Renting DVC points v. cash

[rvashko]

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Renting points at $13 ppt (i.e., from David) comes out to about $3500. Paying cash with a PIN code details removed comes out to about $4400. So a $900 difference, making the point rental seem like a no-brainer, right?

At the same time, renting points (be it from David or directly from a DVC owner) requires payment in full, up-front. With cash, I only have to put up the first night's stay and can pay the balance over time or upon check-in. In other words, I would not have a $3500 hole in my pocket next week.

Also, if for some unforeseen reason, we could not take the trip, I can just cancel the rez with Disney and get a full refund. To my understanding, most folks who rent out points do not offer refunds. So there's that.

I could do trip insurance, I suppose, but setting that aside for now, I'd be interested in hearing your thoughts. I have no reason to believe that the trip would not take place as planned, but I could be wrong, of course. Is it worth $900 for that flexibility? My brain tells me, "Of course not, idiot," but my gut isn't so sure.

What do you think?

 

[skelfbsfb]

If you go to the rent thread Im sure you will get points alot cheaper than $13. Best of luck whatever you decide.

 

[rvashko]

True, but renting from an "unknown quantity" adds some risk to the transaction. But if the price is $1 or $2 cheaper per point than David, then good references could overcome my qualms.

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Good thought, though. Thank you!

 

[Samaya]

Renting DVC points v. cash.

Hi rvashko

Well, it has to be renting as most renters charge $10 per point and at around details removed that's a saving over Disney of $1,700 and over David of $800.

You can then afford a good trip insurance and if your lucky you might even get an owner who will only require a small deposit on making your reservation, with full payment made some two months away from your check-in date.

Agree, point rental is a no-brainer.

Good luck with your choice.

 

[rvashko]

Samaya,

Thanks for the thought. I agree, but it'd be SO much easier if they'd let us post "Want to Rent" threads over there again.

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Decisions, decisions......

 

[Sammie]

There is a reason it is $900 less, only you can decide if those reasons are worth it.

 

[rvashko]

Yes, I know. But an outside perspective never hurts.

 

[Sammie]

Then my persceptive is if I was planning a trip that involved 3 kids ease of cancellation would be a priority to me.

A 20% savings would not be enough for me to take the risk. Just my personal opinion and others will vary which is why you ultimately will have to determine how much is the risk worth to you.

 

[Deb & Bill]

Travel insurance doesn't pay you if you just decide to cancel. You need to check it out before you rely on that covering cancelation.

But if you are looking at Thanksgiving/Christmas time, it's probably a moot point anyway. Those needed to be booked at 11 months out.

 

[Sandisw]

In addition to the more stringent cancellation policies and paying up front, DVC reservations are a bit different.

First, you have no control over it and must rely on the owner to make any changes, add ME, dining plan, etc.

Second, with DVC rentals, you don't get daily mousekeeping so no new towels or room cleaning daily. This isn't a big deal for many owners, since you can just wash them yourself in a DVC unit (1 bedroom or higher), but it is something you will get with your Disney reservation.

Personally, I would choose the Disney reservation because not having to pay until closer to the time you go and having the ability to cancel for any reason and get your money back is worth alot, IMO.

Good luck!

 

[rvashko]

Travel insurance doesn't pay you if you just decide to cancel. You need to check it out before you rely on that covering cancelation.

But if you are looking at Thanksgiving/Christmas time, it's probably a moot point anyway. Those needed to be booked at 11 months out.

I wasn't planning on using travel insurance, and hadn't really investigated it, but I suspected most folks would bring it up, so I wanted to nip the discussion in the bud.

 

[Deb & Bill]

Just because * is available for cash through Disney Reservation Center doesn't mean it will still be available for a points stay through DVC. Those are two different inventories. And you can't convert a DRC cash stay into a DVC points stay.

 

[hollis]

I assume the cash we are talking about here is the rack rate. There is also the member cash price (which I think is typically 25% below rack rate) that also requires 1-night deposit and allows cancellation for a full refund if cancelled a few days before check-in.

When I saw the small price difference quoted, I had guessed your reservation is pretty far out. For what I have seen, as it gets closer to check-in, the rack rate goes up. Well, but as it gets closer to check-in, booking a room with points also gets a lot harder.

I digressed. Coming back to the original question, is it worth the $900 (or 25%) additional cost for the peace of mind? Well, the first time I rented points, the point cost was ~$2,500, the rack rate cost was about ~$4,000. It was that big a difference that moved me. Or else I wouldn't be comfortable to try it for the first time. Fast forward several years, after renting from others and now a DVC owner who has also rented out points many times, renting points seems like a no-brainer (assuming the desired reservation is available with points).

While many DVC owners require full payment upfront, some do take smaller deposits. And while the majority of DVC owners do not allow cancellation, most are willing to work with you to modify your reservation (for as long as their points still have that flexibility - there are a lot of rules about the points).

Whichever way you decide, be sure to have a magical vacation when you are there!

 

[rvashko]

Just because * is available for cash through Disney Reservation Center doesn't mean it will still be available for a points stay through DVC. Those are two different inventories. And you can't convert a DRC cash stay into a DVC points stay.

That was exactly my point. I can pay cash now and lock in, albeit at a much higher cost, or I can wait for someone to sell me points @$10 and risk DVC VWL inventory being depleted by then.

 

[Hopefully]

The price difference would be worth the peace of mind to us. In fact, we rented 1 and 2 BR DVC Villas several times from CRO before buying our contract.
The "unknowns" of an 11 month window always worried me. We never needed to cancel our CRO reservations, but knowing I could if life got in the way, was worth the cost to us.
Good Luck

 

[Deb & Bill]

That was exactly my point. I can pay cash now and lock in, albeit at a much higher cost, or I can wait for someone to sell me points @$10 and risk DVC * inventory being depleted by then.

Unless I am the one confused, I think you are still a bit confused. If you are not a member, points are worthless to you. The member makes a reservation with their points and sells you the reservation. So there is no selling you points at $10 a point and inventory being depleted. I don't understand why you would be waiting for them to make a reservation.

You make a contact with a member as soon as possible, they make the reservation if it is available and you pay them. If it isn't available, there is no transaction. And the odds of * coming available for the time frame you are looking at would probably be slim if it is already booked up for your time frame.

 

[dzorn]

I am on a waitlist for AKV becasue I waited until 10 month out. If an owner does not have the reservation already it is most likely too late. For a holiday week you would have needed to have a owner in place ready to call on the 11 month window to the day.

Book your reservation with Disney if you want a room.

Denise in MI

 

[rvashko]

And done.

 

[joeytdog]

As a person who has rented points four times in four years, both from David and also from the boards

I can say the following...as my .02 cents:

-You can for sure find a person who will work with you more than David will in terms of deposit and paying off the balance

-You can for sure find a person who will charge you - at least $2pp cheaper than David

That would mean

4400- going direct
3500- going David
2950- going someone else at $11pp

So now if you go through Disney you would be paying 50% more than going off the boards (i.e. because 2950 versus 4400)

To me, thats worth it everytime

Hence why I rent every year

Best of Luck

 

[rvashko]

As a person who has rented points four times in four years, both from David and also from the boards

I can say the following...as my .02 cents:

-You can for sure find a person who will work with you more than David will in terms of deposit and paying off the balance

-You can for sure find a person who will charge you - at least $2pp cheaper than David

That would mean

4400- going direct
3500- going David
2950- going someone else at $11pp

So now if you go through Disney you would be paying 50% more than going off the boards (i.e. because 2950 versus 4400)

To me, thats worth it everytime

Hence why I rent every year

Best of Luck

Good points. Thanks!