We just sat through the “90 minute” timeshare presentation at the Sheraton Puerto Vallarta and I think I’ll have nightmares for weeks. But besides that, I’ve had a ton of insight as to why Timeshare hawks make so much money.
Trust me when I say, the entire deal is a scam! Not just the presentation sales tactics, but for anyone who bought into this crap. The math when they run the numbers sounds super good. But let me run the numbers with reality in mind.
Well, first I’ll just share the experience to give context on why people actually buy. But my main reason for labeling this business model a scam, is that it is completely dependent on 1) Pressuring sales tactics and 2) People not using their product. Any product that’s sold with the intention of the customer not using it… is a scam.
Part 1: Our Timeshare Presentation Story
Yesterday was our last day of “vacation” with my amigos in Puerto Vallarta, Mexico. The area is absolutely beautiful and we were all there with a mistake fare at the Sheraton. So our price was $18 a night for two, with ocean view club rooms and breakfast included.
Although, the one downside of Puerto Vallarta is the touting. A walk on the beach includes more salesmen than tourists.
“Want some dinner Amigos?”
“Tours amigos?”
“Banana boat ride?”
What’s worse is that the touts are in the hotel one way or another. At the Holiday Inn walking by the pool ladies at the table yell to me, “braid your hair? Tattoos?”
And at the Sheraton, it was worse. Timeshare salesmen.
The crazy thing is they refer to this desk of timeshare hawks as the concierge desk. But it’s nothing but a bunch of nagging hawks located right by the elevators in the main lobby. By the end of the week you run through to the elevators.
The funnier thing is that they are offering us discounts for doing the stupid tour for stupid things like “booze cruises” and boat trips to the islands at the end of the bay. The best part is that the “discount” for this giant boat of tourists taken to this one tiny island, is more expensive than what we paid for a private boat.
None the less, one couple got offered a coupon for a $200 stay for one week. On the last day, maybe it was for the sake of science or journalism… but I went for it. Asked about the $200/week voucher and set up a tour for my last morning. 90 minutes starting at 8:30.
The BS started first thing in the morning.
We came down and sat at a table and the first person had us fill out some form before our tour guide would be with us. He sat down and explained the day. But it started with “free” breakfast, which we already had included. Which wouldn’t be a problem except the 90 minutes starts after breakfast. It’s just free time with me.
So I expressed that I did not want breakfast as we would rather have it with our friends at 10 or 10:30. So we headed straight to the timeshare building.
“What do you think of this room? Nice?”
“Honestly, it looks like my room in the hotel building.”
And then at the end we go up the presidential suite (which was really a fancy way of saying “suite”). The bathrooms were nicer and it had two bedrooms, one living room, and like all the timeshare rooms, a kitchen.
“What do you think of this one?”
“Really nice, obviously, but I’m guessing out of my price range.”
Finally we went to the sales rooms.
Our guide started telling us about the exchange program and how the timeshare works and how it’s not a timeshare (like how everyone in a pyramid scheme isn’t in a pyramid). They explained that the week is flexible, the property is flexible, etc…
Basically after you buy into the program you get the ability to redeem your week (or weeks) for a small fee. Two person rooms are $299, four person rooms are $499, and six person rooms are $699.
They started with the highest price.
“Since you like the presidential suite so much, let me show you the price.”
The buy in was $162,000.
However, you get 100% of that money back after the end of the 10, 15, 20, 30 year contract.
For whatever reason I was dumb enough to want to figure out how this works. Why would they give me all my money back?
My thinking is that the terms and conditions are so strict that if you don’t make a correct payment, don’t use your week, don’t whatever… you don’t get the 100% back. So they entice old people in with tons of money, saying that they’ll get it all back later, knowing that if they (or their kids) even lose or “damage” the title paper, they don’t get that $162k back.
Then they brought over a slick salesman
He never did, but imagine that when this guy draws out figures he says, “Boom! and then it’s this price for you.” There was no “boom” but… he’s the type.
Soon as I asked about the details this guy came in. The other guy was the nice tour guide.
This guy shows me the next lowest property too. A deluxe four person room for like $28,000.
My favorite part of the entire thing…
“This will save you a lot of money in the end! For example, how much is the rate for your room at the hotel?”
“$18 a night.”
