Dave Ramsey on Timeshares

[doubletrouble_vb]

Dave isn't entirely wrong. Niether is he alone is his opinion. Clark Howard also thinks they are a bad idea...his brother is happy with his. And they probably are for a big segment of the population. For another segment they are a niether here nor there idea... And for the small percentage of timeshare owners that have shares in the most indemand resorts (the DVC's, Hawaii's, certain ski resorts in high season and so forth) timesharing is wonderful. That small percentage will have no problem selling their units and making a profit. DVC'ers will probably get their money back on the principal if they paid cash or had a no interest loan and held it for a couple of years. But that's the majority of a group of just 90,000 (in the case of DVC).

Most timeshare owners paid the full developers price for their units. So there are many people out there who may have paid $16,000 for a unit that could only sell for $5,000 if they are very lucky. For the most part the timeshare industry hasn't done anything to help support the resale side things. There isn't anything in that side for the developer (personally I think they are wrong about that).

Editted to Add: A lot of people kept saying others were wrong for comparing DVC to something other than a deluxe. The whole apples to apples or apples to oranges argument. When you buy DVC each person needs to compare it to what they would do otherwise. If you'd stay in a moderate be it for 5 days, a week, 9 days, two weeks then that's the basis for an individuals comparison/decision. If you would only go every other year without it then that's your basis. Whether or not DVC would be a good deal depends on each persons vacation habits and desires.

 

[SleepyatDVC]

The thing is, Dave isn't just telling people, "if you are having financial trouble, don't buy a timeshare." He is saying that timeshares are a horrible idea for *everybody*. He is anyone who buys one is a fool. He is giving out blatantly untrue information such as there being virtually no secondary market for timeshare.

The guy gets some stuff right - but comments like this one are just reckless and irresponsible.

Maybe true. But I think the point is that MOST people - I'm sure there are exceptions, there always are - but MOST people that would submit questions to Dave Ramsey and/or even read his responses to those questions are people who are in financial difficulties and/or have a history of financial difficulties.

So, if he is giving a banket statement, he is giving a blanket statement to HIS target audience which is those people that who are the least likely to afford the financial burdens of buying and owning timeshares.

Yes, Dave didn't qualify his blanket statement by stating "if you are having financial trouble, don't buy a timeshare." But maybe the assumption is that if you are even asking Dave or reading Dave that you are having financial difficulties.

Maybe this is a bad analogy - so forgive me if it is - but if someone goes to an AA meeting, people wouldn't object to the blanket statement that drinking is bad and they wouldn't have to qualify that drinking is bad, IF you have a drinking problem, otherwise there are some benefits to drinking. If you are in the audience, it is assumed you have a problem. Blankets statements to your targeted audience are use as motivation tools to discourage the "bad" behavior - and does not really apply to people outside the target audience.

If you are reading Dave Ramsey, it is assumed you have financial difficulties - that is his targeted audience.

I enjoy timeshares. Besides my DVC, my parents own a timeshare which we frequently use for exchanges. They can be a good value if someone had the time to use them all. For people who have a ot of (flexible) vacation days, it's great. But for someone that had limited vacation time, they might not be able to get the most use out of their timeshares. This is besides the monetary factors.

Even though I enjoy and get use out of my timeshares, I don't have a problem with Dave's blanket statement about timeshares to his targeted audience or even to the "general" population. He would probably also say that luxury cars are a big waste of money. I wouldn't have a problem with that blanket statement either even if I should one day purchase one for myself.

 

[NMW]

I don't really understand why people would just with out question, follow the advice of someone like this Dave person or Dr Phill, or any person who makes money (and a lot of it, I'm sure) giving general advice. Why not look into something and make up your own mind. I admit to not being a financial wizard, but I have an accountant and a financial planner whom I pay for personal advice. However, before I follow it, I do my own research. BTW, both of these people told me that DVC was a good purchase for MY family. And, that's my point. How can anyone just buy a self-help book and follow general, blanket advice and statements? All families have different spending, income, taxes, hobbies, interests, expenses, vacation habits, etc. I understand that this guy's target audience is people in a lot of debt. However, there are real financial planners out there who can give a family adivce that relates specificly to them, both now and long-term. I'd much rather do that, than help fund some self-help gazillionare's latest boat. Just my opinion.

