Why Buy When You Can Rent?

[disney_mommy]

Okay, I have a question for all of you DVCers out there. I am completely unknowledgable about DVC and the pricing, buying process and perks, so please don't think I am trying to start some kind of war of words, I would just like some honest answers. I just rented enough points for me to go to AKV in March, and I can stay for about $15 more than a deluxe resort. So, if it is so easy for someone to rent the points, what is the advantage of buying them from Disney? I thought I saw somewhere that to buy, it is about $98 per point. Is that right? I only paid $9.5 per point to rent from someone on the DIS. I would appreciate everyone's opinion about this. Thanks.

 

[Chuck S]

For those going to Disney only occasionally, you are likely correct that renting is a substantial savings.

However, if you visit WDW often, owning is the way to go. There is less risk, in that you control the points, where as with a renter, they can cancel the reservation out from under you. You don't need to rely on someone else finding the reservation and booking it.

Plus, figure renting at $9.50 (and assuming those rates don't increase when the economy improves) after 10 years, your points are paid for and you have another 40 years to enjoy your resort just for the annual dues.

 

[JimMIA]

In addition to Chuck's point, you can buy into DVC quite a bit cheaper via the resale market. There are numerous contracts priced in the $60's-$70's, and some less than that, depending on resort.

And most "new" DVC prices are also more than $98 per point.

 

[Jason@dvcstore]

When you buy you have complete control of your points.

Jason

 

[jekjones1558]

The costs to buy points from Disney or from a resale are one time costs. So that $90/point (or whatever the amount may be) gets you points every year until 2042, 2054 or 2057 depending on the resort. The yearly costs are then the maintenance fees, which currently are about $4 or $5/point per year, depending on the resort. As a PP said, that is not a huge savings if you are not a regular WDW visitor, but for those of us who go often it does really save money over the long run. And as another PP said, the ability to be in total control of when and where you go with no third party involved is worth a lot to someone who goes frequently.

 

[kenny]

If you are going to go every year, owning is the way to go.

For example, I have a trip planned for March as well. 3 nights in OKW studio and 7 nights in BLT 1 BR MKV. Total of 408pts. At the rate you paid of $9.5 that would be $3876.

I paid about $1300 in MF this year. If I divide the price I paid for my contracts over the life of the contracts that is about another $800 per year. So I roughly paid about $2100 this year.

That is a savings of almost $1800 over what it would have cost me to rent. Now throw in fact that I was able to buy AP's at a $100 per ticket discount and I am up to $2100.

Plus as others said you control your own pts and such which makes things a lot easier.

 

[silmarg]

Renting is a great deal. You can rent an AKV Value studio for around the price of a Value resort.

But buying offers so many benefits and is a long term proposition - which I think is great. And resale is the way to go...

 

[disneynutz]

$9.50 per point is a low ball price. Many Members are currently being affected by the poor economy and they are renting at a price below the normal market of $10 to $12 per point. Prices will be going back up.

I have also noticed that some low price deals don't provide any information or expertise to the renters. Many need to ask questions here when IMHO they should get all of their questions answered by the owner.

Bill

 

[littlestar]

Control is a biggie for me. Renting takes the control away from me and I don't like that. And with the price of a SSR resale being in the mid 60's here lately, if I were going every year or every other year, I'd rather own at SSR and have control of my vacations. That way you're eligible for an annual pass discount and you can call DVC when you feel like it if you want to make a change or try for a last-minute trip.

We actually just bought some Wyndham vacation points (resale) even though I know I could have rented from a Wyndham owner - I wanted to be able to book direct with my own points.

 

[Deb & Bill]

If you find a good member to rent from on a regular basis, go for it.

 

[Petraman]

I currently own 200 pts at SSR. My yearly maintenance fee will be around $1,000 this year which means I am paying about $5/point.

That , of course, only reflects the annual fee and not the initial purchase cost of around $18,000 ($90/point).

