As far as sales are concerned, the timeshare industry is like any other industry. The sales department is going to quickly find something that will give them the edge over the customer. It is simple, the better equipped the sales rep, the harder it is for the customer to say no. Additionally, the sales reps are very well trained in that the sale starts when the first “no” comes out.For many years I have conducted sales training for Navy recruiters across the country and the same theory stands true in recruiting, the sale starts with the first “no”. Here is a list of my top 10 sales scams that are currently being used in the timeshare industry.

1. Sales reps stating that they are not in sales and they get paid a straight salary. They are there to ensure that all the owners who are assigned to them are taken care of. They call themselves “advisors, counselors, or advocates”. This is to soften you up and get you to come in and meet with them. At the end of the presentation, if you do not purchase anything, they will tell you that they cannot be your advisor unless you purchase more points, or upgrade into something new. I need everyone to hear this, THERE IS NO SUCH THING AS AN ADVISOR IN TIMESHARES! Sorry to yell, but this is their best hook.
2. If you own a fixed or floating week, you will be told that you NEED to change to points because everyone will soon be on points and you will no longer be able to exchange your week. They will tell you that both RCI and II are on a full court press to get every owner to make the shift. Although this part is true, the reason is purely from a revenue generation basis. They cannot get rid of your week or make it less valuable. You still own that specific week and that cannot change, and the reason they are an exchange company is to make exchanges. According to ARDA data, there are more fixed and floating week owners then there are pints owners. So, relax and do not get caught up in the hype of points. Now, if you have done your homework and are itching to get into points, you need to really shop around for the best price and really consider the resale option.
3. The good old “dinner party”. This was my favorite because it really made the owners think that they missed something. For those who have not read my blog article covering this topic, here is a snap shot. Developers in good times will go on the road and market to existing owners and have them come into a local hotel for dinner and a very IMPORTANT owner’s update. What happens is you receive a great meal, then get assigned to an “advisor” (remember number 1, no such thing), and then you will sit through a podium presentation that will confuse the most knowledgeable owners. After the podium is over you go and sit with your “advisor” who will then go over your account. This is a sales presentation with smoke and mirrors. You will be told of all the great things that you are missing out on because you have not upgraded in the last so many years. Owners beware!
4. Rental income. Many sales reps are using this as a way to get you to justify making a purchase. New and experienced owners have been falling for this in droves. Here is the deal, you make a purchase for more points and take the points that you are not using and the company will rent them out. Although they do have rental, the odds of you ever getting your weeks rented and make a profit are slim because you still have to cover your cost, maintenance fees, and interest on the loan. Additionally, the developers will rent the unsold inventory every time before an owner’s inventory. They will promise that they will assist you in this because they are your “advisor”. Due to the recent economy, AAA even stated that there are far less people taking vacations now. They are taking staycations. Most of the rental companies will not even take a request for your weeks.
5. Tax incentives. This is a big no-no in the timeshare industry. There are clear and concise rules and regulations governing this. Yet, most timeshare sales reps fall back on this. They will tell you that owning a timeshare is like owning a second home and you qualify for tax incentives. Additionally, you can write of the interest that you are paying, just like your home. Well, this is a complete and utter lie. You cannot get tax advice from a sales person; they are too invested in the process. TIMESHARES do not qualify as a second home, and in the majority of the US do not hold any tax breaks. If you own a business, you cannot purchase a timeshare for DBA purposes except in a very specific circumstance that most do not qualify.
6. If you do not like it, you can always sell it. This is a load of hogwash and you need to know that timeshares are not a financial investment; they are a quality of live investment only. The majority of timeshares are worthless as soon as you get outside of the rescission period, which we will cover tomorrow. Dave Ramsey, and many other financial gurus’ all agree that they are not only a bad investment, they are not worth the paper the deed comes on. There are too many other ways to take vacations and have the same quality stays. There are more timeshares for sale on ebay and craiglist than you can even imagine. Take a look for yourself. It is such a great business, there are hundreds of companies that offer to list and sell your timeshare for a fee. That is for a later time.
7. Exchanges, they will tell you that you can exchange your timeshare anywhere in the world for little and you can do it anytime you like. If you want to go to Hawaii, just put in the exchange request and bam, your there. For all you who own timeshares, you know this to be a real stretch of the truth. Sales reps do not sit down with owners to teach them how to properly understand and use the exchange system and they never tell you the truth about price and timing. Some locations take at least two years of advanced planning. They are not for free and sometimes can cost more than your annual maintenance fees. Which leads me to number 8.
8. Maintenance fees are always a topic that savvy sales reps will tap dance around. They will even tell you that you can offset your maintenance fees by providing referrals. Just give use names and numbers, or addresses and we can eliminate you maintenance fees altogether. Another way to eliminate maintenance fees is to use our Master Card and every dollar spent gains you points that convert to maintenance fee dollars. This is all a load of crap! You would have to spend tens of thousands of dollars every month to even come close. Additionally, you still need someone to come into the resort and take a sales presentation. Then, when they do not buy, the sales rep normally will not do the required paperwork to ensure the owner gets credit. This is a biggie!
9. The old table bump. This is when the sales rep is having difficulty with the sale. The customer has said no and actually meant it. What happens is another sales rep will come to the table pretending to be a manager and find something that may seem to be wrong with your account and will create a diversion to bring the intensity level up. This person will then go away to fix the problem. It may be that you said you could not afford that specific amount. This person will always come back with the best deal of the day that you will never be able to get again. A one-time special that must be taken now. Alas, this too is a lie and you can always walk away and come back and get that deal.
10. The last one deals with your cancellation period. Many timeshare companies will skirt around this issue and not give you the real information concerning your rescission period. They have to tell you how long you have to change your mind, they must counsel you on this, and they must provide you with proper documentation that clearly outlines this. Some companies hide the information in your owner’s kit so you cannot find it when you get home. Here is the deal, if you have second thoughts after you buy, cancel and do some research to see if owning a timeshare is right for you and your family. If it is, you can always go back and repurchase or do what I recommend and buy resale.

I hope that this has been helpful information for you. Please give me some feedback on what you think and let me know of other topics you would like to see. For more information, go to www.timeshareaide.com. Additionally, we are on twitter, facebook, myspace, and linkedin.

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Top 10 Timeshare Scams