 

[salmoneous]

Even though I enjoy and get use out of my timeshares, I don't have a problem with Dave's blanket statement about timeshares to his targeted audience or even to the "general" population.

Do you have a problem with Dave saying you are idiot ("nobody in their right mind would want one"). Calling your parents idiots? Do you have a problem with Dave providing blatanty false information ("there's virtually no market for them")?

As for Dave's target audience, here's how he puts it, "The Lampo Group, Inc. is providing Biblically based, common sense education and empowerment which gives HOPE to everyone from the financially secure to the financially distressed." He's selling to everybody, not just the distressd.

Finally, and I know this is a side point, the folks at an AA wouldn't tell you that alcohol is bad. They are all about personal responsibility.

 

[Julia M]

The thing is, Dave isn't just telling people, "if you are having financial trouble, don't buy a timeshare." He is saying that timeshares are a horrible idea for *everybody*. He is anyone who buys one is a fool. He is giving out blatantly untrue information such as there being virtually no secondary market for timeshare.

The guy gets some stuff right - but comments like this one are just reckless and irresponsible.

Well, I still think you need to look at his comments in context. For his context, "everybody" means the people looking towards him, taking his advice, following his program, and so on.

And in that context, timeshares are a bad idea for "everybody". The "everybody" he is preaching to are people in debt, who can't hear "timeshares can be okay, depending on the situation". They are generally people who need to focus on the extreme, and can't hear an "out" of another way to spend money.

I'm not a huge Dave Ramsey fan, myself, and don't particularly follow his principles. And I happen to own 2 timeshares myself, purchased resale, with low maintenance fees, that I could resell for at least what I paid. But I still believe what he said fits in with what he is selling.

 

[DrTomorrow]

I don't really understand why people would just with out question, follow the advice of someone like this Dave person or Dr Phill, or any person who makes money (and a lot of it, I'm sure) giving general advice. [...]

That's easy. These people are too lazy to do the research and have no sense of personal responsibility - if things don't work out, at least they can blame Dave, or Dr. Phil, or ....

 

[Kay7979]

I think the main objection many of us have is that the WAY he worded his opinion. It was so extreme, beyond general concern and disapproval of timeshares. He absolutely dispises and ridicules timeshares! It would be OK to say that timeshares are generally not a sound "investment," and that typically their resale value is far less than the developer cost new, but to say that everyone who owns one wants to get rid of it, that people hardly ever use them, and things of that nature, is patently false and unfairly depicts the entire timeshare industry. Surveys have been taken, and the vast majority of owners are pleased with their ownership, and most people successfully use, trade,or rent their weeks. It isn't right to unjustly color the opinions of his whole listening audience who will now go away with the idea that timeshares are always a complete rip off, only purchased by poor saps who don't know any better.

 

[DisFlan]

Hmmm. Maybe Dave had a bad timeshare experience of his own. And now he hates them all?


DisFlan

 

[Kay7979]

Hmmm. Maybe Dave had a bad timeshare experience of his own. And now he hates them all?


DisFlan

I was thinking the same thing. It sounds like either he, or some member of his family, had an unpleasant timeshare experience in their past! Most people would not sound as venomous in giving their opinion, otherwise.

 

[aka-mad4themouse]

That's easy. These people are too lazy to do the research and have no sense of personal responsibility - if things don't work out, at least they can blame Dave, or Dr. Phil, or ....

I think that's making a big leap in logic. Some otherwise intelligent people are finance-impaired. They can be very responsible, hard-working people who have made some big money mistakes. They are also taking personal responsibility by seeking advise on how to improve their situation. It takes hard work and dedication to work your way out of financial mess. I would hesitate to call them lazy.

 

[disneymom3]

Unfortunately what I think Dave ends up doing in situations like this is basically shooting his own credibility in the foot. By making these hugely general statements that everyone who owns one wants to sell it and that they are never a good idea, he automatically invites people to wonder....hmmm, can that possibly be true?? And then they (if they are at all intelligent) look elsewhere for their answers.

Whereas if he just said not to look at it as an investment and if it is something you want to do to buy resale, etc then people would be more likely to trust his word.