Timeshare point system a good value to the right family?

[GoodSteward]

I went through a sales pitch to get a 7 night stay at a Wyndham resort for $20. I know the stigma of timeshares and was very biased. However, the system has changed. For Wyndham, they have a point system that allows you to stay at any of their 214 resorts. Each resort uses a certain amount of points based on the time of the year. Buying retail is just stupid, but buying resell and paying the yearly fees might be worth it if you are near enough. I'm within 5 hours to Orlando, smoky mountains, and several beach front places including one we do visit some that are within 2 hours. I have 4 kids and we have found prices on condos and larger rooms are getting harder to find for a reasonable price , and we typically travel off season. We spent $600 for 4 nights in a 3bd resort in Orlando this week.

I wonder what others think and if this newer style is a good option for the or right family.

An option is maybe 160k points for around $1000(legal fees and stuff still) and around 800 to 900 a year in maintanance fees. You can get hotels for less but with a family of 6 plus my parents a lot of the time it's going to get harder to find good places. The sales pitch is that you won't necessarily save money but you can have much more for the same money. Anybody with good experiences with timeshare ?

These accounts also come with RCI memberships so that allows a lot more options but still requires money.

[rennigade]

The point system isnt anything new. Thats how its been for at least the past 10 years. My in laws experienced the wonderful point system. Its a racket. Avoid like the plague.

[GoodSteward]

Right the point system has been around but I wasn't aware. In a large enough resort system would it be descent? A small system that isn't very broad would be a waste as well.

Is there a better option than just Priceline and the like to get these rentals dirt cheap?

[greenskeeper]

love my in-laws timeshare. They pay the costs and I enjoy the vacation

[Like2Plan]

I went through a sales pitch to get a 7 night stay at a Wyndham resort for $20. I know the stigma of timeshares and was very biased. However, the system has changed. For Wyndham, they have a point system that allows you to stay at any of their 214 resorts. Each resort uses a certain amount of points based on the time of the year. Buying retail is just stupid, but buying resell and paying the yearly fees might be worth it if you are near enough. I'm within 5 hours to Orlando, smoky mountains, and several beach front places including one we do visit some that are within 2 hours. I have 4 kids and we have found prices on condos and larger rooms are getting harder to find for a reasonable price , and we typically travel off season. We spent $600 for 4 nights in a 3bd resort in Orlando this week.

I wonder what others think and if this newer style is a good option for the or right family.

An option is maybe 160k points for around $1000(legal fees and stuff still) and around 800 to 900 a year in maintanance fees. You can get hotels for less but with a family of 6 plus my parents a lot of the time it's going to get harder to find good places. The sales pitch is that you won't necessarily save money but you can have much more for the same money. Anybody with good experiences with timeshare ?

These accounts also come with RCI memberships so that allows a lot more options but still requires money.

Goodsteward,
I have had a good experience with my Timeshare. It is a different brand than Wyndham (It's Disney).
For a while we were looking to see if there was another timeshare that would compliment our Disney points to stay at other places besides Disney. Wyndham was one of the brands we looked at. I did not sufficiently understand the program to figure out if it would be worthwhile to own, so we passed. (Wyndham has a lot more incidental fees than Disney as far as I could tell.)

I recommend researching as much as possible before even thinking about buying. TUG2 is a good resource. I wouldn't buy from the developer as resales are much cheaper. Many developers have put restrictions on resales, so it is good to understand how that would impact your use and enjoyment. If you don't like the restrictions on resales, well--that's another reason not to buy from the developer as well.

Most folks don't keep their timeshares forever. So, it is a good idea to think about what happens in the future. Other than the high acquisition cost, how do you get rid of it? is another reason most prudent people don't buy in in the first place.

[disneysteve]

Buying retail is just stupid, but buying resell and paying the yearly fees might be worth it

We spent $600 for 4 nights in a 3bd resort in Orlando this week.

I wonder what others think

I think the math virtually never works in your favor with a timeshare (excluding Disney from the conversation).

You can almost always rent for the same cost or less than owning without being tied down. Even if renting costs a little more, you have no ongoing commitment and aren't locked in to a certain family of properties.

