Consumers often find themselves in financial trouble when they commit to a finance package that is less than ideal for their current financial situation.
(PRWEB) June 29, 2015
With summer just around the corner, Wesley Financial Group CEO Chuck McDowell recently took time to share his take on the pros and cons of financing a timeshare.
McDowell has considerable experience as a consumer advocate within the timeshare industry. His firm, Wesley Financial Group, helps timeshare owners void contracts that were entered into as a result of fraud, misrepresentations or a narrowly defined type of activities that were part of the sales presentations, closing discussions and/or during the term of the relationship itself.
“Buying a timeshare is similar to purchasing a vehicle – it’s a depreciating asset. The value of a timeshare rarely increases with time,” said McDowell. “It’s not like investing in a home, and consumers need to keep this in mind when considering buying a timeshare.”
If consumers do decide to purchase a timeshare, they need to carefully review all financing options available to them. McDowell advises pursuing more traditional financing options, such as a home equity loan or a personal loan. More complex financing arrangements are rarely a good idea, he said, as purchasing a timeshare itself is a complicated process. Using a non-traditional approach compounds the overall complexity of the deal.
He also advises against trading equity for debt by selling invested capital in order to purchase a timeshare unit.
“Your investments have a chance to increase in value, whereas the value of your timeshare is likely to go down. So, when you sell securities to buy a timeshare, you’re not only losing the future earnings of those securities, you’re virtually assured of losing more money on your timeshare,” said McDowell.
Those shopping for a timeshare unit should also beware the financing offered by timeshare sellers, he added.
“Taking out a loan from a timeshare seller may seem like the easiest option, but it can create more trouble than it’s worth. It’s really just another way for the timeshare company to extract money from you,” said McDowell. “Consumers often find themselves in financial trouble when they commit to a finance package that is less than ideal for their current financial situation.”
Timeshare companies are eager to approve potential buyers on the spot, however these financing options can come with interest rates as high at 15 percent. Consumers should carefully examine any offer before committing to anything.
About Wesley Financial Group:
For more information about Wesley Financial Group, visit http://www.wesleyfinancialgroup.com. To contact Wesley Financial Group CEO Chuck McDowell, call 615-288-2000. Chuck McDowell, Wesley Financial Group LLC and its employees and representatives provide accurate and authoritative information and consultation about the timeshare industry. They are not engaged in the practice of law and cannot render legal advice.