timeshares

Status
Not open for further replies.

Malibook

Bronze
Jan 23, 2002
1,951
167
0
www.yourtraveltickets.com
The difference between the AI package and flight alone is typically around $E
Here's a real example for you.
Right now a good AI deal to Fun Tropicale on 1/14 is $681 CDN per person.
The flight (which is the cheapest available) alone is $481 for a difference of $200.
Food and drinks for the week ($A) is $280 US or around $330 CDN.

Same package on 1/20 the AI goes up to $750 and the flight is $581 so the difference is only $169.

The cheaper AI deal actually makes the timeshare less ridiculous.

Looks pretty hard to justify any cost for the timeshare, not to mention the tourist card and airport transfers.
They would have to pay me to sign up yet somehow they want me to give them several thousands of dollars.:cheeky:
 

Snowbird

Member
Jan 17, 2002
273
0
16
You Win. I am not going to continue. I can't beat a package deal out of Canada at this time.

SB
 

Malibook

Bronze
Jan 23, 2002
1,951
167
0
www.yourtraveltickets.com
The cost of the AI package itself is not so relevant.
It is the spread between the package price and the flight price that matters.
For me to consider a long-term commitment to a timeshare as a good investment, this spread would have to be at least $500 plus the actual cost of the timeshare per week.
 
Last edited:

planner

.............. ?
Sep 23, 2002
4,409
26
0
One additional consideration Malibook is for those who have to pay a single supplement! I know you understand this.... That alone can make a timeshare purchase make sense!

Also consider the ability to buy a less expensive timeshare in the DR and then use it to trade to other locations where buying into their timeshare is much more expensive.

Snowbird - as for the AI fee - it varies from resort to resort. It may or may not be contractually guaranteed! IN some cases the hotels make more on the AI from timeshares then they do from Tour Operators! In some resorts you have to buy the AI, it is mandatory. Again read the contracts.

Timeshare does not work for everyone but it does work really well for some people.
 

Snowbird

Member
Jan 17, 2002
273
0
16
Planner,
That was my point. EVerybody need to do their DD, listen and then make their own decision.

SB
 

Malibook

Bronze
Jan 23, 2002
1,951
167
0
www.yourtraveltickets.com
One additional consideration Malibook is for those who have to pay a single supplement! I know you understand this.... That alone can make a timeshare purchase make sense!
The vast majority of people are not paying a SS but in any case, by my calculations the single supplement I pay isn't even remotely close to making it worthwhile.
Food and drinks+2 taxis+tourist card+timeshare cost per week=?
$280+$50+$10+few hundred more at least=$700 or so US.
Plus there needs to be significant incentive to justify such a commitment, to offset risks such as bankruptcy or not using it up, plus to make it a good deal.
I usually pay around $120 CDN for SS plus the roughly $200 CDN spread on the package and flight and it still doesn't make any sense at all to me.
This total would have to be closer to $1000 to seem like a good deal to me.

If people are happy with their timeshares, good for them.
I would just advise new potential victims to do their math.:p
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
You failed to mention, most suckers finance a timeshare @ some insane APR like 20%.
 

danely

New member
Apr 23, 2004
101
8
0
Annual Maintenance Fees....that's the wild card. If you are considering TS, this is a critical consideration in the long-term. Be sure that the periodic increases are fixed and clearly projected and are not just "however, variable increases may arise". After a project sells out, these maintenance fees can start to skyrocket, you may start at $100/week per year, and then five years out pay $400/week per year. Changes your cost/benefit analysis completely...and then there's no way out except to sell it, if you can, usually at a huge loss because nobody else wants that maintenance burden either at that rate.
 

abe

New member
Jan 2, 2002
522
35
0
The single biggest difference I have noticed lately is the wildly higher airfares, most notably from Western Canada. Without getting into elaborate mathematical formulae, they have rendered timeshare purchases in the POP area almost impossible to defend/justify.

However, the one factor that people have ignored is the availability of some timeshares that are in fact two bedroom/ two-bath condos with full kitchens, etc. When you look at the ability of timeshare owners to use or exchange these to US and other timeshares that have simliar size suites, then the calculations change a bit--swinging toward the positive side. One common solution is to have friends join you on vacation, paying whatever you work out for their private part of your 2/2 suite. That begins to mitigate the costs and raise the fun factor.

So many DR timeshares seem to involve hotel rooms and A/I resorts that they are really the wrong types of timeshares from which to draw all these general conclusions. If you are not buying into a spacious, private, full condo in a timeshare, don't bother.
 

