Why do people buy timeshares?

[capjak]

Quote:

Originally Posted by Blue Collar Guy Lol, I know this goes against the grain , but thank you I have a lot of time to kill, I am interested in this buy cheap and rent it out concept. If I find a bargain I will ask for more advice, ty for the links.

Timeshares are easy to buy hard to get rid of, recommend spending 6 months learning what you want ins/outs etc... before ever even coming close to a purchase.....

PM me anytime

[dtbach]

I laugh about some of the interrogations (eh, presentations) for TS we have been to. The best was by "Burnen" (Hey, like burning down the house!) who showed us the hot tub and told me (in front of the DW), "Hey Dan, just imagine you are soaking in the hot tub and you see your wife, you can just wave your hand and the little lady will come running down with another beer" Yeah, that went over big.

But being retired military, I can get a great room in Hawaii (Hale Koa) or in Disney World (Shades of Green) at dirt cheap prices, so why bother with a time share.

[Sunset]

Quote:

Originally Posted by CaliKid .... check tug.net for a TON of info on whatever timeshare you buy.

+1
Super useful site, many years ago I even paid $10 to join it.

Best of course to look at the site BEFORE you buy a timeshare.

[Sunset]

Anybody here, one of the last 160 who owned Sutherland Crossings before they de-listed it as a timeshare care to say what the total payout to the last owners was as their share of the liquidation ?

[bclover]

Quote:

Originally Posted by dtbach I laugh about some of the interrogations (eh, presentations) for TS we have been to. The best was by "Burnen" (Hey, like burning down the house!) who showed us the hot tub and told me (in front of the DW), "Hey Dan, just imagine you are soaking in the hot tub and you see your wife, you can just wave your hand and the little lady will come running down with another beer" Yeah, that went over big. But being retired military, I can get a great room in Hawaii (Hale Koa) or in Disney World (Shades of Green) at dirt cheap prices, so why bother with a time share.

once again, they only fit a certain very narrow band of consumer I stayed at Shades of Green once. never again. so definitely if your a more economical type of traveler, they don't make sense. Moi? I did shades of green once. I did the value resorts once. Never again. when travelling I love my creature comforts so having that sunken tub with a tv right inside the bathroom mirror is important to me.

[athena53]

Quote:

Originally Posted by dtbach "Hey Dan, just imagine you are soaking in the hot tub and you see your wife, you can just wave your hand and the little lady will come running down with another beer" Yeah, that went over big.

Yeah, here's another "little lady" who would have killed the deal then and there.

[LeaveVT]

Quote:

Originally Posted by ivinsfan Are all you costs included with this 2000 figure. For example the cost of a premiere membership to the timeshare swapping site which get you earlier access to open dates. how about the fee to deposit the weeks and the fee to redeem the weeks, how about the random resorts that charge for heat and power? or the ones that tack on cleaning fees? 25 days for an average of less then a 100 bucks a day. I find resort add ons ad fees really add up. My SIL sometimes gifts us a "free week" ...How about maintence fees? I find the fee structure a very underhanded way to raise prices on each week of use.

Yes, that includes all costs including maintenance fees and exchange fees. In the points system there is no cost beyond the annual maintenance fees to use the points within the system. For the other week that includes the prorated annual exchange company membership fee, the annual maintenance fee and fees to exchange (there is no fee to deposit). We have never stayed in a resort that charges for heat and power or cleaning fees.

One of the reasons that we get so many days' use is because in the points system we can choose the number of days, the size of unit, the dates etc. Rather than travel for a full week, we generally don't book weekends (Friday or Saturday) which cost more points, and don't book during holiday seasons when we prefer to stay at home.

I did not include travel costs such as airfare.

[Danmar]

I have no interest in time shares and would never consider going to a presentation to get some freebies. My time is worth much more to me than any possible freebie. The fact that they try so hard to sell these things makes it pretty obvious to me they are usually bad deals (at least for the purchaser). Maybe the secondary market makes more sense?

[lwp2017]

Quote:

Originally Posted by Danmar I have no interest in time shares .....The fact that they try so hard to sell these things makes it pretty obvious to me they are usually bad deals (at least for the purchaser). Maybe the secondary market makes more sense?

