Is It Better to Buy a Timeshare New or Used?

Deciding to buy a timeshare is only the first step. Next, you must decide whether you prefer to purchase one new or used. Both options have positives and negatives, so you should do your research well in advance to ensure that you make the right decision.

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If you want to be able to enjoy a fun, exotic vacation with the comforts of home but without breaking the bank paying for real estate at a popular travel destination, then a timeshare could be the perfect option for you and your family. A timeshare is a property that you have the right to use for a specific predetermined amount of time each year. Whether you choose to use your available time or not, during other times of year, other people who have paid into the timeshare get to spend their vacation at that same property. They are sharing the property with you, but are never there at the same time. For this reason, timeshares can be a real bargain.

If you are interested in buying a timeshare, one of the first decisions you must make is whether you prefer a brand new property or one that has been previously owned. You can buy timeshares either new from a developer, or used from a previous owner or a third party middleman. There are benefits and detriments to keep in mind in both cases.

A new timeshare is one that you purchase directly from a timeshare resort. You can either sit through a lengthy sales pitch about timeshares to learn more about what the resort you are looking at features in their timeshares and what they are willing to offer you, or you can do you research in advance and simply begin the process of buying a property. When you buy a new timeshare, the resort that is selling the time at the property is likely to give you some free gifts in exchange for your time at the sales presentation. Tickets to local plays, museums, theme parks or other activities are all fairly common perks. Of course, you will have the benefit of the contracted guarantee of the resort, as well.

Buying new is not without its downsides, however. Most significantly, you will almost always pay significantly more money for a new timeshare, generally upwards of a few thousand dollars more. For this reason, another option is to buy a used timeshare through a real estate broker or other third party. This option is usually significantly cheaper and comes without a lengthy sales pitch, but you will also miss out on free gifts and may not have any protection afforded to you by a contract with the resort. However, the lower price makes it a much more reasonable option for many people.

Whether you buy a timeshare used or new, it is best to weigh your options carefully and decide what you really want to see in your purchase. Be discerning about the features you are looking for and the quality of the property. Do not settle for something that almost meets your needs; keep looking until you find the property that truly works for you. There are too many timeshares and too many people eager to sell them for you to settle for anything less than what you want, whether it be new or used.

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Boris Razmiki

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Discussion

One response to "Is It Better to Buy a Timeshare New or Used?". Comments are closed for this post.
  • Sandra Gaskill says:

    I have lots of experience with buying timeshares both from the developer and through resale. I bought 7 of 8 that were deeds and 1 in Mexico that is a time-limited trust for US owners. After buying our first 2 from developers, getting lotsof great gifts, we found out about resales. This was quite an eye-opener as we bought through a licensed realtor in Hawaii. We asked him how much the owner would get of the price we paid and he said “the RE commission here is 50% of the sales price, but you are getting it way below the developer’s price because the development is sold out. The developer sells you a product with 50% of the price being used for marketing so if you re-sold at any time, you would start your selling price at 50% of the original as that is really the market for the resale.” .We never forgot what he told us and bought resales from that time on, with only 1 exception but we bargained for that one. We sold 3 of our weeks in 2009, paid 50% commission for 1 and 30% for the other 2 and they were all in Hawaii. For the 1 we purchased from the developer, we had to pay the high commission to sell it and our net was about 13% of the purchase price, however, we had the use of it for 10 years and got our original gift of “travel points” which we are still using for airlines, hotels, etc.