How to Know What to Pay for a Timeshare

So you find yourself listening in on a presentation for buying a timeshare. How do you know what is a reasonable price to pay for a timeshare? This is not a simple question to answer, but in a few steps you can determine if a timeshare will be a bargain or a rip off.

Instructions

Difficulty: Moderate

1. Determine how many nights you usually spend per year in a hotel or motel during your vacation.
2. Calculate how much you usually spend each night of vacation.
3. Estimate how many years you expect to continue to vacation on a regular basis.
4. Consider the price of inflation for the cost of accommodations, which may be as much as 10 percent per year.
5. Decide what time of year or season you wish to travel and what location you most desire to travel to.
6. Evaluate whether or not the total cost of your vacations over the next several years (determined in Step 3) exceed the total cost of the timeshare you are considering, including fees and interest payments. If the timeshare will save you money in the long run, then it may be a reasonable investment.

Tips & Warnings

• Keep in mind maintenance fees due each year, this may help determine whether or not it is economical to invest in a timeshare.
• If your timeshare offers other benefits, such as free travel arrangements or other benefits such as a way to trade your timeshare location, this may also make the timeshare a better bargain than paying for each vacation individually.
• Be sure to only invest in timeshares with reputable companies that you have heard of before.
• Don't invest in a timeshare if you cannot fit the monthly payments into your budget. A timeshare is a serious investment.
• Don't pay the first price that is offered to you. The first price quoted is often inflated and can be bargained down to a lower price.