Standardized DVC Point Rental Rates

[Steamboat Bill]

I wonder if we DISboards members should attempt to "standardize" the price of point rentals on this board.

Let me explain: The going rate for point rentals was $10 in 2000 and guess what....it is still common to see $10 per point rentals. However, the purchase price and the MF have gone up dramatically since 2000.

Thus, there is a disconnect with the price of point rentals.

I suggest the following rental rates:

Point rental for 11-8 month window = $13
Point rental for 7-2 month window = $12
Point rental for 2-0 month window = $11
Distressed or banked points = $10

I know that we can let the market find the price. However, with over 100,000 members, there are always going to be desperate people wanting to unload points ASAP and will take $7-9 pp. I think that this is DESTRUCTIVE to the DVC system as soon it will be cheaper to rent than buy.

I want to PROTECT the marketplace because if point rentals are still $10 per point in a year or two, I will just SELL my DVC contracts and simply rent as this would be cheaper than owning.

My benchmark is maintenance fees ($4pp) + lost opportunity of investing in a 5% CD instead of buying DVC @ $100pp ($5pp) = $9 true value of points.

 

[DVC Grammy]

You bring up a very valid point (no pun intended ). By now, the rental rates should've gone up, and the table you proposed sounds reasonable.
At this time, I can't imaginine not using all of them for us, (I'm a Point-Piggy ), but one day, our kids might choose to offer them to rent.
Everything else has gone up in price; the cost of rentals should, too.

 

[DisneyBill]

Didn't we just have this topic as a locked thread a few days ago?

 

[RobDoc]

Perhaps it would be wise to review the same thread (started by the same person) within the last few days. The response and the result is still the same.

http://www.disboards.com/showthread.php?t=1218792