Friday, June 3, 2016

Why Did You Buy A Timeshare?

The American Resort Development Association (ARDA) conducted a survey of 1,722 timeshare owners asking for "Reasons For Buying Timeshares".  The results surprised me:

[] Save money on future vacations 44%

[] Resort location 43%

[] Flexible locations, unit types, times of year 35%

[] Certainty of vacation 29%

[] Certainty of quality accommodations 28%

[] Ability to pass to heirs 27%

[] Exchange opportunities with other resorts 23%

[] Affordable price for vacation home 23%

[] Amenities at home resort 23%

[] Affordable financial terms 23%

Here's what I found surprising:

*   Unless you're buying on the secondary market or traditionally spend $300 a night on hotels, an average timeshare will not save money on future vacations...and there's nothing wrong with that

*  Only 23% noted exchange opportunities

*  While the average timeshare is in fact significantly less costly than a vacation home, you can't (and shouldn't) really compare the two

*  Financial terms of 15%, 16%, 17% or more for 7-10 years don't really sound "affordable" to me

What do you think?  Why did you buy a timeshare?

1 comment:

  1. Any survey engineered by the developers would want to "emphasize" the primary sales tools for the industry.

    The "fuzzy" mathematics is a part of every timeshare sales presentation. There was a fantastic article from CBS MoneyWatch that did a great job of debunking the mathematical sales pitch. I can email you the link if you like.

    For the consumers- that promise of savings is likely always going to be one of the top things they'll remember from the pitch. I'd love to ask a follow up question... "Do you now believe that owning a timeshare has saved you money on your vacations?". Timeshares are a fantastic way to vacation in my opinion, but they should NEVER be touted as a sound financial investment.