TimeShare Scams: Conclusion
Why A Moment Of Excitement Can Cost You A Lifetime Of Debt
by John G. Merna, Esq.
Lesson 6: Change is inevitable.
“Vacation Glasses” is a good way to explain the euphoric feeling most people feel when they go to a beautiful place away from their daily pressures and routine. They attribute magic to the location and start seeing everything through “vacation glasses”. We have all worn them. I get it when I go to the Florida Keys. I love the water, the beach, the clear skies, the bright sun and ask myself “why can’t life be this way every day forever?” Well, it can’t because if it was it wouldn’t be your perfect paradise. Oh, it might still be a great place to live but the “vacation glasses” will be tinted by working each day, paying bills, worrying about your children, the normal things in life.
When my kids were young I loved Disney and the Disney empire for the magic it could create for them. My daughters are still young but they have no interest in Disneyland any longer. Change happens. Part of us likes routine, continuity, familiarity but things change. We change. They may have other theme parks in Orlando for older children but I will not be going to Orlando’s theme parks forever. Maybe more importantly I want my children to experience other things on their vacations.
Your tastes in vacations will change. The amount of time you have and when you have it will change. Your budget and you circumstances will change. What will not change is your requirement to pay every month for the timeshare… every month whether it is the principal balance or the maintenance fee…every month….forever.
Most of my clients stopped using their time share after one or two uses. Some of them never used them. Things change especially when you take the “vacation glasses” off.
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Why are timeshares so nice and why do they put so much into getting you to buy them?
Let’s do the math. I am simplifying it to make it easy for me. If you have 100 rooms in a timeshare location and you can sell each room for 52 weeks a year that is 5200 opportunities to sell the rooms. Let’s say they are selling it for $10,000.00. That is $52,000,000.00. But then think about this, why do they never seem to sell out of the timeshares and close out a resort. Many reasons, people don’t use them, people default on them, they don’t commit you to any one room and the contract allows flexibility in moving you around, etc. On top of all this you have the maintenance charge. Let’s say that is $100 per month, which is low. So 5200 x $100 is $520,000. This means they have $520,000 a month coming in regardless of whether you or they are selling any of the timeshares. That is another $6,240,000 per year. The math is astronomical. Timeshare are a good business for timeshare company owners. They are a bad investment for you. That is my opinion.
P.S. If I messed up the math let me know. Like lawyers say, if I had been good at math in high school I would have been a doctor.
CLICK HERE FOR: PART 1 PART 2 PART 3 PART 4 PART 5
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