Secondary market for timeshares proves weak

Regrettably, my husband’s health has declined (he’s in his 80s) and he should not be driving in unfamiliar places. Our experience has been that a car is needed at the resorts to have any kind of enjoyment of the facilities. We have been approached by a number of companies wanting to sell or rent these properties, but they all ask for a fee in advance (in our case, we paid $1,000) for advertising on the Internet or in magazines.

Although the asking price is about a third of what we paid, we have had no action. How do we get out from under the total maintenance fee of $88 a month if we cannot sell or even give away these properties?

I have suggested we just walk away, but my husband is reluctant to do this. What would be the repercussions, if any, of this action? Do you have any helpful suggestions other than why we didn’t listen to you before we bought? – C.W., Topeka, Kan.

Dear C.W.: You apparently bought these at relatively low prices based in 2005 dollars, but you still had a fair amount of money tied up.

I’m delighted that you worked out the exchanges, but the facts are that I have never found a company that was advertising to resell your timeshare and that wanted a fee up front that was, in my opinion, worth dealing with. Their collective track record is spotty at best.

If you were selling a home and the real estate company wanted a fee up front, you’d tell them to take the first train out of Dodge. The fact is, there’s a very, very weak secondary market in timeshares. You’ve also noted that you have about $1,000 a year in fees. Many companies will come after you for that. They will not take it back even “free.”

Does that not tell you the value? As to the repercussions of simply not paying, this depends in some measure on the company that is operating the timeshare. You might wish to chat with your attorney on this matter. You have underscored just one of the reasons why I have never advertised for, nor recommended, timeshares to most people.

Dear Bruce: Maybe you can settle an argument for my wife and me. I know you like old cars and have collected a few. I am like you; I have always wanted to acquire an older car and restore it. It would be a little bit of a strain on our budget, but let’s face it, these cars have nowhere to go but up. I figure it would be a pretty solid investment. My wife says that she doesn’t want to rain on my parade, but she doesn’t feel that with kids and a mortgage and very little in savings we can afford this kind of a luxury. I keep trying to tell her that this is an investment, but she won’t hear of it. – Reader, via e-mail

Dear Reader: You are correct when you say that I like old cars and, yes, I have a couple. You are very much misinformed, however, if you think that just because they are old they are going to be worth more money. The hard facts are that, in most cases, it’s cheaper to buy a completely restored car than to do it yourself. More often than not, the guy who restores the car and wants to turn it into cash will have to accept a whole lot less than what he has in the car.

The process of collecting, restoring and driving old cars is a fun hobby if you can afford it. But if you think that you are going to come out ahead on this, you are very misinformed. Give it a little bit of a rest, and maybe you can compromise and buy an old piece that is not in the classic category so it wouldn’t cost very much. You can practice restoring it. It’s a fun activity, and if you do all of the work yourself, your major investment will be your time. After the kids are a little older and your income increases, you may be able to be more serious in your collecting.

Dear Bruce: We have the opportunity to buy a timeshare from an elderly couple no longer able to travel. They will sell it to us for part of the company’s asking price. My husband remembers that you’ve discussed timeshares in the past. Anything you can share with us would be appreciated. – D.S., via e-mail

Dear D.S.: You mentioned that you have an “opportunity.” The opportunity is for the seller. Very rarely can a seller of a timeshare get 50 percent of the original price. Ask yourself, is this timeshare for you? If you are persuaded that you will be using it regularly or swapping it, it may be something to consider.

If you wish to be extraordinarily generous, you might pay them 25 percent of the initial price, but no more. The secondary market for timeshares is almost nonexistent. The examples of people receiving half of their investment, and I’m sure they’re out there, are exceedingly rare. Be aware of what you are getting into – not only the initial costs but the ongoing maintenance fees, etc.

Bruce Williams is a national radio talk show host and syndicated columnist.