| During these economic times, now more than ever, it's | | | | Myth #2: It's best to buy your timeshare "new." |
| a buyers market. As a consumer, you have the upper | | | | It's no surprise that timeshare developers and resorts |
| hand in exercising your purchasing power and an | | | | encourage potential buyers or renters to buy new and |
| informed consumer can find some great vacation | | | | directly from them. A large chunk of the timeshare |
| deals. But in order to be informed, you have to have | | | | price tag is comprised of overhead costs-from |
| the right information. There are a huge number of | | | | advertising and marketing costs, to signing perks and |
| misconceptions out there about timeshare ownership | | | | any other incidental costs that the developer or resort |
| and its supposed benefits. Here is a breakdown of | | | | wants to recover. A savvy consumer knows that |
| three "timeshare myths" commonly used by the | | | | overhead can be avoided by looking at alternative |
| timeshare industry. | | | | purchasing avenues. By avoiding purchasing a new |
| Myth #1: Owning a timeshare is an investment that will | | | | timeshare, you can cut the fat off your expenses by |
| save you money. | | | | not wasting money on unnecessary expenses that |
| The marketing of timeshares to potential buyers is | | | | only fatten the wallets of the timeshare sellers. |
| fraught with heavily skewed statistics and broken logic. | | | | Developers and resorts also stress that buying a |
| Timeshares have traditionally been represented as a | | | | timeshare from directly them comes with numerous |
| means to trim vacation costs and save the consumer | | | | benefits - everything from bonus weeks, discount |
| money, but in reality, they often prove to be a costly | | | | tickets to local attractions and discount car rentals. As |
| expense that don't live up to their expectations. | | | | well as this, developers claim that they will provide you |
| Timeshares frontload your vacation costs making you | | | | with more financing options. But no number of |
| pay upfront for your vacationing over an extended | | | | "benefits" and "perks" can outweigh the fact that |
| period of time. In order for you to make your | | | | renting a timeshare is a much better idea than buying |
| investment translate into money saved, you would | | | | one. |
| need to use that timeshare every year without fail, | | | | Especially in this economic climate, there are great |
| over a long period of time. The idea that timeshares | | | | rental deals to be found, and there is no better time |
| save you money is based on a structured equation | | | | than the present to negotiate some very low weekly |
| that requires you to fit the seller's criteria perfectly and | | | | rates. It's even possible to rent units on a nightly basis. |
| never change your plans. | | | | When you're able to enjoy a timeshare vacation |
| But let's face it, life throws curve balls and plans | | | | without the contractual obligation why would you |
| change. What if a job is lost or unexpected home or | | | | choose to buy? For one week at a timeshare, you |
| medical costs take their financial toll in a given year? | | | | might even find yourself paying less than the owner's |
| Wouldn't you like the freedom to not pay for a | | | | annual maintenance fees at the same resort. And if |
| vacation in a time of crisis? Or less dramatically, what | | | | you're still looking for those "perks," developers do |
| if a family reunion is planned or a trip planned to visit | | | | actually offer some great incentives to renters at their |
| friends who moved away. Wouldn't you like the | | | | resorts as a way to entice them into becoming buyers. |
| freedom to choose your vacation destination and not | | | | Myth #3: You can easily rent or sell your timeshare at |
| be stuck in a situation where you're forced to take a | | | | any time. |
| vacation because of a contractual obligation? | | | | Even in good economic times off-loading a timeshare |
| The inflexible costs don't take into account an | | | | is nothing less than an ordeal. Frustratingly, this feat is |
| ever-changing market. While the unexpected financial | | | | now even more difficult given the flooded timeshare |
| crisis that arose in 2008 has taken many people's | | | | resale market. Timeshare owners looking to cover |
| vacation funds away, for others it has given them | | | | their costs are trying to rent or resell their timeshares |
| opportunity to take advantage of low airfares and | | | | instead of using the units themselves, inevitability |
| hotel bargains. Again, the inflexibility of timeshares | | | | creating a massive influx of rental and resale listings. |
| leaves those, who now don't have the money to | | | | Between November and January, witnessed a 40% |
| travel, paying for vacations they cannot afford. And | | | | increase in timeshare rental postings. If you want to |
| for those who can afford to travel, it takes away the | | | | rent or resell then you've got a lot of other owners to |
| possibilities to take advantage of trips they previously | | | | compete with and you should be prepared to rent or |
| would've been unable to take or hadn't thought to take. | | | | sell your unit at dramatically reduced rates. |