Help...Dean?

[dairyou]

Hi!

Well, still looking at other timeshares to supplement our DVC. I just found out through RCI you can trade cruises for your week. Does anyone know anything about RCI and how it works? Should I be leary?

Thanks!

Deb

 

[RobDoc]

RCI was the original partner with DVC for exchanges - later replaced by II when that contract expired.

RCI is a larger organization than II (more exchange options) and many of the resorts are members of both exchange organizations. Both operate in similar fashion, with annual membership fees (you can purchase extended memberships) and exchange fees for each trade. There are cash options for long weekends and even week-long stays available in addition to options like cruises and houseboats.

We own several non-DVC timeshares mostly for exchange purposes and use RCI as the exchange company even though most are also traded thru II. We've had no problems with RCI and have even been able to trade our blue and white weeks for red weeks with good success. Like many things, the further ahead you can bank your week and request an exchange the more success you're likely to enjoy.

You can get other opinions about RCI at tug2.net and tstoday.com (and probably from some right here), but RCI has worked well for us in the 12 years we've been members.

 

[tiberius]

Your best source of information will probably be at TUG (Timeshare User Group) at www.tug2.net

It costs $15/year, but is well worth it. Check out the boards there for plenty of information--more than I could help you with.

Whatever you do, do not buy any other timeshares from developers without checking the resale market first!

 

[dairyou]

Thanks Doc and Tiberius! I've read some on tug, but I always enjoy your expert opinions!

Deb

 

[RobDoc]

Whatever you do, do not buy any other timeshares from developers without checking the resale market first!

That's great advice. We have purchased all of our non-DVC timeshares by resale and have paid as little as $500 for a week (and our highest was $2500). Tug2.net and tstoday.com are both great assets when researching timeshares in general and especially when looking to purchase a resale.

 

[Dean]

Almost everything you can buy for cash will be more expensive if you trade a timeshare for it. This includes Bluegreen, RCI, FF, and any points system including DVC. Buy timeshares to use for timeshares, period. Don't buy to trade for Marriott points or cruises, etc. Look at any other options as secondary, especially since they are not guaranteed and are almost always far more expensive than other options. If you are going to buy a timeshare you won't use all the time, buy something you can easily rent for more than your maint fees consistently.

 

[gjw007]

I would echo Dean's comments. When I looked at exchanging one of my timeshare weeks for a cruise, it didn't look like much of a savings. This was confirmed when I called to see what it would cost me to pay cash. Yes, the rate will be less with the exchange but you also have to include your yearly maintenance to determine the true value. For some, this may come as a wash but I think most people would be better to just pay cash. It certainly is easier and there are plenty of discounts out there.

 

[RobDoc]

I would echo Dean's comments. When I looked at exchanging one of my timeshare weeks for a cruise, it didn't look like much of a savings. This was confirmed when I called to see what it would cost me to pay cash. Yes, the rate will be less with the exchange but you also have to include your yearly maintenance to determine the true value. For some, this may come as a wash but I think most people would be better to just pay cash. It certainly is easier and there are plenty of discounts out there.

If you've got a week already banked that will expire anyway- using that to exchange for a cruise will DEFINITELY be less costly than paying cash for the cruise - unless you can find a cruise that costs less than the $129 exchange fee. As with all of these situations, do the math and see what works best for you and your family. In some situations, the exchange will be a far better deal.

 

[gjw007]

If you've got a week already banked that will expire anyway- using that to exchange for a cruise will DEFINITELY be less costly than paying cash for the cruise - unless you can find a cruise that costs less than the $129 exchange fee. As with all of these situations, do the math and see what works best for you and your family. In some situations, the exchange will be a far better deal.

When I had inquired about this a little over a year ago, the cost was the week deposited (maintanance fee), the exchange rate ($179), and an additional fee (I don't remember the exact figure but it was between $500 and $600). It was not lower than paying cash. I agree, do the math, you may actually be surprised. If it was a one-to-one exchange for the deposited week, I would agree with you but when I had contacted RCI, they had the additional fee.

For a comparison, I went to RCI to exchange a week for a crusie. It is the Royal Carabbean Voyage of the Seas. This is a 7 day cruise starting 19 Mar, 2005. I didn't comparison shop for rate, it was just the first one that came up. This is the rate:

Fare Summary
Online Fare Port Gov't Fees Per Passenger Total
Passenger 1 $1,633.00 $139.00 $50.95 $1,822.95

Exchange Fees Already Paid:
$189.00
$0.00
Processing Fee: $19.95
Approximate Total Price: $2,031.89

Add to this the cost of your maintenace (Orange Lake is roughly $600 for a total of about $2631.

The same cruise paying cash going to Royal Carebbean's web site (https://secure.royalcaribbean.com/b...essionid=0000afP0UY0AQg3CJIGRVPSGu0R:v29bc620) was:

Package Total *: $1,909.95 USD
Outstanding Balance*:
$1,909.95 USD

The cost of exchanging was $2631 versus $1909.95 for purchasing directly.

Another example:

Cost of exchanging.

8 Nights - Caribbean, Eastern

Cruiseline: Royal Caribbean Cruise Line
Ship Name: Jewel Of The Seas
Total Passengers: 1 - change # of passengers
Departs From: Fort Lauderdale
Sailing Date: 12 Mar, 2005
Cabin Category: Q - Interior Stateroom

Fare Summary
Online Fare Port Gov't Fees Per Passenger Total
Passenger 1 $1,709.00 $139.00 $45.55 $1,893.55
Exchange Fees Already Paid:
$189.00
$0.00
Processing Fee: $19.95
Approximate Total Price: $2,102.50
Add exchanged resort maintanaince cost: $600
Total cost: $2702.50

Paying cash using company's web site.
Guest 1 Cruise Fare*: $1,939.00 USD
Taxes/Fees*: $45.55 USD
Package Total *: $1,984.55 USD
Outstanding Balance*: $1,984.55 USD

Step 1: Cruise Details
Cruise: 8 Night Eastern Caribbean Cruise
Ship Name: Jewel Of The Seas
Departing From: Fort Lauderdale, Florida
Sail Date: 12-Mar-2005 to 20-Mar-2005
Stateroom: Deck Two, Interior Stateroom #2029
Total Guests: 1
Hotel: No Pre Tours selected.
No Post Tours selected.
Transportation: No Gateway selected - Cruise only.
No Airport Transfers selected.

The cost of the exchange was $2712 versus $1984 paying cash.

My conclusion then, and my conclusion today is that it is better to pay cash based on comparisons between the two.

Even if the week is about to expire, in which case you may wish to treat the annual maintenance fee that you paid as lost, the cost of paying cash was still less than the cost of exchanging minus including the maintenance fee.

Situations may differ as I am single and made my comparisons based on 1 person. It may change significantly for two or more.

 

[Dean]

IMO, using a timeshare for stays there or for anything else should be an obvious win situation even including the lost income on the capital invested. If it's a break even or close, it's not worth considering. Even using DVC points for stays at DVC resorts, it's not a reasonable approach if one uses more weekends than weekdays or possible for Holiday/Premier time.