Yet Another Timeshare Presentation

A couple of weeks ago we were approached at a wedding expo to attend another timeshare presentation.  A little weary from the last one, we asked what they had to offer.  They were offering $75 in gift cards to a variety of vendors, and two AMC movie tickets.  Well, for 90 minutes of our time on a Saturday morning in which we had no other plans?  Why not.  Besides, I kind of get a kick out of these things.

This time, I made a point to write down some of the pricing details so that I can compare it to resale sites such as Timeshares Only.  So, here was the presentation and the pricing details.  By the way, I plugged the numbers into Brian's Timeshare Calculator.  Awesome tool, Brian.

Here are the details of the presentation.

The presentation was like any other.  We entered the sales facility, a nicely decorated office setting with coffee and cookies set our for the guests.  We were asked to fill out some brief forms and wait for a representative.  We observed other couples as they arrived or were called in by salespeople.  We were trying to see if we could figure out which ones were actually thinking about buying or were there for the free stuff.  One salesperson that came to greet another couple before us struck my Fiancee and me because of the way his khakis were sagging like a 17 year old rapper wanna be.  So unprofessional!  This guy is about to ask someone to make a $30,000 purchase, looking like that?

We are greeted by a young blonde woman from somewhere in the South.  How do we know that?  Well, in case we didn't catch her first "y'all," we certainly should have caught on by her fifteenth.  But she was cute and friendly, as one would expect from a salesperson of this sort of product.

The presentation goes as they all do.  She starts by teling us that she cannot talk numbers, as she does not have a real estate license.  When she finishes her presentation, she explains, a manager will come to discuss the numbers.  She asks about where we have traveled, how we vacation, and about our dream vacation.  Oh, this place had better food than most.  She offered us sandwiches, salad, chips, popcorn, soda, cookies.  It was pretty sweet.  I had a ham and cheese sandwich, my fiancee had turkey.  We both had some popcorn and diet cokes.

We saw the cheesy video, pictures of the resorts, etc.  She took out "the book," which is the RCI Points exchange program.  This might be the coolest part of owning a timeshare.  It allows you to book resorts for pretty minimal charges.  Like under $200 for a week, or something like that.  Of course, you have to shell out big bucks for the timeshare membership in order to gain access to the RCI program.  They also have the book of their resorts and how many points it takes for each location, depending on the time of year.

So, we are at the part where the "manager" comes to discuss the numbers.  The "manager" who comes over is the guy with the saggy khakis.  What a joke.  He starts with a $60,000, kajillion points package.  We all know that he's not serious.  We play along as he shows us the "more affordable" $30,000 package.  Nope.  Not to mention that those packages include annual HOA dues of over a grand per year.  And those HOA dues are not guaranteed not to go up.

They come down to the $16,000 package, and we aren't biting.  Finally, the bargain basement package.  And this one, I wrote down the details.

The total cost to purchase the timeshare is $9,300.  With their convenient financing plan, you can put down $950 today, and make payments of $155/month for the next ten years!  Holy crap.  By my math, that's an 18.84% APR.  Of course, you don't have to use their financing.  In addition, there are annual dues of $138, and HOA of $327.  For this inexpensive $9,300 plan, you would ACTUALLY pay $24,200 over the next ten years.  And this is for the cheapest plan.

What do you get for your cheap plan?  1,500 points per year.  Of course, the question is, what can I get for 1,500 points?  Well, by the time they were going over the dollars, the books had magically disappeared.  I asked him if I could see the books to see what 1,500 points will actually get us.  He tells me, "about a week, depending on the location, the size and the time of year."  Clearly avoiding pulling the book back out from under the table.  Truth is, it is limited.  Why would there be three packages above it, priced as much as six fold this one if this was some wonderful vacation panacea.

Finally, we were able to make clear that this wasn't going to work for us.  We were given our $75 Best Buy gift cards, and two AMC movie passes.

When I got home, I checked online at sellmytimesharenow.com, a timeshare reseller.  First thing to catch my eye, 1,500 points for $3,000!  Yes, the dues and HOA would still have to be paid, but imagine spending $9,300 on something that you could get online for $3,000.  Or less!  I also found 2,500 points for $1,200.  I guess it's like buying a new car for full sticker, versus buying two years used.  The only difference is that unlike a car that depreciates in value, the points based timeshare is simply a set number of points each year.  Those points are totally homogenous, whether purchased directly from the manufacturer or on after market.

 

Comments

[jim]

Yeah, timeshares are a rip but good if you have a lazy afternoon and want to get some free stuff. Though for some of those presentations, it's a good three hours before you're out and a gift card sometimes just ain't worth the time. :)

[Livingalmostlarge]

I wrote about my timeshare and just dumping it and yes I was stupid. I bought a really cheap one after the presentation, well much later, but it was still to expensive from the annual fees.

