Lending your points at cost?

[PoohBears#1fan]

Hi all,

Just after a bit of advice really, we've no interest in going to the US for the next couple of years (the Far East has more pull for us at the moment!) so have offered our 2017 & 2018 points to friends who are planning a trip, I don't want to make money out of them so have said they can just what they cost us.

We pay monthly by SO, I'm not really sure of the best way to go about 'charging' them, which exchange rate to use or if there's a better way of doing it.

Any suggestions gratefully received.

Thank you.

[Guest]

a straight 1 for 1 swap, it might mean you might be " making a small amount " but i would see that as interest on your purchase price

they will still be getting good deal

[lov2dibb]

Is it the annual dues you pay monthly or are you talking about the purchase price (or both)?

Either way, I would take whatever was paid per point divided by the number of years left on contract and then add the cost of the annual dues.
e.g if it was $100 per point over 40 years = $2.50 per point
plus dues @ say $6.00
so total of $8.50 per point
at todays exchange rate thats about £6.80 per point.

You could round it up or down depending how generous you feel and obviously your own costs would be unique to you.

It's just a very rough estimate but the very minimum I would think should be enough to cover dues.

[KarenG]

Hi Jo,


I was on the other side of this a few years ago. My friend had a lot of surplus points he was not able to use and basically refused to accept more than £4/point. I had to push hard to get him to take that much!

I'm trying to say that that wasn't enough but might give you an idea of a minimum (I think it should be higher, at least covering dues which will have a higher cost right now due to the exchange rate).

HTH

Karen

[BarryandCaron]

I'd definitely ask for the cost of Annual Dues, for the amount of points used. That way you are not making anything but covering what you are paying out. It will still be loads cheaper for your friends.

[PoohBears#1fan]

Thanks all.

Yep we'll just charge them the dues for the number of points they borrow so our actual monthly costs are covered.

Just got to decide on an exchange rate.

[BevS97]

We did this for my sister in law. We just charged her our dues which worked out around £3/point at the time.