Why is renting points so "cheap"

[Beca]

Couldn't have said it better, Beca.

I see so many people who want a deluxe vacation at a less than value price. And they want the extremely difficult times and villas, NOW. I guess those non-owners wouldn't bother me so much if they were a bit more realistic with their requests. For example, requesting a Grand Villa for Christmas week in early November. Isn't there something in the FAQs about making far out requests? You know, the ones that make you roll your eyes and think "Get Real!! I couldn't even get that at this point in time."

ITA!!!! Someone posted that they were looking for Christmas/New Year's TODAY!!! I realize they just don't "know" about DVC...but, that is exactly my point. They don't know how it works, but yet they are setting the price. I see people posting, "Want std. view studio over Thanksgiving. Because rooms are so expensive during that time, I want to pay $8-9 per point." I PROMISE I saw one similar to this in SEPTEMBER!!! I thought....okay, you know enough to know about std. view rooms, and you are drawing the line on what you are willing to pay at a VERY low price....and yet, you actually think someone is going to get you a ressie at a VERY high demand time, and then take the "hit" financially for you!!!! Fortunately, no one ever responded!!

Posts like that make me want to scream!! I agree.....we definitely need a "Are you on drugs?" smiley!!



Beca

 

[tmt martins]

I don't get it....but, then again....that's why I don't rent out my points!! I am MORE than happy to transfer them to another DVC member who is in need of extra points....they value my purchase as much as I do, and they become responsible for damage once the points are in their name. But, when I read posts like this....I realize renters may not be such a good idea.



Beca

Well as a new SSR owner I know I will be needing points from time to time (parents and so forth) I love the $10 pp that I can pass along to whomever I'm upgrading my plans for .I would like the transfer option as it takes alot of the risk out of it not all but most.

By the way we went just to see SSR last week and we love it the closeness to DTD was a plus for us (DQ Shopping Addiction).The rooms were very nice ,the layout while big not that bad when you think of all the walking you do in the parks anyhow.We have visited many of the others and can see why people have their loves and dislikes for all of them.Thats why I think DVC is so successful because of the REAL choices you have.

 

[kidskid]

Thank you sellers for being my travel agent. Renting points here on the disboard is the best way to go to disney. Who needs to spend 15k and 600 a year when we can get the key advantage of the DVC membership at a fraction of the cost. We have been taking honey from this pot for years and will continue to do so untill the pot is empty.

 

[Beca]

Thank you sellers for being my travel agent. Renting points here on the disboard is the best way to go to disney. Who needs to spend 15k and 600 a year when we can get the key advantage of the DVC membership at a fraction of the cost. We have been taking honey from this pot for years and will continue to do so untill the pot is empty.

You're right....and that's my point!!



Beca

 

[ClarabelleCow]

Quote:
Originally Posted by kidskid
Thank you sellers for being my travel agent. Renting points here on the disboard is the best way to go to disney. Who needs to spend 15k and 600 a year when we can get the key advantage of the DVC membership at a fraction of the cost. We have been taking honey from this pot for years and will continue to do so untill the pot is empty.



You're right....and that's my point!!"


Exactly, so aren't the owners that rent their points out at such a low price to be to blame for this!!!! Honestly, if I were to do it again, I would probably just rent also. Even at $10.00 a points its too low, its the owners that are devalueing DVC, the renters can ask for what ever they want, but as owners we should be keeping the price in line somewhere below the actuall rental rate, baseing it on our cost, especially if you bought back in 1992, is just giving away the luxury of DVC!!! Hope you can understand what I am trying to say, typed it 10 times and its just not coming out right!!!

 

[LordAthens]

Can we have the discussion of getting DVC owners to raise rental cost after I rent my points, please?

/me runs away with flame proof skivvies on

 

[Jen D]

To be fair $10 a point doesn't usually get you in line with "value prices"....as Lewis noted the discount is not as significant for 7 day rentals.

Take September... a week at a studio at VWL would be 104 points, so at 7 days that is $1040. $148 a night for this room that at rack rates would be $295 (in 2006). (A value resort is only $77/night in September.) Great discount. But who pays rack rates in September? There has been deep discounting in September for years (although this year it came in the form of free dining.) In September available discounts through AP and elsewhere you could get for $148 a standard at AKL or a woods view at WL... maybe not quite as good a room as a studio in the DVC, but close. So in that situation, I would pick Disney over renting. At other times of year, the equation might be different and renting would come out ahead.

