Renting cheap points instead of using your own at <7 months. Am I missing something?

kboo

DIS Veteran
Joined
Mar 10, 2014
So I'm thinking of extending our February trip by a couple of days and there is availability in a Poly standard studio (50 points). One of the resale sites offers rental points for $12 per point. Unless I'm missing something, it seems like a pretty good deal rather than using my 2018 BLT points (have a Thanksgiving trip planned). Yes, I get that I won't "control" the reservation but I've rented several times before we bought in, so I'm comfortable with that. Is there any other downside I'm missing? (I have never rented points from a broker; only privately)
 
I don't see any downside as long as there is availability. Availability is usually the biggest issue, and it seems like most of those inexpensive points are SSR or OKW based. If you can rent some inexpensive points for a Poly stay, that makes sense to me.

You could also have someone transfer points to you, and then you would control the reservation yourself. I wouldn't have an issue either way as we rented without issue before purchasing as well. The only thing about the point transfer is you would have to find someone willing to transfer just the 50 points you need, many advertisements for point transfers I see are for the whole allotment, and I believe the points have to be booked by calling MS, can't do it on the website.

I've never done a point transfer so I could be wrong on some/all of this though.
 
The only downside that I can think of is that you cannot cancel the rental if something last minute comes up. Once the reservation is confirmed, the money leaves your hands and you never get it back. It still works fine, and you are saving a good amount, so I would go for it. Just something to consider.
 
I don't see any downside as long as there is availability. Availability is usually the biggest issue, and it seems like most of those inexpensive points are SSR or OKW based. If you can rent some inexpensive points for a Poly stay, that makes sense to me.

You could also have someone transfer points to you, and then you would control the reservation yourself. I wouldn't have an issue either way as we rented without issue before purchasing as well. The only thing about the point transfer is you would have to find someone willing to transfer just the 50 points you need, many advertisements for point transfers I see are for the whole allotment, and I believe the points have to be booked by calling MS, can't do it on the website.

I've never done a point transfer so I could be wrong on some/all of this though.

Agree with the transfer. I've felt more comfortable controlling my points (what if you had to cancel your reservation due to an unexpected reason) and have had points transferred to me twice when I needed them.
 
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So I'm thinking of extending our February trip by a couple of days and there is availability in a Poly standard studio (50 points). One of the resale sites offers rental points for $12 per point. Unless I'm missing something, it seems like a pretty good deal rather than using my 2018 BLT points (have a Thanksgiving trip planned). Yes, I get that I won't "control" the reservation but I've rented several times before we bought in, so I'm comfortable with that. Is there any other downside I'm missing? (I have never rented points from a broker; only privately)
I tried a “new entrant” To the rental market this summer. They had “points available” for I think $12 and I had access to the RAT so I knew what was available. But when I sent the email saying “let’s book xxx for xx/xx/2017” the response was “sorry we don’t have any owners offering points right now”. So if you can pull it off, more power to ya! I hope you can.
 
I tried a “new entrant” To the rental market this summer. They had “points available” for I think $12 and I had access to the RAT so I knew what was available. But when I sent the email saying “let’s book xxx for xx/xx/2017” the response was “sorry we don’t have any owners offering points right now”. So if you can pull it off, more power to ya! I hope you can.
Ah... I think we may be talking about the same folks. I'll let you know what happens - I still have to clear this with DH.
 
Your BLT points are probably "cheaper" than $12 if you think about it. Don't know what you paid, but at today's value of call it $110/ point divided by 42 years left = $2.62 + $5.62 MF = $8.24 per point value.

Of course that analysis excludes opportunity costs, which most on this board will ignore but is a very real thing. Using a conservative 3%, that would add another $3.30 ($110 x 3%) to your $8.24 for a true cost of ~$11.50.

All that said, I think renting is a great option in general. It does cost ~15-35% more than owning but comes with one key benefit owning can't provide- 11 month priority at every resort. I wonder, if DVC sold points with 11 month priority at every resort would people pay a 35% premium? I bet they would.
 


