# Why does Wyndham offer Certified Exit?



## VAlegacy (Jan 5, 2021)

Especially limited Edition.
I am buying from a seller who was flabbergasted to hear about the exit program.  They have 2 contracts and will use the limited edition offered to them once the first is transferred.
It seems like a bad business idea, to give owners 3 years of free use on contracts that sell for next to nothing resale.  
Why not just gobble up all the cheap resale contracts?  Or is the idea to lower supply by having owners give back instead of selling, thus driving up demand. 
I find it hard to believe it's a gesture of good will.


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## Eric B (Jan 5, 2021)

Most of the cheap resale ones on the market are from brokers for postcard companies that charge folks up front fees to sell their contracts.  Cutting them off helps out customer-relations-wise and eliminates the higher transfer costs brokers charge that paid their bottom line.


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## bnoble (Jan 5, 2021)

Eric B said:


> Most of the cheap resale ones on the market are from brokers for postcard companies that charge folks up front fees to sell their contracts.


What's more, some of those brokers place the deeds in "viking ship" companies that never pay any of the maintenance fees, and later have to be foreclosed---expensive for Wyndham, and expensive for other owners. The most unscrupulous don't even transfer the deed out of the owner's name but allow the owner to think they have.

Ultimately, Wyndham views this as a less-expensive way to recycle inventory that would otherwise be non-performing.


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## HitchHiker71 (Jan 5, 2021)

Limited Edition is not a gesture of goodwill per se. Its an incentive to the originating contract owner who purchased at developer prices to “get something for nothing” for three years, which no other resale company can compete with.  In the process, Wyndham takes the surrendered inventory and recycles it at developer prices via their sales and marketing division. 

While the original contract owner doesn’t get a check by using Certified Exit, they get three years worth of MFs for no cost, which is somewhat substantial when you think about it. Certainly more than most folks would ever get on the resale market in comparison. 

Lastly, Wyndham definitely also acquires a fair amount of resale inventory via third party transactions. They have standing acquisition agreements with various resale companies. Many on TUG who have sold their contracts to third parties have noticed that the entity acquiring the resale contract through their resale company is associated with Wyndham. 


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## dgalati (Jan 5, 2021)

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## dgalati (Jan 6, 2021)

HitchHiker71 said:


> Limited Edition is not a gesture of goodwill per se. Its an incentive to the originating contract owner who purchased at developer prices to “get something for nothing” for three years, which no other resale company can compete with.  In the process, Wyndham takes the surrendered inventory and recycles it at developer prices via their sales and marketing division.
> 
> While the original contract owner doesn’t get a check by using Certified Exit, they get three years worth of MFs for no cost, which is somewhat substantial when you think about it. Certainly more than most folks would ever get on the resale market in comparison.
> 
> ...


It is a way for Wyndham to pickup cheap inventory to sell over and over again. It is a business model many companies envy. I can also add the transfer time on the third party sales only takes 4-5 weeks from time of signing purchase agreement to Wyndham transferring internally. This transfer time of 4-5 weeks was when private sales transfers were at 16 weeks from time Wyndham received all paper work and fees for transfer. Some believed this never happened but Wyndham is the biggest  buyer of resale deeds. They also will eliminate all competitors as they make the rules. Most mega-renters will see how this works when they are squeezed out with new policy or elimination of privileges.IMHO  Resale points used with VIP benefits will eventually be squeezed out to eliminate competition to extra holidays.


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## TUGBrian (Jan 7, 2021)

a better question is why do other developers NOT offer the same program.


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## bnoble (Jan 7, 2021)

TUGBrian said:


> a better question is why do other developers NOT offer the same program.


One answer to that question might be that they do not have the equivalent of Club Wyndham Access. That allows Wyndham to blend deeds at older resorts that are not in active sales and/or are underwater with respect to rental values with a larger pool. For example, some resorts are highly seasonal, and deeds for off-season weeks have negative value---the annual fees are above prevailing rental rates. If you don't have a way of converting that to something that has value, you'd be a fool to take it back,


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## Crafty71 (Jan 13, 2021)

And also let's not forget that the owners get 3 years, but with limitations (such as no guest certificates) so like most "rewards" or "benefits", most people will not use everything they are entitled to...not unlike most "loyalty" programs where people spend more to acquire "points" (or some such thing) and then never get value out of their points...

