All,
Just a few comments -- there have been a reasonable amount of points rentals, they appear to be around a range of $0.45 - $0.60 per point, with most in the $0.50 - $0.55 per point. The basic assumption of remaining time to point expiration appears to be the most common denominator in pricing (and number of points transacted appears modestly important as well). I appreciate the feedback and kind comments from the people participating in the transactions.
I admit that I am surprised that points pricing has come down as quickly as it has. Recall that I rented points out for $0.65 per point in an experiment conducted last August or September. I didn't expect points pricing to reach an approximate $0.50 so quickly.
First of all, thanks for facilitating the forum/board on this. Very usefull and also enriching. I have done 3 experiences and here are my conclusions:
(1) the first one (selling 50 points, 2011) was experimental and to help someone just close/book his vacations. Not too much discussion on MY price ($0.60/points paypal). Conclusion: Difference in price on this small quantity was less important to the buyer than just have the deal done (and vacations booked).
(2) the second was buying 500 points (2011) at $0.44/point, although I only needed half of them (adding days for Hawaii). The seller used your forum and announced his price ($0.44/point). I was surprised by his low pricing, especially taking into account he had the option to bank them to 2012 at that time. At that price, I just decided to buy them all.
Conclusion: some people have "orphan" points and just want to sell them to cover their costs/MFs. If not, they are risking to lose all. This trend could accelerate after banking deadline is passed (end of June 2011).
(3) the third transaction (still pending 3375 points, 2012) at $0.47/point. The seller seems to have a significant amount of weeks that he will not used. He announced a higher price ($0.55). However, I told him that my starting point is 3BR MGV at $0.37. In fact, I have 2 choices to had days to my deeded weeks in 2012: (1) convert one of my week or (2) rent some 2012 points.
I negociate to be in the middle ($0.47) and to take all the points of one full deeded week. Conclusion: price is higher than his MF and he has one deeded week to worry less about. A lot of people are just wanting to cover their MFs + small profit. They have written-off their initial investment in their head.
As background, when I bought my Worldmark account in 2005, points rented for about 7.5 cents per credit (ie, point) and MFs were approx 5.0 cents per credit. Over time, MFs have risen to approx 6.0 cents per credit (at least for my size account, larger accounts pay less) and credits can be rented with relative ease for also 6.0 cents per credit. Accordingly, I reached the conclusion of why buy more WM credits if they can be rented easily and without penalty?
Forgive the long message here, but because of the ability to rent/transfer points, those who have enrolled in DClub may find that there really isn't a reason/need to buy more Marriotts (for trading at least), if you are able to rent points for something close to the MF value over time. Every time I look at a Marriott timeshare on eBay, I'm reaching the same conclusion, that buying it just isn't necessary unless its for personal use.
Interesting stuff (to me at least!)
Greg
As mentionned in another post (early this week), I came to the same conclusion. Buying more deeded weeks without being able to include them in DC program is not interesting at all. Unless you are buying THE week that you want for use or can one day be included into DC (Europe, Asia, etc.).
Recently, I bought a Cypress Harbour (summer) and could not include it into DC, so I just re-sold it. MVCI makes it too complicated (no DC program, two Interval accounts, etc.).
The situation is evolving. Renting is becoming more and more the solution: becoming cheap (price per point close to MFs), flexible (all Marriotts "in theory") and, finally but most important, without long term commitment.
Interesting stuff for me too and keep the discussion going.
