The year is almost over so the pundits and experts can properly forecast the overall financial picture in the timeshare industry for 2009. Estimates range from $6 billion to $8 billion dollars in gross revenue which translates to numbers not seen since 2004. Although the economy has brought down the number of travelers and people invited to timeshare presentations, the biggest hurdle for the industry continues to be the lack of access to loans for potential buyers. Whereas in 2007-2008, typical buyers who finance shelled out 10% downpayments for timeshare purchases, the same demographics show that 20% is necessary in today’s economic climate. For many, the extra 10% down makes a timeshare purchase unaffordable.
We never like the idea of people financing timeshare purchases. The asset that secures the loan quickly depreciates and in many cases, can become worthless in the timeshare resale market. Paying interest on something that is not worth much does not make much sense.