Since RCI inception I see points renting for less than $7 on Rental Sights

[lugnut33]

All the more reason to purchase cheap resale contracts instead of going Disney direct. That way, if things like this come up you won't feel as bad.

 

[Mississippian]

I personally don't see a problem with any of this.

DVC members are choosing to swap their nights at a DVC resort for nights at an RCI resort. Apparently they are swapping "down" in terms of dollar value.

These RCI members are then choosing to rent out the weeks they swap for. Whatever the rules say, from a moral standpoint the week is theirs, why shouldn't they be able to do with it as they wish?

 

[Brian Noble]

Whatever the rules say, from a moral standpoint the week is theirs, why shouldn't they be able to do with it as they wish?

Except that it isn't theirs, really. The RCI Subscribing Member agreement is quite clear on this point:

The RCI Weeks
Exchange Program, including without limitation,
Confirmations, Guest Certificates, Vacation Time
and Alternative Inventory, may not be used by a
Guest or a Member for commercial purposes,
including through auction, rental or sale. Such use
is grounds for immediate termination of Member’s
RCI Weeks Subscribing Membership and
cancellation of any Confirmed Exchange(s).

https://www.rci.com/CDA/Common/Documents/DisclosureGuideWeeks.pdf

Those are the terms we agree to when we sign up. If those terms are not acceptable, one would be well-served to use a different exchange company (such as redweek) that does allow re-rentals of exchanges.

 

[Deb & Bill]

I can see the DVC members who regularly rent out their weeks being hurt by this. Those that rent on Redweek and other locations for a nice going rate can't compete with $7 a point. It hurts their pocket.

Marylyn, there are lots of DVC members who don't really take an interest in the resort and will rent out to anyone for the cash. So RCI members who don't own at DVC and don't show regard for the resorts aren't a new thing at all. CRO rents to non-members who may just treat it as a hotel room, too.

 

[gkrykewy]

All the more reason to purchase cheap resale contracts instead of going Disney direct. That way, if things like this come up you won't feel as bad.

Wake me up when desirable contracts start getting "cheap" via resale in comparison to direct.

 

[lugnut33]

Wake me up when desirable contracts start getting "cheap" via resale in comparison to direct.

Sub $70 contracts at SSR, that's pretty cheap.

 

[JimMIA]

Wake me up when desirable contracts start getting "cheap" via resale in comparison to direct.

And AKV in the mid-80's...vs. $106 direct.

 

[Mississippian]

Wake me up when desirable contracts start getting "cheap" via resale in comparison to direct.

Just curious what you consider a "desirable contract?"

Old Key West contracts are going in the low $60s right now. Yes, the location is wretched, but so is the VAK. OKW members can rent a 2,300-square-foot Grand Villa for little more than the cost of a two bedroom at other resorts.

Assuming OKW at $65 and BLT at $100 (which reflects some of the incentives), one week at BLT in a lake view 2-BR in Dream Season will cost 318 points, or $31,800. The same week at OKW would cost 264 points, or $17,160.

To take this further, a Dream season week in a lake view Grand Villa would cost 745 points, or $74,500. The same week in an OKW Grand Villa would cost 437 points, or $28,405.

I don't own at OKW, but when you look at the price comparisons then those contracts look pretty darned desirable.

 

[JimMIA]

Old Key West contracts are going in the low $60s right now.

There are one or two priced in that range, but most OKW contracts are selling in the low 70's. According to the ROFR thread, there has only been one approved at $69 and several ROFR'd below that. A price of low-60's is probably not a price that you can actually end up owning OKW for.

OTOH, there are a bunch of recent ROFR approvals at SSR in the high 60's, including one at $65!

Most AKV's are passing in the high 80's, with one outlier passing in the low 80's.

 

[gkrykewy]

And AKV in the mid-80's...vs. $106 direct.

Is $106 currently the best direct price, or do incentives bring it down? My impression is that comparing resale to direct for anything other than OKW and SSR is pretty much a wash after considering closing costs, etc (with the exception of large contracts). Certainly a discount, but nothing that would change my perception of point rental prices on the value of my membership.

 

[lugnut33]

Is $106 currently the best direct price, or do incentives bring it down? My impression is that comparing resale to direct for anything other than OKW and SSR is pretty much a wash after considering closing costs, etc (with the exception of large contracts). Certainly a discount, but nothing that would change my perception of point rental prices on the value of my membership.

