Buying "New" or on Resale better?

[pwrshift]

In a way I'm very happy that I didn't discover TUG until after I bought my first Marriott (of six I now own) direct an took their world trip for 2 (as they called it then). Otherwise, I would have missed out on what I look upon as a tremendous benefit to ownership.

Your 350,000 points are already enough for a wonderful trip...but another 200,000 points will net you a second honeymoon trip business class flights to London for a week AND Paris for a 2nd week ... in hotels that charge as much as $600 a night or more! Add it up on Expedia - business flights aren't cheap and those Category 7 hotels cost so much money in US$ that many won't go right now. That two week trip would probably cost $14,000 or so in cold hard cash ... reducing the 'actual' cost of your TS purchase in a way many 'rescind' people won't take the time to consider. They'll also tell you that getting FF flights to Europe is next to impossible but if you have date flexibility it's not that difficult and will probably get easier (even to Hawaii as the paid air bookings are down 27%) with the current economy.

I replenish the points we use by trading in 2 of my weeks every year for points. To 'earn' those 220,000 points in a year you'd have to stay in 110 Marriott hotel rooms that charge $200 a night!

Because I bought lockoffs I've still got more holiday TS weeks to use than I can use but can add on some very special trips far faster than 'earning' the points by buying groceries. It works for me, and a lot of the more 'silent' but happy direct purchasers.

You really have to look at your present vacation needs as well as your future needs for travel to very special places around the world. Will you always want to go to Orlando, year after year...or will you and your kids grow out of it?

Buying direct gave me such a bank account of points that, as an empty nester, I've now been able to see the world I missed while raising kids as a single father...in a 'style' I find quite luxurious. And my adult kids have the benefit as well - honeymoon trips on MR points including flights, trips to Rome, London, Paris, Aruba - you name it!

This is a personal decision you have to make, but bear in mind 'resale' is the word of the majority on TUG and that may not be what you really want. Different strokes....

Brian

...Got a whole bunch of bonus Marriott Rewards points (around 350,000) for signing up,etc. Reed

 

[m61376]

I think you also need to keep in mind that the landscape is different now than it was a few years ago when many of the happy direct purchasers bought. Some of you racked up half a million points without paying exorbitant interest rates and bought at initial pre-construction pricing, so prices were lower and relative value was higher. It is much harder to sign on the dotted line when you know that what you bought is immediately worth half of what you just paid (and, yes, I know that timeshares aren't an investment, but nevertheless we like to think that they do retain some intrinsic value).

If presented with the options (pricing, incentive points, etc.) that my friends purchased in Aruba for, for example, buying directly would have made sense to me. They didn't pay much more than I did on a resale 3 or 4 years later. BUT- I do think one has to think long and hard about whether trading for points is worth the 10K+ price tag, especially when the cost of points is not only the cost differential, but accompanied by an ever-increasing maintenance fee.

I also think lifestyle plays a part in it- admittedly, traveling first class is something most of us would enjoy, but many of us would not willingly pay for. If that is the only way you'd travel, then the points are necessarily worth a lot more to you.

I do agree that, as posted above, a newcomer should be advised to rescind immediately- not because he/she necessarily made a mistake, but because it is the only way to gain the time to learn the system, explore the options, and then decide what is in their best interests.

 

[KathyPet]

ITA Pwrshift. If I had listened to the overwhelming chorus on TUG I would have bought resale because when we purchased we did have relatively young children and couldn't see into the future. All we thought of was Disney World and the beach every year. We never considered that our kids would not want to come with us on vacation when they grew up and we then we would not need a 2 BR timeshare (unfortunately MMC did not have lock offs when we bought and of course GO and BB are not lock offs). But now the huge accumulation of MR points that we have has allowed us to take trips that we never dreamed of in 1994 when we first bought. All potential purchasers need to think past the next few years with the kids and try to think about how they want to use their units in the future. IF they only see themselves as going to the beach as one large extended family then fine buy resale. For those of us with a little wanderlust in our souls I say Hurruh for my Rewards Points. My point is that the overwhelming chorus on this board plays the same song over and over. Save money! Buy resale! Why pay the developer prices for really nothing? Some do try to point out both side of the story but most do not including postings right on this thread. Well enough said I will retreat back to my little corner and count up my points and plan out my next exotic vacation.

 

[reedl]

Well, Last night I "did the math" with my wife, and the purchase directly from Marriott simply cannot be justified with the high interest rates that they charge. FWIW here are the numbers as to what I initially purchased, and why it simply does not work out:

Marriot Purchase:

Purchase Price: $19300

Amount Paid over 10 years
Deposit: $ 1930
Special Fee to get 110,000
in 2008 for preconstruction: $ 850
10 Years of Maintenance: $ 8500
Amount Financed: $17370
Closing Costs: $ 1800
Finance Charge (@ 14.99%) $18000

So the total amount paid for the first 10 years is: $48450

Now even if I take the around 300,000 marriott rewards points worth at most $5,000, and were to book two week vacations in a real nice hotel, that is less money than $48450.

