Why are rental costs going down?

[PKS44]

IF people could regularly get $15 a night they would...these comparisons are almost meaningless...the price you can get someone to pay and the "value" you are calculating may be far far apart...price is a mix of cost and value where value is what the buyer values, not what the seller is providing....as to the person who thinks renting at $10 a night is better than buying- I suggest he either overpaid for their ownership or the math is off...My points with original outlay and maintenance fees cost me around $6 a point...for others that number is lower....a 67% profit for the seller is going to make plenty of sellers willing to "settle" for $10 a point while you try to get "what the points are really worth at $15/point...if I rented instead of buying I would be the one losing out....the "downside" to owning is that I am now committed to going to WDW for so many years..oh darn....that really stinks...

...also all these cost analyses are not counting the $25 a day charge for daily maid service you should add or subtract to make the comparison...

Finally, dealing with a stranger who may take your money and you show up with no room is a fear that keeps the price of DVC rentals lower than the replacement cost for the same reservation...

 

[bicker]

value is what the buyer values, not what the seller is providing

Absolutely, and rereading some of what I wrote earlier, I see I was misleading a bit. It is fair that DVC owners don't get "fair market value" for the accommodations we offer for rental. It just doesn't seem fair when you're the one getting the short end of that stick!

 

[spiceycat]

You can bet that "regular" does NOT mean standard view at BWV. There is never any multiple-day breakage in the standard view rooms, because they're such a good points-value. Those are ROH rooms, so generally are preferred view.

guess what CRO does rent these villa to the general public for the same price as the preferred view....

talk to some people who did - they were happy - so I saw no need to educate them.

 

[shellbelle1971]

Is it possible that one reason rental prices are decreasing right now is that with the new SSR promotion, there are suddenly a lot of new owners with '05 SSR points they won't be able to use? Or that people are buying in with the thought, "I'll rent my first year's points out to offset some of the initial purchase cost..."?

Note, I'm not saying this would be a good, bad, evil or benevolent plan...just a possible explanation.

 

[spiceycat]

when I looked (and I need to go back and look again) - there were a bunch of posters that only posted to the DVC rental/trade.

If I was renting I would look further.

both the renter and rentee had very few posts.

I see that is the big problem. they don't post enough to know what a good price is for their points.

 

[bicker]

There is no question that as there is more DVC space, that's going to depress rental prices. It is interesting, in a way. With SSR are we doubling the number of DVC points in the system? But the number of people looking to rent DVC points perhaps is only increasing marginally.

 

[spiceycat]

There is no question that as there is more DVC space, that's going to depress rental prices. It is interesting, in a way. With SSR are we doubling the number of DVC points in the system? But the number of people looking to rent DVC points perhaps is only increasing marginally.

if that starts to happen - I just go post to someone new on the Dis resort board that is looking to save money.

more people are just lookers on that board than post to it.

of course I also try to answer other questions too. I am not there just to advertise for the DVC rental/trade site...by any means!!!

most people who are going to WDW want to stay at WDW. they just don't think they can afford too. So I am doing them a favor.

 

[lark]

Just because I was running these exact numbers over the weekend. . .

SSR, 1 BR, June 4-11 2006 (Sun-Sun, 7 nights)

Points: 225 (Dream Season)

Expedia: $405/night x 7 nights = 2835 + 11.5% tax = $3161

Rental: at $10, $2250. At $12, $2700. At $14, $3150.

Just to give a concrete comparison. . .

D-n-C

FYI, same room same dates is available with AAA rate at $2548, which is $2841 with tax, or $12.60 a point.

I've said this on this board before and never had anyone really accept it, so I'm not sure why I'm trying again, but rack is a specious comparison. Anyone saavy enough to know about renting points is saavy enough to know how to get an AAA discount. I was able to get it down to $12.60 a point with a 3 minute search on the AAA website. Take into account the fact that with codes and other money savings tricks that you can't use when you rent from a DVC member -- such as the dining plan or the current promotion which includes free "plusses" and hopping on MYW tickets -- and you get a little different picture.

 

[Beca]

If I knew what an unbelievable deal I could get renting the "Home away from Home" resorts I would not have bought, but rented. I spent a lot of money to purchase and then pay maintenence, no way am I going to give away points. The renter is the winner. At $10 a point it's a bargain.

I think you are my long-lost twin!!!



Beca

 

[LakeAriel]

I think you are my long-lost twin!!!



Beca

 

[Jen D]

FYI, same room same dates is available with AAA rate at $2548, which is $2841 with tax, or $12.60 a point.

I've said this on this board before and never had anyone really accept it, so I'm not sure why I'm trying again, but rack is a specious comparison. Anyone saavy enough to know about renting points is saavy enough to know how to get an AAA discount. I was able to get it down to $12.60 a point with a 3 minute search on the AAA website. Take into account the fact that with codes and other money savings tricks that you can't use when you rent from a DVC member -- such as the dining plan or the current promotion which includes free "plusses" and hopping on MYW tickets -- and you get a little different picture.

lark, I accept it and I thought you argued this heroically on the last "why are rental prices so low" thread which was what, a week ago?

 

[lark]

lark, I accept it and I thought you argued this heroically on the last "why are rental prices so low" thread which was what, a week ago?

Hey, 10 days ago!

See what happened over there was that I promised I would stop posting on that thread, but then I still had more I wanted to say, and saw this thread and well . . .

I have no idea why this is a pet peeve issue for me. I guess after having been a member over at the tug timeshare board and seeing how many people get clobbered with timeshares, I get my hackles up if people don't go in with their eyes open. The bottom line is that DVC is exceptionally low risk, compared to the rest of the industry. Heck, if you had extra cash lying around, you could probably just buy and sell DVC every three years or so and essentially get 3 years of vactions for nothing but the maintenance fees and the closing costs. (Why don't people do this? Maybe they do?)

But I guess the "value of rentals" posts push a button, because I know a lot of people come here to try to figure out whether to buy DVC, and I still think the market is saying that around $10/point is what you should figure when trying to figure out you break even point of purchase v. rental.