New members - did we make the right decision?

[Hfnole]

My wife and I purchased an HGV membership today. We purchased 3,400 points every other year (EOY) with a $700 MF for about $16k. We also received 10k bonus points with the purchase

After reading some consumer reports and forum posts, my wife and I are concerned that we made a bad decision.
Our concerns center around:
exiting/reselling - if we come into financial hardship or are children inherit the membership and do not want it, can they get out of it? Are their fees for terminating the membership? I did see you can resell it but would have to pay some fees and that HGVC would have Right of first refusal.
availability at other HGVC resorts - our home property is a Vegas resort, we will most probably never want to stay there. We predominantly want to use our points to stay in their ski properties during ski season (Sunrise, Valdora). Will it be impossible to book at these resorts during ski season? Is it easy to use our points at non-home properties?

My wife is pregnant now and we are trying to purchase our first home now so I want to make sure we are making the right decision. We have 5 days to cancel the contract according to the contact.
Also, it appears to me that we could get a much better deal through the resale market. I look forward to hearing everyone’s experience and opinion on the program.

 

[Hfnole]

After spending some additional time reading other similar posts, I see that rescinding my contract with the developer and then purchasing a membership from the resale market is the best option for us.

I do have one question about rescinding that I did not see answered anywhere, I am still in the area (Park City) of where I purchased the membership, and it states that I can hand deliver it to a local address. Should I hand deliver it or should I mail it via certified mail?

 

[Zenichiro]

Rescind. Read your contract and follow it to the letter. It should tell you how to mail it and how much time you have to mail it certified USPS usually.

We purchased from a resort in Orlando and rescinded when we got home but we had 10 days. Not sure what you may have. It could be less in Las Vegas or Utah.

I’m currently purchasing 5000 points for $1,900 plus closing. It comes with 15,000 points and 980 MF fees per year.

 

[GT75]

Rescind, Research, Resale. Definitely rescind that contract. Besides you can get resales for much cheaper, It doesn't have enough points for your growing family and you will never be able to sell that contract (might even need to pay someone to take it off your hands).

The general wisdom is NOT to enter back into the sales off because they will try to talk you out of it and you have no proof. The best way is to follow the instructions exactly with a certified letter to address in the packet.

@Grammarhero

 

[Talent312]

Rescinding is absolutely the correct decision. The price is absurd.

(1) Certified mail, return receipt, provides proof of delivery by a 3rd party.

(2) No one in Park City processes rescissions. A notice delivered there may "disappear."
-- One poster reported that a sales office in Hawaii claimed they never got it.

(3) Sales-weasels do not process rescissions. They will just try to change your mind.
-- Do not call them, and do not take a call.
__________________________
If you want to buy HGVC - it is generally a fine, flexible, consumer-friendly system -
buy resale on the secondary market. There are many sources: The marketplace here,
Redweek, Ebay, and brokers who specialize in timeshares.
.

 

[Iggyearl]

Everyone above is right. Your salesman deserves all the credit in the world for hitting all the right buttons. But, imagine mixing the finances of a new baby, a new house, and a "new" timeshare. Once the rescission period is up, you own it, and it's part of your budget. Best to back up and restart - with just the house and the new child. Did you know you can rent timeshares? A good way to try a system and see if you like the concept. No obligation. We have a 3 y/o grandson, and I can't imagine him on a vacation at 1 or 2 years old. Step back, started studying here, and let things settle for the next year or two. And congratulations on the little one.

 

[brp]

Definitely rescind. I differ from above opinions in that I would walk it to the office and get a written acknowledgement of receipt. But I also know that, once I've made up my mind, they;re unlikely to re-sell me, and I would rely on the written acknowledgement. But the approach others have indicated is certainly very sound as well.

Cheers.

