New Sale or Resale: which is better?

We wrote an article about this topic that was circulated in a newsletter a few months ago. I thought we'd receive more feedback, but we really didn't hear much. Here is that article:

http://www.redweek.com/help/timeshare-resale-vs-developer-direct

Does anyone have anything to add or take away from that assessment?

Thanks, Kylie

I have bought new and also "used". My experience has taught me that the Marriott System, you need to buy new to have the option of the points. If there is an area that you absolutely love, and you know you are going to be returning there, and you have investigated expenses, then go ahead and buy used. Do not buy a timeshare you would not feel comfortable returning there every year. Not all timeshares have the"pull" or the desireablity as all. The old saying goes---Buyer beware. Do not buy a timeshare with the thoughts that you can turn it around and get rich. It doesn,t work that way. If you buy used, you may recoup your investment in 10 years. Timeshares are to be used as vacations, not investments.

There's not a dime's worth of difference in buying a new (developer bought) vs resale except for the vast amount of money saved. All units will eventually have 51 owners. When you buy from a developer you're paying for marketing costs which includes timeshare presentations, advertising, street hawkers, mall kiosks, salespeople, closers, attorneys, food/drink, accountants and many other expenses related to marketing. Resales run approximately 1/3 to 1/4 to 1/2 of developer bought timeshares, but you're getting the exact same product.

P.S. Some developers offer incentives if you buy from them, but extremely high developer prices are not worth the incentives you may receive.

I don't know what other developers offer as incentives, but the VIP status in the timeshare I own works well for me. I get to reserve a specific unit if it is available. I get first crack at associate locations. There are special travel deals offered to VIP's. I get points discounts with free unit size upgrades. I get external exchange unit size upgrades. I get free guest confirmations. I get early check-in in a special line with a newspaper each day and a mid-week mini cleaning. I definitely get better treatment and when it comes to vacation time, I don't want my wife feeling like she is part of a cattle drive if you know what I mean. yes, it is costly and might not be for everyone but if I buy these same timeshares at resale, I get none of these perks. Its the difference between that stripped model car or the one with all the bells and whistles. It comes down to your own personal preference.

I have purchased 5 timeshares, 1 from the developer and 4 from resale. I have never been treated differently by the way I own... In fact I would wager to say that they don't even know how you bought!

Go resale! Save big!

Chris

jeffr92 wrote:

I don't know what other developers offer as incentives, but the VIP status in the timeshare I own works well for me. I get to reserve a specific unit if it is available. I get first crack at associate locations. There are special travel deals offered to VIP's. I get points discounts with free unit size upgrades. I get external exchange unit size upgrades. I get free guest confirmations. I get early check-in in a special line with a newspaper each day and a mid-week mini cleaning. I definitely get better treatment and when it comes to vacation time, I don't want my wife feeling like she is part of a cattle drive if you know what I mean. yes, it is costly and might not be for everyone but if I buy these same timeshares at resale, I get none of these perks. Its the difference between that stripped model car or the one with all the bells and whistles. It comes down to your own personal preference.

I guess I was mainly referring to the money issue ... in that respect buying resale is the way to go. If money is not an issue then buying developer (with their incentives) is fine and if you're happy with what you paid.

It also depends on the resort. At the Jockey Club, in Vegas, there does not appear to be any tier of owners (VIP, Points, incentives) at all.

jeffr92 wrote:

I don't know what other developers offer as incentives, but the VIP status in the timeshare I own works well for me. I get to reserve a specific unit if it is available. I get first crack at associate locations. There are special travel deals offered to VIP's. I get points discounts with free unit size upgrades. I get external exchange unit size upgrades. I get free guest confirmations. I get early check-in in a special line with a newspaper each day and a mid-week mini cleaning. I definitely get better treatment and when it comes to vacation time, I don't want my wife feeling like she is part of a cattle drive if you know what I mean. yes, it is costly and might not be for everyone but if I buy these same timeshares at resale, I get none of these perks. Its the difference between that stripped model car or the one with all the bells and whistles. It comes down to your own personal preference.

I am considering buying a "used" Marriot property. Are there any other down sides with Marriot then the points transfer that you know about? How easy is it to book prime weeks at other locations? Do you think I will be able to get Christmas week at my home resort every year with a Platinum unit?

The pros and cons of buying various Marriott programs are discussed in detail at the Points System Forum/bulletin board of the Timeshare Users Group web site:

http://www.tugbbs.com/forums/forumdisplay.php?s=&daysprune=-1&f=14

Anyone with Starwood timeshare experience?

jenniferc190 wrote:

Anyone with Starwood timeshare experience?

