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
There are “timeshares” that do work as advertised… my parents had one that was technically a “fractional ownership” condo — we had set 2 weeks in same condo every year over Christmas & New Year. Original contracts were for 30 years, they bought it second-hand with 25 years left. They paid a one-time up-front fee to the original buyer (something like $20k) and then paid a weekly maintenance fee of a few hundred dollars when we used it. So it ended up costing about $2000-2500 for the 2 weeks each year between the maintenance fee + amortized purchase, for a 4BR/3BA condo with full kitchen overlooking the beach in Mexico (for comparison, the hotel next door was $400/night for standard hotel room).
The reason some are considered scams is that they often change the rules to extract more money — eg. you buy “points” you can use toward specific accommodations, but then they change the point needed so you either pay more or get less prime weeks, less prime units. And the trade possibilities are often over promoted vs. reality of being able to use. And contracts are often hard to end/cancel, and you have to pay the maintenance fees whether you can use or not.
Like many things, there are pitfalls if one doesn’t read all the terms of the contract, and many do get screwed as a result. The timeshares are often sold in dreamy vacation spots after ploying people with drinks and food, with high pressure sales, and may not follow US legal norms if not in US. So a lot of people commit tens of thousands of dollars without adequate vetting.
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