“No, come on!” he said shaking his head.
“$18 a night.”
“Oh I see, you used some kind of points that covered most of the cash.”
“No.” I replied, “it is only $18 a night, for a club room with breakfast. No points, and in fact I’m earning quite a bit of points on this stay. My room number is 2122, look it up.”
After huffing and puffing about how he’s been here for years and has never heard of anyone being here on such a rate, he stood up and paced into the main area saying, “I can’t beat $18 a night!”
Then he came back out and pointed at me and said while laughing, “You’re hacking the system man.” Then he walked back into the main area for a minute and when he came out he sat down and said, “I’m sold. I’m moving in here. We pay $1,500 a month. It would be cheaper to live here!”
The guy he went into tell about the rate came to join us.
The slick american boss guy came over.
He had a deal for me that they didn’t want anyone else knowing about!
*insert laugh here*
Someone got this little studio, made their payments, and about halfway through decided to upgrade. Now there’s half the money left over on this contract and half the time.
Details:
- 20 weeks total.
- $9,000 buy in.
- $299 maintenance fee per week (x20 is nearly $6,000).
- 15 years.
Yet, after 15 years I about get back $16,000.
They were telling me that I would be making money on this deal. Of course you’re losing a ton of money on inflation and comparing to what you’d get in CDs, Bonds, Stocks or even savings!
*Blinks*
“That is ridiculous, why wouldn’t this guy who paid for it get the money when he upgrades? And further more why would you give it to me instead of just starting a new contract for the same room?”
Bologne.
This went on and on. And by the way, right before this guy came out, I looked at my phone and it was 10:30 and basically said, “look I’m not buying, it’s been two hours and I want to meet my friends for breakfast.” And that’s basically when slick came out.
Then it was “okay, okay, let me get you checked out.”
My downfall was 1) being curious. Asking questions makes you look interested. and 2) being polite. I should have said, “look it’s 90 minutes and I’m not saying a dern thing until you check me out.” But of course they wait to give you the stupid benefits they promised until after.
So now I’m listening to slick and eventually they say they will check me out, they just need a manager to sign off. So we walk in circles around the incredibly over-staffed room to a big soft spoken guy who just has a survey for me. We sit with him.
How would you rate the hotel? How would you rate the presentation? Why didn’t you buy? How much was your final offer?
Then survey man goes salesman on me.
He flips his piece of paper over and says, “what if that final price of $9,000 was $5,000” and he starts drawing the same crap everyone else draws.
“No. I want to get to breakfast”.
“Okay.”
So I follow this guy to a room below and he opens the door and he sits me down with another quiet guy.
The last salesman!
“My secretary is processing your certificate and then we leave. Let me ask you a couple questions before she gets here.”
The guy had the same frickin survey. And at the end he flipped over the paper and started drawing frowning faces and smiley faces and arrows and prices.
Dear mother Guadalupe!
“I work directly for the owner, and only the owner has the power to make this offer…”
So much crap.
He offers the same studio for $3,100. For 20 weeks and when I use them it’s $299 a week.
“No thanks.”
“The owner when he really like a profile he offers a $1,000 discount on this offer.”
Now it’s $2,100. This guy, is the most gentle, but I do not like.
In the end I say no and I want to leave for real this time. He takes me out to the same freaking “concierge” desk and says, “can you get him his voucher” and walks away. Then she just hands me a voucher.
That’s it. No secretary. Nothing needed. It’s just a series of traps.
Part 2: Why Timeshares are a scam!
1) Tieing up that much money for 30 years is a terrible terrible terrible investment. The real cost of $45,000 time share is $80,000 lost!
I get that it can be a tax write off, and yet, it’s still a terrible investment. Buy Berkshire Hathaway stock if you want a safe investment. But this is hardly an investment. It’s not, it’s vacation.
But imagine that you put $30,000 plus the fee of $15,000 ($499 x 30) into a CD giving 3% APY. Just saying $45,000 x1.03 for 30 years would be close to $110,000.
Even if you got back the $30,000, that’s a real cost of $80,000. $80,000 divided by 30 weeks is $2,666 a week.
Now tell me in what universe would I want to drop that into a scammy hotel program?