My wife and I decided to pool our honeymoon money together with a little extra spending cash to buy a Starwood Timshare. With the excitement of the honeymoon... the idea of prepaying for a guaranteed vacation every year at a resort seemed relaxing. A year later and after looking into prices of rentals... if I was to do it again, I would rent. The bragging rights of telling your friends that you have a timeshare end everytime I pay the maintainence fees. As far as being a Starwood Vacation Owner... it is a good experience. They do what they can to make owners feel special (and do what they can to get you to buy more). After 1 year, being special isn't as important as cash. We own at Myrtle Beach, SC. Our first experience was in Kaanapali(?) Maui. We tried to book at Paradise Island and St. John to no avail. No problem. Kaanapali was a wonderful experience. Things I have learned was to buy somewhere you know you'll vacation often, with convenience. I loved Maui, but the 14 hour $3800 airfare for 2 will not happen again for a while. I am glad that my home resort is just 4 hours away. As much as I would like to travel and stay at the other Starwood Vacation Network properties... I have to factor in airfare, time, etc. To answer your question, my overall experience has been good. The 2 properties that I have stayed at makes me forget all about maintainence fees and my wife's smile at the end of the vacation makes it all worth it. I used to own a Quality Inn and a Days Inn and I felt as if I was betraying the limited service industry. I have always told myself that I would not spend over $150 a night... anywhere. I can get myself all worked up about costs and fees, but whoever says you can't buy happiness, never owned Starwood. Just try not to think about fees when you get home. With the Starwood American Express card, you can rack up points to stay at Sheraton, Westin, etc properties. Just pay off your balance because the interest rate will kill you. If the other locations are just as nice, I know I'll be on the happy side again. Read the fine print about parking. I know I can't tow a boat or drive a motorhome and park it within the gates. If you've got $20,000+ to blow... Starwood is as good as any other, otherwise rent. Any further specific questions, I'll be happy to answer.

addisonc wrote:

jenniferc190 wrote:

Anyone with Starwood timeshare experience?

My wife and I decided to pool our honeymoon money together with a little extra spending cash to buy a Starwood Timshare. With the excitement of the honeymoon... the idea of prepaying for a guaranteed vacation every year at a resort seemed relaxing. A year later and after looking into prices of rentals... if I was to do it again, I would rent. The bragging rights of telling your friends that you have a timeshare end everytime I pay the maintainence fees. As far as being a Starwood Vacation Owner... it is a good experience. They do what they can to make owners feel special (and do what they can to get you to buy more). After 1 year, being special isn't as important as cash. We own at Myrtle Beach, SC. Our first experience was in Kaanapali(?) Maui. We tried to book at Paradise Island and St. John to no avail. No problem. Kaanapali was a wonderful experience. Things I have learned was to buy somewhere you know you'll vacation often, with convenience. I loved Maui, but the 14 hour $3800 airfare for 2 will not happen again for a while. I am glad that my home resort is just 4 hours away. As much as I would like to travel and stay at the other Starwood Vacation Network properties... I have to factor in airfare, time, etc. To answer your question, my overall experience has been good. The 2 properties that I have stayed at makes me forget all about maintainence fees and my wife's smile at the end of the vacation makes it all worth it. I used to own a Quality Inn and a Days Inn and I felt as if I was betraying the limited service industry. I have always told myself that I would not spend over $150 a night... anywhere. I can get myself all worked up about costs and fees, but whoever says you can't buy happiness, never owned Starwood. Just try not to think about fees when you get home. With the Starwood American Express card, you can rack up points to stay at Sheraton, Westin, etc properties. Just pay off your balance because the interest rate will kill you. If the other locations are just as nice, I know I'll be on the happy side again. Read the fine print about parking. I know I can't tow a boat or drive a motorhome and park it within the gates. If you've got $20,000+ to blow... Starwood is as good as any other, otherwise rent. Any further specific questions, I'll be happy to answer.

Thanks for your information. I am interested in a Oceanfront 2 bedroom, resale about $58, 000. Assuming this is all I pay (I doubt it). At 6% per year (opportunity cost), I could have earned $3480 from just putting $58,000 in the bank CD, (I am sure I can do better). And considering the maintence fee + taxes, misc. at about $2200 per year, maybe more. I am looking at $5,680.00 ($3480+$2200)per year. Divide that by 7 nights, that's $811.43 per night. I am already a gold member in the SPG program, hoping to be a platinum member some time next year.

I think I might be better off just renting the villa from someone ANYTIME, ANYWHERE I want or just stay at the Westin Maui hotel or its family and get upgraded to the best room possible (due to the elite membership). Either way, it sounds like it's a better investment. Keep in mind that I still get to keep my $58K. Am I right on this? With the timeshare, I have to worry about getting the exact week I am looking for (one year in advance), pray that the airfare will not be too expensive for that week (forget the possible deals) and my or the kids' schedule will not change (hard to tell due to the year in advance). When I do get to the villa, I must HOPE that my oceanview is not a over a parking lot. I really loved this villa and dying to purchase it, I am having difficulties justifying this mathematically. Please do correct me if I am wrong. I do welcome all opinions regarding this location (Westin Ka'anapli Ocean Resort and Villa). THANKS GUYS!

