Why Do People Buy Timeshares?

Timeshares, is it worth it? Well, are you an avid vacationer who wants to save on future annual vacations? If so, then timeshare ownership might be for you! With over 10 million timeshare owners in the US, there are various reasons why folks obtain vacation ownership. So, you may be thinking, “Why do people buy timeshares?” The answer is simple: for advanced vacation experiences at a fraction of the cost! Many owners relish their vacation home for various reasons, including its spacious accommodations, top-notch amenities, such as luxury swimming pools, and access to local attractions. So, if you’re ready to step away from a cramped hotel room with little to no on-site amenities, continue reading our blog to discover why people buy timeshares, what timeshares are, and whether they are worth it.

Why People Buy Timeshares

There are many reasons why people buy timeshares. The savings, flexibility, accommodations, and more make buying timeshares worth it for families. For families or individuals who travel regularly, prefer a specific brand, and want to enjoy savings on a lifetime of vacations, a timeshare is completely worth buying. Here is an overview of the top reasons people buy timeshares:

1. Timeshares provide flexibility and guaranteed vacations every year.
2. The average cost of a timeshare is nominal compared to a lifetime of hotel stays.
3. Accommodations at timeshare resorts are larger, with private bedrooms, fully-equipped kitchens, spacious living room areas, balconies/decks, and more.
4. Owners can trade their weeks or points on vacation exchange platforms to redeem more travel options around the globe, as well as get discounted rates on airfare, cruises, or travel packages.
5. Financing is available to lessen the financial burden of the initial purchase, making travel easier every year.
6. Top developers have in-house exchange options with resorts in popular destinations, giving owners the ability to stay within their network at no extra cost. So, whether you want to vacation in the same location or switch it up, there’s an option for everyone!
7. Additional loyalty programs, such as HGV Max or Marriott Bonvoy, reward owners just for traveling! Loyalty programs can be used with ownership to redeem even more discounts, free stays, and more.
8. Some timeshares are perpetual, meaning they can be passed down to your family members, giving them the greatest gift of all: a lifetime of vacation memories.
9. Timeshare resales can be a great way to get started with vacation ownership. Furthermore, many families will look to the resale market to add to their existing ownership for less!

What Is a Timeshare?

Now that you know why people buy timeshares, you might be wondering what a timeshare is exactly. A timeshare is not what you may think it is. Long gone are the days of owners traveling to the same resort, in the same unit, at the same time every year. Of course, fixed-week timeshares are still available and are a good option for certain buyers. However, the best timeshare companies now offer owners more flexibility and options than ever before. Being a member of one of the best vacation clubs means access to even more perks. Top brands include Disney Vacation Club, Marriott Vacation Club, Hyatt Vacation Club, and Hilton Grand Vacations.

With points-based ownership, timeshare owners can use their vacation points as currency to spend as they wish. The travel club lifestyle has taken over, and for this reason, owners love their timeshare. In fact, about 85 percent of timeshare owners love their brand or resort.

Owning a timeshare is also a yearly vacation guarantee, and you pay upfront for a lifetime of travel. Guaranteed annual vacations are a prominent reason why people buy timeshares. Moreover, there are different types of timeshares, as well. For example, there’s a deeded timeshare, fractional ownership, floating week timeshares, and more!

Is Timeshare Ownership a Scam?

All in all, timeshares are not a scam. Influential celebrities and unscrupulous companies have overrun the media with messages saying buying timeshares is bad. But why? Most owners love their timeshare (check out LoveMyTimeshare.com). Timeshares are also meant to be a lifelong product, even to pass down to your children or grandchildren. However, sometimes our lifestyles change, or we can’t vacation like we used to. So, over time, the timeshare resale industry began to assist owners needing to get out of their timeshares and hopefully make some money back. Yet this industry was unregulated and ended in many desperate owners becoming the victim of timeshare resale scams. This is the cause for much of the distrust surrounding timeshares.

Some consider timeshares ominous because they are not a financial investment, and getting out of your timeshare contract can be challenging. This is all to say that when working with a trusted real estate brokerage, such as Fidelity Real Estate, you won’t have to worry about scams when buying or selling. What’s more, if you’re selling, we don’t get paid until you do.

The Reality: Timeshares Are a Good Deal

In reality, timeshares are a good deal. They provide families with lifelong memories and incredible vacations. With points, you have the utmost flexibility when booking trips where and when you want.

