For the last year, while shopping for the right DVC contract, I was seeing a huge spread in asking prices on the resale sites, and struggled hugely with how to figure out the fair price given how loaded/stripped a contract was. I repeatedly ran into the assertion that stripped contracts are rarely a good deal, or that you had to negotiate down hugely to make it worth it. But when I did the math, that seemed less and less true. If you do not need the points for the stripped years or are willing to borrow from subsequent years, by negotiating the price a little, there are deals to be had. For this analysis, I look at VGF, but this should translate across the board for all DVCs. Here are two real-world examples of a 250pt and 240pt VGF Contract: Loaded 250pts - $140/point – April UY (via Fidelity) 250-2017 250-2018 250-2019 Fully Stripped 240pts - $135/point – March UY (via DVC Resale Market) 0-2017 0-2018 240-2019 At first blush, I would guess most wouldn’t even consider the fully stripped contract, but the math suggests a shopper should reconsider things. One idea that people will often posit is that with the loaded points, you can rent them out, bringing the effective cost per point down significantly. Unless there is a lot of tax evasion taking place (David’s issues a filed 1099), for each point you rent at $14 dollars, the tax reduces that down to closer to $8.36. This assumes you are in a 25% tax bracket with 12.4% Social Security and 2.9% Medicare totaling 40.3% tax. $14 - $5.64 (tax) = $8.36 value for each point For comparison purposes I took the loaded contract and stripped it via renting out points until 2019. Assuming all carried the same $785 closing cost and that people would have to pay MF on current use year, the total contract costs come out as follows if we made every contract stripped: Loaded (via Fidelity) $35,785.00 (Contract Cost) +$2,950.00 (2017, 2018 MF) -$4,180.00 (Renting out points after taxes for 2017, 2018) __________ $34,555.00 (or $3.07/pt/ year 2019 through 2064) Fully Stripped (via DVC Resale Market) $33,185.00 (Contract Cost) +$1,416.00 (2018 MF) -$1,416.00 (2018 MF Refund from Seller) _________ $33,185.00 (or $3.07/pt/ year 2019 through 2064) Applying this same calculations to a fully stripped Poly contract at The Timeshare Store with the $854 closing cost (@kboo): Loaded 200pts - $145/point – Hypothetical “Fair Market” 200-2017 200-2018 200-2019 Fully Stripped 200pts - $140/point – March UY (via TSS) 0-2017 0-2018 200-2019 The $/pt/yr breakdown for these two contracts are as follows: Loaded (Hypothetical “Fair Market”) $29,854.00 (Contract Cost) +$2,456.00 (2017, 2018 MF) -$3,344.00 (Renting out points after taxes for 2017, 2018) _________ $28,966.00 (or $3.08/pt/ year 2019 through 2066) Fully Stripped (via TSS) $28,854.00 (Contract Cost) +$1,228.00 (2018 MF) -$1,228.00 (2018 MF Refund from Seller) _________ $28,854.00 (or $3.05/pt/ year 2019 through 2066) BUT, by negotiating the stripped contract down by just $5 to $135/pt. Fully Stripped (via TSS) $27,854.00 (Contract Cost) +$1,228.00 (2018 MF) -$1,228.00 (2018 MF Refund) _________ $27,854.00 (or $2.96/pt/ year 2019 through 2066) Point being, if it’s the right UY, the right home resort, the right number of points, and you don’t immediately need the points, or are willing to borrow, a little negotiation can turn that stripped contract into one of equal value as the loaded one selling for a higher $/pt. All assuming you don’t dodge your taxes, of course. EDIT: Mathematical error with loaded contract $/pt/yr calculated from 2017 as opposed to 2019.