Fifty timeshare owners were recently surveyed about their timeshare sales presentation experiences. More than 90% were lies from the timeshare seller. Here are the top three:
1. “The time you buy will be exchanged for anything, anywhere, anytime.”
To tell the truth, the exchange can be very complicated. There is a complex system to determine the “trade power” between two resorts. Basically, the system tries to match similar units with similar units. Owners of a high-season unit at one resort can likely exchange for a high-season unit at another resort. However, not all “high seasons” are the same. Your ability to trade for what you want, when you want it, is never secure.
Almost half of the respondents felt that they had been lied to regarding the exchange or commercial power of their place of residence. Victims were told lies like: “We have the highest demand for any timeshare in the system.”
Almost all timeshares have the possibility of being exchanged for others. There are networks of third-party resorts that manage this process. Occasionally you can buy into a crumbling resort and trade it in for a great one. This is by far the exception to the rule.
Exchange can also be very expensive. One of the major timeshare exchange companies charges $250 to act as an intermediary in an exchange between two timeshare owners. This is approximately 25% of the price you would pay to rent the unit.
2. “You can make money renting out your unit.”
Most timeshare owners must go into debt to purchase their timeshare from the developer. They go into debt so willingly because they are often told they can rent out their unit and earn some extra money.
The problem is that timeshare owners generally have no idea how to effectively rent their unit. The resort is more than happy with this situation, as they usually provide a service to rent the unit to the owner, for a fee. This fee is usually around 35% of the rental price. And they don’t guarantee a rental. If it doesn’t rent, you’re out of luck. This is definitely not a guarantee.
Each timeshare unit also comes with annual maintenance fees. These fees cover maintenance and taxes at the home complex and range from $500 to $1000 per unit per year. Often times, an aggressively priced timeshare rental does not even cover these fees.
3. “This deal is only good for today.”
This is a standard sales line if there ever was one. Creating a sense of urgency to get the sale is one of the oldest tricks in the book. This is a lie. You don’t have to act today. The very expensive timeshare will be available tomorrow as well. They will never turn down your money when so much commission is at stake.
Even with all the unethical sales techniques, 97% of respondents were satisfied with their home timeshare resort/network. One respondent summed it up when he said, “Most people just don’t realize that using timeshares is such an affordable way to see the world!”
Timeshares are a great product if you know how to buy and use them. There is a thriving timeshare resale market. You will rarely get the best deal when you buy directly from the developer.
