renting/points/cruising

[fitnessmouse]

I keep reading "rent your points and pay cash for cruise" is a better deal

I must miss something cause I can't see it.
say I have enough points for cruise that I pay MF for

If I rent those @ $10 pp
I am out of points, but still need to pay MF

the difference does not pay for the cruise

 

[JimMIA]

I'm glad to see someone finally looking beyond the gross revenue of renting and considering the costs! And you are right...sort of

However, with the rent-to-cruise option, you have to look at the whole picture. You start with the assumption that you would pay the dues and use the points for a cruise (there's a big problem with that theory, which I'll mention later). Therefore, you would have a cruise, no points, and you would have spent the dues money.

If you rent, you would pay the maintenance fees as well, the points would be gone because you'd rented them, and you'd take the cruise paying cash from the gross proceeds of the rental. Your dues expenditure would be the same, but you should have either some points left over, or some extra cash, because of the big difference between points cost and cash cost.

Now the real problem -- you probably have no choice but to rent-to-cruise. There are no DCL cruises available for points for more than a year, and it's very uncertain what is really going on.

See this thread: http://www.disboards.com/showthread.php?p=37901478&posted=1#post37901478

Read the first couple of pages and then skip over to Post #182 on page 13 for what is probably the most straighforward explanation of the cruise problem. After that, the thread starts wandering away into all sorts of other stuff.

 

[fitnessmouse]

Thank you, I was aware of the other thread, that's why I was asking.

I have a cruise booked on cash for $2385, that I had planned to convert to points (292)
renting the points out @10.00 pp gives me $2920
substract the MF of approx $5.00 pp and I have $1460.

How is that a better deal than cruising on points?

 

[erionm]

Thank you, I was aware of the other thread, that's why I was asking.

I have a cruise booked on cash for $2385, that I had planned to convert to points (292)
renting the points out @10.00 pp gives me $2920
substract the MF of approx $5.00 pp and I have $1460.

How is that a better deal than cruising on points?

What's the total points required (for all passengers) for the cruise you are taking? I'm guessing it's quite a bit more than the 292 you are planning on renting out.

 

[fitnessmouse]

no, that is the total points cost for the cruise.
(84+84+62+62)

Total cash cost via DCL = $2385
total poinst cost via DVC MS = 292 +$95 fee

eta: it's the LA-vancouver repo

 

[mcorbo]

I would not count the cost of the MFs in the calculation. You would be paying those whether you went on a cruise with points or rented them.

 

[fitnessmouse]

I would not count the cost of the MFs in the calculation. You would be paying those whether you went on a cruise with points or rented them.

Yes, that's why I am asking

1) I pay MF + $95 fee + get points to use for cruise
2) I pay MF + rent points outs (292@10pp - MF)=
$1460 revenue, no points and no cruise, meaning the $1460 does not pay for the cruise; I have to add another $830 ($925-$95) to get the same thing.

Is my math wrong, or is this an exception that paying cash is not always better than cruising on points?

 

[Sandisw]

Yes, that's why I am asking

1) I pay MF + $95 fee + get points to use for cruise
2) I pay MF + rent points outs (292@10pp - MF)=
$1460 revenue, no points and no cruise, meaning the $1460 does not pay for the cruise; I have to add another $830 ($925-$95) to get the same thing.

Is my math wrong, or is this an exception that paying cash is not always better than cruising on points?

I am not sure why you are considering MF's. Those are paid regardless. Plus, whether you rent out points or use them for the cruise, once you travel, they will be gone from your account anyway.

Here is how I would look at it:

If you use points, it will cost you 292 points, plus $95 fee, plus the MF's (let's assume $5.00 for dues) on 292 points. Total price is $1555 PLUS 292 points.

If you pay cash, it will cost you $2385 plus MF's for a total of $3845 but you still have 292 points.

If you rent the points @ $10.00 per point, you will collect, $2920. So this reduces your cost. Total price now becomes $925 PLUS 292 points.

Either way, you will no longer have the points but when you rent and pay cash, your OOP costs (if you consider MF's on the points) is only $925 compared to $1555 for points only.

And, you really would only need to rent 239 points to cover the cost of the cruise. If you did that, you would cover the cost of the cruise and still have 53 points left.

Of course, renting is a lot of work, IMO, and if we were ever going to cruise, we would just use points and not go through the trouble, but when looking at things strictly from a financial aspect, the rental choice works out.