Beca, I totally I get what you mean about being insulted when someone lowballs you for something that is of value to you... but I guess I would advise you to basically not take it personally. It's a marketplace... and the $7 or $8 low-ballers with their sob stories will only succeed if someone rents to them.

 

[qgallo]

I am a new owner of DVC. I did not buy into DVC to sell points. But If I have points that I cannot use then renting them would be a great option. Question is why sell them for $10 a point. We have of spent a lot of money to be part of this. I just checked Disney website for April 30-May 5 2006 for Boardwalk Pool View and the cost is $2425 for the 5 nights. It would take 66 points for this time , so $10 a point would be a total of $660 which includes taxes. If you charged $15 a point it would be $990. That is still a great deal over the Disney price of $2425. I personally think ALL DVC OWNERS should get together and have the rental points around the $15 per point price. And if you are transferring points to other DVC Owners then and only then cut the price to $10 a point.

 

[Johnnie Fedora]

Clarabelle, I think I can simplify your point:

The only WDW accomodations cheaper than a rented DVC studio is a tent site at Fort Wilderness.

 

[Jen D]

Clarabelle, I think I can simplify your point:

The only WDW accomodations cheaper than a rented DVC studio is a tent site at Fort Wilderness.

??? $38 a night in value season for Fort Wilderness campsite. I guess if someone is selling their OKW studio Sunday-Thursday only for $5 a point, you're right... but I don't think that is very common.

If you want to make a case that the points are being undervalued, there is certainly a case to be made but why make stuff up?

 

[Beca]

To be fair $10 a point doesn't usually get you in line with "value prices"....as Lewis noted the discount is not as significant for 7 day rentals.

Beca, I totally I get what you mean about being insulted when someone lowballs you for something that is of value to you... but I guess I would advise you to basically not take it personally. It's a marketplace... and the $7 or $8 low-ballers with their sob stories will only succeed if someone rents to them.

Your first point is true....but if you spend any time on the rent boards, you see that many renters accomodate this by staying somewhere else on Fri/Sat. There are many people looking for Sun-Fri accomodations. I looked into the cost of one night at All-Star music on Thurs, Nov 23....it came to $140. A studio at BCV for the same night is 14 points, or $140 on the rent boards.

And, I totally agree with your second point, too. But, what renter's aren't figuring into the equation is that we owners KNEW DVC was not the best "value" for our money when we purchased. We bought DVC because we believe in what Disney stands for, and want many years of "together" times for our family in an environment that promotes safe, clean fun.

The problem is that there is an "expectation" among renters that we should rent our points at bargain basement prices. And, this expectation keeps members from renting their points for anywhere near a decent price. Yes, it is a market economy, but only because the momentum has not been there to change it. Many owners "begrudgingly" rent at $10 per point, and accept the loss of their investment because it is the best they can do. Then when we get offered even lower, it becomes insulting. Maybe we shouldn't take it personally....but, that is why we purchased DVC in the first place....because it IS personal.

I don't know if that makes any sense. There is a LOT that I could've done with my investment (about $46,000)...including a nicer home, newer car, etc. But, we made the sacrifice of other luxuries and opted for DVC. When the expectation is that DVC owners who want to rent should provide, as allearsnet put it "deluxe at value prices"....it hurts a bit.

But, I will say this....as long as DVC owners are so willing to let their "hard sacrificed for" points go for bargain prices....all of the renters in the world are much smarter than me!



Beca

 

[Johnnie Fedora]

??? $38 a night in value season for Fort Wilderness campsite. I guess if someone is selling their OKW studio Sunday-Thursday only for $5 a point, you're right... but I don't think that is very common.

If you want to make a case that the points are being undervalued, there is certainly a case to be made but why make stuff up?

If DVC studios are routinely rented for the the same price as a value resort, then the only thing cheaper is a tent site. It's hardly "made-up".

Rented OKW studios(8pts/night) can go for $64-80. Last time I checked $38 is less than that.

