All the time share stuff

[disneysteve]

something that bothers me about handing over $15K to Disney plus $600+ annually

Marriott - and they also have $750 annual fee.

What I don't understand is why does anybody buy a timeshare? I'm not trying to be difficult or argumentative, but everytime I run the numbers, they don't make sense. For about the same money or less than the annual fees on the timeshares, I can rent a similar property on my own.

You say Disney has a $600 annual fee and Marriott has a $750 fee. Last trip, we spent $261 for a week in a 2-bed, 2-bath unit with Skyauction. The trip before, we spent $630 for a week in a 3-bed, 2-bath condo at Windsor Palms (which we split 50-50 with a family member so our cost was $315).

If I can get fairly comparable accomodations for that type of money, why make the upfront investment. Plus, if for some reason we don't go one year, it costs me nothing. Yes, I know you can sell your time, but this way I don't have that concern, and I'm not locked in to any particular place or company.
So what am I missing? Why do so many people feel owning a timeshare is such a good thing? The one exception that I do understand is folks who want to stay on property and DVC is the way to go then, but its the offsite timeshares I don't understand.

 

[ducklite]

If I'm going to stay in a hotel room for the sake of going to WDW< I'm going to stay on property. So for me, DVC made a lot of sense. Many of our trips were ten days or so in length, and we've enjoyed bringing family along who might not have been able to go as well.

Now that we own a house near WDW, we will probably not stay on property very often--although once or twice a year I'm sure we still will--for the marathon, maybe a night of F&W so we don't have to drive, etc.

We'll keep DVC and use it at Vero for weekend escapes during the off season, we'll trade out to other places, with DVC you can almost always get your trade.

Anne

 

[jeff968]

What I don't understand is why does anybody buy a timeshare?

Good questions Steve. I agree with you 100% on your points but there are places where timeshares do work, even for the money.

I have stayed at many of the Orlando Timeshares as you can see. Their appeal, to me, is their size and the resort itself. The units are very large with two bedrooms and a full kitchen. You can save a lot of money by staying at a unit like this as you can buy what you need for snacks, breakfast, lunch, and even dinner if you like. The local Grocery will sell you a 24 pack of coke for $5. Then you stick it in the fridge and get when when needed. Much saved here over Disney. There is a washer and dryer in the unit. If you get a rainy day you can hang out in your room and everyone is comfortable. The Resorts have a full day schedule of things to do for the kids, adults, or the entire family. You can choose to do it all or none. Sometimes there is a cost associated but it is usually small. Most activities are free. My kids all have a great time. The Resorts are safe with a gate and guard. And finally, Orlando and all it has to offer is right outside your door. There is so much to do and see besides Disney.

That being said, I wouldn't purchase in Orlando. We have always picked up a rental for between $600 and $800 for a two bedroom week. We end up going to a different place every year but they have all been nice. That is the cost of the annual maintenance fees so why tie up $15K of my money???

Sometimes timeshares do make fiscal since. I do own one in Cape Cod. We visit the cape every summer. The rentals are much higher there at $1200 a week due to the short season. So, when I had an opportunity to purchase a unit in a nice resort on eBay for $4K we did. The annual fees are cheaper there as well at only $400. So, I'm saving $800 per year over what I was paying in rent so the unit will pay for itself in 5 years and after that, I'm saving money.

Everyone has different priorities but this is what works for my family and I and we are able to visit every year now.

 

[bwvBound]

What I don't understand is why does anybody buy a timeshare? I'm not trying to be difficult or argumentative, but everytime I run the numbers, they don't make sense.

For about the same money or less than the annual fees on the timeshares, I can rent a similar property on my own. ... Last trip, we spent $261 for a week in a 2-bed, 2-bath unit with Skyauction.

Ho-ho! What a fun topic!

Indeed, Steve - you've done very well with your SkyAuction reservations. Push this tool for as long as the deals continue in places and times you wish to travel. In fact, allow the auction inventory to inspire your destination list and see where the whimsy takes you. (My hubby and I have traveled to many places thanks to auctions: Turkey, Isreal, Egypt, Spain, and Antarctica. Most were on our "someday" list ... but others were nothing more than, "This looks neat. Let's place a bid ... and see what happens.")

