Many of you have been to a timeshare presentation before, and you may not have liked the experience. Timeshares have a bad rap, and there can be challenges and frustrations with owning one.
However, the key is to hack your timeshare purchases and your ownership to get the best deal possible. With these tips owning a timeshare might be worth it!
Before this frugal fannie dives into my 6 tips to save money on your timeshare purchase, many may wonder what a timeshare is.
A timeshare is partial ownership of a condo-like unit in a resort. They are owned, operated, and maintained by independent resorts, small chains, and giant companies like Hilton, Wyndham, Marriott, Westin, and Disney. For a comprehensive listing of timeshare companies, read here.
Timeshare owners enjoy a carefree vacation lifestyle that differs from owning a second home. The resort manages all the upkeep such as cleaning, furnishings, repairs, and renters. I love the hands-off conveniences of ownership.
To meet today's different travel lifestyles, there are now a variety of timeshare ownership options:
While there is quite a bit of variation in ownership types, there are several common costs of owning a timeshare, including:
Another thing to remember is that not all timeshares are created equally. Timeshares may be geared toward different destinations or standards of luxury, so it's essential to check out all your options if you are interested in purchasing a timeshare.
As with any significant commitment, you must consider the legally binding financial relationship that you are entering. This is not the type of decision to make on a whim, three margaritas deep while on vacation at the resort. Can your budget (and your emergency fund) comfortably cover all of the costs? Even during job loss, retirement, or a pandemic?
If you'd like a more profound introduction to timeshares, Stephen J. Nelson has a fantastic resource in Timesharing 101: An Introduction to Timeshares.
If you've read this far and are seriously considering purchasing a timeshare, check out my tips to save big money on your purchase.
This is my #1 tip for a reason!
According to Timeshare Users Group (TUG), the oldest and largest owners group and advocacy organization, timeshare resorts spend between 40 and 60% of the timeshare price on marketing. That means you will purchase a timeshare for much more than it is worth.
Currently, more people are looking to sell their timeshare ownership than buyers. Whether it is baby boomers looking to downsize, or people whose financial situation has changed, they don't want to be responsible for their financial obligation anymore.
This brings me to my next tip.
According to Timeshare Users Group (TUG), you can save 75 to 99% of the purchase price of a timeshare by buying it off the resale market. TUG hits it right on the head when they say, "Why would anyone buy "new" if they could get the same week, at the same resort, for pennies on the dollar from an existing owner?"
Well, how do you find resale listings?
Members of a Timeshare Facebook group I'm in often share resale buying experiences to inspire others. Here are two that illustrate the familiar stories of savvy timeshare shoppers!
A common complaint from unhappy timeshare owners is that they aren't using their timeshare because it "does not work for them." You could get an excellent resale deal, but if you don't use your timeshare, you'll be wasting your money yearly.
That's why you need to consider your current travel plans and your future travel lifestyle, as purchasing a timeshare is also a commitment to your future vacations.
Things to consider:
So you've found an ownership type that you're excited about! Before moving forward with a purchase, make sure you're getting "married" to a fiscally responsible company.
There are more resale timeshare listings than people looking to buy, so there is no rush! Take advantage of all the timeshare communities online to research, ask questions and learn from others before you purchase. These are great places to ask owners about maintenance fee history, company operations, and other pros and cons.
Here are some of my favorite communities:
Owning a timeshare grants you entry into various timeshare associations, each with its perks and avenues to take more vacations economically. Your purchase goal should be to access this "whole new world" with the most value for your money. That's why this last, but certainly not least, a tip is to compare your cost per vacation as an owner to the cost of renting to identify the good resale deals.
Even a 'back of the envelope" evaluation of two actual resale listings illustrates what would provide value for the money and what wouldn't. Here are two examples of what I'm talking about.
Interested in possibly purchasing a timeshare but unsure where to start or put off by resort pitches?
A timeshare can be a great way to vacation consistently and save money on your trips, but only if you're savvy a bout it. If you approach your timeshare purchase with 'dollars and sense' you will be vacationing in condo resorts for Motel 6 prices.
Use the 6 tips above to save money on your timeshare purchase and get traveling.