Buyer beware of the Timeshare trap!
The other day, the kids and I were calmly walking through the local mall unable to find the correct store to return the shorts I had purchased online. Finding zero mall maps, we went to the information desk to ask the nice attendant.
He happily told us where the store was but then asked us where we were from. We got to talking and he asked us the last time we had been on a staycation. (Actually, just the other weekend. Frugal Family Travel Tips)
Then he began to tell us about the awesome deal he could give us: A FREE 2-night stay at the new premium Hotel for simply attending a 2-hour presentation!
The kids thought that was the best deal ever!
I agreed. Having been to one of these presentations years before, I knew the requirements to get those free nights. I also knew what they were going to hit us hard in an attempt to get us to buy.
Our Previous Timeshare Experience
Mr. Bean and I had actually been talked into purchasing a timeshare years before. We had decent incomes and two very small kids at home. The sales tactic of “showing your kids the world” got us.
But luckily, I was going through real estate school. In Hawaii, timeshare buyers have a certain number of days to return their purchase due to the hard sell tactics used. After some quick math at home, we realized the horrible decision we had just made while running on emotion.
We were able to void the contract and get all our money back. But boy did I get some dirty looks when I returned to the office to cancel the purchase.
Here are the secrets I found to getting that free staycation while holding off those pushy salespeople. And why:
If Your Spouse Is Not Willing to Attend with You, Be Single
In the high-pressure environment of timeshare sales, they want to ensure all decision makers are present for the presentation. They don’t want you to be able to say “sorry, I need to talk to my spouse.” Salespeople want you to be able to make a decision NOW. While their presentation is fresh in your mind. And contracts are ready to sign!
Although I’m happily married, Mr. Bean absolutely hates sitting through nonsense presentations. But I can’t turn down a free staycation if I’ve got a few free hours. Plus, he has to work on any random Tuesday morning.
So when the attendant at the mall asked if I was married, my immediate answer was “Nope, Single as can be.”
On the day of the presentation, when pressed by the salespeople, I insisted I was recently divorced. I was the only decision maker. Because of this, I was allowed to participate. (Yeah, I lied. So what? I wasn’t gonna buy whether he was there or not.)
My daughter, Jelly Bean, and I attended the simple 2-hour presentation and got our free 2-night stay, good for a year. Plus some free cookies, chips, and coffee from their snack bar. Win-win in our eyes!
Be Prepared for a Hard Sell
Timeshare salespeople are just as bad, if not worse than the classic used car salesperson.
They present all the good stuff:
- Top quality resorts
- Locations around the world
- Flexibility
- Spending quality family time with your kids and/or grandkids for years to come!
They throw numbers at you to make regular hotel stays look horrible, while their products look like a deal!
The more they talk, the better the deal seems. And of course, everyone there is an owner and loves to travel the world with their own perks. So, of course, you should join!
Unless you are already planning to do multiple international trips each and every year for the rest of your life, timeshares are probably just not worth it.
Be ready to just let the presentation wash over you as they throw deal after deal your way.
Grab a free cup of coffee and some cookies. Enjoy the air-conditioning—Ooo and Aaah, at the pretty pictures with everyone else. Then say “no, thanks” and snag your free stay on the way out.
So long you’ve got a few free hours to kill and can hold off the hard sale strategies, attending the presentation is worth it in my book.
Awesome Timeshare “Deals”
While Jelly Bean and I were enjoying our free drinks and cookies, our sales rep was trying her hardest to convince me this was an awesome way to show my kids the world. (Sound familiar?)
If only they could find an affordable package for me…
After a few “this is way too expensive” looks and comments from me, my salesperson called in the big boss to “find me a deal.” (Feels a lot like a car dealership.)
He came over with the “Ultra-low cost of only $9,900!”
For this low price, I could get the equivalent amount of points for one week at a resort in Florida, every OTHER year. For 10 years.
(Plus an extra $74 a month for maintenance, which can go up every year. Not discussed until directly asked.)