But when I wrote about it on my blog, I got reamed by people who said it was worth it. I found it wasn't, and I think the math says you can do it cheaper, because there is always the annual fee on top of the price of the week.

I paid cash for our timeshare a couple grand, but the annual fees were the killer of the deal. I would have kept it otherwise.

[Victor]

You are so right. Timeshare is actually a horrible investment. It's not even an investment. I recently became a member of a private travel membership that makes allows you to stay at resorts worldwide at wholesale prices. There's about a dozen of resorts in Florida at $37 a day with this membership. You can see it at http://www.resortmaniac.com

[fumbling]

You can also buy timeshares on EBAY, some of the timeshares go for less than $100 (basically you just take over the annual fees).

[Kevin]

I purchased timeshare from Fairfield at age 20. I was lure with free stuff like you get $100 and free ticket. It is been a living hell for me right now. I want to get dump it.

[Sid]

The TimeShare industry is making a HUGE mistake. It should be buying back properties at reasonable prices to keep these property values up. More and more people are finding that their "investment" is an albatross, and when that word gets widely spread around it should become virtually impossible to sell them.

It is now difficult to sell your timeshare at ANY PRICE, and it is unwise to simply abandon it because it will affect your credit rating if you stop paying maintenance fees.

We've had our unit for 25 years or more. It served it's purpose for a num ber of years. I was a work-ahollic. After having to plan a vacation months and months in advance, paying fees, etc., I was committed to leaving work behind.

Now I don't need that incentive. I have rarely been able to trade to a comparable unit. We have a two bedroom unit in Tennessee and I think about an hour after we bought it timeshare contractors stopped building 2 bedroom units.

Timeshare units are usually well run and nice. But truth be told after paying all the fees I can do as well or better simply renting something...and I have a much bigger selection and I can find something on reasonably short notice.

Anybody want to buy my timeshare? Anybody want to sell it on commission?

[Momandmurray]

If you are only going for free stuff and you have no interest in buying a timeshare, you are hurting people!! Pure and simple. You are putting peoples jobs on the line and you can easily get someone fired. Timeshare is a business and thus it must sell the product to survive. The sales representatives are all commission only. They do not get paid if they do not sell. They also must meet sales goals or they are let go. Yes, some get a draw, but it is a draw and taken from any commission they may receive from a sale later. If a sales person does not sell one of ten guests they are let go in most cases. So, if ten couples are just free loaders (and yes that is what you are ), and want only the free gifts, the sales representative loses their job. Isn't your time and moral fiber worth more than some free tickets? Timeshare is not an investment, it is one of many ways to travel. It can be very cost effective if you use it correctly and you do not pay the maintenance fees out of pocket. Most companies have programs ( referrals, rentals, etc ) that will pay the annual maintenance fees. Buying resale is often not a good thing, but in some cases it can be. If you buy a standard week and it has low annual fees, you can rent it out yourself. The cool thing is being a member of RCI with your ownership. You can often get whole weeks in super resorts for only $99.00. We have owned our timeshare for over 20 years. We paid 6 grand for it. We paid a mere 252 a year for maintenance the first 12 years, then we used referrals and havent paid cash in the past 8 years for maintneance. We have rented our weeks out every year. We paid 6 plus 3 for maintenance totaling 9 thousand out of pocket. We have collected over 24 thousand in rentals. So, for us it has been awesome. Because we are a member of RCI we have taken 64 vacations that have cost us out of pocket 10 thousand. Our family has made over 5 thousand dollars and been to awesome places all of the world. We do not go on presentations, because we are on vacation and our time is worth more than a few tickets or 100 bucks. Please remember that those folks that give you those FREE presentations have families as well. They do not deserve freeloaders wasting their time. If you are interested in a timeshare and the product is not a good deal, then by all means tell them no. But, going to get free stuff is just wrong. Would you want someone coming to your work and wasting your time for a few hours?

[Frankinsane]

I applaud the passion in which Momandmurray put down, people as 'freeloaders' who are just attending for the free stuff. However, its not their fault because it is the Timeshare companies who are using the 'carrot and stick' routine to get people in the building. Tell them to get a back bone and use 'their' moral fiber to stop using expensive gimmicks to bribe unsuspecting folk. Let's face it, no freebies-no freeloaders!!

[chordCVS]

Timeshare units are usually well run and nice.However, in the mean time it is unwise to simply abandon it because it will affect your credit rating if you stop paying maintenance fees.

[timeshares for sale]

Thanks for this post. I've learned a lot. You'll never know that there are cheaper offers out on the web. I thought you'll gonna take the offer this time.

-liz

[Todd Robbins]

Might be interested in checking out http://www.escapetimeshare.com for some similar stories.

[Mike]

Great article.com Checkout www.timeshareuncovered.com for more secrets on how to get free stuff, gifts, cash and more on timeshare tours.

[MBT Shoes]

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[james myers]

listen to some am radio and all the ads want is either to buy your gold or your timeshare,thats real!

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