Our recently published 2 part article made the very bold statement that timeshare fraud begins with you, in this article we will draw on an analogy relating to timeshare purchase. Unless coerced into attending a timeshare presentation by either a free or discounted holiday or some other form of gift enticement, very few of us actually would admit that buying a timeshare is on our bucket list of lifetime dream purchases. We deliberately go out to buy a pair of shoes and the likes, not so timeshare. Timeshare is sold, rarely purchased.
We recently published an article on the dangers of buying timeshare whilst you are enjoying your holiday in destinations foreign or nearer home for that matter when your “holiday head” is firmly on your shoulders. We jokingly pointed out that whilst on holiday is Spain you bought a giant straw donkey, huge sombrero and accidentally a timeshare, joking aside, this is a regular pattern. The sun filled days, balmy evenings, starlit skies, the emerald blue sea and sandy beaches, if only you could own a slice of this, well you can, buy a timeshare. Unfortunately an all too common problem is the spur of the moment purchase which should fulfil your future holiday dreams could soon turn into your worst nightmare. More on that later.
Research is key
For many years we have all had at our fingertips access to one of the most sophisticated investigatory tools imaginable, put simply, the internet. Here you need to be honest with yourself, how many times do you look at product reviews before making a buying decision? We would guess quite a lot. Is a Samsung 55 inch TV better than a Hisense? None of us know, but Mr Google does and we know for a fact that shoppers now turn to the web for research assistance.
Our job at TCA is to carry out research and for the purposes of this article we carried out a little experiment. We put “timeshare nightmares” into Google and we found 388.000 results (0.48 seconds). We then tried “timeshare maintenance fee problems” 610.000 results (0.46 seconds). Lastly we tried “timeshare sales pressure” 888.000 results (0.48 seconds). Naturally neither we nor you would trawl through the plethora of articles found, but a quick view of the first page results may offer some valid insight highlighting others experiences.
Research problems
The major stumbling block is the timeshare presentation. Timeshare sales staff are programmed to not let you leave a presentation before buying something; they will lie, cajole and coerce you into signing on the dotted line. No matter what you want, a timeshare will do it, so the rep says:
- I want to go where I want, when I want – Timeshare will do it
- I would like to see a return on my investment – Timeshare will do it
- If I decide to get rid at anytime – Timeshare will do it
- If I want to sell anytime – Timeshare will do it
- I want exclusivity – Timeshare will do it
And so the list goes on, problem is that at a sales presentation you don’t have the luxury of research. The salesman is witty, friendly and is tailor making the product to suit your exacting requirements. By the end of a lengthy sales presentation you’ll believe that it doesn’t snow in Antarctica and there really is life on Mars!
Despite all this, don’t sign anything on the day, in spite of being told this is a one day offer or some other baloney, the same product at the same price will still be there tomorrow and the day after, and the day after etc.
Cooling off
Both metaphorically and factually you have a cooling off period. If you caved in and signed a purchase contract, all is not lost. European timeshare law offers much greater consumer protection than for example the USA. All member states in the EU must offer a clear 14 days after signing the purchase contract in order to think and change your mind should you so desire. During this period no money must pass hands, not even a measly £50, nothing, nada. This law also applies to UK timeshare, despite Brexit.
In the USA it’s a bit more complicated, each State has its own timeshare laws covering cooling off and this differs from State to State and ranges from 3 to 10 days dependent on the State. The major difference is that money can change hands. In the case of some developers you turn up to the presentation without any money or cards you may be offered an instant approved credit card to pay a deposit, so the “no money” excuse won’t work.
Actually cancelling during the cooling off period in Europe is relatively straightforward and you do have the benefit of a clear 14 days. In the States you may need to jump through hoops to achieve the same, so best advice for timeshare USA is don’t sign on the day.
Reemphasis on research
Like any significant purchase in life and believe us when we say at around £20,000 for an entry level, timeshare is a significant life purchase. The need to carry out thorough research is of paramount importance. If you were going to buy a new car for £20,000 we are pretty damn certain that you would do your research, the list below gives you a current idea of your choices for this budget:
- Volkswagen Polo
- Ford Fiesta
- Skoda Scala
- Dacia Duster
- Kia Stonic
- Seat Ibiza
- Dacia Jogger
- Renault Clio
We are also pretty certain you wouldn’t purchase a Clio or Ibiza or any other car on the list just on the word of the showroom salesman; you would research and compare items such as:
- Fuel economy
- Servicing costs
- Space
- Top speed
- Warranty
- Resale values
And so the list goes on. Given this why would you sit for six hours or more of head bashing, do no research, make no market comparison then buy a timeshare, you wouldn’t would you?
You’ve made your mind up – Or have you?
After carrying out your research, you still feel timeshare is for you then jump in and good luck! Did your research cover the longevity of the contact? Did you think about how much the annual maintenance fee is? Did you include in your equation that maintenance fees only ever go up? Did you fully understand that the value of timeshare drops to nearly zero on the day of purchase? Did you understand that it’s nearly impossible to give away, let alone sell? If purchased with finance did you fully understand the implications and how extortionately high interest rates are? Did you look financially as how repayments will impact on your monthly income? Finally, do you realise that getting in is a darn site easier than getting out?
Maybe if you looked closely at all these points and became completely conversant with the timeshare product, then possibly it’s for you. At least if you reach the point of purchase having carried out your extensive research, you’re ahead of the game, however, there is one more point that is impossible to factor in with research, being life changes.
Today, health is good, marriage is sound, job going well in fact everything in the garden is rosy but then enter the “what if scenario”. What if your health or marriage fails, what if you lose your job? These are things none of us want to think about but given the longevity of timeshare contracts, second guessing next week, let alone 10 or 20 years in the future is impossible but nevertheless a consideration.
TCA comment
At some time or the other we all have to take responsibility for our actions and buying a timeshare is no different. The internet is full of stories of folk who didn’t fully realise what they were getting into, for these people it must be obvious that a lack of understanding is partly down to a lack of research.
Because of the restrictive contracts that abound in the timeshare industry, crying over spilt milk is rarely a solution; not spilling the milk in the first place would seem the best proposition. Timeshare is expensive to buy, expensive to keep and incredibly hard to get rid of. Make yourself aware of not only the sales spiel but the reality of the product. Don’t join the thousands who moan about it, if at all in doubt, don’t buy it!
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk