Value of loaded contracts vs stripped.

[Captain Trips]

I apologize if this has been addressed before. I’m currently in the market for a resale contract. Curious as to what the margin of value I should place on a contract that has 2020 points vs one that has none until 2021. I don’t plan to travel until 2021 so I’m asking strictly in terms of monetary value.

Thanks in advance.

 

[DaveNan]

Many folks put a value of $8-$10 per point. If you were going to rent out the points they have a value of $15-$17 in the rental market, but you pay the MF associated with those points, or get credited at closing. So if you use $7 for the MF, the delta is that $8-$10.

 

[Captain Trips]

Thanks so much.

 

[ldo]

It also depends on whether you need the points. Years ago, we bought a contract with current points (which we did not pay for maintenance fees). We used the points, but would have been fine not taking that trip and would never have paid "market price" for those points. I valued them at $5. So, I think $5-7 is a good valuation if you're just taking an extra trip, etc. For someone who would otherwise be renting or paying OOP for WDW hotel, I'd be willing, as a buyer, to assign a higher amount up to $10.

 

[Captain Trips]

That makes sense. Thank you

 

[MICKIMINI]

Don't forget, besides the monetary value there is the fact that you can keep banking forward. It makes a nice cushion should you want to stay longer or in a bigger villa or even take another trip. Right now, prices are IMO too high on stripped contracts. Do yourself a favor and buy a loaded contract!

 

[Captain Trips]

I agree on the prices of stripped contracts. I just wasn’t sure how much value to assign the difference in points. Appreciate all the responses. Great insight.

 

[cq8383]

You do know that if you buy resale now, you get limited benefits and no discount on annual passes.

 

[Captain Trips]

You do know that if you buy resale now, you get limited benefits and no discount on annual passes.

Yes, I’m aware of the current restrictions. Thank you.

 

[BWV Dreamin]

I feel the value of “loaded” contracts has dropped. There will be challenges in the next 12-18 months to book reservations due to the backlog of owner points due to Disney cancellations. Rental business May drop off due to people getting burned by David‘s debacle. Price will be the driving factor now, not points.

 

[Captain Trips]

I feel the value of “loaded” contracts has dropped. There will be challenges in the next 12-18 months to book reservations due to the backlog of owner points due to Disney cancellations. Rental business May drop off due to people getting burned by David‘s debacle. Price will be the driving factor now, not points.

That is an interesting perspective. I suppose if reservations became harder to get and demand for rentals diminished that could make points on contracts less valuable. Also would make home resort more important as well.

 

[Jaguar Skills]

I feel the value of “loaded” contracts has dropped. There will be challenges in the next 12-18 months to book reservations due to the backlog of owner points due to Disney cancellations. Rental business May drop off due to people getting burned by David‘s debacle. Price will be the driving factor now, not points.

Hi, could you explain what the David’s debacle is/was?

We may have some Banked 2019 points to rent out as I don’t think we can use them in time.

It’s our first contract so were thinking of renting them with this firm potentially.

 

[glamdring269]

Hi, could you explain what the David’s debacle is/was?

We may have some Banked 2019 points to rent out as I don’t think we can use them in time.

It’s our first contract so were thinking of renting them with this firm potentially.

Some not so light reading material.

https://www.disboards.com/threads/davids-dvc-rental-reimbursement-or-rescheduling.3796922/

 

[DVC Doctor]

I apologize if this has been addressed before. I’m currently in the market for a resale contract. Curious as to what the margin of value I should place on a contract that has 2020 points vs one that has none until 2021. I don’t plan to travel until 2021 so I’m asking strictly in terms of monetary value.

Depends on your perspective

Seller - value is anything above annual dues (assume $7pp)
Buyer - value is anything less than rental value (assume $16pp)

True and fair value is around $10-12pp

 

[lovethesun12]

Hi, could you explain what the David’s debacle is/was?

We may have some Banked 2019 points to rent out as I don’t think we can use them in time.

It’s our first contract so were thinking of renting them with this firm potentially.

A lot of people are unhappy with how most rental companies handled this. David's is one you see named on this board.

Whether you will want to rent or not should probably be based on what the value of the points are to you. I've been considering a contract that happens to have banked points. If I went ahead and purchased it, I'd probably try to rent them out through David's rather than let them expire, because the potential is there I could get something out of it and I don't want to bother with direct renting. If David's couldn't rent them or if something happened (resort shut down again) I'd just eat the loss because I'm not going to use them anyway. It seems the biggest loss for owners occurred when resorts were shut down, and I *think* the new contract is worse for them so the potential for losses are there (again there is much more on this in the thread).

If on the other hand you want as much value as possible, many will probably tell you to rent them yourself with a contract. I know nothing about that though because I've never done it

 

[Jaguar Skills]

A lot of people are unhappy with how most rental companies handled this. David's is one you see named on this board.

Whether you will want to rent or not should probably be based on what the value of the points are to you. I've been considering a contract that happens to have banked points. If I went ahead and purchased it, I'd probably try to rent them out through David's rather than let them expire, because the potential is there I could get something out of it and I don't want to bother with direct renting. If David's couldn't rent them or if something happened (resort shut down again) I'd just eat the loss because I'm not going to use them anyway. It seems the biggest loss for owners occurred when resorts were shut down, and I *think* the new contract is worse for them so the potential for losses are there (again there is much more on this in the thread).

If on the other hand you want as much value as possible, many will probably tell you to rent them yourself with a contract. I know nothing about that though because I've never done it

Thanks for this. We are very new to DVC having only just bought our first contract and so I am sure we would rather put it in the hands of someone who knows what they are doing and lose a little on the $ PP.

At the end of the day, if we don't use these points i.e. for a few days Jan 28-31 we will lose them. My OH preference is not to go then, but I would rather use them than lose them so if we dont use them renting seems to be the next most sensible solution!

 

[lovethesun12]

Thanks for this. We are very new to DVC having only just bought our first contract and so I am sure we would rather put it in the hands of someone who knows what they are doing and lose a little on the $ PP.

At the end of the day, if we don't use these points i.e. for a few days Jan 28-31 we will lose them. My OH preference is not to go then, but I would rather use them than lose them so if we dont use them renting seems to be the next most sensible solution!

For sure! Just to be clear though, I'm not an owner but I do know there are *a lot* of upset owners with how David's handled the situation. I think their new contract says you would have to refund the amount you receive if resorts close again, which means they would expire and you may not get anything for them, but again probably shouldn't listen to me and read that thread instead =) I'm not sure if someone might have suggestions for other companies that handled it better?

I just feel like while they didn't handle this well, they are a legit company and I'd probably take the risk of getting nothing personally rather than let the points expire, but there are many, many, many owners on that thread that would not.

 

[BWV Dreamin]

There are other brokers out there that can rent your points AND handled the whole trip cancellations much much better than David’s. I would probably let my points expire rather than chance another problem with his company, especially now with the new voucher system gimmick.

 

[Matty B13]

There are other brokers out there that can rent your points AND handled the whole trip cancellations much much better than David’s. I would probably let my points expire rather than chance another problem with his company, especially now with the new voucher system gimmick.

Exactly, why be on the hook with David's if the resort closes to pay back the renter.... and lose your points. He takes a pretty big commission on the transaction and should offer some protection for the owners.

 

[Lorana]

There are other brokers out there that can rent your points AND handled the whole trip cancellations much much better than David’s. I would probably let my points expire rather than chance another problem with his company, especially now with the new voucher system gimmick.

Which brokers are those, if they can be mentioned here? I'd like to know where I can more safely rent my points when needed. I've only used David's previously, and I'm not a fan of their new owners contract.