Ask HN: Is Timeshare a Scam?
I was in Vegas last week and decided to go on a timeshare presentation (obviously for free tickets to a show and free hotel). Here is what I observed and now I'm trying to understand how this kind of business practice is still operating and if there are any other business that operate in similar manner?
1. They lure you into 2 hr sales presentation by offering free tickets and hotels (Which later I realized are not very good)
2. They make you go through a presentation highlighting how their service is much better than traditional hotels. They talk about inflation and how your money is being wasted using hotels for vacation. (May be using some fancy terms and numbers to influence people)
3. They pair you with an individual sales rep, who tries to sell you. They highlight benefits, hiding all recurring cost associated with it. Emotionally pressure you into accepting the fact that you are not taking enough vacation and how you are not caring about you and your family's need.
4. They focus on the fact that you "Own" it without explaining how you own anything.
5. They force you to make decision right then and there. Because the sales agent know that if a customer is interested in buying it there are much better pricing available in secondary market if they do some research. My dad (who was a bankruptcy attorney) has always been anti-timeshare, so I asked him why. Obligatory disclaimer that this isn't legal advice. He gave me these reasons: they are expensive and charge you assessments every year which can be raised at any time (like a condo), but unlike a condo, you can't sell them because nobody wants to buy them. You can't even give them away, so you're stuck with them for the rest of your life. You can't even get rid of them by declaring bankruptcy. This is what I thought. These companies are taking advantage of people who don't have enough information and make them pay for rest of their life.
All the people who attend these presentation are the ones who are trying to save money. I wouldn't say it's a scam exactly so much a high pressure sales. Take a look next time you're at a funeral home or on a used car lot. Essentially the same cast of characters. Unethical but legal. Depends on your definition of scam. May be like you said, it's "unethical but legal". I've heard a little bit about car sales but not much about funeral home. Timeshare as a concept isn't a scam. But pretty much any company you meet selling it is. Collective ownership of a holiday property can be enormously effective. If say 8 people co-own a property, then you have a getaway for a week, or just a weekend/long weekend every couple months. Alas with hard-sell timeshare you don't really own it. (if you did you could just collect all the other shares, and sell it as a house.) In this situation buying forever obligations seems like a bad idea. Yes Any other industry that use similar strategy to signup customer? Absolutely. I thought everyone knew this. There's a market for secondhand timeshares, usually at a fraction of the original price. There are also websites where people sell individual weeks or points they can't use. These make buying a new timeshare seem very foolish to me, since you can have the benefits without the initial outlay.