What comes to mind when you think of buying a timeshare? High pressure sales tactics and lengthy timeshare presentations? Exorbitant upfront fees? Overwhelming financial obligations? Yikes. What if we told you that many of these are common misconceptions of the timeshare industry? It’s true. According to ARDA, 90 percent of owners are satisfied with their timeshare purchase, and we have a feeling you will be too. So, are timeshares scams? The answer is no. However, there are a few timeshare scams out there to be aware of. Keep reading to learn more about how to stay safe when navigating the timeshare industry.
Do People Regret Buying Timeshares?
So, are timeshares scams? No, timeshares are not a scam. Contrary to popular misconceptions, timeshares are a legitimate purchase. They are intended to be a lifelong product that helps owners save money on annual vacations.
But what if the root of this question is, “Will I feel satisfied with my ownership?” Well, according to ARDA, 82 percent of timeshare owners would recommend timeshare ownership. Today, timeshare ownership is more flexible than ever, with most timeshares following points-based systems and featuring spacious vacation homes and luxurious resort amenities and experiences.
The average one-week timeshare, where you visit the same destination and timeshare unit for a specified period each year, is no longer the norm. However, if you’re interested in deeded timeshares, a few resort developers still offer them, such as Westgate Resorts.
How Do You Know if a Timeshare Is Right for You?
There are a handful of factors to consider before purchasing a timeshare. First and foremost, timeshare buyers should consider their travel habits. Are you someone who likes to travel and does so often? If so, a timeshare may be for you. Are you a homebody that doesn’t value travel? Then vacation ownership probably isn’t for you. Another factor to consider is your finances. Can you afford to pay annual maintenance fees, financing fees, closing costs, and annual dues? If not, timeshare ownership is not for you.
Are Timeshares Scams Financially?
It’s important to note that timeshares are not a financial investment. Like a car, a timeshare is a depreciating asset, and it is rare that you will make any money off your timeshare (or break even) should you decide to sell it with a timeshare resale company. However, many timeshare owners consider their ownership and the vacation experiences and memories it brings them a personal investment in their happiness. Would you consider a new car or phone a scam? Nope! So, are timeshares scams financially? No, as well.
Moreover, vacation club ownership can be quite expensive, reaching an average cost of $24,000 when you buy straight from the timeshare developer. Plus, you may pay thousands in annual maintenance fees each year. Yet, keep in mind that when you buy a timeshare, you are pre-paying for a lifetime of vacations at today’s travel rates. This means that if prices go up in the future, you’re left unscathed.
However, if your financial circumstances are not great at your time of purchase, the ongoing costs of ownership, including financing fees, maintenance fees, etc. can quickly become a burden. But there is a silver lining: When you buy your home resort off the resale market, you can save thousands on your initial purchase.
The Better Business Bureau and ARDA
Whether you’re trying to buy or sell a timeshare, the Better Business Bureau (BBB) and American Resort Development Association (ARDA) are invaluable resources that speak to the authenticity and trustworthiness of any company or individual. The BBB rating of a company speaks to its reliability and performance, while ARDA sets industry standards and holds its members to a strict code of ethics to keep everyone in the vacation club industry safe.
So, be wary of entering timeshare agreements or providing your information to any timeshare company that you have not verified with the BBB or ARDA. Are timeshares scams? No. But timeshare scams do exist, and these two resources are your best bet for avoiding them altogether.
Avoid Timeshare Resale Scams
Timeshare resale scammers come in all shapes and sizes. From exit programs that promise they can get you out of your timeshare contract to over-the-phone money swindlers, it’s easy to get caught up in a timeshare scam. But are timeshares scams? No, but like any industry, there are always a few bad apples. Get familiar with a few of the most common types of timeshare fraud below.
Out-of-the-Blue Phone Calls
One common scam is out-of-the-blue phone calls. Should you ever get a random call from someone claiming they have a buyer for your timeshare, please be wary. Reputable timeshare resale companies will never solicit you to sell your timeshare. In fact, this act is illegal! Your first red flag should be receiving this call if you haven’t even posted your timeshare for sale. Never, ever send payments or give out your information to unknown callers over the phone. If you’re looking to sell your ownership, contact your developer for vetted third-party resellers, such as BuyATimeshare.com, and research companies with ARDA and the BBB.
Pricey Timeshare Exit Company Scams
Be extremely wary of companies that promise they can “cancel” timeshare contracts. These exit companies are typically made up of teams of lawyers who guarantee getting you out of your contract. However, just like you can’t cancel a deed to your house, you can’t simply “cancel” your timeshare contract. Their “cancel tactics,” which we’ll discuss in the next section, often lead to a massive hit to your credit and even foreclosure.
After a timeshare purchase, owners are provided with a rescission period lasting three to fifteen days. During this “cooling off” period, owners can back out of their timeshare purchase. But after this cancellation period has passed, you are locked in. Read your contract carefully to see how long your rescission period lasts.
Moreover, no timeshare company should be charging you exorbitant upfront fees (if any upfront fees at all) to list or advertise your timeshare ownership for sale. Most timeshare resale companies, such as BuyATimeshare.com, charge you nothing to advertise your timeshare for sale.
Do Not Stop Paying Maintenance Fees
Exit companies are known for sending letters to your resort developer demanding they cease all communication with you. Then, they’ll advise you to stop paying your maintenance fees or other associated timeshare costs. Do not do this. Failure to pay annual maintenance fees will result in a hit to your credit score and may even lead to foreclosure by the resort developer. This is a huge red flag with harmful long-term effects.
Are Timeshares Scams? Not With the Resale Market
So, are timeshares scams? No, they’re not. Timeshares are a worthwhile addition to your lifestyle, making vacation more accessible and cheaper in the long run. What’s more, you can avoid the high pressure sales pitches, pushy timeshare salespeople, and lengthy sales presentations entirely by purchasing your vacation ownership on the timeshare resale market! Not to mention, you can buy a timeshare off the secondary market for a fraction of the price of retail.
BuyATimeshare.com is a dedicated member of ARDA with over twenty years of experience helping people like you buy, sell, and rent timeshares. Start your vacation ownership journey by browsing our resale market. Once you find the perfect timeshare for you, make an offer! Our timeshare specialists are here to answer any questions or concerns you may have. Give us a call at 1-800-610-2734 for assistance.