 

[elaine]

rescind and make sure to mail rescission letter (certified, receipt requested) to address listed in your materials. then, also mail (receipt requested) or UPS back any folders, binders, CDs, etc. in a separate package. HGVC is a good system, but you can buy resale, as others have said. Also, IMHO, you should wait until you've purchased a house and figured out finances before committing to any large purchase. If you want a prime ski week, you might be better owning there as home resort. Most say you need at solid 5,000 HGVC points. Many also advise against EOY--read on TUG further before you repurchase.
It's fine to ALSO drop off a copy at Park City office (and get someone to give a receipt that they got it). But, DO NOT, for any reason sign anything or talk to anyone there. Sometimes, TS sales offices "convert" your purchase to something else, which can negate the rescission--I'm referring to TS in general, not HGVC specifically. I'd hope HGVC would just accept the letter. But definitely mail per above in addition. Good luck. Elaine

 

[Karen G]

Definitely take the great advice in the posts above, especially given your situation with a new baby on the way and wanting to buy a house. I'd recommend NOT hand-delivering your rescission letter. Get yourself to the post office this morning and send your letter by certified mail exactly as described in your contract.

Take your time and continue to read all you can here on TUG. Maybe wait to buy a timeshare (resale, of course) until you've bought your house and had your baby. You have quite a lot of great things happening right now! You might even want to rent from an owner a few times and try out some timeshares to see what you like and what fits your family's needs. There's no big reason to rush into buying something now.

 

[Fredflintstone]

Everyone here is right. Although I like timeshares, I prefer renting. Think of it this way. With timeshare ownership, you are locked in to ever-growing maintenance fees. You pay regardless of whether you can afford to travel or not. Plus, you receive membership, exchange fees, etc.

I have been successful on renting awesome timeshares at a fraction of the ownership costs. Check out TUG, redweek, hot wire, etc. With renting, you get your preferred location and benefit from owners competing to unload their weeks because that's what owners have to do. They eat the expenses and they are responsible for trying to rent out their units. Yes, one can bank their week for 2 years, but I prefer to keep my money in the bank and travel when I can.

Today’s economy is uncertain, travel is uncertain. Keep your 16 k, invest it and use the returns for travel if you want.

Do you want to hand the keys to the resort and let them drive or keep the keys and drive yourself?


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[Hfnole]

Rescind. Read your contract and follow it to the letter. It should tell you how to mail it and how much time you have to mail it certified USPS usually.

We purchased from a resort in Orlando and rescinded when we got home but we had 10 days. Not sure what you may have. It could be less in Las Vegas or Utah.

I’m currently purchasing 5000 points for $1,900 plus closing. It comes with 15,000 points and 980 MF fees per year.

Thank you, in our case we have 5 business days to mail it.

 

[DazedandConfused]

wow, I was just at HGVC Park City and stayed there with my resale points.

It is a great resort, but 3,400 EOY is worth $0 on the resale market.

 

[BingoBangoBongo]

Just to put your "deal" in perspective, I'm about to close on two deeds that will give me what will work out to be 13,300 points every year, which is almost identical to your deed + the Bonus points they offered you, which you only get once. I paid $10,250 plus closing costs which between them and the transfer fees will add roughly another $2600. My MF's will be a little over $1600/year.

You've gotten great advice so far here and spend some time reading the different forums to really figure out what works best for you. Congrats on the house and the baby too!

 

[RX8]

What everyone one else has said - rescind.

The primary reason is that HGVC sold you something for $16K that is truly worth $0 (or less). You could have handed them a $16K check after signing the docs and after one minute said to them “I changed my mind, keep the $16K and just take it back” and they would have told you no thank you.

If you are interested in HGVC follow @GT75 advice and “rescind, research, resale”. As others have shared, there are bargains on the resale market and HGVC treats resale owners the same (with the exception of “elite” status that begins at 14K retail purchase). In the meantime, you could rent from a TUG member to “test drive” different resorts/systems.

I took 1.5 years being on TUG before I purchased a timeshare. I thought that was a lot but I read recently another TUG member was in process of purchasing their first timeshare (HGVC) after two years on TUG.

