Advantages/Disadvantages of a Pay upon Use Timeshare

[nsstampqueen]

What would the advantages and disadvantages be to a timeshare that is EOY odd float week only pay upon use with an award week available on even years.

I am looking at one that would be free to me - seller will pay all costs (which aren't much to be honest). I am told it is deeded but haven't seen the paperwork yet. The MF is quite low as well $584 per week when used.

I just wonder why a resort would offer pay upon use timeshares? Isn't that defeating the purpose of a timeshare? I know this particular resort has many different options that it has sold - fractional, deeded and RTU, but didn't realize they had pay upon use only ones.

Are there big disadvantages to this?

 

[Gophesjo]

Not knowing the specifics of the resort in question, I would applaud an HOA that decided to offer unsold/foreclosed/open weeks to owners willing to pay the MF's for their use. Its like an HOA that rents out such weeks to provide income to meet budget expenses, but better, as the 'renters' in this pay for use scenario already have a vested interest in the success of the property.

I have booked off season owner bonus time at one of the resorts I own this summer, and consider that in doing so, I am helping myself to keep MF's low next year.

 

[nsstampqueen]

That's a great way of looking at it and perhaps that is exactly what is happening in this case. The resort is in Mexico. This particular ownership was purchased in 2009 - right at the end of ownership for the original group. It was taken over in 2010 and in 2011 started to get much better in terms of facilities, amenities, etc. They have added on, renovated, updated, and more.

Perhaps what happened was original ownerships were sold as fractionals, then they added RTU's to get more people to buy, then at the last minute they added these deeded pay upon use ownerships to get even more money out of people when they realized that they were running really low occupancy most of the year.

I will be interested to see the deed and other paperwork (if there is any) and what it says. I never thought about it in terms of if you are using and paying for an award week - it's a week that has fees covered and doesn't cost others more MF.

Thanks for the input!