Financing your next timeshare may not be an obvious option. However, paying cash upfront may not be the best financial decision. Once you read the best reasons to finance your next timeshare purchase, you might reconsider the benefits of buying. We’ve mapped out all the details you need to know.
About Timeshare Financing
Having cash in hand is great if you are able to afford it. However, many families scrimp and save for several months or years to pay for their timeshare. If saving is difficult for you, it might be a viable option to finance.
Financing allows buyers to spread out their timeshare costs instead of parting with all of their funds at once. By financing, pay a hefty chunk or as little as 20% of the purchase price as a down payment. Wiping out savings is ill-advised. It’s a much wiser decision to leave an emergency fund in your savings account for unexpected costs that sometimes arise.
Options for Timeshare Buyers
Buyers that finance can use some of that cash to actually go on vacation and enjoy their new purchase. It’s called “balancing the fun with the funds.” Why pay $10,000 today for 10 years of future accommodations when you can pay $1,000 each year (plus a small amount of interest) for ten years? Not to mention enjoying the same accommodations for that same amount of time.
Financing will allow you to get the vacation package that you otherwise can’t afford upfront. You can have your choice of premium accommodations and best seasons more suited for your family’s lifestyle. Rather than settling and trying to upgrade later, financing a timeshare will open up more options.
Enjoy Flexible Financing
This doesn’t mean taking on a bigger loan that’s not as affordable. Your resale broker can provide you with options and price ranges on vacation ownership best suited for you. Use this easy payment calculator to see prices vs. down payments. Pick the one that you are most comfortable with, without stretching your budget.
Read more: What is Vacation Ownership?
Timeshares Are Not Investments
Although timeshares depreciate in value, investing in your family’s happiness is priceless. If you are planning on vacationing as often as your lifestyle and career allows, purchasing a timeshare is a great choice. It’s well known that the superior accommodations over hotels will bring many happy memories, while also avoiding the discomfort of sharing small spaces with little amenities.
We purchase assets that depreciate all the time, like a car for example. If you are comfortable with the fact that a vacation is an expense just like a car payment, why not save cash and finance the larger purchases?
It’s implied in the “cash only model” that all debt is inherently bad. This is not completely true. Paying cash for everything wouldn’t build a healthy history of credit, which can actually hurt in the long run. Having good credit when applying for car insurance or a loan can verify you are responsible and able to follow through on your commitments.
Is Timeshare Worth It?
Timeshares are not considered an investment, however, you can pay for your vacations to come at today’s price. When you become an owner, you’ll have to pay timeshare maintenance fees, so this is something to consider as well when determining your budget. The great thing about timeshares is that you are typically no longer locked into visiting the same resort each year. Nowadays timeshare resorts and developers offer greater flexibility when it comes to visiting new places. In addition, owners can join vacation exchange networks like RCI (formerly Resort Condominiums International) or Interval International to get even more out of their ownership.
Improve Your Credit Score
Financing a timeshare purchase can actually help increase your credit score. By using a lender that reports to credit bureaus you can benefit from making payments on time.
Regardless of the price and down payment you choose, make sure your loan does not have additional monthly fees or a prepayment penalty. These add to the cost and can erase all the savings you made on the original purchase. You should be able to make your monthly payments on just the principle and interest.
Ready to Finance Timeshare?
Contact Vacation Club Loans for a free credit evaluation and quote if you would like to learn more about financing your next timeshare purchase. They have helped many new owners finance their timeshares. With options for loans that can help you get that DVC, Marriott or Wyndham timeshare you’ve been considering, it makes shopping easier. The range of brands Vacation Club Loans helps to finance is vast. If money has been holding you back, we recommend talking to their trusted and licensed experts.