Your BLT points are probably "cheaper" than $12 if you think about it. Don't know what you paid, but at today's value of call it $110/ point divided by 42 years left = $2.62 + $5.62 MF = $8.24 per point value.

Of course that analysis excludes opportunity costs, which most on this board will ignore but is a very real thing. Using a conservative 3%, that would add another $3.30 ($110 x 3%) to your $8.24 for a true cost of ~$11.50.

All that said, I think renting is a great option in general. It does cost ~15-35% more than owning but comes with one key benefit owning can't provide- 11 month priority at every resort. I wonder, if DVC sold points with 11 month priority at every resort would people pay a 35% premium? I bet they would.
One of these days, DVC is going to set up a direct exchange system and not only profit from the bid-ask of an exchange, but soak up all the rental points off the market and kill its rental competition.

Something along the lines of professional sports teams allowing ticket resales on their websites to kill off scalpers.

1.Start at 10 months to give a true month long home window.

2. Between 10-7 months, owners can trade with other owners in a pool for home resort advantage at a 10% premium. I give the pool 110 BLT points for 100 BCV points.

3. Whatever points are left after the 7 month window opens essentially belong to DVC to rent out. So. Even if more people would trade in SSR and OKW for Poly and BWV, doesn't matter. Everybody gets something at the point of trade and DVC captures the 10% balance at 7 months.

Worse case scenario, the program could charge a higher bid-ask spread for less popular home resort priority trades.

I think such a system would hold some profit in its own right, but soaking up points in a home resort exchange program would kill the rental market. That's why the sport teams allow resellers on their site. Sure, they probably make a commission on sales. But they do it to kill off the side markets.
 
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Ah... I think we may be talking about the same folks. I'll let you know what happens - I still have to clear this with DH.
... and the nights I was looking at were gone, AND most likely the "new entrant" didn't have any points to rent anyway. Oh well.

@aoconnor, agree that if prorated across all years my BLT points are technically cheaper, but "now" points are worth a lot more than points 30 years from now. And I don't want to get in to a situation of borrowing points already.
 
One of these days, DVC is going to set up a direct exchange system and not only profit from the bid-ask of an exchange, but soak up all the rental points off the market and kill its rental competition.

Something along the lines of professional sports teams allowing ticket resales on their websites to kill off scalpers.

1.Start at 10 months to give a true month long home window.

2. Between 10-7 months, owners can trade with other owners in a pool for home resort advantage at a 10% premium. I give the pool 110 BLT points for 100 BCV points.

3. Whatever points are left after the 7 month window opens essentially belong to DVC to rent out. So. Even if more people would trade in SSR and OKW for Poly and BWV, doesn't matter. Everybody gets something at the point of trade and DVC captures the 10% balance at 7 months.

Worse case scenario, the program could charge a higher bid-ask spread for less popular home resort priority trades.

I think such a system would hold some profit in its own right, but soaking up points in a home resort exchange program would kill the rental market. That's why the sport teams allow resellers on their site. Sure, they probably make a commission on sales. But they do it to kill off the side markets.

I've wondered why they don't do this themselves. Would it cut into their CRO bookings too much?
 
My belief is if you have the points - and no definite plans to otherwise use that you couldn't also borrow for - to borrow and use what you've already bought before you spend more money with someone else for points. Borrow until their gone and THEN worry about getting more points. :D
 
My belief is if you have the points - and no definite plans to otherwise use that you couldn't also borrow for - to borrow and use what you've already bought before you spend more money with someone else for points. Borrow until their gone and THEN worry about getting more points. :D
Kathy, you are so logical and so right (as usual). But some of us suffer emotionally when we are in borrowing mode, even when we can't travel ourselves. And I have to say that I have found some WONDERFUL DISers from whom to transfer or rent points!
 
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Your BLT points are probably "cheaper" than $12 if you think about it. Don't know what you paid, but at today's value of call it $110/ point divided by 42 years left = $2.62 + $5.62 MF = $8.24 per point value.

Of course that analysis excludes opportunity costs, which most on this board will ignore but is a very real thing. Using a conservative 3%, that would add another $3.30 ($110 x 3%) to your $8.24 for a true cost of ~$11.50.