Okay now run the math on Berkshire Hathaway which has seen a 100% increase over the last 10 years and a 1,000% increase over the last 20. You would have been a fool if you knowingly chose a timeshare over that… and that’s basically what I’m suggesting.
Note that I’m obviously not in finance. Never have been, never will be. But I have enjoyed trading stocks for fun and I’ve done a heck of a lot better than 3%. Which is to say, CDs are extremely conservative and barely beat inflation. If one were decent with finances, one could do a lot better.
Thus losing $80,000 real money on a timeshare seems conservative. If you’re into blowing large amounts of money, I’ll be your hedge-fund manager.
2) 70% of people default on some sort of payment and get screwed out of the promised “money-back” return.
This is a number that was given to me in the presentation.
3) People don’t use their timeshare
This is the obvious downfall, that people can’t make the time or don’t feel like going anymore. You still have to pay, and you still paid upfront.
4) 10% of people successfully trade/exchange/rent their timeshare.
It’s a complete joke. They told us both you can use it anywhere in the world! And only 10% of people actually exchange their timeshare.
Hilarious that anyone would ever buy hearing those facts… unless you’re interested in spending every single vacation ever in Puerto Vallarta.
5) I don’t trust any deal that is based on making an emotional decision and not looking over the paperwork.
Who knows what shady witchcraft is in the papers you sign. Don’t do it.
The simple fact that they had at least 5 people try to break you down is insane. The mere fact that the last offer was 10% of the original offer for the same deal means that they knowingly screw people.
That’s why this guy pays $1,500 for rent when the maid makes $1 a day (so a guy on the beach says). What is the boss making? Or the owner?
Honestly, I feel as though these programs are evil. They prey on old people who won’t even be alive in 30 years. Why would these old people not just take their money and buy a week at the presidential suite of their favorite hotel? I have no idea!
But apparently the salesmen get it.
Even by the end of it, I was thinking about how good the $2,100 deal was. They like drug you or something. Somehow all the smiley face drawings make you… lose any capacity to make a good decision.
One of my friends said that 80% of people buy in the presentations. And I get why. They have every psychological sales tactic ever (and I was actually trained in this crap (briefly) and let me tell you, these guys are pros).
First of all, they pitch you hard on a real expensive deal. Then it cuts to $30,000. Then it’s $9,000. By the time they get to this price it seems like a steal. And if they can sell you for $9,000 they can for sure sell you on $3,000.
And the biggest crap of all is that “this deal is only for today” crap. Insane. As if you went next week you couldn’t get the same dang deal.
Last minute deals, exclusive deals, discounts, price disparity, three hours of presentation, etc… Stay away if you are weak at all.
6) Miles and Points tricks makes the entire thing a rip off
The other day I told a friend about a mistake fare and he said, “I could manufacture spend for cheaper than that.” And in this game there is no issue finding deals. $299 for a week at a resort is nothing special in this game. With earning IHG points so cheaply I could get a week on PointBreaks for $100 or less.
I could BRG 7 free nights a year.
I could sign up for a new credit card.
I could manufacture spends.
I could mattress run doing a good promo.
Even with no upfront costs, and just being left with the scammy “maintenance fees”, it’s not a better price than what I can do with miles and points or following deals.
7) I don’t want to commit to one hotel or exchange program for 30 years. That’s insane. If I get tired of IHG hotels, I’ll stay somewhere else. If I want to not travel for 5 years, I can.
Plus the obvious inflexibility of location and time.
I would rather pay straight cash (although it comes out to be cheaper anyways if you look at the math in the beginning) than be so tied to their scammy company.
Conclusion
I’m not saying a timeshare works for no one… but there are always better options.
But the most important thing to know if you ever are punished to a Timeshare presentation is you do not have to buy right then!
If they are telling you it is a today only contract, they are lying! If they need to lie, well, that’s more reason to wait! Please wait, think it over. Then reread the post above. Then don’t buy.
If you have a will of steel, go for the perks. But please do not buy and support the scamming of old folks!
You’re totally right…
It IS a scam…
Although the 2100$ deal isn’t that bad.
Let’s say for 15 years you’d pay 1100$ in lost interest (at 3%).
That’s 73$ a week. Add 299$/week and that’s 372$/week. That’s an average of 53$/night.
Of course it doesn’t beat your 18$/night rate, but honestly… For most people this wouldn’t be that bad of a deal.
