The job of the timeshare sales person is to make timeshare ownership appear to be the most commonsense and hassle-free way to vacation. But when you actually view a timeshare for what it is - without all the talk of "investing in your family's future vacations" and exotic travel destinations - what you're left with is quite a different understanding of what a timeshare really is. When you sign your name to a timeshare contract you are making a lifetime financial commitment that can quickly spiral into becoming a financial liability.
One of the strongest selling points used by the timeshare sales person is to say that a timeshare enables a family to enjoy the kind of vacation that under normal circumstances they would most likely be unable to afford. The timeshare industry wants timeshares to be seen as the most practical way to vacation. The amount paid upfront and the annual maintenance fees are both sold as nothing more than an "investment" that will inevitably save you money down the line.
There is a downside for this access. You must prepay for your time at the resort without first using the resort. Can you imagine buying a car that way? The average amount needed to be paid upfront was $19,000 in 2007 according to ARDA, the American Resort Development Association. To make a timeshare cost effective, you'll need to use it a number of times. Use it ten times and the per vacation cost drops to $1,900. In order to reduce the cost to $1,000 per week, you and your family or friends needs to visit 19 times over 19 years.
But will you use it 19 times? If you end up using it once or twice, that $19,000 seems awfully steep for a week or two of decent vacation. What could you have gotten for $19,000 on one vacation? You'd have servants, 24-hour care, a butler, a limo driver, a personal chef...you get the idea.
Now, there are timeshare resale "deals" where the upfront costs are very low compared to $19,000. So, what if there were no upfront cost? There are still annual maintenance fees. The average for a one-bedroom in 2007 was approximately $600 per year. Still, any vacationer would pay $600 for a week for the family or friends to go to an upscale resort right? It would be less than a $90 a day total for 4-6 people!
The problem lies in the fact that timeshare owners do not use their timeshares every year. If you miss a year or two, the cost jumps to $1,200 and $1,800 for the same vacation week. Suddenly, the wonderful travel savings disappear like a bad magic trick. Plus, increases in maintenance fees occur regularly, so that an initial $600 a year turns into $700 or more rather quickly.
Some owners may say, "I'd still pay $1200 or $1800 for our whole family to go to a nice place every 2-3 years or so." Keep in mind that those amounts do not include the upfront cost. The totals also do not include any special assessment fees that the timeshare property management companies can impose unilaterally on all their timeshare owners whenever they choose. Plus, all the fees are mandatory. You do not have a choice to pay or not.
So, vacationers are looking to renting timeshare units instead of owning with the amount of prepaid and pre-scheduled fees. Developers are happy to oblige. With more and more owners absent each year, the same vacant units provide additional revenue streams to the maintenance & special assessment fees. But is it fair to the owners who receive none of the rental income?
Paying thousands of dollars upfront and having to fork out for maintenance and special assessment fees every year is not a financially-savvy way to vacation. Paying for a timeshare unit can turn out to be a lot like paying for a gym membership; just because you are paying to use a facility doesn't mean that you are actually going to use it. - 16492
One of the strongest selling points used by the timeshare sales person is to say that a timeshare enables a family to enjoy the kind of vacation that under normal circumstances they would most likely be unable to afford. The timeshare industry wants timeshares to be seen as the most practical way to vacation. The amount paid upfront and the annual maintenance fees are both sold as nothing more than an "investment" that will inevitably save you money down the line.
There is a downside for this access. You must prepay for your time at the resort without first using the resort. Can you imagine buying a car that way? The average amount needed to be paid upfront was $19,000 in 2007 according to ARDA, the American Resort Development Association. To make a timeshare cost effective, you'll need to use it a number of times. Use it ten times and the per vacation cost drops to $1,900. In order to reduce the cost to $1,000 per week, you and your family or friends needs to visit 19 times over 19 years.
But will you use it 19 times? If you end up using it once or twice, that $19,000 seems awfully steep for a week or two of decent vacation. What could you have gotten for $19,000 on one vacation? You'd have servants, 24-hour care, a butler, a limo driver, a personal chef...you get the idea.
Now, there are timeshare resale "deals" where the upfront costs are very low compared to $19,000. So, what if there were no upfront cost? There are still annual maintenance fees. The average for a one-bedroom in 2007 was approximately $600 per year. Still, any vacationer would pay $600 for a week for the family or friends to go to an upscale resort right? It would be less than a $90 a day total for 4-6 people!
The problem lies in the fact that timeshare owners do not use their timeshares every year. If you miss a year or two, the cost jumps to $1,200 and $1,800 for the same vacation week. Suddenly, the wonderful travel savings disappear like a bad magic trick. Plus, increases in maintenance fees occur regularly, so that an initial $600 a year turns into $700 or more rather quickly.
Some owners may say, "I'd still pay $1200 or $1800 for our whole family to go to a nice place every 2-3 years or so." Keep in mind that those amounts do not include the upfront cost. The totals also do not include any special assessment fees that the timeshare property management companies can impose unilaterally on all their timeshare owners whenever they choose. Plus, all the fees are mandatory. You do not have a choice to pay or not.
So, vacationers are looking to renting timeshare units instead of owning with the amount of prepaid and pre-scheduled fees. Developers are happy to oblige. With more and more owners absent each year, the same vacant units provide additional revenue streams to the maintenance & special assessment fees. But is it fair to the owners who receive none of the rental income?
Paying thousands of dollars upfront and having to fork out for maintenance and special assessment fees every year is not a financially-savvy way to vacation. Paying for a timeshare unit can turn out to be a lot like paying for a gym membership; just because you are paying to use a facility doesn't mean that you are actually going to use it. - 16492
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There is a unique solution to your timeshare resale problem. To discover what over 20,000 other distressed owners did with their unwanted timeshares, go to Timeshare Relief or call 800-588-1582, and sign up for a free consultation.
