The timeshare industry is huge. Worth $10.2 Billion and with 9.6 million US households owning at least one type of timeshare product (weeks, points, etc.), the business is booming. But even though it seems that everyone knows someone who owns—or is planning to purchase—a timeshare, buyer’s remorse is common.
A University of Central Florida study found that roughly 85 percent of timeshare owners regret signing on the dotted line. We see more and more folks trying to find a way to end their timeshare contracts. Timeshare elimination is possible, but it takes strategic effort. Here we’ll explore the trends in timeshare elimination and what timeshare owners are doing to unburden themselves of their timeshare.
Timeshare elimination is the process one goes through to legally get out from under their timeshare. Trying to cancel through the resort is almost impossible. Contracts are strategically worded so that once you buy, you’re essentially locked in for life—and beyond. Yes, your heirs are responsible for paying your annual fees once you’re gone.
There are innumerable reasons why someone might be working toward timeshare elimination: rising cost of fees, health issues, change in financial circumstances, and more. Regardless of the reason, timeshare elimination shouldn’t be an acrobatic feat, though, for many, it feels that way. So how do you get out of your timeshare? There are several industry trends that we see in the timeshare industry that we’ll explore below.
One of the shocking trends in timeshare elimination or cancellation is its prevalence. The average rate of timeshare rescission is 15 percent. This mirrors the daily percentage of people who buy a timeshare after they attend a sales presentation. Essentially, trying to get out of a timeshare is as common as buying one!
These stats show that they feel remorse before timeshare owners have even had the opportunity to enjoy their purchase. These numbers also suggest that sales presentations don’t offer all of the information buyers want or need before they’re pressured to sign a contract with a resort or timeshare developer. With the vast majority of buyers regretting their purchase, many people are looking for a way out of their timeshare purchases every year.
With the average age of timeshare owners settling in at 44 and over one-tenth of owners bringing in over $100K per year, the notion of owning a timeshare appeals to an older demographic.
However, it’s also true that millennials—those between the ages of 23 and 39—contribute a considerable percentage to the vacation lodging and hospitality industry. And because the timeshare industry statistically doesn’t serve this demographic, they’re looking elsewhere for lodging options. Airbnb, VRBO, and other sites that allow you to rent out rooms and homes are the preferred option for many looking at vacation destinations. For the younger generations, timeshares aren’t even a consideration.
But for those groups of people who are targeted for timeshare purchases, timeshare elimination statistically remains at the forefront of their minds, as we’ve shown.
3. Litigate Your Way Out
Now that the vast numbers of unhappy timeshare owners are clear, how do these numbers affect the trends of timeshare elimination? One way we see cancellations happening is through an attorney, legal expert, or timeshare advisor.
Though it shouldn’t take a lawyer to free someone from their timeshare, most of the time, this is exactly how more and more people are handling their timeshare elimination. Hiring a legal expert for any reason is costly, and timeshare companies have a reputation for drawing out the elimination process. But at the end of the day, litigating their way out of a contract is the safest way to make sure a timeshare owner is freeing himself or herself—and their kids, and their kids, and so on—from timeshare ownership.
4. Cheap Resell Prices
If someone is trying to execute timeshare elimination on their own, they might opt for the reselling route. That is, selling a timeshare to a willing buyer. Unfortunately, by choosing this path, the owner will be out quite a lot of money. It’s not uncommon to find timeshares on sites going for as little as $1.
People are doing everything they can to get out from under their timeshares, including absorbing thousands and thousands of dollars worth of loss in order to avoid paying thousands more in the years to come. On top of that, timeshare owners often opt to pay closing costs or transfer fees to sweeten the deal for prospective buyers.
Timeshare cancellation companies are one of the more convenient and safe ways that owners can get out from under an unwanted timeshare purchase. These companies know the ins and outs of the timeshare industry and binding contracts, which is why they serve as valuable customer resources.
Cancellation services help timeshare owners get out of their contracts by handling the legal side of things, so the customer doesn’t have to deal with outrageous monthly payments to a developer or resort.
With all of the stats about timeshare elimination and its cost, it’s no surprise that unhappy timeshare owners are looking for affordable ways out. An increasingly common service offered by timeshare cancellation companies is timeshare relief financing.
When folks want out of their timeshare, they’re usually stressed and desperate to cancel their contract. Timeshare cancellation companies can offer consumer financing for their laborious and arduous services to help ease the burden of getting out.
Many timeshare owners want to sell or cancel their contracts because of financial reasons. If money is tight, then hiring a timeshare cancellation service could be challenging. Financing allows a company’s client to use an affordable, realistic monthly payment plan for their service. This is probably the most positive trend in timeshare elimination because it allows the customer to easily and conveniently have a cancellation company take care of the red tape and paperwork for them, make low monthly payments for a set period, and they don’t have their unwanted timeshare hanging over their head!
The timeshare industry is seeing its ups and downs. Even with thousands of households in the United States investing in a timeshare, there are still so many owners who are looking at different timeshare elimination options. Whether someone tries to eliminate ownership independently, through an agency, or through an attorney, the bottom line is that timeshare elimination services are a real need. By knowing the trends of timeshare cancellation, business and timeshare owners alike can know how to navigate the industry legally and confidently.