So after ten years, I still am losing money big time.

20 years is: $56950
30 Years: $65450


The math buying directly from them simply does not work for me.

Now I am looking at a resale timeshare at the same place for around $8500 with closing costs being around $750 I can finance this on one of my credit cards at 0% for 10 months, which means I can pay it off interest free.

Using the same logic as above:

Purchase Price: $8500
10 Years of Maintenance Fees: $8500

10 Years Total: $17,000, but without any marriott rewards points.


I think that saving $48450 - 17000 = $31450 and not getting some marriott rewards points is worth it to me.

Thoughts?

Reed

 

[taffy19]

I think however the advice here is good. In general we should always tell the buyer to rescind. Especially a buyer who purchased on impulse while on vacation. The option is always there to go back to Marriott and buy from them incentives and all. However the option to buy resale only lasts for the rescission period. This is the best option for the uninformed buyer to take the time to do the research needed to make the best decision for them.

So true and my suggestion to you would be to rescind and then take a long breather. Right now, the market is ready for many cheap rentals because flying and driving is getting so expensive. Take advantage of it and see what resort you really like and then buy when prices are starting to rise again. Right now they are going south and certainly for re-sales.

You are lucky you found this forum. Let us know what you decide.

 

[taffy19]

Well, Last night I "did the math" with my wife, and the purchase directly from Marriott simply cannot be justified with the high interest rates that they charge. FWIW here are the numbers as to what I initially purchased, and why it simply does not work out:

Marriot Purchase:

Purchase Price: $19300

Amount Paid over 10 years
Deposit: $ 1930
Special Fee to get 110,000
in 2008 for preconstruction: $ 850
10 Years of Maintenance: $ 8500
Amount Financed: $17370
Closing Costs: $ 1800
Finance Charge (@ 14.99%) $18000

So the total amount paid for the first 10 years is: $48450

Now even if I take the around 300,000 marriott rewards points worth at most $5,000, and were to book two week vacations in a real nice hotel, that is less money than $48450.

So after ten years, I still am losing money big time.

20 years is: $56950
30 Years: $65450


The math buying directly from them simply does not work for me.

Now I am looking at a resale timeshare at the same place for around $8500 with closing costs being around $750 I can finance this on one of my credit cards at 0% for 10 months, which means I can pay it off interest free.

Using the same logic as above:

Purchase Price: $8500
10 Years of Maintenance Fees: $8500

10 Years Total: $17,000, but without any marriott rewards points.


I think that saving $48450 - 17000 = $31450 and not getting some marriott rewards points is worth it to me.

Thoughts?

Reed

When I posted my last message, I hadn't read this yet. Imho, buying a timeshare on payments is not a smart move. You never know what can happen in the future and then you have to give it away, if you even can. There are so many posts about this happening and these people are desperate. Don't do it even if you get a million points or more.

RESCIND now.

 

[McFail]

Consider owning timeshares as tools in your vacation toolbox. Different jobs will require different tools and people will have their favorites.

The key is discovering what your most valuble tool would be and working from there to fill your box. Doesn't mean that you need to start there but coming up with a path should yield better results.

We have many tools in my extended families box and we horse trade to use the right tool. It's much more fun to take a 10 with a jack and keep aces in reserve.

 

[pwrshift]

I must have missed the point you took a 15% loan to buy the TS and never recommend that process as it totally throws the MR points benefit to the wolves. You did the right thing and the financials you worked out was a great learning experience for you. Congrats. Rescind.

Brian

 

[CATBinCO]

This is great advice = don't buy a T/S if you have to finance it (unless you get 0% APR for x months like one of the OP did). It doesn't make sense to finance it for 10 years!

I appreciate all these posts, really something to consider, BOTH points of view (buying direct vs. resale). This board rocks!

 

[KathyPet]

Financing Bad! No matter whether you buy thru Marriott or resale. However you cannot include the cost of financing in the calculation if you purchase through Marriott to jack up the final cost of owning through Marriott and then not include the cost of financing in your resale calculations. You have to compare apples to apples and financing one and paying cash for another does not compare apples to apples.

 

[CatLovers]

However you cannot include the cost of financing in the calculation if you purchase through Marriott to jack up the final cost of owning through Marriott and then not include the cost of financing in your resale calculations. You have to compare apples to apples and financing one and paying cash for another does not compare apples to apples.

Look again. The OP is comparing the cost of his financing (0% over 10 months on one of his credit cards) in making his decision. But then ... even without financing, it was a no-brainer for me - buy resale! While there are several people on this board who have found value in buying directly from the developer, it's never made sense for me. Glad to see you got there on your own, Reed.