I bought my Disney timeshare from the secondary market from DVCstore.com (The Timeshare Store).

There was absolutely zero sales pressure, the sales team were helpful and friendly. Sales guy ( Jerry Sydow) didn't work on commission, he helped with the bidding process and email communications & phone calls were frequent enough to be of value.
If I called and he was on a day off, the other salesman were just as helpful.

I was very pleased with the low stress purchase and resulting 40% savings over DVC retail.

It was the antithesis of the stereotypical Timeshare sales experience.

[ncbill]

So how easy is it for the companies to change the points system or annual expenses?

Airline miles used to be a whole lot more valuable...

[kgtest]

Imagine if you had a $10,000 /year travel budget. If you did, would you STILL buy a timeshare? TimeShare is selling a dream to a dreamer when they can't afford it IMHO. When you are already realizing that dream, the pitch is irrelevant. I know because I just sat through a presentation, apparently not only to get a free 3-night stay on a nice lake, but to remind ourselves of the last time DW and I said "We would never sit through another timeshare pitch again!"

I can't recall the guys name but it was something along the lines of "there's a sucker born every minute?" or "our business model leverages elusiveness and complicated terms that non-affluent folks can't decipher".

[capjak]

Quote:

Originally Posted by ncbill So how easy is it for the companies to change the points system or annual expenses? Airline miles used to be a whole lot more valuable...

Point totals are set so they can switch number of points for different times and days of the week but if they go up for 1 week they must go down to compensate (i.e the total has to be constant).

Annual fees are governed by a board and do go up every year, similar to a condo board or like hotel rates year after year.

Really the most financial sense is to experience timeshares by renting from other owners usually, unless you travel a lot than making use of $300 per week vacations via interval international or RCI means you need to own a timeshare to have access to these. That is how people spend 52 weeks a year traveling via timeshares only spending $18,000 including utilities, cable tv, gym, pool, activities, exercise classes, etc... $1500/month not cheap but better than staying in a hotel room with no kitchen, no living room,

[capjak]

Quote:

Originally Posted by kgtest Imagine if you had a $10,000 /year travel budget. If you did, would you STILL buy a timeshare?

Yes, not from the developer, however. You can stay 5 months with that budget in a timeshare.

Here's an example:

Travel Costs 2015 – http://fulltimetimeshare.com/blog

[Erbragg1]

Quote:

Originally Posted by audreyh1 I was admiring a gorgeous resort under construction in Maui* and curious enough to sit through a presentation just to get a tour of the suites - which were indeed stunning. My first ever exposure to to timeshare sales and pricing. It seemed to be more appropriate to families with working parents who tended to take one or two major vacations each year at fancy locations, and likely to return to the same place or or occasionally trade resorts. Personally, way too rigid for us as retirees, and you and your heirs are stuck with those annual maintenance charges! Couldn't get past that. Nor the scheduling. I suspect we can always buy temp access if we ever really want it. Plenty of resorts in Hawaii are timeshares but rent out the suites. Sometimes the report does it, sometimes the owners through another venue. Maybe it seems so affordable up front for "ownership", and the locations are lovely (lots of glamour), but once you face the handcuffs of those fees it sours quickly. They add up! *It was the The Westin Ka'anapali Ocean Resort Villas - or perhaps the newer Nanea Ocean Resort Villas. We were touring their latest construction.

We bought at the Westin when it was still in construction about ten years ago. We had been to Maui several times before we bought. At the time, our kids were young and I was traveling a lot for w*rk. They offered us Gold status for life that is good at any Starwood hotel (Westin, Sheraton, 4 Points, St. Regis, etc.) With gold status, I earned a pile of bonus points in the hotel chain and did not cost me a penny since megacorp was paying for it all. We love Maui and have since bought two additional weeks on the resale market for 1/3 the cost of buying from the developer. I would not recommend buying at our current age since the sunk cost can't be amortized over as long a period. The maintenance fees may seem high, but to rent an equal quality unit in Maui is at least 2X the cost of our maintenance fees. We plan on spending three weeks a year in Maui when we retire and it will be in style at a top notch resort on Kaanapali Beach. Again, I would definitely not buy from the developer. You can easily buy on the resale market and pay a lot less. You just don't get some of the "perks" of buying direct.