People buy timeshares because the average cost is almost nominal compared to a lifetime of hotel stays. At most timeshare presentations, a sales representative will show you approximately how much you’ll spend over your lifetime on travel. The savings are clear when you compare the average cost of a timeshare (including annual maintenance fees!) with 60+ years of vacations. According to the American Resort Development Association, the average timeshare cost was $24,140 in 2023.

Let’s say you take a week-long vacation every year somewhere new. How much do you usually spend on your hotel? How many people typically accompany you? Now, multiply this over the next 50 to 60 years. With the average timeshare cost, you will have already made up what you paid for and more! The savings over the years make it clear that timeshares are a good deal, which is why people buy them!

Save Thousands by Buying on the Timeshare Resale Market

With a timeshare resale, you can save thousands on your purchase versus retail. The resale cost of timeshares is often a fraction of the retail price since they rarely appreciate in value. For example, in 2024, a top DVC resort like Disney’s Grand Floridian Resort and Spa costs $230 per point when you buy directly from Disney. By contrast, Fidelity DVC resale points at the same resort cost an average of $150.96. In other words, for a Grand Floridian DVC resale, Fidelity can potentially save you close to $12,000 if you buy 150 points. Hence, it’s vital to remember that even with the superior savings of a timeshare resale, as the new owner, you’ll be responsible for keeping up with the annual maintenance fee. Paying annual maintenance fees helps with the resort’s upkeeping and renovations.

Enjoy More Comfort, Space, and Luxury with Timeshare Resorts

Not only is the average cost of a timeshare much lower than your lifetime of vacations, but timeshare units offer much more space than typical hotel rooms. With a timeshare resort, units typically have private bedrooms, spacious living rooms, and a fully-equipped kitchen. That’s another reason people buy timeshares; the accommodations are comfortable, spacious, and luxurious!

Over 70 percent of timeshares have two or more bedrooms, giving families space to unwind and relax. There’s nothing worse than a cramped hotel room and lack of personal space. You can save on dining when using a kitchen for home-cooked meals too. In short, timeshares are a good deal because they give you more bang for your buck and encourage people to buy timeshares.

Vacation Exchange for Timeshare Owners

When you feel like you’ve seen it all with your brand’s resort portfolio (although this is unlikely, with brands like Wyndham Destinations having hundreds of resorts within their portfolio to visit), timeshare owners have the option to exchange their timeshare points or weeks on popular networks like RCI or Interval International. Why do people buy timeshares? Because they can travel virtually anywhere with their ownership, not just to the same place at the same time every year. For example, suppose you buy a Wyndham timeshare at Club Wyndham Governor’s Green in Williamsburg, Virginia. In that case, you can trade to stay at RCI resorts in the most sought-after destinations, such as the UK, Florida, and Mexico.

RCI and Interval International are the most popular vacation exchange networks, with thousands of travel options worldwide. Trade your timeshare for a cruise or an exciting trip abroad.

Timeshare Financing

If the price point still seems unfeasible, consider financing your vacations. With our friends at Vacation Club Loans, buyers can finance their timeshare purchases for up to seven years. Vacation Club Loans makes pre-qualification easy with a secure online application and fast loan approval. There’s also no pre-payment penalty and no upfront fee. Timeshare financing is flexible and convenient, which is why some people buy timeshares over booking at a hotel.

Get timeshare financing on major brands, such as Disney Vacation Club, Hilton Grand Vacations, Holiday Inn Club Vacations, and more.

Is Buying a Timeshare Worth It?

So, are timeshares a good deal? Well, the savings and perks are clear! A timeshare is worth it for families wanting to travel frequently and comfortably. There are many benefits of a timeshare, but if you aren’t going to use it to the fullest, you may miss the opportunities!

Keep in mind that a timeshare is not a financial investment. When you buy a timeshare, you’re investing in your family and the quality of your vacations. Very rarely will a timeshare go up in value since the time you bought it.

Buy a Timeshare with Fidelity Real Estate

Fidelity Real Estate is a leading resale company in the timeshare industry, providing exceptional services to buyers and owners. Hence, at Fidelity Real Estate, we understand there needs to be more clarity over whether or not timeshares are a good deal. And that’s where we come in. As a fully licensed, full-service real estate brokerage, we can assist you at every step of the purchase process. We’re a team you can trust with accreditations from ARDA and the BBB and over 20 years of experience in the timeshare industry. So, what are you waiting for? Become a timeshare owner today and save on future vacations! If you have any questions, please call us at 1-800-410-8326 or email us at [email protected].

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