I don't sign up for many "loyalty" programs, but when I do, I make sure I understand it and get maximum value from it.

Cheers!


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## Timeshare Von (Jan 27, 2021)

After hearing about this program in Nashville a couple of weekends ago, and feeling like "it's too good to be true" . . . I'm leaning towards doing this myself. I'm fortunate that my 77k points contract in Myrtle Beach qualifies.  I need to find a way to use my 2021 ownership, however, before starting the process.


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## dcdowden (Jan 29, 2021)

When you get to the stage of life where you may want to get rid of your timeshare, you may not be able to use three years of points anymore. Since Wyndham does not allow the use of guest certificates with those points anymore, there is a good chance that they will just not be used.  Obviously, they didn't want competition in the rental market with those points.


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## troy12n (Jan 29, 2021)

I'm likely decades away from leveraging this, if it still exists, but a question. 

Say you own multiple contracts, and want to hand in one, or two of them through Ovations/Certified Exit, are you allowed to do this, or do you have to have to turn them all in and completely exit. 

I can foresee scaling down travel at some point, and would like to know if I can liquidate some of them and ditch the maintenance fees in the future.


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## chapjim (Jan 29, 2021)

Wyndham does not require you to turn in everything.  They might not take everything, either.  Their game, their ball.

A related question is do you have to cancel all reservations or just enough of them to free up the points for the contract(s) being turned in.  I don't know -- I haven't asked and don't recall having seen it addressed on the forum.


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## chapjim (Jan 29, 2021)

HitchHiker71 said:


> Limited Edition is not a gesture of goodwill per se. Its an incentive to the originating contract owner who purchased at developer prices to “get something for nothing” for three years, which no other resale company can compete with.  In the process, Wyndham takes the surrendered inventory and recycles it at developer prices via their sales and marketing division.
> 
> While the original contract owner doesn’t get a check by using Certified Exit, they get three years worth of MFs for no cost, which is somewhat substantial when you think about it. Certainly more than most folks would ever get on the resale market in comparison.
> 
> ...



Good point!  This is a sound business decision on the part of Wyndham.  Nothing altruistic about it although they spin it that way.


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## dgalati (Jan 29, 2021)

HitchHiker71 said:


> Limited Edition is not a gesture of goodwill per se. Its an incentive to the originating contract owner who purchased at developer prices to “get something for nothing” for three years, which no other resale company can compete with.  In the process, Wyndham takes the surrendered inventory and recycles it at developer prices via their sales and marketing division.
> 
> While the original contract owner doesn’t get a check by using Certified Exit, they get three years worth of MFs for no cost, which is somewhat substantial when you think about it. Certainly more than most folks would ever get on the resale market in comparison.
> 
> ...


I sold deeds to Wyndham's preferred resale broker Timeshare Broker Associates. They disclosed the broker had a personal interest as a buyer. Sharetime holdings was the buyer and they paid all closing costs and commissions to Timeshare Broker associates. Ownership transferred from me to Sharetime Holdings then 2-3 hours later it was transferred from Sharetime to Wyndham. 4-5 weeks total time from signing purchase agreement to transfer. A very fast and easy transfer I would highly recommend using them before trying to give back to Wyndham for free. I tried to give this ownership to Ovations but they would not take it because I did not own for 1 year?


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## tschwa2 (Jan 29, 2021)

chapjim said:


> Wyndham does not require you to turn in everything.  They might not take everything, either.  Their game, their ball.


I think these days if you do limited edition, you have to turn over everything that they will take.  Even if they will only give you limited edition for some contracts and not all, you have to give back without points use in order to get the points use for free for eligible contracts.  You also have to agree not to buy again.  For regular old give back, I think you can pick and choose just as they can pick and choose and I don't believe they sign anything saying you won't be re-upping with retail or resale contracts.


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## HitchHiker71 (Jan 29, 2021)

tschwa2 said:


> I think these days if you do limited edition, you have to turn over everything that they will take. Even if they will only give you limited edition for some contracts and not all, you have to give back without points use in order to get the points use for free for eligible contracts. You also have to agree not to buy again. For regular old give back, I think you can pick and choose just as they can pick and choose and I don't believe they sign anything saying you won't be re-upping with retail or resale contracts.



