3400 points every other year contract upgrade option?

[iHammer]

Hello, new TUG member here,
I have the lowest point option offered by HGVC 3400 every other year with 3400 bonus points.
I was contacted by sales to upgrade my membership for $85 per month and approx $1500 down for 3400 EVERY year instead of just even years.
Sales said it was a one time good deal and is spelled out in my contract I signed in June.
What do you experts think?
Thanks in advance!
Bob

 

[RX8]

Odds are it is going to be overpriced but you leave out some important details. $85 per month for how long? Six months at $85 a good deal. Eight-four months at $85 not so much!

 

[iHammer]

It's is $85 for 120 months approx at 11%. I know that rate is bad, would refi.

He quoted that the sale price would be about $7000 and I paid about $11,000 in June.

 

[iHammer]

Ok, so here is another option I guess. Don't take the HGVC offer and just buy another week resale.

But what would that do with having two properties? Would the points stay separate? Could I combine?

Confused.....

 

[Talent312]

Ok, so here is another option I guess. Don't take the HGVC offer and just buy another week resale. But what would that do with having two properties? Would the points stay separate? Could I combine?

Your points would be combined into a single account, but you'd still pay two MF's -- one for each TS. BTW, MF's are determined by size of unit, not points or season... the lower # of BR's + higher the season, the more points per MF$.

Whatever you do, please do not finance your TS, especially if buying retail, direct from HGVC. Not only are you paying way too much for the TS in the first place, but then, adding insult-to-injury, paying interest on the outrageous price.

Actually, a better deal would be to buy a 4800-5000 pkg and then unload the first for whatever you can get, even if pennies per point.

 

[Remy]

Your points would be combined into a single account, but you'd still pay two MF's -- one for each TS. BTW, MF's are determined by size of unit, not points or season... the lower # of BR's + higher the season, the more points per MF$.

Whatever you do, please do not finance your TS, especially if buying retail, direct from HGVC. Not only are you paying way too much for the TS in the first place, but then, adding insult-to-injury, paying interest on the outrageous price.

Actually, a better deal would be to buy a 4800-5000 pkg and then unload the first for whatever you can get, even if penniers per point.

Agreed. Unload the unit you paid way too much for if you can and get a lower MF per point in a Gold 2 bedroom or a Platinum one bedroom. A couple Platinum 1br at the Flamingo went for between $3k and $4k on ebay in the last year, giving one 4,800 points at $740 per year at a very low up-front cost.

Over time the sting of buying direct from HGVC will wear off through taking very inexpensive vacations. Even if you keep the EOY 3400, don't upgrade through HGVC.

 

[iHammer]

Wow selling the 3400 point TS would definitely mean a loss. What is the resale for wk 20 at Parc Solie going for?

Are the two MF a really bad idea?

Thanks for the help.

 

[RX8]

I don't think unloading the June purchase is a real option if you have that financed, which I suspect you do. If that is the case, I would suggest holding off for awhile. Dont spend more money until you have a chance to use what you have and learn as much as you can by reading the posts on TUG. Make sure that HGVC is working for you and you like the locations. If after that you decide you want more points, look for resale only to maximize your value. By that time, you will know exactly what you want/need.

 

[SmithOp]

I agree with rx8, learn to maximize what you have, try open season cash getaways. If you want more points, you can find an eoy to complement what you have, a 7K would be the best bang for mf bucks. That way you move up to paying mf every year.

 

[Aquaman55]

I agree with rx8, learn to maximize what you have, try open season cash getaways. If you want more points, you can find an eoy to complement what you have, a 7K would be the best bang for mf bucks. That way you move up to paying mf every year.

Both RX8 and SmithOp are correct when they point out that selling the unit you bought from HGVC doesn't make financial sense. (You won't get anywhere near the full price...maybe, 1/3 to a 1/4 of it.) If you want to turn what you have into 3400 points annual, buy the next EOY (resale) from a reputable licensed broker, like Seth or Judy. You would get a good price and they can explain how you could best manage both resale and developer points. On paper, your purchases would remain two separate units with two (half-year) MFs.

If my math is correct, HGVC's offer will cost you $10,200 if you pay it over the 120 month term. 3400 EOY re-sales are a lot cheaper than that. In any case, don't unload what you have now. I suggest you wait until you can afford to add to it through resale.

Another thing...so much is said about resale. It's true you save a lot money. However, statistics show that 90% of TS owners buy their first purchase from the developer (like me,) and when they finally understand the system, learn how to manage points, discover the ins and outs of the resale market (like me,) then they start purchasing TS points resale...finally reaching nirvana and enjoying all those beautiful sunsets in their full glory.

 

[iHammer]

Thanks for the help everyone. I think a resale is in my future. I have 3400 plus 3400 bonus points for 6800. Our original plan was to use that for a big nice vacation next year (2013). However, we had such a great time last year we want to do it agin this year.

If I want approx 5000 points next year ready to travel in may 2013, when should I look at purchasing a resale? My current HGVC TS 3400 points would not be available until 2014.

THanks again!

 

[glwrenton]

More points?

You shouldn't look at it that way. If you are going to buy more, buy to get the most bang for your MF buck. You may save a few $ up front by just buying what you will need next year, but you will lose the money on MFs as long as you hold your TS. Sounds like resale, 7,000 EOY might be best for you right now. Truthfully, the best thing for you would be the sale of the 3400 and purchase of the 7,000 resale. Yes, there would be a big loss on the 3400, but that would just be part of the cost of the 7000. Unfortunately, timeshares depreciate worse than Ford Pintos, and the purchase price is long gone. :annoyed:

If you insist on going with Hilton directly (PLEASE DON'T), offer to trade in your 3400 EOY for a 7000 EOY. At least then, you would not pay two MFs.