You mention pay $600 for 4 nights in Orlando. I will tell you that you overpaid by at least 50%. We paid $618 for 7 nights in Orlando last month in a 3-bedroom, 3-bath house. We have paid as little as $37/night for a 2-bedroom timeshare unit for the week. Sites like VRBO, HomeAway, AirBnB, and SkyAuction are great resources when you are looking to rent a vacation property.

Also keep in mind that selling a timeshare is nearly impossible so assume that when you buy it, you are committing to paying that annual fee forever.

[greenskeeper]

I think the math virtually never works in your favor with a timeshare (excluding Disney from the conversation).

Disney gives you the illusion of savings

love my in-laws timeshare. They pay the costs and I enjoy the vacation

in-laws are Disney-nuts, and they aren't saving what Disney would lead them to believe.

[disneysteve]

Disney gives you the illusion of savings

Sorry, I wasn't clear with my comment. When I said I was excluding Disney from the conversation, I meant overall, not specifically in regard to the math not working. It doesn't work with Disney either but as we've discussed previously, Disney is a rare exception in the timeshare world where the ownership position actually holds its value. So if you are able to resell your Disney points at a later date for a good price, even if less than you originally paid, that makes the deal not nearly as bad as it is with all other companies.

[phantom]

My husband and I sat through a Wyndham sales pitch a few years ago, and he was nearly sold to the point that he was ready to go on the secondary market (where you can get one for next to nothing) and buy one. If you're committed to vacationing in a certain class of hotel every year or two, the yearly fees seem pretty comparable to what you'd pay to stay in such places. But, no matter how much flexibility they build into the program, I'd rather have true flexibility.

One thing I remember from the sales pitch was the lady trying to convince us that having a paid for vacation meant that our family would still be able to vacation even if we had less money because someone was out of a job one year. It seemed so ridiculous. If my family suddenly had less money coming in, I'd rather have the option of saving money by not going on a vacation.

[rennigade]

Another fun dilemma my in laws had for the few years they owned a timeshare was actually being able to book a week they wanted.

For them they were allowed to book 200 days in advance...something along those lines. No matter what week they wanted and even if they called the second the phone line opened in the morning (200 days in advance)...the resort always seemed to be booked out. They asked how that was possible since they were calling 200 days in advance...not sure if they ever received a real answer. It was always a struggle. Always took multiple phone calls, escalating to managers, etc etc to get the week they wanted.

Just another reason not to get in the timeshare game.

[Like2Plan]

Sorry, I wasn't clear with my comment. When I said I was excluding Disney from the conversation, I meant overall, not specifically in regard to the math not working. It doesn't work with Disney either but as we've discussed previously, Disney is a rare exception in the timeshare world where the ownership position actually holds its value. So if you are able to resell your Disney points at a later date for a good price, even if less than you originally paid, that makes the deal not nearly as bad as it is with all other companies.

DVC actually has been a pretty good deal for my family. If it wasn't working out so favorably we would have sold our membership. Currently, we could sell 2 of our contracts for more than what we originally paid for them and the third one for the same price. It wouldn't make sense to keep them if it wasn't working out.

We prefer to stay onsite and within walking distance to at least one of the theme parks. Given our preference, our per night price of a room is considerably less expensive using our points.

Here is an example for Boardwalk Villas
Dues $6.48 per point (2017 dues)
Acquisition cost $2.00 per point (per year)
total: 8.48 per point

I can get a std view room studio for 10points per night (S-Th) and 14 points per night (S/S) during the food and wine season. (I like to visit Walt Disney World during food and wine and also early Dec). So, that is $84.80/night weekdays and 118.72/ weekends. I can use magical express for airport transfers (for no additional expense) and not book a rental car. I can walk to EPCOT and Disney Studios from BWV (which is probably the top reason I like to stay there).
I also receive a DVC discount off my gold annual pass.

