We ahd gone for a vacation to Velas Vallarta with another couple that exchanged to this timeshare thru RCI. As usual we got roped into listening into the timeshare speil. We are timeshare owners at Marriott, so had some understanding of how it works and had good experiences in the past.
Our agent Jason was a smooth talking crook, who told us how this timeshare is a great investment opportunity, because though it costs 35k for annual use of a single bedroom unit, it rents at $2200 a week. When we were unsure and spectical, we came up with another one in his inventory that was available at a sale price of 24k. Also, that it could be sold to us only on the condition that we agree to promise the builder that we would rent out 16 weeks at a rate of $2200/week. Since we lived in Michigan and could only come to Puerto Vallarta occasionally, this would be perfect for us, as we would recover our intial investment in no time and still have 9 years of use left.
How would all this happen? His friend Elizabeth Sinclair of Resorts International would rent our our weeks once a 6 month grace period had passed. We were connected to her on his cell phone and yes, she could easily rent our weeks out for the said price and had many customers waiting to buy! All we had to do is pay $800 upfront and sign the papers allowing her to list our weeks and within a few months, money would start flowing into our pockets.
We agreed as this did seem a decent investment with few chances of not working. The resort was really nice and we had had a good time so far. Why would anyone pay so much to rent it we asked. Oh, because a lot of company executives don't care how much the rent is, they just can't buy a timeshare from company funds. Jason had an answer for everything.
So, I paid almost 12k at that time and almost a $1000 every month for 12 months to get a zero % financing.By the time I realised that no rental money was coming, an year had passed. Jason, who acted as he had known me for years, suddenly had trouble remembering me and yes, Elizabeth was still working on trying to rent my week out. Just that rental demand had suddenly fallen because of some change in policy of optional all inclusive rule at the resort but they were still working on it.
Multiple attemts at contacting Elizabeth Sinclair were in vain. She was always busy and could you leave a message. Never got a reply. I sent emails and made calls until I was blue in the face - you get the idea.
I had been told by the agent - Jason that there were schemes at the resort wherein I will have to pay the maintenence fee only for the weeks that I use. All other weeks' use would be collected from the rental funds so I would not have to worry about it. I now started getting repeated letters from the resort about my yearly maintenence fees which kept climbing by $50 every year. Before I bought the week, I was told that the fees had remained the same for several years and are unlikely to go up.
Now two years later, I decided that this timeshare is going to be a further drain on my resources. I called the resort to see if there was anyway I could return it for my purchase price after deducting the maintenence fees due. I was directed to a timeshare resales agency in LA. Speaking to them, I was informed that the best I can expect is 25 cents to the dollar and I would be lucky to get $8000 of my initial investment of $24000. Also, that I would have to pay the a commision of 15%. I am seriously considering taking them up and at least get a fourth of my initial investment.
I have learnt my lesson and developed a healthy distrust of all timeshare agents now. I am writing this hoping that others contemplating such a buy will come across this website and report and take remedial action by returning the timeshare, before it is too late.
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