Every so often I receive a question from a reader asking how to get rid of a timeshare. Sometimes they ask for themselves; other times they are trying to help a friend or family member.
The truth is, timeshares are rarely as wonderful as the salesperson makes them sound. They’re costly, you probably won’t use them as much as you expect, resale values are extremely low, and there are other hidden downsides.
If you’re thinking about buying a timeshare or you already own one and want to know how to get rid of it, this article is for you.
Many adults have attended a timeshare presentation—and even more have been invited to attend one. Presentations usually include an incentive if you stay through the entire pitch, such as a free vacation, an iPad, a cruise, or another attractive offer. That’s how they get your attention.
All you have to do is listen to the presentation and collect your gift. Sounds simple enough, right?
But after sitting through the presentation and hearing the salesperson describe all the “benefits” of owning a timeshare, you may find yourself intrigued.
Even if you told yourself you wouldn’t buy anything, salespeople are trained to close the deal. It can be hard to resist what seems like a great opportunity.
Many people can’t say no in those situations, which is why roughly 10 million households in the United States own a timeshare.
I was surprised by how large the timeshare industry is. From where I stand, the negatives I’ll outline here often outweigh the positives. I’ve heard many stories of people regretting their purchase.
One issue is that timeshares come in different forms—some you pay for but don’t actually own. Those non-deeded options fall into two common types:
- Right-to-use systems – You sign a lease for a set term, typically 20 to 99 years, giving you the right to use the property during that term. If you never truly own it, selling becomes difficult.
- Points-based systems – You buy points each year that can be redeemed to reserve stays at various properties owned by the timeshare company. Some systems let you “bank” unused points for future use.
There are also deeded timeshares, where you share ownership of the property with others. These commonly follow two formats:
- Fixed-week system – You get the same week every year. That requires you to be available during that week each year.
- Floating-week system – You choose which week you want each year within certain rules. This can lead to competition for popular weeks or seasons.
Lately I’ve noticed more people buying timeshares; readers, members of my Facebook group, and friends have mentioned them. At the same time, I’ve seen an uptick in questions about how to get rid of a timeshare.
For example, someone I know spent $15,000 on a timeshare. I’ve heard of people who used student loans to buy multiple timeshares. I once saw a Facebook post where someone tried to sell their timeshare for $1—no offers yet—hoping friends would share the post as a last resort.
I don’t want to dismiss every timeshare outright—there are likely cases where ownership works well for someone who will use it regularly and understands the costs. However, I’ve rarely met someone who remained happy with their timeshare years later. Most stories I hear are cautionary.
With that in mind, here are five reasons to avoid buying a timeshare.
Below are 5 reasons not to buy a timeshare.
1. Timeshares are expensive from day one.
Timeshares carry a high price tag up front. Many buyers cite cost as their primary concern, and that’s not just the initial purchase price.
Many buyers finance their timeshares, which means interest over the life of the loan can multiply the total cost two or three times. Upfront costs include the purchase price, closing fees, and any loan interest you’ll pay.
According to the American Resort Development Association, the average price for a one-week timeshare is about $21,455, with average annual maintenance fees around $1,000 on top of that. Those are significant numbers and a major reason people seek ways to get rid of timeshares.
2. Timeshares have expensive annual maintenance fees.
Owners must pay annual maintenance fees for as long as they hold the timeshare. These fees cover operating costs for the resort—property upkeep, landscaping, utilities, staff, and funds for repairs and upgrades.
While average maintenance fees hover around $1,000 per year, many properties charge more, and some exceed $2,000 annually. You owe these fees whether or not you use the property. Miss payments and the resort may start collections efforts, potentially harming your credit.
Maintenance fees can also increase over time, sometimes faster than inflation, and there’s typically no cap on how much the resort can raise them. That rising cost is a major driver behind owners wanting to exit their timeshares.
3. Timeshares are near impossible to sell.
If you want out because of high maintenance fees, loan payments, or simply lack of use, selling a timeshare is often difficult. Timeshares don’t appreciate like traditional real estate; they tend to have low resale values.
It’s common to find timeshares listed for $1 online. If they were truly a great value, why would sellers be desperate to offload them so cheaply? Rising maintenance fees and unpredictable costs turn many owners into motivated sellers.
Because so many owners struggle to sell, a market of exit companies has sprung up online claiming to help. Unfortunately, many of these companies are scams, adding another risk for owners trying to escape their obligations.
4. You may not use the timeshare as much as you think.
When you buy a timeshare, you usually assume you’ll use it every year. In reality, life changes—income fluctuations, emergencies, or a desire to travel elsewhere can keep you from using your week.
Even during unused years, annual maintenance fees still apply. Every year you don’t use the property is money spent with no return. There are often better ways to invest that money.
5. You have plenty of other vacation options.
Timeshare salespeople often present ownership as a way to save money on vacations, but shelling out $20,000 or more for a single week each year rarely makes sense. You may have trouble securing desirable weeks, and maintenance fees add ongoing expense.
There are many affordable alternatives: shop around for the best hotel and flight deals, use credit card rewards, travel in the off-season, bundle travel products, and more. You can likely finance yearly vacations for far less than the combined cost of purchasing and maintaining a timeshare.
If you want the “timeshare feel” without ownership costs, consider renting a timeshare week from an owner for a fraction of the owner’s ongoing expense. Rentals can often be found for a few hundred dollars per week while the owner continues to pay yearly maintenance fees that may be two or three times higher.
Have you ever attended a timeshare presentation? What are your thoughts on timeshares?