Revealing the Truths Behind Timeshare Sales: A Guide for Informed Ownership
Timeshare ownership is an enticing way to secure vacation accommodations for years to come. However, beneath the surface, the timeshare industry often employs misleading practices that can leave owners feeling deceived and financially burdened. As someone with firsthand experience in timeshare sales at Welk, Hyatt, Wyndham, and Worldmark, I'm here to shed light on these practices and offer guidance on navigating the timeshare landscape wisely.
The Reality of Vacation Ownership
There is no doubt that vacation ownership is real, and the benefits can be an amazing experience for those who can afford the 'real' and hidden costs associated with ownership. However, it's essential to understand that this ownership is not real estate or an investment in the traditional sense. Instead, it's an investment in time and space. The critical question should be: how much time do my points or credits provide me during high season, or what does my deeded interest offer my family and me within the ownership?
The Concierge or the 'Marketing' Guy/Gal: Masters of Deception
When you check into a timeshare resort, the first person you encounter might be the concierge or the 'marketing' representative. These individuals are often the epitome of skullduggery, sneak thievery, and outright nefarious behavior. Their primary objective is to get you to attend a "SALES PRESENTATION." Let me be absolutely clear: this is not about new resorts, better programs, or resolving any supposed issues like locks, holds, or suppression codes. It’s purely a SALES PRESENTATION designed to pressure you into buying more.
These reps will say anything to convince you to attend the presentation. They promise gifts and exclusive offers, but the reality is that the presentation is a grueling 90-minute sales pitch. During this time, you need to be in control. Remember, the ‘GIFT' they offer is bait to get you in the door. Ask yourself, do you really need it? Do you really want to spend your vacation listening to why you need more timeshare credits?
Own the situation. Run the conversation. Understand that their goal is to wear you down and make you sign up for something you don't need. If you decide to attend, go in with your eyes wide open, knowing it's all about sales. Don't let them control the narrative.
The Sales Team: Masters of Manipulation
The timeshare sales team has one goal, and one goal only: to make a sale. Their strategy is meticulously crafted, beginning with a warm-up to get to know your style and mood. This is followed by the discovery phase, where they assess your knowledge of what you own and how it’s designed to be used. This phase is crucial for them to gauge your understanding and pinpoint areas where they can exploit gaps.
Next comes the all-important 'Statement of Intent.' This is where they ascertain why you are there and promise to provide you with a 'Professional Recommendation.' This is a ploy to gather all the details they need about you. They walk away to confer with the Sales Floor Manager (TO), plotting your financial demise. Together, they scheme on how to get your credit rating and devise a strategy to push you into purchasing more.
A key element of their strategy is the 'confusion tactic.' They often say, "Let me check on your account and see what is in your file," creating a sense of complexity and obscurity. To be transparent, there are no meaningful notes. Everything they write down or have you write down—like "Customer Satisfaction," "Request to pull forward pricing," or "Price lock"—is all shredded and never recorded as you thought. It’s all part of the deception to make you feel your requests are being taken seriously when, in fact, they are just manipulating you further.
The entire process is designed to manipulate you into a purchase. They analyze your financial situation, emotional triggers, and any signs of hesitation to craft a pitch that will convince you to spend more. They are experts in psychological manipulation, knowing exactly how to play on your fears, desires, and uncertainties.
Understanding their tactics empowers you to resist and return their pressure. Ask for the straight cost per point and demand a live demonstration of how additional points are worth the extra expenses. Counter their price per credit or point with a lower value. If they quote $3.89, offer them $1.99 and pull up RedWeek to show the resale market price right there on the table. Run the table, own your time. They'll give you a song and dance about developer credits and points versus resale, but be prepared to say, "Okay, I'll buy these on RedWeek now. Have a great day." Be the boss.
Every timeshare sales floor resembles a scene straight out of "The Wolf of Wall Street," with morning meetings discussing the previous day's "deals" and the tactics used to coerce customers into signing up for more credits and higher VIP levels. If you ever find a rep or manager who speaks with integrity and stands by their word, get their contact information and deal exclusively with them. They're a rare find in an industry where honesty is scarce.
Maintenance Fees and Special Assessments
When purchasing a timeshare, many buyers overlook the ongoing costs associated with ownership. Maintenance fees are annual charges that cover the upkeep of the property. However, these fees can increase significantly over time, often without warning. Additionally, special assessments can be levied to cover unexpected expenses, such as property renovations or damage repairs. These assessments can add substantial costs to your annual financial obligations, making timeshare ownership more expensive than initially anticipated.
The Hard Truth About Credit Checks
The ‘Salespersons' number one goal is to get you to provide them with your credit information. They'll try everything to get you to agree to a 'soft hit,' claiming it won't affect your credit score. However, this is often misleading—these credit checks are usually hard hits, which can negatively impact your credit score. Their primary aim is to get you to say yes to a purchase. By agreeing, you have taken the first step towards buying a first-time package or more points. It's a game of getting you to say yes repeatedly.
Always ask if they are running your credit when they request your social security number, address, phone number, or personal information. It is illegal for them to run your credit without your explicit consent, and they must disclose this to you.