This is my understanding as well. Limited Edition is only available for developer purchased points (with no wyndam loans owed), and you must fully surrender the entirety of your timeshare contracts to Wyndham. If you own both retail and resale contracts, I believe you will only receive Limited Edition benefits on the retail contracts. 

I know several folks who have used Certified Exit (Ovations previously) to hand back resale contracts or a subset of their contract ownerships without any issues - provided the contracts in question were eligible of course. 


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## chapjim (Jan 29, 2021)

tschwa2 said:


> I think these days if you do limited edition, you have to turn over everything that they will take.  Even if they will only give you limited edition for some contracts and not all, you have to give back without points use in order to get the points use for free for eligible contracts.  You also have to agree not to buy again.  For regular old give back, I think you can pick and choose just as they can pick and choose and I don't believe they sign anything saying you won't be re-upping with retail or resale contracts.



It makes sense that they would do it that way.  You want the goodies, you have to get out of the game entirely.  And stay out!


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## dgalati (Jan 29, 2021)

chapjim said:


> It makes sense that they would do it that way.  You want the goodies, you have to get out of the game entirely.  And stay out!


So if you flip deeds like Wyndham  it sounds like they dont want you to be competition to them in the future?


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## troy12n (Jan 29, 2021)

HitchHiker71 said:


> This is my understanding as well. Limited Edition is only available for developer purchased points (with no wyndam loans owed), and you must fully surrender the entirety of your timeshare contracts to Wyndham. If you own both retail and resale contracts, I believe you will only receive Limited Edition benefits on the retail contracts.



I had heard, and assumed that they would just give you the "limited editions" thing with 3 years use for developer points. I wouldn't expect that they would for resale.

My concern is later in life, if I had picked up some resale contracts and just don't need the points anymore, it would be handy to offload a chunk of those retail contracts. Considering they would likely be worthless on the retail market. Also, in a situation like if you had resale CWA, I couldn't foresee any circumstance where they would refuse to take those back... I guess worst case scenario you could offload them on ebay. I just figured turning them back into Wyndham would be less work / headache and they would probably pay the closing costs.


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## HitchHiker71 (Jan 29, 2021)

troy12n said:


> I had heard, and assumed that they would just give you the "limited editions" thing with 3 years use for developer points. I wouldn't expect that they would for resale.
> 
> My concern is later in life, if I had picked up some resale contracts and just don't need the points anymore, it would be handy to offload a chunk of those retail contracts. Considering they would likely be worthless on the retail market. Also, in a situation like if you had resale CWA, I couldn't foresee any circumstance where they would refuse to take those back... I guess worst case scenario you could offload them on ebay. I just figured turning them back into Wyndham would be less work / headache and they would probably pay the closing costs.



You can still hand in eligible retail contracts via Certified Exit while holding onto other existing retail or resale contracts, you just won’t be eligible for the Limited Edition benefits. 


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## troy12n (Jan 29, 2021)

HitchHiker71 said:


> You can still hand in eligible retail contracts via Certified Exit while holding onto other existing retail or resale contracts, you just won’t be eligible for the Limited Edition benefits.



What I was thinking about was the other way around, turn in the resale initially, then the retail contracts last, and utilize the LE benefits at that point


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## dgalati (Feb 3, 2021)

troy12n said:


> I had heard, and assumed that they would just give you the "limited editions" thing with 3 years use for developer points. I wouldn't expect that they would for resale.
> 
> My concern is later in life, if I had picked up some resale contracts and just don't need the points anymore, it would be handy to offload a chunk of those retail contracts. Considering they would likely be worthless on the retail market. Also, in a situation like if you had resale CWA, I couldn't foresee any circumstance where they would refuse to take those back... I guess worst case scenario you could offload them on ebay. I just figured turning them back into Wyndham would be less work / headache and they would probably pay the closing costs.


Unless you are a agent of Wyndham and believe otherwise You are correct in saying "they would likely be worthless". Especially when Wyndham sets the resale price at $0 when exiting with Ovations. Using Ovations takes about 4-5 weeks and  there is no cost for closing and resort transfer fees.


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