[audreyh1]

Quote:

Originally Posted by Erbragg1 We bought at the Westin when it was still in construction about ten years ago. We had been to Maui several times before we bought. At the time, our kids were young and I was traveling a lot for w*rk. They offered us Gold status for life that is good at any Starwood hotel (Westin, Sheraton, 4 Points, St. Regis, etc.) With gold status, I earned a pile of bonus points in the hotel chain and did not cost me a penny since megacorp was paying for it all. We love Maui and have since bought two additional weeks on the resale market for 1/3 the cost of buying from the developer. I would not recommend buying at our current age since the sunk cost can't be amortized over as long a period. The maintenance fees may seem high, but to rent an equal quality unit in Maui is at least 2X the cost of our maintenance fees. We plan on spending three weeks a year in Maui when we retire and it will be in style at a top notch resort on Kaanapali Beach. Again, I would definitely not buy from the developer. You can easily buy on the resale market and pay a lot less. You just don't get some of the "perks" of buying direct.

A non-owner might spend a bunch - like 2x the annual maintenance fees - to rent such a unit. But most folks would pay that occasionally, instead of year after year plus the initial cost. For us, we would rather pay 2x what an owner pays and avoid the initial "investment" and the annual fees - because we'll probably only make it to Hawaii once every 5 to 10 years and we do lots of other travel that doesn't involve timeshare type resorts.

I think this "savings" is one way the sales people try to make it look good to the prospective buyer. But it only really makes sense if you return to the same place year after year rather than occasionally. And then you can do much better buying a resale of course.

When they talked to us, they were clearly targeting a younger working family that had a fixed annual vacation schedule, spent $500+ a night vacationing at resorts, and wanted the "stability" of returning to the same place each year (or most years otherwise trading for another resort type property) and knowing they would have guaranteed access to their unit.

[Freedom56]

Timeshares make no sense whatsoever. You can get 1 week at hotels anywhere for a fraction of your initial outlay and annual maintenance fee.

Over the last 22 years my wife and I have been pressured into attending and sitting through the 90 minute presentations this is what happened:

1995 - Marriott Hotel Kauai - They wanted $25K for one week pluse $700 per month maintenance fee. The sales pitch ended after 45 minutes after I multiplied the numbers by 52. My wife got $120 to spend.

1998 - Marriott Hotel Maui - They wanted us to attend a presentation when we checked in (we did not book with any special offers). We refused. They gave us a $100 resort voucher to attend the 90 minute presentation. We refused. They gave us $100 resort credit plus t-shirts, plus travel bags, plus a free dinner for two in addition to the $150 to attend the presentation. We reluctantly said yes. The sales pitch ended after 35 minutes after I mentioned timeshare re-sales. My wife got $150 to spend in addition to the $100 original incentive.

2000 - Hilton Hotel Ohau - Same as above but no free dinner. My wife did not want to attend and wanted to go horseback riding instead. The insisted that we attend but the presentation ended after 20 minutes after they asked us where they see hotel prices 5 years from now and I replied "It depends on supply and demand at the location we are travelling to".

2006 Maui Westin resorts. This was the king of timeshare scams. They wanted $80K for one week plus $2200 per year maintenance fees. I was so shocked I told the salesperson that your had to be a total moron to sign up for that. They threw us out after just 15 minutes. My wife got $150 to spend on more garbage.

2007 Las Vegas Hilton - Presentation by Ramada Resorts. They wanted us to attend a 90 minute presentation and guaranteed that it was not a timeshare sales pitch. We agreed and found that they were selling one acre lots in Colorado for $25K. They threw us out of the crowded room when I mentioned that the lots were at an elevation of 8900 feet and it would be difficult to build anything there not to mention how cold it would be up there. The person presenting shouted "take them to the room and close the deal" which puzzled us. But they just escorted us to a room and handed us $100 cash and sent us on our way.

We still get offers in the mail from Hilton, Starwood/Westin, and others but the go right into the recycle bin.

If you want to sit through these presentations for the resort gift certificate, just throw back some numbers or mention timeshare re-sale and you can cut the presentation short. For me it's not work the time and aggravation.

[capjak]

Quote:

Originally Posted by Freedom56 Timeshares make no sense whatsoever. You can get 1 week at hotels anywhere for a fraction of your initial outlay and annual maintenance fee.