I don’t think it’s a good deal for people who are busy with our hobby, but for some elderly people who go to the same place in each case every year… Sure, why not.
I don’t know the details of the T&C, but you could possibly rent out the timeshare on Airbnb or something like that. Just not to loose money.
We own a timeshare too (bought 20+ years ago – before I was born), although it’s a totally different system and we are REALLY screwed…
Each year we go there because otherwise we loose money. We pay the maintenance fee in each case, whether we go or not. Quite often they double the fee temporarily (usually 400€/week, now 800€/week).
And thing is, noone wants to buy it. We do try to rent it out to friends&family, but we don’t make money for it. We ask the 800€/week just to compensate for our loss. It’s a nice house, sure, but totally not worth the money.
We don’t even get the buy-in back… It’s a life-long-contract which even goes to the heritage.
And here’s the thing. We will get rid of it and make a bit of money on it by donating it to charity. This will get us a 30% tax deduction of the buy-in ammount. (this works in most of european countries)
Yea, that’s right. It isn’t a bad deal, but I honestly do not want to go to Puerto Vallarta for 20 years. The only place I want to go for the next 20 years is Charlottesville, VA. And like I said, most people can’t actually trade.
And the terms and conditions scare me. The fact that there’s so much pressure to buy now, probably indicates that they aren’t kind.
lol, donate that sucker! Meaning you inherited it?
Sounds like so much hassle that even if it was a good deal, I don’t want to commit to an impulse buy for life, lol.
let me tell you something about paying these maintenance fees for the rest of your life…if the time share is paid i.e. if you got financing and paid it off – here’s the deal…l IF YOU WANT OUT AND DECIDE NOT TO PAY YOUR MAINTENANCE FEE ANYMORE YOU CAN JUST WALK AWAY!! i did it, my friend did it and they have no legal recourse whatsoever and no it doesn’t affect your credit score because there is no credit. it’s crazy that they have people believing even though they don’t want it anymore they still have to pay. YOU DON’T! walk away. of course, be willing to give up going there ever again but who cares you want out so do it – go. i walked away from mine in 2012 and haven’t heard from them since.
Nice write up. The wife and I have done about 6 or 7 of these, solely for the perks. As I get older, I find myself not caring about the perks. Just not worth it. My younger self wanted that $100 debit card or the half price tickets to Dixie Stampede, but nowadays those “90 minute” presentations make me cringe. We just went to Orlando as an RCI resort “guest” (which is how we always travel…thanks to having in-laws as owners!). The week cost us about 350 bucks for a 2BR condo. It’s a great way to travel and you can go pretty much anywhere for cheap. This time, at check-in they made the presentation sound so innocent. “Would you like to join us for a complimentary breakfast and a quick tour of the facility so you can familiarize yourself with the property and RCI… we’ll even throw in a $100 gift card. Interested?” To the uninitiated, that doesn’t necessarily scream “4 hour hard-sell timeshare presentation”. We declined this time…Disney owned all our time that week.
Over the years, we’ve said “No” many different ways and have never given them a dime, but regardless of our technique it always, always lasts 3-4 hours. I’ve yet to find a strategy to get out in under 2 hours. Probably never will. Cheers!
Well I noticed in Mexico that they also don’t know how to park their cars. They seem to just randomly block other cars in without any sort of care that they are preventing someone from leaving.
Also don’t ever drive the road from Phoenix down to Sonointa/Puerto Penasco because they have some sort of roadblock there where people are begging for money before they let the cars through. Unbelievable.
Traffic is called an opportunity.
Road blocks are creating opportunity. A country of businessmen really.
We drive from Phoenix to Rocky Point all the time and have NEVER had a problem. Sure, if you come back across the boarder on Sunday afternoon you’ll wait in a long line of cars for 30-40 minutes and people will walk by with stuff to sell, but if you leave your windows up and don’t engage them, they go down the line to the next car. Nowhere near the hard sell of these time share salespeople.
I attended a similar presentation once. Not the same place, but identical routine. I told them I never make a major investment without consulting with my financial counselor or lawyer. They said, “We have a financial counselor here that you can talk to.” The scamminess would be hilarious if it weren’t so blatantly aggressive. But all your reasons for saying “no” are right on target.
