If you don't like the car analogy, then try an analogy with two comparable housing subdivisions located next to each other, but where one developer puts in a ROFR program that tries to drive prices 20% higher than in the neighboring subdivision. There will be houses in the ROFR subdivision tat sit unsold because the buyers will all buy in the adjacent subdivision where they can find comparable houses for less than in the ROFR subdivision.
I dont think any of these analogy's work.
The houses will sit unsold if the developer is no longer selling any homes higher than those prices. If the developer is still active in sales and someone can walk out the door.. drive down the neighborhood and see the exact house they want for 50% less than the contract they signed.. They will buy it, even if its priced 20% more than another subdivision.
This happens with Hilton all the time. I've been tracking Hilton sales for almost 2 years.
2 years ago, they did not excercise ROFR. I bought 4800 points on ebay for $6000
Soon after Hilton started buying any contracts less than $6500
Recently I sold my 4800 points, Hilton took it at $7600
Buyers are now having to pay around $8K and these are typically people that come out of the presentation and either recind or they love the program but didn't want to spend $18K. So they feel they are getting a bargain.
Can people buy another timeshare in Vegas.. sure.. but its not the excact one they want. Its not the system they want.
Hilton will typically let you know within 7 days if they are taking the week.
Transfering of timeshares takes a few months, what's an extra week or two.
I agree it does hurt the buyer, they can't buy the weeks as cheap as they'd like. I just don't see how it hurts the seller. Its not going to sit unsold. You can still price it as low as you want and you'll get that price.
If Hilton was taking all 4800 points at or below $7K, but all the buyers are only willing to pay $6K. Then I can still sell it at $6K. Market price. A buyer would come along, Hilton would take it and I'd get my asking price. I'd rather sell to Hilton. I get the $$ much quicker that way. Some buyers are very slow. Seller can still find buyers if they are desperate, but it will be at market price, not at ROFR price. Same as if there was no ROFR.
It does seem funny that all the Hiltons I have seen sold in the past 2 years , either to Hilton or to private parties have been much higher than they were 2 years ago. Its a direct correlation to Hiltons ROFR.
I'd rather have Hilton buy it from me.