Why are timeshares generally considered a “scam” or “rip-off”?
Do any legitimate timeshares exist where the deal works as advertised?
Generally, Timeshares are talked about in the context of a joke and are rarely taken seriously, but they must have been, or at least to appear to have been, viewed and taken more seriously at some point.
In: Economics
They are not necessarily a scam/ripoff (though some are), but like many things the pitch vs. the reality can be very different.
They are often pitched as easy to afford/finance, flexible, with lots of perks. But you always have to read the fine print because there are often (always) many hidden rules, fees, obligations, etc. that make them difficult to downright usurious in practice.
The general idea is “why pay for a house/cabin/condo/chalet/etc. year round when you’ll only use it a few weeks a year? its way better to split the cost with lots of people and share it!”
The main problem with this should be obvious, sharing means you can’t use it whenever you want. In particular times of year where multiple people/groups of people are all likely to want to use it (fixed holidays like Christmas, Thanksgiving, 4th of July, etc.) mean you could be paying for something that you rarely get to use when its appealing/convenient.
The second problem is the financing options offered for these properties are often quite predatory and you can quickly find yourself owing a lot of money on something you barely if ever get to use PLUS since you are only a part owner, you can’t even just sell it when you want to get out.
Time share networks where you don’t own a specific unit but have access to multiple possible locations is better, in theory, but it also means you are competing with more people for spots. Sure you can TRY and go to a new destination this year, but if its full you might get stuck with a mediocre to bad spot, or the same spot every year, or going to Hawaii during the middle of the rainy season, etc.
Its one of those things where if your schedule is flexible AND you are good at planning ahead AND you don’t mind staying within your location/network every year the deal CAN be more cost effective than paying for vacations piecemeal. But it turns out that the majority of people don’t fit that category so in the end most people probably end up paying more than they otherwise would have.
And all of that assumes it’s a legitimate, decently run, well maintained operation. If its poorly run, poorly maintained, or an out right scam, you can be screwed out of a LOT of money with very little recourse.
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