Timeshares: Worth it or a scam?

bmo88 · August 2015

I am just genuinely curious. I don't plan on purchasing one and I have managed to avoid a lot of "free seminars" over the years, but I know a few people who do own them. They swear they are awesome, but to me it seems like you pay a lot for "limited" time frames and locations.

I feel like timeshare maybe made sense to purchase before the internet allowed you to search for good deals, but nowadays, is it really a good deal?

Xstatic3333 · August 2015

Scam.

MIL has one, and sure, it's nice, but even now that it's paid off her maintenance fees are completely unpredictable. Some years they are as high as $1,100. She gave us her week in Orlando this year, and we did get suckered into a seminar. It was amazing how skilled the salesman was, but the numbers at the end were horrible! To buy enough "points" to get a week at any of their properties, we would have paid $40,000 at 21% interest. Of course he told us to just refinance when we got home, but that's basically an unsecured loan so options would be limited. Plus, that's in addition to maintenance fees. I didn't like a lot of the high pressure sales tactics ("Wait, I thought you guys liked to travel!") and think it's a bit predatory, especially towards the elderly who are falsely told that this is a valuable asset to leave to their kids.

The new models do have properties you can go to anywhere, but they are mostly in very touristy areas and the good ones book up quick, so you may need to make major compromises on location to use your time.

brij2006 · August 2015

Scam!

Sisugal · August 2015

Not a wise financial move.

Mustard76 · August 2015

Totally not worth it. My parents own one and dump SO much money into dues and fees. Sure, the condos they reserve are nice, but there are only 30-ish places they can go. Forever. It is deeded property, but neither my brother nor I have interest in inheriting it.

short+sassy · August 2015

I think they can be great for very select individuals. For example, a former coworker's dad has one in the Gulf Coast of FL. But he loves that specific location and uses it every year.

Quite frankly, for anyone interested in a timeshare, your best bet is to buy one on the secondary market. I've sometimes seen them for sale for nothing, just so someone else will take over the maintenance fees.

dragonstarjk · August 2015

I vote for scam! H's grandparents own one that will be inherited by his mom and her siblings. They all take turns using it and they seem to like it, but it just seems like such a huge waste. Plus, I like to travel to all new places and theirs is limited as to where it can be used.

They offered to let us use it when we went to Hawaii last year, but the condos where the timeshare is located got really mixed reviews online. We chose to spend more on a mid-range hotel and were really pleased not to be stuck in those condos, even though it would have saved us money.

maple2 · August 2015

My parents have one that they like because it forces them to actually go on vacation since they've already spent the money. They are able to choose from several destinations and can convert any unused time to points for hotels in other locations. Personally, I'm not looking forward to inheriting them because that's not the way we usually travel and the fees seem too high.

hoffse · August 2015

Eh I think it's kind of like buying an annuity. Probably not a great deal, but people do it anyway because it ends up being kind of like a prepaid thing.

All inclusives are kind of similar to me as well in that they are a pretty expensive way to vacation. But AI's are nice in that the money was probably spent 5 months before you ever get to the resort, so it feels more vacation-like than coming home to a large (and unknown) CC bill.

AI's do a roaring business from Americans, even though most of us could probably go to Europe for less. We could almost certainly go to Asia for less.

Timeshares aren't the most financially-savvy way to travel, but if they work for some people who can afford it... well, not all of us care to do the research it takes to plan a new/different vacation each time.

I would never buy one, but I like the planning side of the travel experience.

JoanE2012 · August 2015

Scam. When I was in the DR a couple months ago, I overheard a timeshare couple talking to another couple about how much they paid per night - it was only about $10 less per night than we paid! But then add in the initial costs, the annual maintenance - they definitely paid more overall. I just don't see how it's worth it. Especially with AIs that add in the extra layer of fees.

vlagrl29 · August 2015

I don't know the details of it, but know someone that has a timeshare in Kaua'i. He goes there quite often so it may pay for it in that scenario but we would never buy a timeshare.

Timeshares: Worth it or a scam?

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