Personally comparing ANYTHING to Disney hotel pricing is not really valid. The pricing is a JOKE!. I wouldn't pay those rates for that quality! The point prices the OP comes up with are really more in line for the resort quality. And YES I love my DVC but I know it's not a real deluxe hotel. If it was the LINENS on the bed would be as nice as the ones they are tyring to sell me in that brochure called the "Disney Resort Collection" AKA as "what you SHOULD get for these prices" LOL!)

 

[Brian Noble]

I think this is just supply and demand. There's been a glut of short-window SSR-only developer points, and with the down economy, 7-for-4 discounts, etc. demand for rentals is down.

I expect that as the economy recovers the ship will right itself some. Remember, while DVC is a hedge against rising rental rates, it works the other way in the face of falling rates.

 

[bookwormde]

Yes it is a matter of supply and demand for the points and the availability of open reservations as you get close to the actual date. There have been a few $5 a point within 45 days of expiration, and developer points due to their only being valid at SSR for WDW and lots of them expiring this summer are burdened by both of the above impacts.

Close in a lot of what is available is weekend days so the point $ to get these reservation to below CRO with a good discount has to get in the $5-7 range.

bookwormde

 

[bunny]

Yes the $6 per point is for developer points, but realistically the rental price has gone down from $11 per point last year to $8 per point this year. That is if you are successful in renting. Over the last few years I have successfully rented left over points in one or two days. Demand is really down.

When do the developer points expire? Will prices go back up after that?

 

[Kid_@_50]

As DVC owners bank their points during 2009, I wonder what will happen next year both to the point rental price and general reservation availability.

I wonder what happens if to many banked points (due to expire) chases to little resort availability.

 

[mtmbyck]

Don't many other factors come in to play. I check in to SSR in a 2 bedroom this week on rented points. I paid $6 per point but I am using 456 pts that a DVC member could not use this year. It was good for them to get rid of so many in one reservation and I guessed they just wanted to get back the maint fees by renting the points. I don't think they are trying to "make money" off the rental.

Nevertheless, we are super thrilled and it will be the trip of a lifetime and one we NEVER could have afforded regularily.

 

[msabol01]

It appears that the rental boards respond better to market conditions than does Disney. Although, even at $10 per point it is a great bargin compared to paying cash through Disney.

 

[yasuern]

I don't understand why anyone cares what another rents their points for?


If you bought your points recently at over $100/pt then yes I can see how $8-10/pt looks so cheap - BUT if you bought for say $62-70/pt then maybe making the $8-$10/pt seems okay


But it is TOTALLY up to the individual DVC owner to decide how much per point they wish to charge - With the tough economic times maybe these owners NEED this money even if a "discount"


Sue

 

[bunny]

There is a marketplace for rental points on the Rent/Trade board. If points are advertised for $6 per point, it brings the entire market down. Renting is an attractive perk for owning DVC. If the rental price continues to decline, DVC is devalued. For instance I considered buying another timeshare, but decided against it when I could buy a week on Skyauction for $199.

 

[kellyf2626]

Personally, I don't think people purchase DVC because they can rent their points, and I don't think point-rental decreases devalue DVC itself at all.

I would assume that most people purchase the amount of points they think they will use to vacation with. If I couldn't use my points one year, it would be an added "bonus" to be able to rent them....at any price point.

That being said, of course all the above-listed issues impact the amount points are rented for. If there are limited places to use them, limited time-frames, and limited availabiliy at such places....then they will be less. ALSO - developer points were FREE to owners upon making a purchase. So any profit made off those points is simply that...profit.

 

[missy2217]

I think this is just supply and demand. There's been a glut of short-window SSR-only developer points, and with the down economy, 7-for-4 discounts, etc. demand for rentals is down.

I expect that as the economy recovers the ship will right itself some. Remember, while DVC is a hedge against rising rental rates, it works the other way in the face of falling rates.

I have to agree with Brian on this one. With the 7 for 4 promo, renting may seem a little silly. JMO