Another example for Grand Californian (Disneyland)
Dues: $5.61 (2017 dues)
Acquisition cost: 1.78 per point (per year)
total per point: $7.39

I like to stay there in June, Nov or Dec. In June a studio is 20pts S-Th and 24 pts S/S. Cost $147.80 S-Th and 177.36 S/S. (Note: there aren't any other fees such as tax, parking fees and resort fees on the DVC points). I can easily walk to DCA, DL and DTD from my hotel. The Grand has its own private entrance to DCA. Some of the rooms face DCA and have a spectacular view--some with views of the world of color. One of the best benefits to staying at the Grand is the extra magic hour every morning.

Sometimes we have an out of cycle stay (to Disneyland) in which we have already used all our points (or it's too late to book) and have to pay cash. Even with an annual pass discount, the Disneyland hotels have really gone up--way more than what we are paying for our DVC room. Over the years we have stayed offsite at the Hilton and Marriott convention center hotels, Marriott Fairfield, Holiday Inn, Best Western PPI and Desert Inn and Suites, but I still prefer staying at the Grand.

[disneysteve]

DVC actually has been a pretty good deal for my family. If it wasn't working out so favorably we would have sold our membership. Currently, we could sell 2 of our contracts for more than what we originally paid for them and the third one for the same price. It wouldn't make sense to keep them if it wasn't working out.

Hence the reason I always specify that DVC should be excluded from any conversations about timeshares. They are very much in a class by themselves.

[Like2Plan]

My husband and I sat through a Wyndham sales pitch a few years ago, and he was nearly sold to the point that he was ready to go on the secondary market (where you can get one for next to nothing) and buy one. If you're committed to vacationing in a certain class of hotel every year or two, the yearly fees seem pretty comparable to what you'd pay to stay in such places. But, no matter how much flexibility they build into the program, I'd rather have true flexibility.

One thing I remember from the sales pitch was the lady trying to convince us that having a paid for vacation meant that our family would still be able to vacation even if we had less money because someone was out of a job one year. It seemed so ridiculous. If my family suddenly had less money coming in, I'd rather have the option of saving money by not going on a vacation.

I agree with you on that. I would be looking for ways to conserve, too.
With my timeshare (DVC), we are allowed to rent points out. There is a broker (ie Davids or DVCbyrequest) that pays the owner up to $13.00/point to rent out points (if rented out far enough in advance and one of the high demand properties). Or, the owner could rent out points privately.
My sister has used Davids to rent her points a couple of times and thought it was really easy. David's pays the owner 70% of the rental fee immediately and the other 30% at the time of rental.

[disneysteve]

Here is an example for Boardwalk Villas
Dues $6.48 per point (2017 dues)
Acquisition cost $2.00 per point (per year)
total: 8.48 per point

Can you expand on this math?

I believe you buy a set number of points. How many did you buy and how much did that cost? You are using a "per year" price for the upfront cost. How many years is that based on? How many years do you have to pay it off and at what interest rate?

[Like2Plan]

Another fun dilemma my in laws had for the few years they owned a timeshare was actually being able to book a week they wanted.

For them they were allowed to book 200 days in advance...something along those lines. No matter what week they wanted and even if they called the second the phone line opened in the morning (200 days in advance)...the resort always seemed to be booked out. They asked how that was possible since they were calling 200 days in advance...not sure if they ever received a real answer. It was always a struggle. Always took multiple phone calls, escalating to managers, etc etc to get the week they wanted.

Just another reason not to get in the timeshare game.

I run into that dilemma with DVC sometimes, too. Especially with STD view studio at BWV during food and wine festival. That room category is extremely popular (because of the low point requirement).
DVC now has online booking which is really great. Sometimes it takes a little bit of work to get my preferred reservation, but so far I have been pretty successful.

Now, the Grand Californian is generally a piece of cake to book as long as it is within the owners only booking period before the 7 month window opens up--when all DVC members can book. The DVC at the Grand Cal only has a few rooms--like 48. So, I am generally shut out of my home resort after the 7 month window opens.

This is where it pays to completely understand the timeshare rules. I would probably be pretty sad if my goal was only to stay at the Grand Cal and I didn't own points there. Or, if I just couldn't predict my schedule more than 7 months in advance-- I have been bit by this one before. DH has had last minute business trips. We always stay a couple extra days and go to DL, but last minute means an off property stay.