That is the funniest thing ever. The in-house timeshare financial counselor. Holy goodness that is too much.
If your financial advisor or lawyer tells you renting is better than buying I’d change both. But let’s look at renting. Companies who do both (rent hotel rooms and sale timeshare) get your money either way. It’s not for everyone. If it’s so horrible taking the “tours” and taking time away from your family, while on vacation, for $100. Maybe you shouldn’t be on vacation.
Timeshare presentations are super scammy, I did get a free dinner at a Brazilian restaurant out of the presentation though. Going to presentations (even though a waste of time) can get you free stuff, so I would do it again but I would NEVER buy 🙂
Better be a good dinner! 😉
I think I would do it again but for a super good deal. And double the 90 minutes.
i’ve made a fortune on those presentations. i got free car rentals, free breakfasts, vouchers for expensive restaurants and lots of cash. just don’t buy- ever!
Hah! Great article and so true. I do work in finance and it’s frustrating how they are able to dupe people who aren’t up to par on the “time value of money” concept. One thing I have struggled with is getting a deal to a Cancun AI resort on points. Any tips/recommendations for Cancun?
Well, you can sit through a timeshare. :-p I hear they have good discounts.
I stayed on Isla Mujeres last time I was there. Plus, I’ve never done an AI, so I wouldn’t know.
But IHG does have a 15k Holiday Inn and a 25k IC hotel. So my big win could provide 4-6 nights alone. Plus the codes you can enter, it’s a pretty great deal. Maybe they have an upsell to AI. Idk…
This is a great article and a “must read” for someone who hasn’t seen this BS first hand. I accepted an offer to sit through one of these in Cozumel once, had to get up and walk out the door I was so p*ssed with their sales tactics. The voucher (or whatever it was) I was promised wasn’t worth the 2 hours of misery. What is surprising to me is how a well respected company like the Sheraton lets this go on at their properties, regardless of where in the world it is. These major hotel chains need to put a stop to it as it only makes them look ridiculous.
Oh, and one other point of fact I’d like to make – I wouldn’t buy so much as a dust-buster without careful consideration so WHY ON EARTH would I buy your crappy time share at $3,000++ without at least napping on the idea?
Did listen to the spiel at a Hilton in Manhattan
Woman was amazed we did not jump at buying $50k for a week-same week was selling in E Bay for 12k.
Did this because we did get 25,000 hilton points – had to call a few times but eventually they did show up.
Brother-in- law did similar deal on Oahu and he said that one was no pressure- and he did get the points.
My father paid about $400 in the late 90s to buy into a time share in Myrtle Beach. He sold it 2 years ago in exchange for a 12 pack of beer (he was laying out on the beach with a sign: time share for sale – 12 pack OBO).
Timeshares are only a scam if you succumb to a developer’s pitch and buy the wrong property at the wrong price in the wrong network. For some people, like families with small children, I think it can make a lot of sense if done smartly. I love the fact that you and Caroline travel the world staying in nice places on the cheap, but I think it would be significantly more challenging if you had a 4 and 2 year-old in tow. With most systems, buying directly from the developer is a horrible idea. You are better off buying resale from eBay, private owners, or reputable real estate agents who specialize in timeshares. The resale price can be a fraction of the original price (easily more than 50-75% off). I was amused by your story, because I own a bi-annual 2BDR Starwood timeshare that I bought off a private owner for a song a couple of years ago. Sheraton Puerto Vallerta is NOT in the Starwood Vacation Network – obviously they are franchising the brand and selling their own timeshares (“product” sounds like a traditional timeshare that has very limited flexibility.) I always tell people who are even considering timeshares to research their targeted programs thoroughly at places like http://www.tugbbs.com to get the upsides/downsides. Resale prices, annual maintenance fees (plus annual increases), and resale benefits vary widely. With most of the big timeshare systems like Hilton or Starwood, you are better off buying a “Platinum” resale in AZ or Las Vegas and using your points to stay elsewhere within the system or trading through II/RCI (unless you really want to go to AZ or Vegas). Why? There is a reason they park planes in the desert…they don’t decay. Same thing applies to buildings, the upkeep costs less and they don’t have to worry about natural calamities like hurricanes or earthquakes. You buy the top “Platinum” level because then you can get outsized value (someone who buys a 1BDR silver typically pays the same annual maintenance fee as a 1BDR platinum, with access to significantly less inventory). Ex: paying a $1700 maintenance fee every 2 years gives me enough points to stay 1 week each at the Starwood timeshare properties in Maui and Atlantis. Value: $4-6K. Promo “preview tour” packages can be a great deal – last year we (family of 4) stayed a week in a 1BR condo at Hilton Kings’ Land in Waikoloa for ~$1000 – which included a rental car and about $500-$600 value in resort credit, free night Embassy Suites voucher, and activities (we did the luau and sunset sailboat dinner/cruise). All for less than 2 hrs of our time and there was really no sales pressure – a couple of firm “NOs” and they were like “OK, enjoy your stay”.
