Original Message:
Re: April Newsletter Q&A: Call For Timeshare Education (by Jim B.):
JUST GOT BACK FROM VACATION IN ARUBA AT THE MARRIOTT SURF CLUB. A FRIEND OF MINE POINTED OUT A FELLOW WHO JUST PURCHASED ENOUGH POINTS IN MARRIOTT'S NEW PROGRAM TO GO TO ARUBA EVERY YEAR. AT $11.74/PT, HE PAID $46-47,000 FOR THAT RIGHT OF USE, PLUS HE'LL PAY ANOTHER 4% MAINTENCE FEE EACH YEAR ON THE TOTAL AMOUNT OR ROUGHLY $18-1900 EACH YEAR. IF YOU ASASUME HE WILL HAVE IT FOR TEN YEARS AND DIVIDE THESE TWO FIGURES, HE WILL HAVE SPENT $64,000 OR MORE FOR TEN YEARS OF USE, $6400/ YR.
HE COULD HAVE RENTED THE SAME CONDO EACH YEAR FOR $2500-3000. DOES THIS MAKE SENSE?
I KNOW SOME OF YOU WILL SAY THAT HE CAN USE HIS POINTS TO GO ELSEWHERE TOO AND MY ANSWER IS HE ALSO COULD RENT ELSEWHERE TOO, OR BY THE SAME TIMESHARE ON THE OPEN MARKET FOR HALF THE PRICE AND A LOWER MAITENANCE FEE EACH YEAR, AND RENT IT OR TRADE IT FOR ANY VACATION LOCATION IN THE WORLD THRU INTERVAL INT.
MAYBE I'M MISSING SOMETHING SINCE I GREW UP WITH THE OLD MATH, BUT THIS DOESN'T MAKE SENSE TO ME AND IT WON'T TO HIM EITHER IF HE EVER WANTS TO ASK MARRIOTT WHAT THEY WILL BUY IT BACK FROM HIM DOWN THE ROAD. IF HE THINKS THE NEW CAR DRIVEN AROUND THE CORNER LOSES VALUE, WAIT UNTIL HE HEARS WHAT MARRIOTT THINKS HIS VALUE IS THE DAY AFTER HE BUYS IT. COMMENTS PLEASE.