“OR if that costs too much right now, I can get you a payment plan. Put down only $1,100 today then pay only $180 a month!” (Plus the ever-increasing maintenance fee of $74)
“Wow, awesome deal! No, thanks. I’ll just take my free weekend.” And off we walked. Cookies and gift card in hand.
The Math of Timeshare “Deals”
When we got home, I looked up the brand’s resorts in Florida. I found the exact resort they were comparing for me.
The listed price for 7 nights in a 1 bedroom unit was $2,315.25 with taxes and fees.
I then created a simple spreadsheet with the numbers they gave me at the timeshare presentation.
The numbers were amazing!
If I had purchased the flat rate “Deal” the manager was offering me:
$9,900 for 5 weeks of vacations, spread over 10 years, plus maintenance fees
Each week would have cost $3,756.
If I had be suckered into the “low cost” payment plan:
$1,100 down, $180 a month over 10 years, plus maintenance fees for a total of 5 vacation weeks
Each week would have cost $6,316!
The interest added over the years almost triples the cost of a week’s vacation!
This is how sales reps take advantage of low-income buyers and people who do not fully understand interest rates and credit.
I always encourage people, as much as possible, to avoid unnecessary debt and save up for more frivolous purchases. A timeshare is definitely a frivolous purchase.
When a Timeshare Could Make Sense
Although timeshares usually do not make sense for most people, there are times I could see it making sense.
- If you already travel internationally multiple times a year
- For people who REALLY care about the quality of their lodging and only want the biggest and fanciest rooms (I’m seriously cool with a few beds and a sitting room. Free breakfast is my highest priority)
- For Grandparents who want to take their entire brood (kids and grandkids) on multiple trips a year AND need multi-room units AND can get shorter-term ownership (like the 10-year plan I was offered)
Like with most things, buying in bulk will get you the best price. For the much larger package (2 weeks a year for 30+ years) the per-week price was comparable to most hotel stays. If you used it enough, it might actually start to save money as they claimed.
BUT once you purchase a timeshare, you’re often locked into it.
And if they got you with the “It’s an investment you can pass on to your kids” line, your kids could get stuck paying ever-growing maintenance fees for the rest of their lives. Or need to go through lengthy and expensive legal processes to get rid of it. (Here’s How to Get Rid of Timeshares Upon Death)
What We Do
Personally, I’d rather just avoid all the hassle of timeshares and just save up those dollars for vacations on my own.
Instead of paying that $180 + $74 = $254 a month to “invest in a timeshare,” I can put that same amount into a high-yield savings account and have $3,048 plus interest at the end of the year!
That will cover that week in Florida EVERY year (instead of every other) and help pay for airfare!
Some of My Favorite Frugal Travel Brands
- Best Western (Free Breakfasts)
- Holiday Inn Resorts (Resort Amenities for Hotel Prices)
Or, if you’ve got your finances under control and no high-interest debt, you could start playing the Credit Card Rewards game and Travel Hack!
We have credit cards that give us points/miles which we can then use for free hotel stays or plane rides.
And we also have cards that earn cash back. Then we can just put that money towards a future vacation too.
Chase Freedom Unlimited is currently offering a $200 reward after spending $500 in your first 3 months. That’s a decent chunk of change to go towards a vacation.
Wrap Up
Timeshare presentations get a bad name. As they should. They are high-pressure sale environments that often cause people to make hasty financial decisions without knowing all the numbers.
But, if you know the secrets and have a few hours on your hands, they can also be a great way to snag a free staycation, a cup of coffee, and maybe even a bag of cookies.
If high-quality vacations at a reasonable price are a high priority for you, it’s probably better to skip the timeshare.
Open an Expected Expenses Travel account for yourself and save up on your own. Your future adult children will thank you.
Have you ever attended a timeshare presentation? Or do you own a timeshare? What do you think?
Leave a comment below and join the conversation!