Please help understand $ for point value

[annavn]

Hello all,
I was wondering if anyone could explain what the $ value of 1 point is. If you were to rent, or take a cruise (I saw so many point that wasn't worth it but don't know why). My biggest interest is taking vacation in europe.....without knowing what the $ value is I can't figure out when it's worth it to use points and when to pay cash. Any help is appreciated. Thank you!

[Blue&Gold]

Hello all,
I was wondering if anyone could explain what the $ value of 1 point is. If you were to rent, or take a cruise (I saw so many point that wasn't worth it but don't know why). My biggest interest is taking vacation in europe.....without knowing what the $ value is I can't figure out when it's worth it to use points and when to pay cash. Any help is appreciated. Thank you!

Tough one... "Value" in this case is fairly hard to define.

In a strict sense, 1 point is worth whatever someone else will pay you for it... If you define it that way, I've seen most rental discussions refer to the $10-$14 range. Some more... Also, some less in that the closer folks get to losing the points (can't bank, in holding, whatever) the price drops. Seen asking prices as low as $5 on "distressed" points.

Another way to look at it is that at a minimum, 1 point is worth the Dues you paid on it ($4-$5 depending on home resort) plus some amount of "equity" from pro-rating the points over the years of the contract---but that's a tough calculation.

Remember, trying to turn points into dollars assumes you will be able to rent them, which takes time and effort. What is your time worth to you? I've never rented out my points, so I can't speak to that aspect.

[annavn]

Thank you. Yes, it is a difficult question, that's why I was a bit confused. I am not that interested in renting, I just thought maybe it would give me a better idea. I am more concerned with using points on a week in Spain, for example, vs just finding a good deal for a week in Spain on my own. And I didn't know what that good deal is.... $10 to $14 dollars gives me an idea....:smoke2::headscrat

[gblast123]

Thank you. Yes, it is a difficult question, that's why I was a bit confused. I am not that interested in renting, I just thought maybe it would give me a better idea. I am more concerned with using points on a week in Spain, for example, vs just finding a good deal for a week in Spain on my own. And I didn't know what that good deal is.... $10 to $14 dollars gives me an idea....:smoke2::headscrat

DCL gives you approx $6-7 per point (+/- $1) as a credit towards your cruise.

It is really a terrible waste, as if you rented your points, most people would give you far more than that.

The other downside to using points is that you pay an additional $95 exchange fee, and you have far less flexibility if you want to cancel.

Remember that if you cancel, you DO NOT get your DVC points back. You get "reservation points" which has limited useage!! Also, you cannot transfer those reservation points to other DVC members so you are really stuck!!

I highly, Highly, HIGHLY, recommend that DVC points never be used for DCL unless you have no other choice.

I previously posted a complete financial analysis regarding this. Here is the link

http://www.mouseowners.com/forums/showthread.php?t=11268&highlight=cruise

David