 

[fitnessmouse]

I am sorry, I still don't see it.

It's been a long day though, I have to look at it tomorrow when I am fresh

1) i pay mf, get points, go cruise.
end result: 0 points, 1 cruise, paid mf (-1460)

2) i pay mf, rent points
end result: 0 points, 0 cruise, paid mf (-1460), renting (+2920) so 1460 revenue


I don't get your third calculations

 

[Inkmahm]

I am sorry, I still don't see it.

It's been a long day though, I have to look at it tomorrow when I am fresh

1) i pay mf, get points, go cruise.
end result: 0 points, 1 cruise, paid mf (-1460)

2) i pay mf, rent points
end result: 0 points, 0 cruise, paid mf (-1460), renting (+2920) so 1460 revenue


I don't get your third calculations

In number 2, you do get the cruise AND you get to keep part of the $2,920 in cash because the cash cost of the cruise is only $2,385. Either way, you used the 292 points and paid the MF fees so on those two points, both options are equal.

Where you save money is paying cash and then keeping the difference between $2,920 and $2,385 to use towards excursions or anything else you'd like. Actually, $ 535 plus the $95 you didn't pay to use your points or $630 ahead. OR, you could just use less points to rent and keep some of your points to use for days at WDW, maybe before or after the cruise. Then you'd have the cruise AND a vacation at WDW for the same number of points it would cost you to pay points for the cruise.

 

[Inkmahm]

...you should have either some points left over, or some extra cash, because of the big difference between points cost and cash cost.

This is the key point...you'll have either points left over or extra cash if you pay cash for your cruise instead of paying with points.

 

[fitnessmouse]

I think I just woke up, thank you guys.

 

[ssawka]

Just to give you an example, next year we are taking our first Disney cruise using the "Kids Sail Free" promo, which we would not be elligible for if we had used points.

In a class 7 room, the cruise is costing me a total of $2400. Using your example, at $10 per point, I would need to rent 240 points to pay for the cruise. If I were to take this same cruise on points, I would need 422 points (164 + 164 + 94). By renting points and paying cash, I save 182 points. That's a whole other vacation!

YMMV as the savings depends on how many people are going since the point charts for cruises are per person.

 

[Deb & Bill]

Ultimately, it's a bad choice to use your points for anything other than staying at a DVC resort.

 

[sorul82?]

Here are our DVC point details:

2 8C oceanview cabins
6 people total: me, DH, DD11 in one cabin; Nana, DS13 and DS11 in the other
$2306.16 total per cabin = $4612.32 if we paid cash

We needed 514 points for our cruise. However, we only have 160 per year, so we paid cash for one child and used points for the rest.

457 points x $7 per point value= $3199 + $400 + $95 fee = $3694.

(Yes, I could have rented my points and assigned the value at $10, $11, etc.)

There are a gazillion scenarios, but for our family and our vacation plans for the next few years, this seemed the best for us.

 

[Inkmahm]

I think I just woke up, thank you guys.

You're welcome! Chances are if you were confused about what we were talking about as far as saving money by paying cash instead of using points, there are others reading this board who are just as confused. Maybe this thread will help them to understand, too.

 

[speicher46]

I have always used points for Disney Cruises but only out of convenience. It definitely saves points if you rent our your points and use the cash for the cruise. If the renter is looking for points for a WDW vacation both parties comes out ahead....win...win.

 

[Sandisw]

I am sorry, I still don't see it.

It's been a long day though, I have to look at it tomorrow when I am fresh

1) i pay mf, get points, go cruise.
end result: 0 points, 1 cruise, paid mf (-1460)

2) i pay mf, rent points
end result: 0 points, 0 cruise, paid mf (-1460), renting (+2920) so 1460 revenue


I don't get your third calculations

Well, you didn't finish the calculations for #2. Add in the cost of the cruise ($2385), and you go from $1460 revenue to -$925. So, now #2's end result is 0 points, 1 cruise, paid mf (-1460), renting ($2920), cost of course (-$2385) so (-$925).

So, at the end of the day, for #1, your OOP costs, including MF's is $1460. For #2, it is $925.

And, you really need to add the $95 fee to the first cost, so your OOP cost for using points is $1555.

Renting and paying for the cruise saves you money.