Timeshares are an awesome deal. You just sit there for 90 minutes and amuse yourself with their tactics, and then you get the reward. I thank the 80% of people who fall for it, because they’re the ones who keep these time-share deals alive. Also, where’s the evidence that the timeshare they offered wasn’t a today only offer? I support the idea of innocent until proven guilty. In order to really find out, you have to go to the presentation at the same hotel on two different days, and see if they give you the same offer twice.
As Eric said, there are situations when timeshares can come handy. Even more importantly, people who have learned the system (which is very tricky btw) often can game the system and even turn some profit. It’s not completely unlike our game, in the end how many folks out there believe that loyalty programs are a scam too? A lot.
Most people are not world travelers. They find a warm place they like and come there times and times again. Nothing wrong about that. Whyndam used to be the best timeshare system for years until they gut it a few years ago. I knew some folks who made a very decent profit off their properties for years. So it can work for somefolks, just like miles’n’points.
On a personal note, I love timeshares. Last month I spent a week at
$19 a night at an AI in DR, and no, it was not a mistake fare, and I didn’t have to attend the presentation. For all goals and purposes, timeshare buyers subsidized that vacation. You should like them too. You received $200 for 2 hrs of your time; that turned your cheap hotel stay into a free one. 🙂
Anyone considering a timeshare should visit tug2.net and get an education. There are ways that timeshares can be an incredible value, but never buy retail.
This and the psychological training you went though would make good dinner conversation, don’t you think?
Timeshare fraud has been around since the timeshare idea was created, but they increase during poor economy. When times are difficult, timeshare owners are stuck with properties they can´t travel to or even afford. Desperate to recoup some money to pay for bills, they can easily become victims to scams artists pretending to be their timeshare salvation who will take upfront fees -as much as five number figures in some cases- but fail to fulfill their promise.
We are full time nomads like you, been doing it now for almost 2 years. We bought a timeshare last year and think we got a great deal, but bought it our way, not the developer’s way.
We went to a presentation in Vegas (being offered a $100 gift card to attend). Their price for 20 thousand points was $50K!!! My mouth actually fell open with surprise and then I started to laugh. Left soon after with our $100gc. We talked about it on the way back to our hotel and decided we liked alot of things about the program just not the price. So we found the same product on ebay, bought it for $3200 all in.
Used it last year for almost 12 weeks of timeshare. Part of that was using our points, so no additional out of pocket for those weeks, and then we used bonus time at a reduced cost of $18 per night. For what is in all truth a small apartment. Love having a kitchen and in unit washer and dryer.
There are quarter fees, for us $84 per quarter. But since each place you stay at offers a presentation (with breakfast usually), just get the gift card offered and you net out to $0 after about 60 minutes of your time. We find it really works for us especially when we’ve done all the hotel promotions we’re interested in for that promotion period. Great to have the extra room and the amenities they offer.
Love your blog and have learned so much already. Thank you!!!!!!
Timeshare industry is known for being very susceptible to scams. Year after year, thousands of people around the world feel they were scammed by a timeshare developer. The reason why fractional ownership is successful, it’s because shared properties have become a tremendously profitable way for resorts to sell real estate- mostly suites in important touristic destinations. On the other hand, despite the success, timeshares have gained a bad reputation.
Timeshare industry is known for being very susceptible to scams; however, timeshare properties are still a successful business for most resorts. In these times of rough economy, it is important to take care of our money, and timeshares are not in the way to achieve the financial security that we are all looking for.