Closing costs are not that big of a deal, especially with anything over 100 points. Besides, once you're in the DVC, whether through a resale or direct they treat you the same. I could now go and buy a 100 pt. contract without closing costs. If I bought direct to start with I'm stuck buying 170 points.

 

[JimMIA]

Is $106 currently the best direct price, or do incentives bring it down?

That is with incentives. I think the base price is $112, less about $6 for SSR or AKV, or $5 for BLT. You also get developer points which can only be used at SSR or GCV (or deposited into RCI) by 10/3/09 I think.

There are other promotions which include a cruise voucher etc, but to be honest I don't keep up with those promotions. I'm sure someone will come on and advise us.

My impression is that comparing resale to direct for anything other than OKW and SSR is pretty much a wash after considering closing costs, etc (with the exception of large contracts).

That used to be true of some resorts a year or so ago, but resale prices have come WAY down. (It's weird, but OKW 2042 contracts have actually depreciated the least. ) The almost identical pricing was particularly true of BCV, and to a lesser extent BWV and VWL, but OKW, VB, and HH were always somewhat cheaper than buying direct.

 

[JimMIA]

BTW...We have strayed WAY off-topic from icydog's original thread, which was:

Yes, for less than our maintenance fees. I've seen several weeks, not five nights, renting at the Beach Club for less than $7 a point on Redweek. Don't you think that devalues our ownerships? I do!!!!!!!!

These are points that have been exchanged by RCI owners using Disney's new affiliation with them. Then instead of using the weeks themselves these exchangers turn around and rent these valuable weeks out for less than our cost to own them.

 

[Dean]

Personally I don't have any problem with people renting out the exchange weeks other than it's against II & RCI's rules and that is enough for me. As noted, it's been happening forever and I doubt it'll have any impact on the inherent value of a membership or rental situation.

 

[gkrykewy]

That is with incentives. I think the base price is $112, less about $6 for SSR or AKV, or $5 for BLT.

Holy crap, I can't believe they raised the prices again. I suppose that increase is half of the direct/resale gap. Looking at the AKV prices, unstripped contracts appear to be in the upper-80s - still just a hair less than we paid 1.5 years ago.

That used to be true of some resorts a year or so ago, but resale prices have come WAY down. (It's weird, but OKW 2042 contracts have actually depreciated the least. ) The almost identical pricing was particularly true of BCV, and to a lesser extent BWV and VWL, but OKW, VB, and HH were always somewhat cheaper than buying direct.

I suppose we just have different definitions of "WAY down" . When I think of a dramatic direct/resale difference, I think of the automatic "90% next day depreciation" of traditional timeshares. A 10-15% gap doesn't excite me, particularly given the closing costs when adding on via resale.

Now should smaller AKV contracts dip into the 70s....

You're right - we're OT, but someone made the odd comment that saving 10% or whatever on a resale contract made a difference in whether one should care about the OP's topic.

 

[pycees312]

i understand why it makes some people angry but I for one will eventually exchange into RCI or II witch ever is avail at the time i need to exchange my dvc and this is the trade off for that option to do so.

 

[JimMIA]

I suppose we just have different definitions of "WAY down" . When I think of a dramatic direct/resale difference, I think of the automatic "90% next day depreciation" of traditional timeshares. A 10-15% gap doesn't excite me, particularly given the closing costs when adding on via resale.

The most dramatic difference is SSR. SSR is currently selling for a net of $105 directly from Disney, but is selling (and clearing ROFR) at around $70 resale.

That's a 33% discount for resale on a property which doesn't expire until 2057. Even considering closing costs, when the per-point gap is that wide, you still save big bucks buying resale. If you buy 100 points, you can pay a lot of closing costs with the $3,000 you save on the price.

I really wonder why anyone would even consider buying SSR direct; they're just throwing money away.

 

[Brian Noble]

I ask myself that question about "other" timeshares all the time. For the most part, the resale market is simply inefficient---many people don't know about it, and of those that do, a few more don't really understand it.

 

[Opie100]

Are DCI members that trade for DVC properties and then rent them still making money at $4-8 per point? If they are, how? Is DCI membership that cheap? Or are these people getting these weeks for free somehow?

 

[Dean]

Are DCI members that trade for DVC properties and then rent them still making money at $4-8 per point? If they are, how? Is DCI membership that cheap? Or are these people getting these weeks for free somehow?

Given a week can cost an RCI member as little as $200-400, they would usually make money even at $4-5 a point.