We’re genuinely interested so my wife and I take advantage of the special 4-night hotel stay at a Phoenix resort with the condition that we sit through a 90 minute time share sales pitch. We’re thinking that if the price and conditions are right we’d love to vacation one week per year in the desert. By the time we left the “sales pitch” I am convinced that these people are worse than any used car salesmen you could ever imagine. The machinery of the process is so high pressure that I am not surprised they sell units to unsophisticated suckers.
They put us in the hotel NEXT to the timeshare units, so we never actually get to see the property until our 90 minute tour.
They don’t have units for sale in Phoenix, and are instead selling units in Orlando and those units are of much lower quality (and I mean much lower). We supposedly can use our “points” to stay in Phoenix, or any of the other great resorts they own (they show us a lot of pictures). We tell them the offer they sent us was for Phoenix, but they tell us not to worry about it.
They write down some soft benefits on a folder, don’t give us the price until the last moment even though I asked for it at least 5 times, and then offer us incetives to sign on the spot. Sign on the spot without any contract or legal paperwork to review. How the hell does anyone buy any real estate without at least looking at a contract with terms and conditions?
We ask them for a few hours to think about the offer during lunch and they tell us that unless we sign right now we loose all incentives. They didn’t want to even give us two hours to think about it. Obviously we turned them down.
They wanted to know about our kids, or vacation spending habits, where we vacation, all superficial personal stuff to try and get a connection. As soon as the close starts, they bring in the heavy hitter who put so much pressure on us that it was almost a spectable to see. They tell us how they’ve sold a few already that morning, how they can’t build them fast enough, how we’re missing out if we have to think about it.
We walk out of there with nothing - no contract, no pricing, not even a brochure. They don’t let you leave with anything.
Afterwards, we figured out the costs and determined that it made no sense at all. I own several real estate properties, and have bought and sold over the years, but wasn’t totally aware of how timeshare worked. And now, I have to believe that it is the biggest scam I have ever seen.
We ruined 90 minutes of our vacation to sit through one of those, so we could get a free day of jetski rental or something like that. You are right, that is the biggest scam I have ever seen. There is a special place in hell for people who sell timeshare.
The fact that they can afford to send folks on a paid vacation just for the sales pitch tells you how many they must sell. I’ve never understood the concept. If I have the cash to pay for a timeshare, why would I want to tie myself to one place? What is the possible upside?
I think it’s really for people in a lower income class that can’t really afford to stay at a nice resort, so they justify the upside by thinking that one week per year they can go to any “fabulous” resort in the system. But it doesn’t make financial sense and they would be better off staying at a more moderate hotel.
They charge $18K and up for a one bedroom, with a pull out couch, which accommodates 2 adults and maybe two kids if they both sleep in the pullout. If you want two bedrooms, you have to spend $36K.
There is an ANNUAL maintenance fee of $1K.
They’ll finance you at 15% or 11% (that’s right, 15%).
The cost does not include daily cleaning fees, or fresh towels, etc (it’s like a very small condo). Or restaurants, and travel (air or car).
By the time you figure it out, a one bedroom timeshare (with one bed) costs about $2,300 for a week per year. True, after you get it paid off, the cost is merely the annual maintenance fee. But still, that averages to about $350/night and it can only accomodate a few persons in that room - double the cost if you need more room.
Then, the after market for selling your unit is negligeable.
Does it start with “I” or “R?” These are the 2 biggest global companies.
ALL timeshare sales are high-pressure. I don’t think the sales experience is any different at I. vs R. I was just curious…
I think for some people timeshare does make sense. I have posted on this before, as well… if you really have an interest in going somewhere at a scheduled time each year, then it’s fine. Also, both I. and R. offer some great member benefit packages, but you have to actually know a lot about the way these benefits work and you have to take advantage of them. A lot of people are sold on the idea of a 24-hour concierge service or other benefit, but then they never use it.
I think for some people timeshare does make sense.
I agree. One of my college buddies has one, and he and his family spend the same week each year in Daytona Beach. And they love it.
Personally, if you’re interested in buying one, shouldn’t you try to buy a “used” one? The market for selling is horrible, so doesn’t that mean the market for buying “used” should be pretty good?
This one sells on the concept of points. You buy in one location, but you actually get points, so your week and location is not actually set. My example of $15K was for 40K points. If you want to stay a week in peak season in Vail or Phoenix or some other fabulous resort, then you need 80K-120K points. Also, you can convert the timeshare points to hotel points. I figured out the hotel points mean about 4 nights in a metro area. Do the math and tell me of that makes any sense at all.
At least the points system is kinda upfront. I know that other companies are not as upfront about the ‘value’ of your week. They show your photos of places in Hawaii that you can exchange for, but no one tells you that your November week in the Smokies will never get you to Hawaii.
Try walking out of the airport in Cabo San Lucas. They have a new room full of these creatures. They will tell you they need to see your papers to let you leave the airport. They will tell you they are from your hotel or they are your shuttle driver. Anything to get you to stop and talk. I know people who were taken to a time share property because the sales guy said he was their hotel shuttle driver and was sent to pick them up. They were basically held hostage with their kids and could not get a cab or even use a phone without listening to a 2hr sales pitch. Only after they threatened to call the police and the mom and kids had been crying were they offered a ride to their real hotel. But they continued to the pressured by the driver the whole way there.
Well, it wasn’t very ‘creative,’ you’re right. But, I did work on their travel magazines, which were fun. A lot of the stuff I worked on was translated into multiple languages (esp magazines), so from that perspective, it was interesting.
As amazing as that may sound, I’m not going to bad mouth a company here on ST. Let me just say they are a big global franchise.
For what it’s worth, I don’t think that you wrote anything derogatory or anything that could be construed as “bad-mouthing” about the company. Everything I read seems to sound very factual. High pressure sales are just that, and everbody knows that those things are certainly in that category. I know some people who have time-shares and they love them. My wife and I went to a similar talk like you went to and decided about the same thing (in other words we didn’t get one). I respect that you would rather maintain their anonymity, but you sound like you were giveing a fair assessment.
week in peak season in Vail or Phoenix
Stay any week in Phoenix and you are getting screwed even if they pay you. Phoenix is a shit hole. Well at least that is my experieince from living here for almost 4yrs.
I have a time share in Vail. It’s for Christmas week and I’ve had it since 1983. I’ve used it every year except one when I rented it out. I bought it on the market, not from a sales pitch. I bought it because it’s within walking distance of the lifts and downtown Vail. I didn’t get it as an investment or to trade for weeks elsewhere. I only pay maintenance and that’s far less than what it would cost to stay in Vail that time of year. The maintenance fee has about quadrupled since I’ve had it while the market value has maybe doubled. I don’t have any intention of selling it until I no longer like to ski which could be another 20 years or so.
More than likely if you’re really interested in a time share you can get a much better deal buying from an individual looking to get out. There is no need to sit through that kind of sales pitch.
A Christmas week timeshare walking distance from the lifts in Vail? That is impressive.
Like I said right at the beginning, we were genuinely interested. And like you, we were not interested in trading for somewhere else, or buying it as an investment (an investment would be a condo that we sell later for equity gains).