Timeshare 101: Buying a Timeshare? Save Big By Avoiding Developers!
If you recently purchased a timeshare from a developer at full price, you must exercise your right to rescind and cancel your purchase immediately! You owe it to yourself to take the time to make a completely informed decision. As we will show you, there are many questions to ask and factors to consider. Despite everything that may have sold you on the concept, take a step back before you do anything.
Even if you decide that you want to continue with your purchase, you can save money by purchasing through the resale market. Despite what you may have heard, the “deal” the resort developer is offering will be available to you another day. But the potential savings will rapidly disappear if you don’t exercise your right to rescind now.
Vacation ownership is about pleasure, joy, relaxation, and memories that will last you a lifetime. The stress of large payments and high interest rate financing completely contradict everything that timeshare should allow you to enjoy. Although the developer charges you a large sum to make the purchase, the actual cost to build one unit is typically no more than a quarter of the price tag. However, nearly 65% of each unit’s developer sale price was spent on marketing costs such as free gifts, personnel salaries, advertising, etc.
Why should you pay for those marketing expenses? Let someone else waste their money. Rescind your purchase now and take the time to evaluate your decision. You will be able to find something suitable at a huge discount.
Even if you feel that you are ready to purchase a timeshare right now, it is in your very best interest to delay your initial purchase. Spend some time learning about timeshare first. Although you may be excited to get started, the different types of vacation ownership programs can be confusing. You owe it to yourself and your family to first determine what best meets your needs.
Even once the transaction seems completed, timeshare developers lose many more sales as a result of consumers realizing the error of their ways and backing out of their contract during what is typically referred to as a 'cooling off period.' Approximately one quarter of all people that initially make a timeshare purchase from a developer exercise their right to rescind. This window ranges from three days to two weeks depending on regional laws.
However, not all states and/or countries require the developer to inform its consumers of the existence of these laws. Thus few will tell you unless you specifically ask, and you will unlikely be able to find the requirements in time. If more consumers were aware of these laws, more would likely rescind their purchase. However, the resort’s sales staff likely did not mention it, and it might take you several days just to find this clause in your contract’s fine print.
Your purchase documents should have details on exactly how long the rescission period lasts and the required procedures to cancel the sale. It typically involves sending a letter via registered mail to the resort’s corporate office, and returning all materials that were originally provided to you. Once the letter is received, your money will be refunded. If in doubt, call your sales representative and get an answer.
Once you learn about the possibilities, your vacationing desires may change completely. You can save thousands of dollars, thus realizing a discount of up to 70%, by taking it slow and buying your timeshare on the resale market. Instead of paying $20,000 or more, it is often possible to purchase a week at the same resort for $5,000 or less.
Virtually every timeshare that is sold by a developer can be purchased as a resale on the secondary market. This is because many people purchase timeshares from developers and sell for a variety of reasons, ranging from lack of money to divorce or simply lack of use. Often a consumer's decision to purchase from the developer was in haste after hours of high pressure sales tactics.
As developers continue to build new resorts, the number of timeshares available for sale continues to grow and is far outpacing demand. The numbers of available units are rapidly increasing, and areas such as Florida and Las Vegas are quickly becoming saturated. This means that purchasing in these areas is seldom prudent, and that individuals that own other resorts will seldom have difficulty finding units available for exchange.
There are thousands of timeshare units available on the resale market. Locations around the world are booming with resort development. Thus supply far exceeds demand for those that know where to look. For these reasons, the market for vacation ownership is a buyer’s market and no salesperson should convince you otherwise. This ultimately translates into thousands of dollars in savings for the educated consumer. This is why we encourage you to take the time to learn and decide exactly what you want prior to spending any of your hard-earned money.