Timeshares can be a terrific purchase for some families, as they also can be a giant rip off for others. 50 years ago, also known as Holiday Home Sharing or timeshare travel timeshares were created with the idea of offering fully furnished accommodations for a lower price than a full-time ownership.
Buying a timeshare under the impresion you will save money on the long run on travel expenses such as airfare or cruises equals to being a victim of timeshare fraud. Timeshares will barely provide you a small discount on accomodations and that´s it. Timeshares will not provide you, in most cases, any discounts on your vacation expenses.
Timeshare industry is known for being very susceptible to scams; however, timeshare properties are still a successful business for most resorts. In these times of rough economy, it is important to take care of our money, and timeshares are not in the way to achieve the financial security that we are all looking for.
Thousands of International travelers, particularly from the US and Canada, have fallen victims oftimeshare fraud while vacationing in Mexico. Resort developers hire skilled salesmen to represent their timeshares as many different attractive packages, such as financial investments, deeded properties, or vacation clubs, just to increase their sales.
Timeshare fraud has been around since the timeshare idea was created, but they increase during poor economy. When times are difficult, timeshare owners are stuck with properties they can´t travel to or even afford. Desperate to recoup some money to pay for bills, they can easily become victims to scams artists pretending to be their timeshare salvation who will take upfront fees -as much as five number figures in some cases- but fail to fulfill their promise.
Timeshares are not the financial investments consumers thought with it was. Timeshare resorts Such as Wyndham, Marriot, Disney, Royal Holiday or Mayan Palace are very successful at selling their timeshare products, timeshare consumers haven´t been as lucky.
With the economy as it is today, consumers owning a timeshare out of their city are struggling to pay not just maintenance fees climbing yearly up to $800 yearly, they also have to pay transportation to their timeshare destination.
I went to one presentation on my last visit. I told the “arranger” that I don’t work for less than $175 per hour; that’s $525 for a 3-hour presentation. I got $500 plus a (free) $35 cab ride back to my place. The resorts are desperate but the “arrangers” don’t care because they get paid by the “arrangement.” BTW-The resort was expensive, not beautiful, and obviously in its “still more to come” state for the past 10 years with another 10 before it probably gets repo’d.
1) It’s not a financial investment
2) They are not for everyone
A) if you like to vacation, stay in nice condos, and educate yourself enough to use your ownership efficiently- buy
B) if you don’t vacation, don’t like or need nice condos, and can’t afford it- don’t buy
Let me challenge your thinking a bit.
Your investments and vacation money are two separate funds. You can’t take the money you would spend on your timeshare or vacations and make a point that it’s a bad investment based of off what you could earn investing it! Unless your saying your not going to vacation and if that’s the case then no it’s not a good idea to buy vacations if you don’t vacation.
Compare apples to apples. Calculate what you spend on traveling in 1 year. Then figure out about how many years you see yourself traveling. Then use your inflation (5%-10%) and do that math. Then compare that number to your cost. Now we are comparing apples to apples. You will find that it’s a better deal for a much nicer stay than a hotel, they ensure you and your family have vacations every year, they take you to places you may not have gone without, and allow you to spend time with the people who should mean the most to you. Its an investment in your family and that’s way more important to me than an money a stock or financial investments going to get me. Fun Fact: Between ’08-’10: while most were doing what the media called “stay-cations”, timeshare owners where traveling at some of the highest rates in the last 10 years.
With that said, there are some bad apples in the bunch of developers and sales reps. Buy at your own risk, know what your getting, and take responsibility if you buy a bad timeshare or don’t understand what your getting when you purchase. Not all are the same! So keep an open mind but don’t take crap!
You will find more joy in the memories you make than you will the money at the end of the road.
Watch out for WorldMark by Wyndham in San Diego…we were at Seaport village and got picked as an easy mark by a guy at the Seaport Village information booth, and went to the Hazard Place office and were fed gas station muffins and had to put up with high pressure sales from a Ms. Brinkman (dressed like a street walker), then her manager Travis Taylor (“I’m doing you a BIG favor” and I won’t hit your credit for 45 days!”), and then the fill in document preparer (who neverm, EVER told us we could cancel) after we caved due to hypoglycemia. They lied throughout, we were far from home, and I feel totally RAPED by them. I wrote a letter to cancel my contract, they want to fight me, so I am going on every website and tell everyone to avoid these people especially.