Snowbird

Member
Jan 17, 2002
273
0
16
Annual Maintenance Fees....that's the wild card. If you are considering TS, this is a critical consideration in the long-term. Be sure that the periodic increases are fixed and clearly projected and are not just "however, variable increases may arise". After a project sells out, these maintenance fees can start to skyrocket, you may start at $100/week per year, and then five years out pay $400/week per year. Changes your cost/benefit analysis completely...and then there's no way out except to sell it, if you can, usually at a huge loss because nobody else wants that maintenance burden either at that rate.


The beauty of the TS at FR-T, is that the maint. fee is paid only when you use your week(s). Again there are so many variables that need to be looked at when thinking about TS. I will say that the initial cost of purchasing TS at FR-T is very inexpensive when compared to the major hotel offerings. Visit the resort, if you like what it has to offer, sit in on a presentation. Do not accept their first price, negotiate, ask for bonus weeks, negotiate, and above all don't feel bad about just getting up and walking out if you are not comfortable with how things are going. I think the day of the hard sell is behind us. If you really, really like the resort, look for the resort on the resale market. You can get good deals. DD is the key.

Abe, your point is well taken. When we have exchanged with RCI, we have always been able to get a 2 BR unit, even though we have a 1 BR contract. At FR-T, we can upgrade to a 2BR if need be. Also, with our TS at FR-T, if we visit during the slow season, we can get space w/o using a week or paying a maint. fee.

Whoops, I said I was done, but then I read the new posts, and have to add my .02. Sorry about that. It's just that our TS at FR-T has been so good for us over the years.
 

Malibook

Bronze
Jan 23, 2002
1,951
167
0
www.yourtraveltickets.com
Annual Maintenance Fees....that's the wild card. If you are considering TS, this is a critical consideration in the long-term. Be sure that the periodic increases are fixed and clearly projected and are not just "however, variable increases may arise". After a project sells out, these maintenance fees can start to skyrocket, you may start at $100/week per year, and then five years out pay $400/week per year. Changes your cost/benefit analysis completely...and then there's no way out except to sell it, if you can, usually at a huge loss because nobody else wants that maintenance burden either at that rate.
I didn't even know about the maintenance fees for my calculations.
It's hard to imagine the numbers get even worse.
Plus many timeshare travellers don't seem to get good deals on the flights.
Maybe they have to book too far ahead.
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
Malibook:

Did you PM him?
He did offer more info if anybody was interested via PM.
Snowbird did not seem to be actively marketing on here.

Why are you such a ball buster on here?

tambo'
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
They what?!!!:surprised

It's hard to believe anybody could be this stupid, let alone most of them.:surprised


You would be surprised!
I read the fine print on one offering and almost spat my Presidente.
I am not an AI kind of a guy and was just doing a Timeshare Sankie a favor to earn $5. I walked out of the presentation.

tambo'
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
I just thought your "Classified State Secret" comment was a tad harsh.

t.
 

abe

New member
Jan 2, 2002
522
35
0
RE: financing rates and Timeshare buying tips

The point of the high interest financing is that the resort wants the ability to close a sale that day. By providing financing in-house, they remove the excuse of "I have to go home to arrange financing."

Many buyers of t/s can use different financing or other funds to pay off those high interest loans before the first payment is due. The buyers who have no other options stick with the exorbitant rates, and, truth be told, these are the same people who can't manage their money but who still consume. That's why they don't have any other options.

Because so many of these people are bad credit risks, the interest rate has to stay high due to defaults.

This explanation is not meant to endorse, justify, etc. the purchase of t/s to begin with--just to explain the high interest rates.

The very best strategy for buying a timeshare is to find a place you love to go every year--get the whole family involved and buy a big condo with a fixed week that you can all pinpoint as best for you. The "flexibility" of floating weeks is an illusion because the seasons in which your weeks "float" are usually so long that there is too much fluctuation in the desireability of the weeks. Therefore it's hard to get what you want if you don't own a fixed week.

If all you want to do is exchange for other destinations, pick a place with high demand and low supply. Not Orlando. But I really think the only reason to own a timeshare is in the above paragraph--not for exchange unless you want to play travel agent for yourselves.

Finally, buy resale and visit the place first. Oh yeah--have the money already or at least have access to competitive rates.
 

Gringo

Bronze
Jan 1, 2002
1,314
58
0
The point of the high interest financing is that the resort wants the ability to close a sale that day. By providing financing in-house, they remove the excuse of "I have to go home to arrange financing."so many of these people are bad credit risks, the interest rate has to stay high due to defaults.

Many of the Time-Share/Vacation Tracks (Sales Rooms) in the DR today offer 60% financing @0% interest over 60 months or 5 years.
You pay 40% down.
Most people won't default on say a $10.000 deal with $4000.00 up front invested.
If there card goes through with 40% down they aren't such bad credit risks for in house.
 
Status
Not open for further replies.