The majority of timeshare salespeople will claim that timeshares in Mexico are a good investment. If you hear that timeshares are an investment, walk away, as this is the first sign that you are dealing with a timeshare scam.

Timeshares in Mexico are not a good investment, period. The timeshare salespeople tell many lies to convince potential buyers that they are purchasing a timeshare that will provide them with deep discounts on travel in the long run and potential for thousands of dollars in profits. Some common timeshare scams are claims that the timeshare is easy to sell, increases in value over time, is easy to rent for a profit, and will allow the client to vacation at much lower rates than if they purchased online or through a travel agent.

The following research shows that the real cost of the timeshare is far more than if the client purchased a package vacation online through Expedia, proving that the discounts promised by the salesperson are one example of timeshare fraud. Please read the following so that you can avoid timeshare scam. We compared the price of using a timeshare week to the price of booking package deals to the same resorts using expedia.com. We determined the average price of using the timeshare based on actual client information from our database. The price quotes are based on a a party of 2 people, on a weeklong vacation from Los Angeles to the following destinations for the dates of December 4 – 11, 2010.

AverageTimeshare Price Annual Cost (based on 30 year plan) AverageMaintenance Fee Flight from LA (2 people) All inclusive fees (2 people) Total weekly cost (2 people) Expedia package price(2 people) % Cheaper through Expedia

Puerto Vallarta

Grand Velas $53.854,00 $1.795,13 $800,00 $832,00 $2.100,00 $5.527,13 $3.900,00 29%

Playa del Sol Grand $10.575,00 $352,50 $500,00 $832,00 NA $1.684,50 $1.136,00 33%

Paradise Village $31.650,00 $1.055,00 $832,00 NA $1.887,00 $1.302,00 31%

Mayan Palace $19.903,00 $663,43 $799,00 $832,00 NA $2.294,43 $1.602,00 30%

Grand Mayan $38,751 $1291.70 $1.299,00 $832,00 NA $3.422,70 $2.032,00 41%

Velas Vallarta $23.560,00 $785,33 $649,00 $832,00 $1.155,00 $1.987,00 $2.518,00 26%

Cancun / Playa del Carmen

Krystal $16.432,00 $547,73 $799,00 $900,00 NA $2.246,73 $1.944,00 13%

Grand Velas $53.000,00 $1.766,67 $1.249,00 $900,00 $2.100,00 $6.015,67 $3.950,00 34%

Royal Elite Sandos Caracol $14.356,00 $478,53 $649,00 $900,00 $1.260,00 $3.287,53 $1.702,00 48%

Royal Elite Sandos Riviera $16.830,00 $561,00 $599,00 $900,00 $1.120,00 $3.180,00 $2.354,00 26%

Royal Elite Sandos Playacar $12.326,00 $410,87 $549,00 $900,00 $1.120,00 $2.979,87 $2.196,00 26%

Grand Mayan $42,14 $1,40 $1.199,00 $900,00 NA $2.100,40 $1.880,00 10%

Mazatlan

Pueblo Bonito Emerald Bay $13.549,00 $451,63 $699,00 $832,00 NA $1.982,63 $1.770,00 11%

Pueblo Bonito $29.800,00 $993,33 $899,00 $832,00 NA $2.724,33 $1.676,00 38%

El Cid Marina $21.177,00 $705,90 $759,00 $832,00 NA $2.296,90 $1.716,00 25%

Torrenza $18.139,00 $604,63 $600,00 $832,00 NA $2.036,63 $1.714,00 16%

As you can see from the chart above, the cost of booking a vacation package on expedia.com is anywhere from 10% - 48% cheaper than booking the same trip directly through the timeshare company. This chart also does not factor in the opportunity cost for the client. For example, if a client purchases a $20,000 timeshare, the money is essentially gone, whether it is a timeshare scam or not. At the end of the plan (ie. 30 years), the client no longer has the right to use the timeshare, and as such, there is no value to the property. On the other hand, if the client invests the $20,000, that they were going to spend on a timeshare, at 3% interest for 30 years, they will have $48,545.25. If the client invests wisely in deeded properties or other types of high return investments, the loss of buying a timeshare vs. purchasing an investment compounds even further.

The salespeoples´ claims that the property is easy to sell or rent are very common forms of timeshare fraud. The resale and rental market is riddled with timeshare scams where companies ask for upfront fees and do not sell the property. The most successful ways of reselling timeshares is through website such as Ebay or Redweek; however, the sellers normally incur large losses in the value of their timeshare when reselling on the secondary market. It is also very difficult to rent timeshares because the rental agencies are another timeshare scam. Even if the rental agency was able to rent the property for the prices that the timeshare salespeople promise, the guaranteed rental prices would barely cover the cost of the timeshare, maintenance fees and opportunity cost of the lost interest.