All that said, I think renting is a great option in general. It does cost ~15-35% more than owning but comes with one key benefit owning can't provide- 11 month priority at every resort. I wonder, if DVC sold points with 11 month priority at every resort would people pay a 35% premium? I bet they would.

I disagree opportunity cost shouldn’t be added unless you plan to invest the money. If you like me would use the money on other types of vacation or flowers for my wife :D then the opportunity cost is null.
 
My belief is if you have the points - and no definite plans to otherwise use that you couldn't also borrow for - to borrow and use what you've already bought before you spend more money with someone else for points. Borrow until their gone and THEN worry about getting more points. :D
Oh, we have definite plans... that is the problem!!! :D:P

We just bought this year, and had some 2017 points banked into 2018. in our 2018 UY we are planning 2 trips, in Feb and Nov. Feb in a 1BR somewhere, Su-Sa or M-Sa. If the waitlist for the BWV 1BR STD (ha) comes through (haha) then we have enough points to get a 1BR std BLT in Nov. without borrowing. If not, then we are in a studio at BLT (still fine). Then 2019 we will likely make just one 5-6 day trip, if over Easter week it'd be in a studio for all our points, and if over the summer, we'd be in a studio with points to bank to the following year for a 1BR (or in a 1BR borrowing from the following year, leaving 2020 in a studio.)

If in the next few months I find another contract we like (EP resort, most likely) AND convince DH to go along with it, THEN we have more options - then likely 2019 on the other contract, in a 1BR, etc. I just didn't want to start off our first stay messing up my banked/borrowed points already and end up with orphan points.
 
Oh, and I've already borrowed points to try to piece together the Feb week at BLT and can't borrow any more without really making a mess of my 2019 UY points and possibly ending up with too many points for 2018 and orphan points. I would end up having to bank a bunch of 2018 points into 2019 after the waitlists for February are resolved.
 
Kathy, you are so logical and so right (as usual). But some of us suffer emotionally when we are in borrowing mode, even when we can't travel ourselves. And I have to say that I have found some WONDERFUL DISers from whom to transfer or rent points!
This too. :)
 
Kathy, you are so logical and so right (as usual). But some of us suffer emotionally when we are in borrowing mode, even when we can't travel ourselves. And I have to say that I have found some WONDERFUL DISers from whom to transfer or rent points!

:laughing: I too find it more satisfying to be using banked or current vs borrowing. Then the whole "this is a final transaction", "you can't undo this" etc that they make you endlessly acknowledge when you borrow makes it worse. But I also have an aversion to paying more on top of what I pay for my own DVC! :eek:
 
Your BLT points are probably "cheaper" than $12 if you think about it. Don't know what you paid, but at today's value of call it $110/ point divided by 42 years left = $2.62 + $5.62 MF = $8.24 per point value.

I wish today's value on BLT was $110. The average for the last recording period was $137. If you look on the current resale exchanges the typical ask is in the low $140's. Don't know if it lasts but that's today's value... The math even with the higher price still beats $12/point to rent though.
 
Your BLT points are probably "cheaper" than $12 if you think about it. Don't know what you paid, but at today's value of call it $110/ point divided by 42 years left = $2.62 + $5.62 MF = $8.24 per point value.

Of course that analysis excludes opportunity costs, which most on this board will ignore but is a very real thing. Using a conservative 3%, that would add another $3.30 ($110 x 3%) to your $8.24 for a true cost of ~$11.50.

All that said, I think renting is a great option in general. It does cost ~15-35% more than owning but comes with one key benefit owning can't provide- 11 month priority at every resort. I wonder, if DVC sold points with 11 month priority at every resort would people pay a 35% premium? I bet they would.

I'll disagree, purely on the point that you can probably rent owned BLT pts for at least $15. So you're already ahead renting at $12.

I personally booked an SSR room last year through CRO when I had points available because the effective pt rate for the cash room was something like $10. I rented the more valuable pts I had, booked the cash room with CRO, and had money to spare.

I am an experienced renter tho - that part doesn't phase me.
 

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