So, back to your question, "Why does anybody buy a timeshare?" A few of the obvious answers concerning new buyers:

• New buyers may be responding to a carefully scripted sales pitch. They feel the emotional tug, they get caught up in the need to treat their families to a lifetime of vacations ... they are given offers they cannot refuse. (Super easy financing, a few bonus weeks, other incentives for buying right now, right here ... you get the picture.)
• New buyers may not be savvy internet shoppers. They come into the presentation without knowing about SkyAuction and without having researched the timeshare landscape.
• New buyers may feel isolated in the decision process. Their own family and friends may own timeshare -- but no one dares bring up the topic. The new buyers at the table remain clueless about the knowledge and experience available if they only would have asked before attending the tour!

Moving on to a more seasoned buyer who is at least somewhat aware of other alternatives:

• The seasoned buyer may simply fall in love with the property and want to "lock in" a specific resort experience for future vacations. (They choose timeshare ownership over the excitement and gamble of shopping for their vacation each year.)
• Related to the above, the seasoned buyer may purchase to fill a specific need. (Yeah, believe it or not -- we purchased a small quantity of DVC points simply to get a room at the Boardwalk Villas during IBM's annual Lotusphere conference. Trust me, our annual dues are far, far less than paying the minimally discounted conference rates for a hotel room on the Epcot lagoon! We've been attending since 1996 and are reasonably assured the conference will continue at least through 2008. After that -- we might reevaluate our ownership.)
• The seasoned buyer may be influenced by exclusive features offered with this timeshare -- not available through other channels. These offers may include access to steeply discounted rental weeks, units with preferred views/locations, golfing privileges, day use, "two for one" usage, etc.
• The seasoned buyer may be responding to "peer pressure." (Can't you hear the dinner conversation, "You know, dear -- Susie has has the following vacations secured for 2006: Aruba, England, Tuscon and Hawaii. She is already planning 2007. I need more weeks just to keep up!!")
• The seasoned buyer may "hunting" just as well through timeshare as you are through SkyAuction. (Grabbing great vacations with lower cost timeshare holdings.)

Both buyers may be responding to the idea that owning timeshare will force them to vacation!

As for my hubby and me ... we own timeshare because:

• As said earlier, it allows us to stay w/in walking distance of an annual conference for rates much lower than booking through conference housing.
• It forces us to take vacations. (R-i-g-h-t ... that was a good excuse for us 5 years ago. Now that we've learned how to vacation ... it has become [strikethrough]a habit[/strikethrough] an addiction and no longer requires enforcement!)
• One of our properties replaces our need for gym membership. (Annual dues are less than fitness club dues and the resort offers "day use" access to their workout center, pools, spas, sauna, etc.)
• One property, also offering day use, has given me horses! Our dues are less than boarding one horse in the San Diego area ... yet "my ranch" has 80 head available to its owners. Sure, it also has golf, tennis, natural hotsprings, and a spa -- but 2500 acres to explore by horseback is reason enough for me!
• Timeshare ownership has created pockets of community and never ending lists of activities. (We've developed personal friendships through two of our properties and we've met many more through timeshare related online communities.)

Ok, I've certainly rambled long enough. Thanks for asking such a fun question! =)

 

[HappyLawyer]

when i started the thread i never knew it would take off, i brought timeshare and i still use sky auction, i bank a week so every other year i have 2 years saved on the off years, i use sky auction, the difference, when you do an exchange like to go to england, i think you have better choices using your rci but when i want to go to hawaii or ca i just go to sky auction, it works out both ways, i feel sorry for people that are easily swayed by sales, i went to like 5 of them during my visit but i bought one, the one i fell in love with, hopefully people can be strong enough to say no if they truely do not want it.

 

[Lucky4me]

After being timeshare owners for 20 years, we realized it was time to sell.

Why? For one thing the developers offered us a buy back deal we could not refuse-just a few thousand less than what we paid 20 years ago.

Then there are the Skyacution and VRBO sites where you really can rent a week for the same or less than maintenance fees. This year we went on 3 Skyacution trips. The Poconos (which were beautiful and well maintained) Hilton Head Island (to our home resort!) and Orlando. Each week was less than $300 for a 2 bedroom unit.

With our timeshare we were tied into a week we couldn't use anymore due to our daughter being in school. We'd bank the week which cost us more money every year to take out. Approximately $860 not including the annual RCI dues.

At this point in time it made much more financial sense to sell. Maybe that won't be the case in the future. We will always keep our eyes open for a bargain. For now I love the flexibility of Skyauction and vrbo and the thrill of staying in the same places we used to stay for less than half the cost.

 

[dcmbshafe]

We recently purchased a re-sale week at the Vistana (we've never had anything but great experiences there).

