Timeshares: Deal Or No Deal?
The Westin Mission Hills Resort & Spa in Rancho Mirage, California.
Photo courtesy of Westin.
By Wendy Perrin
Question from reader JBreuner:
"My wife and I just signed up for the Westin Vacation Ownership program during a trip to the Westin Mission Hills Resort in Palm Springs, and now my wife, especially, is having a little case of buyer's remorse. Can you please provide me with some Web-based resources where I can get some straightforward, honest information on vacation ownership programs (timeshares)? Is there any place out there - on the Web or elsewhere - that rates the various vacation ownership programs available? We have about one week remaining to cancel our agreement with a full refund if we decide to opt out. I could really use your advice!"
I know zip about Westin's program and it's been 15 years since I attended a "vacation ownership" (marketingspeak for timeshare) sales presentation, so I can't advise you very well. What I CAN tell you is that 15 years ago, on assignment for Conde Nast Traveler, I pretended to be Joe Prospective Timeshare Buyer and sat through several 2- to 3-hour sales pitches presented by reputable companies such as Hilton, Marriott, and Disney. Although the timeshare industry has changed since then, my guess is that the advice I learned still applies because, when I was just searching the Web for sites to recommend to you, I found similar advice given only last month by one of the greatest consumer travel experts ever, Ed Perkins of Smarter Travel. (The same Smarter Travel whose blog Today In Travel was one of the finalists I was up against in the 2007 Travel Blog Awards last week.)
So here's what I learned 15 years ago:
*Do not buy a timeshare as an investment. Do it solely because you like the idea of returning to that resort again and again for years to come.
*Do not buy a timeshare because you like the idea of exchanging what you've bought for a different week at a different resort. Many timeshare owners looking to exchange grow disappointed that they can never get the week they want at the destination or resort they want. To get the week and resort you want, you may have to be able to make plans a year in advance. Again, buy a timeshare solely because you like the idea of returning to that specific resort again and again.
*This may sound obvious BUT . . . ignore everything the salesman advised or promised verbally and instead read every word of the fine print in the contract you signed.
Also, a few things you might try to find out about owning a Westin Mission Hills timeshare:
*What happens after Westin sells out the property? Does it continue as manager, and for how long? If some other company takes over the management, who decides which company?
*You know you'll need to pay maintenance and management fees, but
what additional fees and special assessments might you incur in the future? Timeshare owners
have complained that their annual maintenance costs went up and they
had no control over it. What if some natural disaster strikes? Who
pays for repairs?
*Is anyone selling these Westin timeshares used? If so, how much are they asking? Typically owners who try to sell their timeshare can get only a fraction of the price they paid for it (15 years ago it was about 25 percent). So, before buying a new timeshare, consider buying a used one.
Another Web site that might prove useful is The Timeshare Beat's Consumer Alerts section. Any readers have any other suggestions?
I hope this helps. Good luck with your decision!
RSS Feeds
Redweek is an excellent source for timeshare info. www.redweek.com Show resort info, rental and sales available. Also industry info. In addition: Timeshare Today www.tstoday.com My Resort Network www.myresortnetwork.com
Posted by: Maura | March 05, 2007 at 05:10 PM
There is also the timeshare resale market. See http://howtotravelamerica.blogspot.com/ for an article about purchasing timeshare resales.
Posted by: zendurango | March 05, 2007 at 08:07 PM
Wendy,
Thank you so much for your prompt and invaluable response to my inquiry about the Westin's vacation ownership program and about timeshares in general. The information and resources provided by you and your two readers (thank you, Maura and Zendurango) was just the kind of straight answers we needed to, as your buddy Ed Perkins advises, "just say no." I'll be canceling that agreement pronto!!
Gratefully yours,
jbreuner
Posted by: jcbf | March 06, 2007 at 12:28 AM
The problem with timeshares... if you take into account all of the marketing expenses involved in selling one. Somebody has to pay for all of those free trips. Initially of course they are paid for by the sales company trying to earn a commission (and I've heard that those commissions can be as high as 50%). But, ultimately, all of those free trips are paid for by the buyer of the timeshare.
That's one reason why things are so much more economical on the resale market... and why, from the point of view of a buyer/investor, you'll never get your initial, inflated purchase price back.
Posted by: travelhorizons | March 09, 2007 at 09:25 AM
With the point system these days, you cannot be sure you will even get the home condo. Westin (we just said no in Hawaii last week) puts you on a priority list BUT you must sign up 9 to 12 mos in advance or you are up against everyone else who wants to go to your home base. You no longer buy a week in Hawaii, say. You buy enough points for a week in Hawaii. Getting Hawaii is another matter. The point about the sales costs is well taken. Another way to pencil out a NO answer is to multiply the cost of the week times 50. Is that a reasonable price for a similiar unit in an owned building? Probably not. Westin wanted $71,000 for one week's worth of points for a 2 BR. That unit would not possibly sell for $3.5 mil. The salesfolk hate it when you get out your calculator! What your unit costs you for your week is the maintenance fee plus the lost interest on the $71,000 PLUS the loss of principal when you walk out the door. I seem to remember Westin wanted $2200/yr for maintenance. At the very least, your unit costs you $5700 for the week or about $800/night. BIG rent. Then, you are deeded which they say means you can will it to your kids. But really means you can die and still cannot get rid of it!
Posted by: 7continentkaren | November 16, 2007 at 10:56 PM