Financial Considerations: Think Before You Buy
If you find yourself comparing your income to the loan amount and monthly maintenance fees, it’s a clear sign: do not purchase! You likely don’t have the means to sustain the financial burden. Timeshare loans often come with a 17% APR, and some deals even encourage using credit cards with rates as high as 29% APR. No bank will refinance your loan, PERIOD, meaning you are responsible for paying it in full. Ensure there are no prepayment penalties, and for the sake of your financial health, avoid putting the loan on your credit card! If the only available line of credit has an APR higher than 2.5%-3%, walk away and wait until you have the cash. These tactics might feel good at the moment, but six months later, you could find yourself struggling financially with few options but to seek a way out.
You have rights if you purchase, go home, rerun the numbers, or read the contract and decide you don’t want the additional expense or financial obligation. CA/NV has a seven to ten-day rescission period. Execute it exactly as directed in the contract—that is your right. You will likely receive a call from the Recovery teams offering you a better deal or more incentives—hold strong and do what is best for you and your family.
The Truth About Timeshare Exit Companies
It's important to understand that timeshare exit companies are often the same people who sold you the timeshare in the first place. These companies do not offer guarantees and typically do not prioritize your best interests. Their primary goal is to take your credits, points, or deeds and place them on the resale market, charging you a fee of $3,000 or more, depending on the company you choose.
Exiting a timeshare is notoriously challenging. The so-called timeshare bailout teams, angels, or friends who claim to help are often scams. They may damage your credit, take your points, and leave you in a worse situation than before. Trusting these entities can lead to significant financial and personal stress.
Ask About Rental Programs and Exit Options
When inquiring about rental programs and exit options, be forward and ask to see the details. Specifically, request information on revenue splits, guarantees that the company can and will rent your time and space, and the rules and restrictions when renting. Find out if you can place your time on platforms like Airbnb, Vacasa, or VRBO and what specific restrictions and details apply. For exit plans, ask if an exit plan will be available should your financial status change. You have a right to know and to ask questions. Salespeople and managers often refer to family, memories, and other emotional factors irrelevant to the value proposition. Focus on the costs and whether you can afford them long-term.
Leveraging Social Media for Transparency
Owners should use social media forums to discuss the latest sales tactics and share experiences from "Owner Updates." These discussions can demystify the process and provide real-time insights into the current market. It all concerns the price per point, credit, or deed. If the going rate is $3.89 per credit, don't hesitate to ask for $1.99 per credit and the next VIP level. However, be cautious about the confusion surrounding VIP levels and their pros and cons. The bottom line is more points mean more time, but they also mean higher VOA/maintenance dues.
Tips for Prospective Timeshare Owners
Research Thoroughly: Before attending any timeshare presentation, research the company and read reviews from current owners. Understand the full scope of financial obligations, including maintenance fees and potential special assessments.
Attend with Caution: If you choose to attend an owner update or sales presentation, go in with a clear understanding that the primary goal is to sell you more points. Avoid making impulsive decisions and take time to consider any offers presented.
Consider Resale: Consider purchasing timeshare points or deeds from the resale market. This can save you a substantial amount of money. Websites like RedWeek, Timeshare Users Group (TUG), and eBay offer platforms for buying and selling timeshares.
Understand Your Contract: Before signing, carefully review the terms of your timeshare contract. Pay special attention to the cancellation policy, maintenance fees, and any clauses related to special assessments.
Get Non-Biased Advice: Have your financial advisor or attorney read through the contract and provide the unbiased advice you need before purchasing vacation ownership. Request the sales manager email the contract ASAP, get their number, and walk. If you can agree to the terms and conditions of the ownership in perpetuity, then this is for you. If you have questions or concerns, ask them.
Rating Timeshare Companies
Based on flexibility, transparency, and overall customer satisfaction, here's a ranking of timeshare companies from best to worst:
Disney Vacation Club: Known for flexibility and strong customer service.
Marriott Vacation Club: Offers various destinations and generally positive reviews.
Hilton Grand Vacations: Good customer service and flexible point system.
Hyatt Residence Club: Well-regarded but has higher maintenance fees.
Club Wyndham: Offers a variety of locations but can be pushy with sales tactics.
Diamond Resorts: Mixed reviews, with some complaints about high-pressure sales.
Westgate Resorts: Known for aggressive sales tactics and higher fees.
Bluegreen Vacations: Mixed reviews, with some owners reporting hidden fees.
Holiday Inn Club Vacations: Reports of high-pressure sales and rising fees.
Silverleaf Resorts: Often criticized for misleading sales practices and poor customer service.
Timeshare ownership can offer wonderful vacation opportunities, but navigating the industry with awareness and caution is crucial. By understanding the hidden truths and misleading practices in timeshare sales, you can make informed decisions that protect your financial well-being. Remember, successful timeshare ownership relies on thorough research, careful consideration, and leveraging the resale market to your advantage.
Having worked in the industry, I know the programs can be beneficial. However, the key is to approach the process without letting emotions take control. Be assertive and ask direct questions that require clear answers from the salesperson and manager. If they walk away from your table, they are likely planning their next tactic. Take charge, manage your time, and remain direct and mindful throughout the process.
Cooper Marketing and Media is committed to providing valuable insights and guidance to help you make informed decisions in today's complex marketplace. Stay informed, stay vigilant, and enjoy your vacations with confidence.