The last several years we had rented from timeshare owners - three times we've rented someone's Vistana week and once we rented someone's DVC points.

Our decision was quite simple - we figured that we would be going to WDW for at least each of the next 10-12 years (DD now 5 and DS now 4). The "spread" between the yearly maintenance fee and what we were paying to rent a week was $200-250. So, we figured if we could get a timeshare week for around $3k, even if it has no residual value 12 years hence, we will have roughly broken even financially and we've eliminated the headache of having to find a place each year.

We do not like staying in a hotel room with our kids, so a 2BR/2BA condo is a must for us. Furthermore, after staying at BWV last year we decided that, for us, the additional cost associated with staying on-site was not worth the perks you receive as an on-site guest.

We firmly believe that timeshare will be a very cost effective alternative if (a) you want/need a condo (b) you buy re-sale, (c) you use your week every year, and (d) you use your week at your home resort. This last one is key because if you can quickly ring up $200 in fees to transfer someplace else.

 

[disneysteve]

The "spread" between the yearly maintenance fee and what we were paying to rent a week was $200-250. So, we figured if we could get a timeshare week for around $3k, even if it has no residual value 12 years hence, we will have roughly broken even financially.

I'm confused. Do you mean the yearly fee is $250 MORE than the rental or less than the rental? If its more, that means, assuming the fee remains stable, you will spend $2500 over 10 years, plus the $3000 purchase price, for total of an extra $5500 to own instead of rent. Personally, I wouldn't find that to be worth the convenience. I actually like trying new places and searching for great deals.

I totally agree about the condo though. We hate staying in a regular room. Fortunately, in the Disney area, there are hundreds of inexpensive houses and condos available at great rates. You can get a very nice 2-bed condo starting at about $75/nite, sometimes even less off-season. And with things like Skyauction, you can get a 2-bed unit for under $40/nite.

Thanks to everyone for the replies to my question. It sounds like in Orlando, buying a timeshare really isn't such a great deal but it can make sense in other places where rentals are a lot more expensive.

 

[HappyLawyer]

i agree, it works for some and not for others, i like knowing i have a nice, cozy guanteed place to stay when i go, we go at the same time in december and we picked our week, we go the week before christmas so it is great, i like that i can leave it to my daughter, this thread is not an argument, some people are for it and some are against it, i simply wanted to know how people felt about the people with set up in the parks trying to get you to go to presentations.

 

[disneysteve]

i simply wanted to know how people felt about the people with set up in the parks trying to get you to go to presentations.

Sorry to have taken things OT, but thanks to everyone for the info.

 

[dcmbshafe]

By "spread", I meant that it costs $200-250 more to rent someone's week than the maintenance fees cost. It would be uneconomical if it was the other way around. For example, the yearly maintenance fee on the week we just purchased is $670 per year. We just rented a week for $900 for a "spread" in this example of $230. The maintenance fees go up over time, but so have the rental rates, so we thought it was reasonable to assume that the inflation embedded in both would be roughly the same over time so as to keep the spread fairly constant.

Regarding skyauction, if you have this option and can make it work for you, then I think it makes sense to do this rather than own. Unfortunately for us, we wouldn't be able to use skyauction because none of the eligible weeks are during the peak season (i.e. when school is out).

 

[Lucky4me]

Skyauction does have peak weeks available. You just have to watch for them. If you can stand to plan last minute you can save a bundle. It's the auctions with the set dates and they usually post about a month ahead. The RSG auctions do not offer peak weeks, but you can find last minute weeks for just about any time of the year in Orlando. We stayed Easter week in Hilton Head and July in the Poconos.

 

[dcmbshafe]

Does skyauction have peak weeks available for the Vistana? If you wait until a month ahead, don't you end up getting rinsed on airfare? I booked our Easter week airfare practically two months ago and now it would cost $200 more per ticket and the best flights aren't even available anymore. I guess it goes back to what you're willing and/or able to do.

 

[Lucky4me]

Does skyauction have peak weeks available for the Vistana? If you wait until a month ahead, don't you end up getting rinsed on airfare? I booked our Easter week airfare practically two months ago and now it would cost $200 more per ticket and the best flights aren't even available anymore. I guess it goes back to what you're willing and/or able to do.

Yes you're right there. What we'd do is secure airfare first. Then book a cancellable hotel just in case we didn't get a condo. If we didn't get a condo we'd try Priceline or Hotwire for a hotel. If all that failed then we'd stay at the originally booked hotel. So far that hasn't happened.