FINANCING – – Difference Between Auto and timeshare Property
Time-shares and recreational vehicles often are pitched as a way to save on future vacations. Anyone who has owned either knows that’s not necessarily true. First-time RV buyers, for example, often underestimate the costs of maintaining, repairing and fueling their rigs. Time-share newbies can be gobsmacked by rising annual fees, the hassles of trading their units and the difficulty of shedding unwanted time-shares.
The math really turns sour when either purchase is financed. Developer financing for time-shares typically carries interest rates of 15 percent or more. RV loan rates can be lower, but loans can stretch 10 to 20 years, inflating the cost of the purchase by 20 percent to 50 percent.
You shouldn’t borrow money to finance luxuries, and that includes vacations. If you’re determined to buy, pay cash for secondhand versions.
A brand-new 2017 Fleetwood Storm RV costs six figures; we picked up a 1998 model with less than 7,500 miles on it a few years ago for $15,000. Similarly, “used” time-shares sell on the secondary market for as little as a penny, although higher-end locations may cost a few thousand dollars, versus an average of $22,240 for a time-share bought “retail.”
It make sense in today’s timeshare market to purchase on the resale market.
We own 3 deeded timeshare weeks at 5 star resorts and the total outlay all 3 together was under $3,400 over the last 15 years. We know exactly what we own and we pay the maintenance fee’s, each monthly one year in advance. So, by the time the end of the year comes we already have 21 days of vacation paid for.