 

[elaine]

don't wait--things happen--just do it now. you have ONE chance to do it correctly. IMHO, there are ZERO reasons to keep this purchase. If you love it--go find a much better deal, for more points on the resale market.
Again, HGVC is a very good system. I own there. But $16K for EOY for only 3,400 points is NOT a good deal at all.

 

[BingoBangoBongo]

I took 1.5 years being on TUG before I purchased a timeshare. I thought that was a lot but I read recently another TUG member was in process of purchasing their first timeshare (HGVC) after two years on TUG.

LOL. We went to our first and only sales presentation in 2015 and are just buying our first HGVC deed(s)!

 

[NOLA47]

If you are trying to get to the post office this morning are you aware you can scan a document with your iPhone thru notes. That way you have a signed copy before mailing. Scan it then email it up yourself. Just thought I would mention so that you don't have to look for a place to make a copy.

 

[RX8]

LOL. We went to our first and only sales presentation in 2015 and are just buying our first HGVC deed(s)!

What I was referring to was being a member of the TUG community, asking questions here for 1.5 years before buying. It doesn’t matter how one gets to learning resale though, just that they do so that one can make an informed decision.

 

[CalGalTraveler]

@Hfnole Congrats on finding TUG. As stated previously by prior posters, rescind now and mail certified per contract instructions so you have proof that it was sent within the timeframe.

As @Fredflintstone stated, I would recommend renting for as long as possible and researching for the future to see if this is a fit. Your life with a new baby and house is about to be turned upside down. That 16k will go very quickly with baby and home expenses. Save your money. Rent, research on Tug and elsewhere and then decide in the future whether it makes sense.

To answer your question on exit. Your kids will not get stuck with this. Worst case they can reject the timeshare when you die. However there are other options such as deedback with the www.responsibleexit.com program and many HGVC units have some resale residual value or can be given away. A 3500 EOY however may be difficult to dispose of and you may need to give it away so this is not an optimal unit to buy. You would need something in prime season and good point to maint fee value. We can help when you are ready to research but I would recommend letting the dust settle in your life before buying a luxury like this.

 

[Sandy VDH]

rescind. You only have 1 chance.

you can always buy again, if you really love the HGVC system. Suggest you buy resale.

 

[Hfnole]

Thank you all for your advice! I will write up the letter tomorrow and send it certified mail as instructed by the contract.

 

[DazedandConfused]

We purchased 3,400 points every other year (EOY) with a $700 MF for about $16k.

This contract was $4.70 per point and annual dues of $0.21 per point.

Even if someone offered it to me for FREE, I would not take it. 3,400 points EOY are not very useful and .21 annual dues is very high. Throw in the cost to buy and this is a TERRIBLE deal.

 

[giowop]

What I was referring to was being a member of the TUG community, asking questions here for 1.5 years before buying. It doesn’t matter how one gets to learning resale though, just that they do so that one can make an informed decision.

RX8, my Wife and I also at EXACTLY 1.5 years on TUG before making our first purchase!

To the OP, congrats most importantly on the kid! Also for finding TUG in time. Now pitch in for a $15 membership to help support this amazing site with an absolute wealth of wisdom!! (Note: unlike the HGVC crew, I do NOT get a commission!)


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[fcrawford]

I hope you rescind right away. I concur with everyone who gave you sounded advice. I purchased in Vegas and email the company on the fifth day to cancel my contract. I was able to get out of my contract with no problem and got my refund. I was able to purchase on the resale market several timeshares for the money I would have purchased one. Use your extra money for your wife, new baby and your first house.

 

[Hfnole]

This contract was $4.70 per point and annual dues of $0.21 per point.

Even if someone offered it to me for FREE, I would not take it. 3,400 points EOY are not very useful and .21 annual dues is very high. Throw in the cost to buy and this is a TERRIBLE deal.

I will rescind this however I do have a question. My understanding was that if I have an EOY deal my MF fees would also be EOY. Is that correct or did they lie to me?