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
*If* you really intend to use the same vacation property (or to play the game within the ownership group), during your allotted time, every year, and *if* you would otherwise actually pay for a hotel to accomplish that, then the upfront payment for a timeshare can *sometimes* be worth it — ultimately, you get an annual payment that is significantly cheaper than a comparable hotel stay that *might* break even or land up with less total expenditure over time.
The main reason that they’re simply not worth it is that it only *possibly* makes sense if you can make the commitments I described above. And who really knows whether you’ll want to spend a week in a condo in Aruba in October, 17 years from now?
The main reason they are sometimes viewed as scams is that they are often sold to people as having investment/resales/rental value — that is, instead of simply agreeing to pay upfront for all of your future vacations, you’re making a wise financial investment that could make you money in the future. But, 99% of the time, this isn’t true. Maybe you can cover your annual payment by renting it out, but you’ll never make a profit, and you’ll never sell it for anywhere near what you paid. Many, many people who bought timeshares literally land up just abandoning them after a few years.
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