 

[Jen D]

Your first point is true....but if you spend any time on the rent boards, you see that many renters accomodate this by staying somewhere else on Fri/Sat. There are many people looking for Sun-Fri accomodations. I looked into the cost of one night at All-Star music on Thurs, Nov 23....it came to $140. A studio at BCV for the same night is 14 points, or $140 on the rent boards.

True enough... no question that if you're looking for Sunday-Thursday only renting can be a great deal. To many (me included) that's much too limiting.

Still, I don't buy into the idea that the owners are suckers and the renters are geniuses! I just don't think renting compares to the flexibility and power you have in ownership, and owning does pay off after you reach the break even point. (Working on my pitch, still have to convince dh that this DVC thing is a good deal )

 

[Jen D]

If DVC studios are routinely rented for the the same price as a value resort, then the only thing cheaper is a tent site. It's hardly "made-up".

Rented OKW studios(8pts/night) can go for $64-80. Last time I checked $38 is less than that.

Fair enough... All Stars go for $77 rack rate (value season). But $8 is not the going rate unless the points are distressed.

 

[Johnnie Fedora]

Don't forget $77 x 11.5% = $88.50. Taxes add to the total cost of a CRO rental were they do not for a DVC rental.

 

[SonicLogic]

Fair enough... All Stars go for $77 rack rate (value season). But $8 is not the going rate unless the points are distressed.

And there you have the answer. No one pays rack rate at Disney. The values go for $49.00 on a regular basis. Same thing is true for DVC rentals. You can ask for $10.00 a point, but I've never paid more than $6.70.

 

[Beca]

I just don't think renting compares to the flexibility and power you have in ownership, and owning does pay off after you reach the break even point. (Working on my pitch, still have to convince dh that this DVC thing is a good deal )

Very true....the "ownership" part is a wonderful perk that does help alleviate the pain of the purchase price. And, renting can help you break even, but it is not the cash cow that renters might think. Maintenance fees at some resorts are approaching $5 per point, per year. My maintenance fees are over $2300 per year. That means that in addition to spending my $46,000 initial investment, I still have to pay $2300 per year for my accomodations. At the going rate, I could rent a studio in early December at OKW for 20 nights if I rented (80 per week plus 60 for six nights comes to 220 points, or $2200 dollars), with NO up front investment.

Seriously, at these prices...dh would be crazy to let you buy in!!



Beca

 

[Beca]

And there you have the answer. No one pays rack rate at Disney. The values go for $49.00 on a regular basis. Same thing is true for DVC rentals. You can ask for $10.00 a point, but I've never paid more than $6.70.

But, the cheap times at DVC are not always aligned with the cheap times at the resorts.

Example: Thurs, Nov23rd...All-Stars (including tax) $140, BCV 14 pts (or $140 on the rental boards). I DID look into getting some sort of discount on BCV for that night, and DVC was only offering it in excess of $300 per night...so, I don't know how "No one" pays rack rates....I couldn't get anything discounted!! I ended up borrowing from my 2006 points to go.

Congrats on getting your points so cheap....owners are DEFINITELY losing money when they rent to you!!!



Beca

 

[Johnnie Fedora]

And there you have the answer. No one pays rack rate at Disney. The values go for $49.00 on a regular basis. Same thing is true for DVC rentals. You can ask for $10.00 a point, but I've never paid more than $6.70.

Whatever $49 postcard rate your talking about is not available to the masses and are not always available. Rack rate is paid by many, depending on season. Rack rate is the only benchmark that can be used when "talking discounts" for Disney accomodations.

 

[Deb & Bill]

Jen D, how can you even compare a value room to a DVC studio? What value room has a queen sized bed (or two)? What value room has a microwave in the room? What value room has a balcony? What value resort has an undercounter refrigerator? Even the deluxes only have the dorm cube refrigerator which is about half the size of the undercounter refrigerator.

Okay, compare a DVC studio with a moderate. Oops, you still only have double beds, no balcony and no microwave or undercounter refrigerator. Move on up to the deluxes. And you still don't have the same kitchenette.

So, if a DVC at it's true value is too costly for you, stay in a value. I'm sure you'll love it. I hear most people only sleep in their rooms anyway, why bother with a little luxury?