When you bought, what were they offering 7000 EOY for, as compared to your 3400 EOY? If you can upgrade for that difference or less, say $10,000, then consider it this way. How much is 1 MF, VS 2?

If the difference is, say $1,000, and the cost of a second unit 3400 resale is around $4,000, then the math might look like this.

10,000 to upgrade to 7000 pts - 4,000 for second 3400 unit resale = 6,000 difference.
The $6,000 difference would be offset by the MF savings of $1,000. Since the savings is EOY, it would take 12 years to even out. At least there is a tiny plus to this.

However, if you buy the second 3400 Hilton unit, then, HIGH cost, TWO MFs, NO resale savings. Fool me once, shame on you, fool me twice....

 

[Aquaman55]

You shouldn't look at it that way. If you are going to buy more, buy to get the most bang for your MF buck. You may save a few $ up front by just buying what you will need next year, but you will lose the money on MFs as long as you hold your TS. Sounds like resale, 7,000 EOY might be best for you right now. Truthfully, the best thing for you would be the sale of the 3400 and purchase of the 7,000 resale. Yes, there would be a big loss on the 3400, but that would just be part of the cost of the 7000. Unfortunately, timeshares depreciate worse than Ford Pintos, and the purchase price is long gone. :annoyed:

If you insist on going with Hilton directly (PLEASE DON'T), offer to trade in your 3400 EOY for a 7000 EOY. At least then, you would not pay two MFs.

When you bought, what were they offering 7000 EOY for, as compared to your 3400 EOY? If you can upgrade for that difference or less, say $10,000, then consider it this way. How much is 1 MF, VS 2?

If the difference is, say $1,000, and the cost of a second unit 3400 resale is around $4,000, then the math might look like this.

10,000 to upgrade to 7000 pts - 4,000 for second 3400 unit resale = 6,000 difference.
The $6,000 difference would be offset by the MF savings of $1,000. Since the savings is EOY, it would take 12 years to even out. At least there is a tiny plus to this.

However, if you buy the second 3400 Hilton unit, then, HIGH cost, TWO MFs, NO resale savings. Fool me once, shame on you, fool me twice....

Glwrenton raises a lot of good points. Hammer, it really depends on how much you paid HGVC for the 3400 EOY. (Did you also take out a loan from HGVC for that purchase?) Correct me if I am wrong, but I don't think 3400 EOY's are going for very much, if anything. It all depends on the market. In some cases, owners who can't afford the MFs, are dumping some units for as little as $1. 3400 EOY points are not going to get you and your family a lot of vacation, but a strategic resale purchase, as others suggest, will help you. I am just not convinced that selling your developer purchased unit then buying resale is in your best interests. I suggest you talk this over with a reputable broker like Seth Nock or Judy and explain your situation. Good Luck!

 

[alwysonvac]

Thanks for the help everyone. I think a resale is in my future. I have 3400 plus 3400 bonus points for 6800. Our original plan was to use that for a big nice vacation next year (2013). However, we had such a great time last year we want to do it agin this year.

If I want approx 5000 points next year ready to travel in may 2013, when should I look at purchasing a resale? My current HGVC TS 3400 points would not be available until 2014.

THanks again!

If your next big vacation in May 2013 is trip to Orlando or Vegas, you can easily use open season cash rates since HGVC has three locations in Orlando & Vegas.

 

[alwysonvac]

I don't think unloading the June purchase is a real option if you have that financed, which I suspect you do. If that is the case, I would suggest holding off for awhile. Dont spend more money until you have a chance to use what you have and learn as much as you can by reading the posts on TUG. Make sure that HGVC is working for you and you like the locations. If after that you decide you want more points, look for resale only to maximize your value. By that time, you will know exactly what you want/need.

I agree. There is no need to rush into a decision.
You can buy resale or do a developer upgrade at any time.

 

[barond]

I bought a 2400 EOY at seaworld myself (DIRECT!) while it cost me alot compared to resale I would of never bought a timeshare resale. I considered it my learning fee. I took my 2400 points from last year and next year and traded it through RCI for BLT 2 bedroom and buy open season through HGVC & last minute/extra vacations through RCI. That was actually the reason I got convinced to buy the 2400 EOY was to get the RCI vacations & open season. We actually paid cash to go to hgvc seaworld (open season) (we live 2 hours away), spent two weeks (extra vacation) at gatlinburg town square, (disney world is next week 4800 points via rci), and we're going to massanutten (extra vacation rci) in the summer. We only bought this last may 2011. We will probably go to las vegas in the late summer/fall (open season hgvc). Funny thing was my salesperson owns the exact same timeshare I do and admitted that shortly before we finished signing that was the best deal to do vi hgvc (at least purchasing direct), unless you have a hankering to go to some of the other hgvc that are difficult to purchase open season. Only reason I have thought to buy more points would be to trade through RCI for more time at BLT. I spent $8000 on hgvc 2400 EOY and got 4800 bonus points (going back to disney next year). I figured I will my money back as I used to pay RETAIL for disney timeshares and the room at BLT is $750 a night. I never thought of renting points though. Which will probably be my next disney timeshare vacation (when I run out of points).

Baron

 

[itradehilton]

I agree with others about not upgrading with HGVC as it will coast you more in the long run. IMHO I would look into the resale market if you really are ready to invest in more points. What is done can't be undone at this point but like the previous poster said you can still enjoy extra vacations through open season and RCI last minute deals.