Buying the right timeshare II

In the last post, we talked to you about buying a timeshare. It is a major purchase for most of us. Buying right will help you maximize your enjoyment without causing financial stress. How do should you make the right decision?

Common sense, our parents, and some practical-minded spouses say you should review all of the facts before deciding to make a purchase. How boring. Isn't it more fun to be spontaneous, make the impulsive purchase, live on the edge, and chase all the dreams that the sales people assured us will be there if only we say...YES? Yet we all know that's not the way to make good decisions.

There are two primary ways to buy timeshares: from the company (Marriott, Hilton, Wyndham, etc) or from a third party - timeshare reseller, Ebay, etc. Let's talk about how Suz and I have handled these approaches.

First,you can buy from the company , often through a sales presentation. For Suz and I that usually occurs while vacationing. We're busy, relaxed, having fun away from the daily grind - meaning that we are not all that rational. At the sales pitch (that is our term) you will be barraged with loads of information in a short time. You are challenged to process all of the information,sort out hype and wishful thinking from reality, and decide on the spot. Don't get me wrong, some sales presentations are beneficial. Many sales peoples are experienced professionals with many years experience. We always make a point of asking lots of questions and have learned much useful information about timeshares. But some sales programs are shamelessly high pressure and manipulative. Also, any sales person is paid to sell, so there is some measure of persuasion to buy. Sales incentives and special pricing offered that day only add to the urgency of deciding.

At our first sales pitch, we were inexplicably logical in our reaction and said: Bill (our sales guy), we need time to think about all this. Thanks for your time, we'll get back to you. We left. So began what has become a standard practice for us: the 24 Hour Rule. We advise that you use same rule. Tell them you will think about it, thank them, and leave.

Now you can collect your thoughts and talk it over with family. Take time to do the more thorough review of the pluses and minuses. Is it the right resort, company, season, floor plan, location, price? Does the family like it? Evaluate travel distance from your home. Can you afford the purchase now? Call the sales person if you have unanswered questions. Then...sleep on it. If the answers are the same the next day, you can decide. If it's yes, call back and complete the transaction. The only downside to the 24 hour rule is that you often lose the same day incentives. That is an acceptable give-up for us. But, you could use a modified 24 Hour Rule by making your decision later the same day. That works best if you attend a sales presentation early in the day. We usually do that, so that we minimize interruptions to vacation activities.

Second, you can purchase weeks through third parties such as a timeshare reseller, ebay, or classified ads. This buying channel is usually cheaper than buying through the company where the price is higher to recover overhead expense and non-negotiable. Sellers are more likely negotiate, and buyers have more choices giving them a stronger negotiating position. The third party approach does require more homework. You will need to know ahead of time exactly what you want. Research seller channels - talk to resellers, visit web sites such as ebay, and look at classified ads in travel magazines or newspapers. Know what range of pricing you can expect. Then select the specific source you want to use. Decide which offers you want to respond to and what price you will offer. Then be prepared to wait and possibly make multiple offers.

The only downside with the third party method is that you may give up some benefits available if you purchase through the company. Weeks bought through Marriott, for example, allow you to give up your week for a given year and receive Reward points which are redeemable for air travel and lodging. That gives you another valuable travel option. A few owners have bought company weeks and redeem them for points every year (or every other year for many units). You might also miss out buying at new resort if you want immediate use of the units. Why? Because reseller inventory at new resorts will be limited until there are more owners who want or need to sell.

We bought a week at Harbour Point in Hilton Head through a reseller. We got a great deal and found that it exchanges very well. The other three weeks we bought from the company. For those we can enjoy the Reward points alternative.

Buying can be fun, but deciding not to buy may be equally rewarding if it is not right for you.
Good luck and remember to maximize your Timeshare once you own it.