A long article for nothing. No need to analyze the math and offer. Contracts are worth nill in Mexico. Your just giving someone your money. It’s all a scam.
Don’t ruin your vacation with a presentation in Mexico. They use a lot of hardball psych techniques and I was pretty depressed for at least a day afterwards.
Can I suggest earning points on IHG?
We’ve had countless free nights at good hotels in many cities in the US and Europe.
It costs absolutely nothing to sign up for IHG, you earn points every time you stay, (or order food and drink I think) and then you accumulate the points and very quickly you can use the points for free nights.
No signing, no fees, no sign up fee, nothing.
Just stay, earn and redeem.
Wowwwwwww y’all are crazy on here! I agree with yoda tho if you all are in so called reality you would know u can’t use same vaca money to invest because after investing you still need money for vaca! But ethier way u look at it your still spending money on vaca no matter how u get it!! And I doubt your investments are making so much money to where you go to t/s looking for free gifts!! Lol but if u like to travel and see places you’ve never thought of going and spend time w/ your family then I would look into it!! If you buy online you have to be carefull because they might have like 5 years back maintenance to pay before u can use it!! I would find a reputable place and buy new just like I buy my toothbrushes, and clothes!
So which timeshare group do you work for? You can travel to anywhere in the world with your family and have a great vacation without a timeshare. There’s literally no tourist destination in the world where owning a timeshare is a requirement to visit. You can even stay at timeshare resorts without owning. If you are advocating buying new, you are quite obviously a timeshare salesman and/or promoter. A quick internet search shows that if you want to own you can buy for a fraction of the cost on the secondary market.
Nice write up. The wife and I have done about 6 or 7 of these, solely for the perks. As I get older, I find myself not caring about the perks. Just not worth it. My younger self wanted that $100 debit card or the half price tickets to Dixie Stampede, but nowadays those “90 minute” presentations make me cringe. We just went to Orlando as an RCI resort “guest” (which is how we always travel…thanks to having in-laws as owners!). The week cost us about 350 bucks for a 2BR condo. It’s a great way to travel and you can go pretty much anywhere for cheap. This time, at check-in they made the presentation sound so innocent. “Would you like to join us for a complimentary breakfast and a quick tour of the facility so you can familiarize yourself with the property and RCI… we’ll even throw in a $100 gift card. Interested?” To the uninitiated, that doesn’t necessarily scream “4 hour hard-sell timeshare presentation”. We declined this time…Disney owned all our time that week.
Over the years, we’ve said “No” many different ways and have never given them a dime, but regardless of our technique it always, always lasts 3-4 hours. I’ve yet to find a strategy to get out in under 2 hours. Probably never will. Cheers!
After 15 minutes of BS I walked out and sat in my car. The salesman followed me out and got in the driver’s seat! “This man is in my car.”I cried. My husband pulled him out by the throat calling him a son of a bitch. We never went to another one.
My wife and I go on these things a lot to mooch (industry term) the gifts and get the dirt cheap travel. We know the score and come up with the most outrageous things we can think of to say no and have them let us go early. Giving credit where it’s do, these salesmen are the best of the best. Some that we’ve used a) just whip out a calculator and to all the math in front of them and have them explain why it costs over $50,000 in maintenance fees for a studio b) tell them that you’ll get up and say (loudly but politely) that you’re going to call your financial advisor right now c) pull out your iPhone and show them the units selling on-line and on Ebay for 1 cent. They can’t get rid of us fast enough.
An excellent write up. Both the Time Shares and their slick Point system are a complete scam. Do not fall for their smooth talk. Don’t even agree to listen to these scam artists. It is a complete waste of time.
Hi! My name is Rebecca and I work for a consumer advocacy group where we specialize in helping people who have been taken advantage of, like yourself, get out of their timeshares. If you still need assistance in getting out of this nightmare I would love to speak with you. You can contact me on my direct line at (949) 535-2536
Timeshares are ALWAYS scams. Don’t listen to the people In the comments that say timeshares sometimes make sense.
They NEVER make sense! The reason are the mandatory maintenance fees that range from $300-1200 a year. Even if you never use it. Add that to the rediculous price point and you could just buy a condo for cash.