8 Reasons to Reconsider a Timeshare

Hello friends!  I’ve compiled a list of 8 reasons to be cautious when thinking about purchasing a timeshare.  None of these pitfalls are new, but they seem to be just as true today as they have ever been.  Unfortunately, we continue to hear these same complaints from our customers on a daily basis, but hopefully, a few of you will read this blog and take a moment to evaluate your options.

Timeshares are NOT an Investment

As expressed time and time again, timeshares are a liability, and their financial value depreciates over any given period of time.  This means that the instant you purchase a timeshare, the value plummets, along with the resale value.

Maintenance Fees

Fees that were promised to remain low during the initial sales pitch can begin to spiral out of control rather quickly.  Along with general maintenance fees that will surely rise, there are other fees to keep in mind, such as special assessments, taxes, membership fees, and exchange-transaction fees.  The owner must pay these fees whether they use their timeshare or not.

Travel Expenses 

Another item that is often overlooked by overzealous timeshare purchasers is the question of travel.  Sure, it might seem like an affordable vacation locale if one can account for the annual taxes and fees, but people often forget how expensive it is to travel to certain destinations.  As anyone with a timeshare can tell you, airfare is not cheap and neither is fuel.

The Timeshare Industry is Complicated

The timeshare industry is extremely complicated, and entering into a contract should not be taken lightly.  Resort developments are counting on their prey to not do their homework, thus making them easier to sell.  If one isn’t well versed in the language of timeshares (e.g. fixed-week, point based systems, leased timeshares), it becomes even easier to fall victim to manipulation and predatory sales tactics.

You’ll Likely Never Break Even

Timeshares seem cheap at the initial time of purchase, but when compared with the cost of practical hotels over the lifetime of the contract, it’s likely that you’ll never reach a break-even point.

Little Vacation Flexibility

Trading your time for a unit in a new vacation location is not as easy as a timeshare salesperson would have you believe.  It could nearly a year’s worth of advanced planning, and trading costs can add up quickly.  Further, there’s no guarantee that you’ll be able to get your desired location during your desired time.

Timeshare Prices are Negotiable

Even more than regular real estate or the local farmer’s market, the sticker price on a timeshare is highly negotiable.  The salesperson doesn’t expect you to pay the initial price tag on the timeshare, and they are willing to come down on it.  However, since timeshare salespersons expect to negotiate, there is a high mark up on the original price of the property.

Timeshares are Nearly Impossible to Get Rid Of 

A timeshare is a liability, not an asset.  Therefore, the value will only depreciate over time, which makes the resale market virtually non-existent.  There are many listing agencies and exchange companies who will make empty promises about the value of your property and the abundance of buyers lining up to purchase it, only to cash a large check without providing adequate service.  The bottom line is that it is nearly impossible to sell a timeshare.  The market has decreased significantly and shows no signs of rebounding.

This list is by no means exhaustive, but it should be a starting point for anyone interested in taking an honest look at what timeshare ownership really involves.  Timeshare ownership can be a wonderful experience for many families, but it is important to do all the necessary research before signing on the dotted line.  If you or someone you know is locked into a timeshare contract and looking for an exit solution, please contact Newton Group Transfers at (877) 354-4321.

Large Travel Fees Associated with Timeshare Vacations

For some timeshare owners, the journey to their property is a short drive away from home. For most, however, their annual vacation destination is located quite far away. Actually, that’s usually the whole point of going on vacation; sometimes, you just need to get away! In this case, traveling to your timeshare requires a lengthy road trip or flight. These costs can add up rather quickly, especially if you are traveling with several family members. The fact is that, often times, the travel costs associated with timeshare ownership are left out of the equation when people consider their vacation budgets.

Air Travel

As the economy continues to struggle, and the cost of fuel progressively rises to record highs, experts predict that the price of airfare will persistently increase annually over the next 20 years. In fact, the current average price of airfare is already up nearly 10% from this same time last year. According to Ed Perkins, a blogger with smartertravel.com, “Just about everyone in the business believes that airfares are going up, generally, across the boards, and more or less permanently.” Factors for the price hikes include decreased airline capacity, labor strife, conflict in the Middle East, and recent mergers among large carriers. Unfortunately for travelers, none of these issues seem to be going away any time in the near future.

It’s not all bad, though. On the whole, flying is still a relatively cheap form of travel (in relation to rates adjusted for inflation over the last 30 years), and most airlines stay afloat by throwing in hidden costs such as large baggage fees or instituting small price increases several times throughout the course of the year. Many carriers are looking to invest in more fuel-efficient planes, but much of the technology has yet to be fully realized and the cost for research and development alone is well into the billions of dollars. The average consumer who’s grown accustomed to paying modest fees is likely in for a rude awakening in the near future.

Car Travel

The typical timeshare traveler overlooks several fees associated with car travel that can add up quickly, even if you’re flying. If you’re flying, parking your car in an airport ramp can cost as much as $100 per week. In addition, you’ll have to either rent a car or rely on taxicabs for the duration of your trip, and these costs can get out of hand quickly. For instance, I checked to see how much it would cost to rent a compact car over Christmas this year, and the overall figures well exceeded more than $100 per day with Enterprise.

If you’re driving to your vacation destination, there are obviously costs associated with fuel, oil changes, and potential car problems. While fuel prices remained relatively low over this past summer (in large part due to the political elections), most experts don’t expect that trend to continue. In fact, many economists are predicting $4 per gallon again by the end of January.

There are also the unseen costs of piling mileage onto your vehicle’s odometer. In 2011, Americans drove an average of 13,500 miles per year (this statistic includes teenage and senior drivers that typically wouldn’t be driving cross-country to a timeshare destination). A roundtrip car ride from the northern eastern seaboard to southern Florida is more than 2,500 miles. That’s almost a fifth of the miles you’ll put on your car in an entire year! Cars are meant to be driven, but packing on the miles will shorten the length of your vehicle’s life.

Just One of Many Fees

Many people are completely comfortable with paying the travel fees associated with timeshare ownership. Others, however, are beginning to see these costs as the straw breaking the proverbial camel’s back. Once these expenses are coupled with maintenance fees and special assessments, along with the headaches associated involved with scheduling your allotted time at your vacation property, the cost of owning a timeshare becomes less and less feasible.

If you’re feeling overwhelmed by your timeshare, the smartest, fastest way to remove yourself from your contract is to seek the assistance of a timeshare transfer company like Newton Group Transfers. We pride ourselves on our honest approach with our customers, and we won’t sugar coat the situation. We are fully aware of the severity of the timeshare crisis.

At Newton Group Transfers, we offer the opportunity to forge a new financial future by accepting each predicament for exactly what it is, and by working together to develop guaranteed alternative solutions. Please contact us at 1-877-354-4321, or enter your information at our website to receive a free quote today!