Do not go to developer to purchase a timeshare, look at the aftermarket ads.

However, they may make sense if you buy from people that do not want them anymore and are willing to give them away for very little.

Also comparing a hotel stay to a condo with full kitchen and separate bedrooms is apples to oranges.

If you learn how to use a timeshare including exchanges and low cost "getaways" week they are certainly cheaper than a hotel stay and IMO much nicer.

In regards to finances it would be better to rent a timeshare if you are only going to stay a week or two a year. However if it is part of your snowbird retirement plan it would be better to pay $1 for a timeshare and buy getaway weeks through Interval International for the entire winter for $300 to $1200 per week dependent on location/holiday time. Of course you have to like the overcrowded timeshare areas like Orlando/Vegas/Palm Springs/Phoenix/Cancun/PV Mexico etc... to have availability all winter.

[ChrisC]

Hmmmmm, I'll fess up -- I'm a timeshare owner here, been one for over 20 years. And enjoyed my use of timeshares along with the other affiliated products that Marriott has offered me over the years alongside my timeshare. So, why do people buy timeshares, much the same reasons people buy other consumption items:

1. They see some value in timeshare ownership;
2. They think they're getting a good deal;
3. They have been swayed by the marketing and sales effort and have made an impulsive and, in many cases, a regrettable purchase.

Perhaps there are other reasons too. I'm not going to engage in the pointless debate of whether it makes sense, financially or travel-wise, to buy a timeshare, whether from the developer or in the secondary market. There are plenty of other more informed blogs or forums which discuss this common question.

Suffice it to say, that for me, timeshares are not investment products; they are consumption items -- and I think I've obtained very good value from them over the years -- they are part of the inventory of my family's vacation and travel products, like Frequent Flyer Miles, Hotel Reward Points, AirNB, or vacation rentals (and perhaps even that second, vacation home my wife and I are now contemplating purchasing). They have served us well, in my opinion, which is the only opinion that matters to me.

[capjak]

Quote:

Originally Posted by ChrisC Hmmmmm, I'll fess up -- I'm a timeshare owner here, been one for over 20 years. And enjoyed my use of timeshares along with the other affiliated products that Marriott has offered me over the years alongside my timeshare. So, why do people buy timeshares, much the same reasons people buy other consumption items: 1. They see some value in timeshare ownership; 2. They think they're getting a good deal; 3. They have been swayed by the marketing and sales effort and have made an impulsive and, in many cases, a regrettable purchase. Perhaps there are other reasons too. I'm not going to engage in the pointless debate of whether it makes sense, financially or travel-wise, to buy a timeshare, whether from the developer or in the secondary market. There are plenty of other more informed blogs or forums which discuss this common question. Suffice it to say, that for me, timeshares are not investment products; they are consumption items -- and I think I've obtained very good value from them over the years -- they are part of the inventory of my family's vacation and travel products, like Frequent Flyer Miles, Hotel Reward Points, AirNB, or vacation rentals (and perhaps even that second, vacation home my wife and I are now contemplating purchasing). They have served us well, in my opinion, which is the only opinion that matters to me.

+1 Memories....

[Erbragg1]

Quote:

Originally Posted by audreyh1 A non-owner might spend a bunch - like 2x the annual maintenance fees - to rent such a unit. But most folks would pay that occasionally, instead of year after year plus the initial cost. For us, we would rather pay 2x what an owner pays and avoid the initial "investment" and the annual fees - because we'll probably only make it to Hawaii once every 5 to 10 years and we do lots of other travel that doesn't involve timeshare type resorts. I think this "savings" is one way the sales people try to make it look good to the prospective buyer. But it only really makes sense if you return to the same place year after year rather than occasionally. And then you can do much better buying a resale of course. When they talked to us, they were clearly targeting a younger working family that had a fixed annual vacation schedule, spent $500+ a night vacationing at resorts, and wanted the "stability" of returning to the same place each year (or most years otherwise trading for another resort type property) and knowing they would have guaranteed access to their unit.

Fully agree that you must want to come back to the same place (or trade within the network) for it to make any financial sense. Timeshares are not really a savings IMO. You do get treated very well as owners and you get perks that renters do not get though...