If you spread that out for 15 years, it comes out to about $6/point more making my rental costs around $11/point for next 15 years.

But here is the big difference, I own my points, so I can always sell them and recoup a large portion of my initial investment (unlike other timeshares).

So, if you have the funds to invest, if you Disney enough to make it worth it, owning is a far better way to go, and we didn't even talk about the different perks that come with owning.

Important Note: You have to view DVC like owning a timeshare. If you are going to own it and use every single year [by going somewhere or banking points for bigger trip, or like some do rent half your point and pay for your yearly fees ], then owning is a good investment. But if like so many other timeshares, you just don't work your investment and use it to benefit you, then just rent. Just remember the one you rent from... you just paid their annual fee for the year

 

[Petraman]

By the way, if I were to buy today, I would not buy from Disney direct. Their price difference is rarely compensated for in the little addons they give. I would just buy from the resale boards which makes it even easier to recoup your costs quicker

 

[twinklebug]

I'm a 3x renter converted to owner. I chose to own for 3 reasons:

1) Control: I want to call MS and find out what's available, to book, cancel, rebook as I please.

2) Trust: It takes a lot of it to pop hundreds in cash into a stranger's hands and trust that they'll keep that reservation for you.

3) Planning: I want to know that I have my points coming each and every year for the next 47 years. I find very reassuring to know that those vacations are there waiting for us.. yet unplanned

 

[MalouAB1]

Is BLT already on the resale market? Haven't seen that option...

 

[jdg345]

Is BLT already on the resale market? Haven't seen that option...

Yes, but the contracts move quickly.

 

[rlovew]

It is but not for much less than you can buy it new.

 

[robinb]

Buying isn't for everyone. If you're OK with the rental process, understand and accept the risks (no cancellation for many rentals, DVC owner holding all the cards) and found someone you trust then I would say that you are probably doing the right thing by renting.

Buying was the best thing for our family. We go twice a year and use most of our 300 points. I own at Boardwalk so I can book my annual NYE trip (leaving in 10 days!!) at Boardwalk. I'm in a Boardwalk View Studio for 7 days over New Year's Eve for 135 points. I paid $703 in dues for those points and my contract was paid for in cash many years ago. Disney's rack rate is an average of $450 per night for my dates. Now, you can add in what I paid for the points but after buying and selling a contract already I don't. I have already sold a contract for more than I paid for it so I figure the majority of my total costs for my stay will only be dues.

 

[silmarg]

Is BLT already on the resale market? Haven't seen that option...

IMHO, if BLT or VGC is what u really want, buy from Disney.

Most other resorts you can buy resale and save a bunch of $.

 

[crisi]

I don't have the level of trust required to rent. I'd stress. I stress about a lot of things about vacation, I don't need to stress about the risk of being one of the rare few who is scammed.

Control is another huge one. We rescheduled and moved around an extended family vacation three times - hard to pull off with rentals.

 

[tjkraz]

Just wanted to add some other practical issues to the discussion...

If you want to rent during a high demand period you need to star looking for a rental partner 11-12 months in advance and be prepared to part with a large chunk of money. Sure owners also have financial commitments but I think it feels a bit different as a renter sending off those hundreds of dollars to a relative stranger nearly a year before you'll have anything to show for it.

Should your plans change, most renters have very restrictive cancellation policies. Some will not allow any cancellations or changes. The ones that do allow you to cancel will typically tie any refund to their ability to re-rent the points. As a member, as long as I cancel more than 30 days out I have many options available including banking the points to next year.

Most renters are not tolerant of waitlisting--particularly if the waitlisted resort would cost fewer points.

It does seem to be a buyer's market when it comes to renting--and I'm not entirely convinced that aspect is limited to the current economy. There were a whole lot of folks renting points 1-2 years back. It's a great approach for the occasional Disney guest. But buying will pay for itself many times over compared to habitual renting.