PS. I stayed at the Westin Maui Hotel and Spa, yes, I know the Starwood experience, amazingly nice. I am just hoping to skip the fees, as you mentioned.

Just my opinion, you're exactly right below ... there's not a timeshare week on this planet that I would pay $58K for even if I was a billionaire. It just doesn't make sense to sink that much money into one week of accomodations. With all the rentals on the internet alone and in other markets it makes much more sense to rent when/where you want to and not be bothered with the very high initial cost and rising maintenance fees (and possible special assessments).

Also, there's no way I would ever finance a timeshare week. If I couldn't pay cash, then I figure I didn't need it in the first place, especially with all the rentals out there .... again JMHO.

I believe you have answered your own question below very well.

jenniferc190 wrote:

Thanks for your information. I am interested in a Oceanfront 2 bedroom, resale about $58, 000. Assuming this is all I pay (I doubt it). At 6% per year (opportunity cost), I could have earned $3480 from just putting $58,000 in the bank CD, (I am sure I can do better). And considering the maintence fee + taxes, misc. at about $2200 per year, maybe more. I am looking at $5,680.00 ($3480+$2200)per year. Divide that by 7 nights, that's $811.43 per night. I am already a gold member in the SPG program, hoping to be a platinum member some time next year.

I think I might be better off just renting the villa from someone ANYTIME, ANYWHERE I want or just stay at the Westin Maui hotel or its family and get upgraded to the best room possible (due to the elite membership). Either way, it sounds like it's a better investment. Keep in mind that I still get to keep my $58K. Am I right on this? With the timeshare, I have to worry about getting the exact week I am looking for (one year in advance), pray that the airfare will not be too expensive for that week (forget the possible deals) and my or the kids' schedule will not change (hard to tell due to the year in advance). When I do get to the villa, I must HOPE that my oceanview is not a over a parking lot. I really loved this villa and dying to purchase it, I am having difficulties justifying this mathematically. Please do correct me if I am wrong. I do welcome all opinions regarding this location (Westin Ka'anapli Ocean Resort and Villa). THANKS GUYS!

PS. I stayed at the Westin Maui Hotel and Spa, yes, I know the Starwood experience, amazingly nice. I am just hoping to skip the fees, as you mentioned.

JenniferC190, I am glad to know that you understand the concept of opportunity cost. That being said, rent. If you buy, ensure that you plan on flying to Maui every year and factor that cost into your vacation planning. I stayed at the Westin Ka'anapali, and it is wonderful. The rooms, pool, beach... location on Maui... But what I have concluded is that I want to visit all the Maui's of the world. The great thing about Starwood is the ability to go to California, Florida, Cancun, Virgin Islands, etc... but the key word is availability. If you go on SPG.com, there are so many vacation opportunities out there. Why limit yourself to just one beach, on one island. You had already done the math. You can stay anywhere you want with just the interest accrued from your original investment. And like JayJay has stated, do not finance. If you cannot cash out on a timeshare, do not buy it. Just thinking about timeshares is reminding me that I have to pay my 2007 dues... and that could be a vacation all to itself. I think a timeshare is like a boat. The 2nd happiest day of your life is the day you buy your timeshare. The happiest day of your life is the day you sell it. The funny thing is our purchase started off after looking for a condo/beach property to buy. I did the math in property upgrades, taxes, renting, maint. and I concluded that a time share would save me time and money... so I really shouldn't complain... but it's fun.

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I have bought resale and developer. They both have pluses and minuses. I own Hilton at Valdoro Mountain Lodge in Colorado. It is not the traditional timeshare. I own a 1/21st interest and that equates to between 14 and 50 nights a year depending on when I travel. I LOVE it. I can use their hotels or resorts with my ownership. I can also exchange through RCI. It was worth every penny I paid the developer and I would do it again.

I also have a resale I bought in Kauai. I use it exclusively for trading. It works well but I always have to travel for a week at a time. My Hilton lets me travel as little as 1 night in a hotel or 2 nights or more in any of their vacation clubs. It works a lot better.

Excellent information posted here. Thanks, everybody!

I am looking to buy a beachfront timeshare in southern California (near where I live.) I want something on the sand where my family and I can hang out and relax.

I know some of the timeshares are listed as beachfront, but when I mapquest the address, there is a street that has to be crossed.

Anything to watch out for in buying resale? We have never had a timeshare before. Thanks in advance

I wll be purchasing a HGVC resort resale in Jan. 2007- 7000 points a year - platinum Part of the package was that the unused 7000 points available from 2006 would carry over into 2007, allowwing me to use up to 14000 in 2007. When the seeler informed HILTON the 2006 points would be transferred into my name in 2007- HILTON said he can not do this- I need some advise