Break Down This Timeshare Thing

Dave breaks down the concept of a timeshare for Chris, and why it's such a bad deal.

QUESTION: Chris asks what a timeshare is, and why someone would want one. Dave breaks it down for him.

ANSWER: A timeshare is a condominium project on the beach or in the mountains or something. Instead of buying a condo for yourself, you share time in the condo with 52 other people and they sell it off in blocks of 1 or 2 weeks. You might have the same week every year. It’s not your condo, you just get to stay there 1 week or 2 weeks a year. They are bad because people don’t use them once they buy them. Even if they use them, it’s still a rip-off because you’ll pay $15,000 or $20,000 for them to use them for a week, and they have no resale value because nobody buys them. Most of the time, your best bet to get rid of them is to sell them back to the people who sold them to you, and you’ll usually get taken to the cleaners when you do. You’re much better off to take your $15,000 and just go on vacation, and choose the place you want to go.