|
|
Timeshare Concepts
The Good, The Bad, The Confusing
By: Marc W. Price, Broker
The Good
The most efficient way to use a timeshare is to buy a resort located in a high demand
area. Additionally, you'll want to buy a quality resort that has a draw (golf course, beach, tennis, nearby tourist
attractions, etc.). Buy a prime time (often times called 'Red') week. Prime time, or prime season indicates the
times of year that the resort and its surrounding local are the most popular. Prime season in the desert, for example,
is October through June. At beach locations the prime season is February through November. And, mountain resorts
are most popular during winter and summer. Bottom line is buying the best resort at the lowest price. You will
be so much happier when you have extra money for all your travel needs, airline tickets, dinners, and shows - a
good time. If and when you decide to sell your timeshare, you'll recoup a higher percentage of your purchase price
if the week is a 'prime season' week, at a highly rated resort.
The Bad
It is never smart to pay retail - buying direct from the resort is paying retail. 50%
of the price of a retail timeshare goes for marketing and commission. Out of 100 people that attend a timeshare
presentation at a resort, typically 95 do not purchase. The reality of the situation is that the five that do purchase
are paying for all the marketing costs that the other 95 that did not purchase (i.e., gifts, overnight stays, promotions,
administration, advertising, etc.)
The Confusing
The Fallacy of the 'Point System' - Too many people buy timeshares because of the wrong
reason. They are sold the 'Point Concept'. It really sounds great to be able to use individual points to secure
hotels, car rentals, cruises, airline tickets and the like. However, if we look at how the numbers really play
out, you will see why you should not get caught in the 'Point Concept' trap.
Let's take this exercise together. Take out a large legal pad and draw a line down the
middle and another across the top - like a giant 'T' shape (that's called the 'Ben Franklin' in the world of sales).
If you put the cost of staying in your choice hotel, and air fair, car rental, etc in the left column and list
the true cost of the 'points' in the right column you will see the discrepancy. The column which lists the cost
of the points will be far more expensive than your actual out of pocket costs if you purchase your services from
a discounter or consolidator. After your initial purchase price of the point program and the yearly fees, the 'point'
services can cost you up to 25% more than purchasing on your own.
Exceptions to the Rule
The only way the 'points' program truy makes sense is to buy an inexpensive timeshare
that includes the points program as part of the packaged deal. By purchasing the program inexpensively and having
the option to use the timeshare for a week or use the points program for travel you, can have the best of both
worlds. But, if the timeshare and the points program combine cost more than $4500, it is too costly and it will
take you years to break even. Take your time, run the numbers yourself - don't rely on the salespersons math to
demonstrate the program. If you run the numbers, then you will know exactly how the program works and you will
make a more educated decision.
Conclusion
By keeping in mind all of the considerations stated in this article when shopping for
a timeshare, you'll make your decision from a place of knowledge, and get a much better deal in the process. You'll
buy a product that is right for you and your family, be able to spend quality time with family and friends in an
ideal location and feel confident in your decision. Remember, getting a 'good deal' isn't only paying a low price.
It's knowing you got the best price and a great timeshare.
Back to Top
|