You are right that many items do not keep their value after the purchase and people know that cars are depreciating goods. But real estate keeps its value and the TS industry thrives in no small part because of the initial confusion (skillfully manipulated by the TS sales people) that time sharing = real estate.
How many of us have heard the timeshare sales people saying something like: "if you buy a timeshare you are investing in real estate"?
I think lately TS companies have done a better job in explaining that TS is not a financial investment, but rather an investment in future vacations. Every TS companies liteture now days has this in bold print.
Personally I have nothing against TS sales people that are ethical in how they approach sales. I have sat with ones completely ethical, I have sat with ones that don’t know there product very well, I have sat with ones who sort of miss represent things not so much because they are lying but repeating what they have heard others say without knowing their product, and finally I have sat with the complete liars which I detest. You can always spot the complete liars because they get really defensive normally in the presentation as the law of psychological reciprocity goes out the window with them.
While many items significantly depreciate once you walk out the door like furniture. Timeshares have either a monthly, quarterly, or annual fee not going away. I am always amazed that people didn’t understand this or that it would increase once they bought it.
See a couch I can throw away when I’m done a TS I have to find someone else to take or crash my credit to have it foreclosed on.
What would be good to see in the Timeshare industry is a truth in understanding statement sort of like a truth in lending statement that shows what your loan fees and interest over life of loan will be (If using the sleezy tactic of signing them up on a branded CC to pay some or all this should be on form to), statement should show what maintenance fees will be and an estimated annual increase amount for maintenance fees for each of the next 3-5 years. Then at the bottom clearly list the rescind policy / procedure based on statutory rules in place at that location.
If TS companies were really ethical they would clearly state rescind policies not hide them in secret pockets or obscure them in mounds of paper work.
They would clearly make sure people understood there was re-occurring fees
They would list out those benefits that would not transfer if resold.
Finally if TS companies were truly ethical they would not have to strip benefits from contracts that are resold on open market. The fact that they do means they know the root product they sell for the price they sell it is not worth it. So they have to try and make what they are now selling look more valuable by adding benefits that can’t be transferred. So thus, they have little to no value in most cases when they are transferred.