why do people buy WM account with existing loans?

[travelhome]

There are many WM accounts for sale on ebay. Most of them are paid in full but some of them have existing loans. Almost always, it will be much more expensive in total payment to take over existing loans.

I'm wondering why there are people buying the accounts with loans? Just because they cannot afford the large upfront cash payment? I thought people buying resale are TS savvy enough that they would not want to shell out a high total payment to just get into the system. Do I miss anything?

 

[mfan]

There are many WM accounts for sale on ebay. Most of them are paid in full but some of them have existing loans. Almost always, it will be much more expensive in total payment to take over existing loans.

I'm wondering why there are people buying the accounts with loans? Just because they cannot afford the large upfront cash payment? I thought people buying resale are TS savvy enough that they would not want to shell out a high total payment to just get into the system. Do I miss anything?

No, I suspect you're right. It's the upfront payment that's prohibitive for many interested buyers. I think it's similar to people renting vs. buying a home. They want the membership, but it's easier for them to come up with monthly payments instead of one lump sum. Plus, TS savvy is not the same as financial savvy...

 

[Bill4728]

For some people, buying their WM TS for $0.00 and assuming their loan (often paying about $1.00 /pt) makes alot more sense than paying $1.80/pt and financing it thru Trendwest/Wyndham.

But of course there is no question, it would be smarter to buy at $0.60 /pt and pay cash.

 

[richardm]

Loan assumptions

Worldmark by Wyndham (Trendwest) is the only developer program I know of that allows loan assumption. Many buyers requiring financing look for these types of sellers, and also most of the resellers that buy and sell from their own names (which is very common with this program due to the low transfer cost) will specifically look for these types of contracts simply because it reduces the amount of up-front cash they have tied up in the ownership until they can resell it for a slight profit.

 

[agentyumi]

Buying WM account on a cash basis is really a good idea because it lessens the total costs rather than when you have it in monthly payment. But there are people who preferred to have the payment monthly because it is easier for them to pay in a small amount instead of huge cash.