Why Small DVC Contracts Cost More Per Point?
When you’re browsing contract listings on the DVC resale market, you may notice an interesting pattern when it comes to contract size: although the total contract value of smaller contracts is less than the total contract value of larger contracts, the price per point is often higher. This may sound counterintuitive, but here’s why small contracts sell for more per point.
Small Contracts Can Appeal to More Buyers
Small contracts can be attractive to both prospective DVC Members and current Members who are looking to add on more points. For first-time buyers, small contracts can feel like a very approachable way to become a DVC Member. Smaller contracts tend to be more affordable, so they can be a lower stakes way to buy points and really get to know the ins and outs of the DVC product before deciding whether DVC works for your travel needs and if it’s worth buying more points.
Villas at Disneyland Hotel
For existing DVC Members, small contracts can be the perfect size to complement the contract they already own. Small contracts can offer just enough points to book longer vacations or larger room types. They can also be helpful for adding on another home resort. For example, if you mostly travel to Disney World but would love to own points for occasional stays at the Villas at Disneyland Hotel, you can get a small contract and bank and borrow to have enough points for a Disneyland vacation every other year.
Contract Size Affects Demand
Since small contracts are more approachable and appeal to first-time buyers and current DVC Members alike, they are quite popular. In fact, demand for smaller contracts is typically greater than demand for larger contracts. This greater demand means that smaller contracts tend to sell more easily than larger ones and can therefore justify a higher price per point.
What Other Factors Impact the Pricing of Small DVC Contracts?
When comparing the prices of small contracts, you’ll see that besides contract size, there are other factors that can influence pricing like the home resort and number of points available to use.
Home Resort
Some home resorts are more popular than others and command a higher price per point on the resale market. This is why a 50-point Grand Floridian contract can be priced at $172 per point while a 50-point Saratoga Springs contract with the same number of points available for use can be priced much lower at $117 per point.
Grand Floridian
Points Available for Use
When comparing small contracts for the same home resort, the more points that are available for use, typically the greater the price per point can be. For instance, if there were two 75-point Copper Creek contracts, the stripped one with no points available for use until 2028 can be priced at $142 per point while the one with 75 points available for 2027 and 75 points available for 2028 can be priced at $159.
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