So today was the day I attended my first timeshare meeting... About 3 weeks ago, I attended a festival where there was a timeshare booth signing people up. Their requirements were as follows:
28 years or older
Combined income of $75,000+
Attend a 2 hour presentation
After seeing this and meeting the requirements, I thought sure... Can't be as bad as the South Park episode, right? Plus they offered a 3 day trip with airfare, couple tickets to six flags, and wine tasting tickets with a bottle of wine for going. So I signed up with today as the visit date and this happened.
Woke up this morning with minimal knowledge of how timeshares worked. Also woke up with 100% intention of saying 'no.' to everything thrown my way. Drove to the presentation, about 35 mins away, parked the car and took a deep breath. A man in a 8 person golf cart arrived to drive us to the sales office where we then signed in and sat around for about 5 minutes before a sales rep came to talk to us. They told us to bring IDs and a credit card, none of which were checked at any point.
The Sales Experience
Picture a large restaurant with hundreds of tables in a large open room. Each couple/group/individual sits down with a sales rep who goes on for about 2 hours on how a timeshare makes sense, knowing your vacation lifestyle, asking relentless questions about where you want to go and how you travel (guessing this is to make it more appealing by mentioning places you want to go, kind of like a fortune teller learns about you to "predict" your future), how if you spend x weeks paying for vacations each year, what you pay with inflation over x years. In my case it was like $70k over 40 years which seemed a little high but then adding inflation that number soon reached $290k. Anyways, not questioning their black magic inflation calculator, I smiled and nodded just waiting for my free stuff. After the lady presented her part and learned about our lifestyle we then watched a video. It was about 10 mins, full of super happy people, having the times of their life. Very generic, very boring. Luckily it ended. After that we walked around the lobby, they showed up their other properties, showed us some 3D models of the resort, and how their exchange program works (more below). Then we went on a physical tour of the property, looking at a few units, a 1 bed, 2 bed, and 3 bedroom to show what you have the option of purchasing. We then returned to the office and went through the whole pricing process. (Detailed below). Overall, long and kind of boring but not the worst experience.
Details About Timeshares & Pricing
This timeshare place (Welk) uses a point system to purchase their properties. The minimum value of points you can purchase are 120,000 points, this is a one bedroom for 1 week a year. The points breakdown as follows: A one bedroom is 60,000 points to stay Sunday - Thursday and then 30,000 points for each Friday and Saturday. 120,000 total. A two bedroom is 240,000 points and a 3 bedroom is 360,000 points. The price for 120,000 points was $16k, 180,000 points are $25k, 240,000 points are $30k. Up to $94k for just over 1,000,000 points. These prices can be paid over 10 years at a starting APR of 15%. On top of paying that, you have to pay an annual VOA, just think HOA, it takes care of property and the stuff associated with the units. These start at just over $1000 and go to over $6000 a year (based on points). Once purchased, you get that same point value reloaded each year and can use them on a Welk property of many in this II exchange program.
Exchange Program
The exchange program is a way to use your points on other properties outside of the place you have you timeshare. There is a $189 free for each time you book and are told you can stay pretty much anywhere in the world for that fee. I.e. go to London for a week and use your points and pay only $189. This sounds great in theory but I don't know how availability is and how many resorts are actually involved in this exchange program.
The Negotiations
Think buying a car. Same tactics, the manager talks to you, they offer more incentives, lower prices, free stuff, etc. If you want a timeshare, NEGOTIATE, don't accept their first offer 120,000 points @ $13k. In my case I said no as intended and signed a paper saying I would not like to accept the offer and terms. Another employee came to my table with or promised gifts and offered a 'test drive' program. This costs anywhere from $3000 to $4500 depending on what trips they want to throw in, 300,000 points, and some discount thing that's good for "up to 70% off" rentals, flights, etc.
4.5 hours later, I still said no and took my gifts. The gifts are full of fine print and you have to meet all requirements to get them. They also gave us a free trip to Cabo that requires you to attend a 120 minute fun timeshare preview tour...
Summed up since I may have forgot some details. Timeshares can be ok if used right. In my case, I'm not paying $250/month for 10 years plus $1200/year VOA fee and a $1700 down payment to get 1 week in a 1 bedroom. Timeshares have come a long way over the years but remember its not an investment, you'll never make money off of it. If you resell it, you will lose money. It is prepaying for hotels. You will still have to pay for flights, rentals, food, etc.
TLDR; Went to a timeshare, spent 4.5 hours, after many hours of negotiations I walked out with the gifts I was offered.
Submitted June 18, 2017 at 09:48PM by NoceurMec http://ift.tt/2sFh7Ny
