posted 04-19-2005 13:34               

I have spent the better part of today reading the posts on this board and like so many others was dazzled and wowed by the promise of the perfect vacation that time shares provided. My wife and I went to a presentation in Orlando back in January and while we did not wind up buying at that time we did join the Hilton VIP program which gave us 5000 points that we could use in the next 15 months or we could use the $1495.00 price of the package as payment towards a HGVC property if we did not use the points. We got an offer in the mail a week ago and it was a good enough offer that it got me to call them and discuss the deal.

To make a long story short I had to buy a bigger package than I wanted to get the super deal, but here is what they are offering to me at this time. After playing hard to get they have made the deal a little nicer but still I am not sure what to think.

3400 Point Gold Property Las Vegas

$13,590 Base Price
$ 1,495 Transfer from my VIP Program
$ 1,495 Additional Discount on the Property
$10,600 Remaining Balance

Finance at 11.9% over 10 years no early payment penalty

5000 Bonus Points (They let me both get the points and deposit)
3000 Bonus Points (Because I was playing hard to get)

They are even willing to let me wait till 2006 to take onership so I would not have to pay maintance fees for 2005. This does mean however that I would not get my 3400 points for 2005, but would still have my 8000 bonus points which are good for 2 years.

They want me to put down 20% as the deposit which would be $2419.00 - $1495.00 (from VIP) leaving me with an additional $924.00 to put down. Not too bad a deal all in all, but it would seem that I could prob get a better deal on ebay or such, but I would not be able to get the financing that I can get through HGVC.

To end it up I want comments, thoughts, opions and such as to how good or bad a deal this is. I left the agent hanging that I did not think I would be intrest at this time, but she asked permission to call me back in the next few days if she could make the deal any better and I told her sure if she could make it better. Not sure what more she can do if anything, but am waiting to hear. The last concession that was made was the additional 3000 bonus points. I am kinda having a hard time deciding a value of points. If anyone has a dollar value that you would attach to points that would help me out. Also the yearly maintance fee was aprox $625.00, which leave me with the question if I do decide to buy do I go ahead ahd pay the $625.00 this year and get the additional 3400 points, or wait to be deeded till next year (I am still making payments on the loan, but no deed till 01-01-06) and save the maintance fee for this year.

Thanks in advance for all the help and thoughts on this matter.

posted 04-19-2005 13:45               

Seth Nock sethnock@hotmail.com http://www.sellingtimeshares.net/listings.asp

You can get 3400 points for probably $4,000 resale. There is ZERO benefit buying directly from Hilton, over buying resale.

I would typically try to buy at least 4800 points to maximize your maint fee/point costs.
Maint fee's are basically by unit size
1bd 3400 point Gold and 4800 point platinum have the same miant fee's.
Same with 5000 points and 7000 point 2bd.

Scroll down to one of the last boards on TUG. Hotel based board.
Seach all the threads for HGVC and you'll see many similar recommendations.

Hilton is a very good timeshare, but you are paying 3 times too much.

Good luck and welcome to Tug
Dave

------------------
Grand Pacific Resorts Owners Group
Private Group for Grand Pacific Resorts Owners

posted 04-19-2005 14:10               

Thanks agian.

posted 04-19-2005 14:16               

Don't make the mistake of chasing money already spent. Use it for what you purchased, but don't expect to come anywhere near what you can get for the price by purchasing at resale.

posted 04-19-2005 14:34               

Otherwise, your options are to pay cash (best) or refinance your home mortgage or get a home equity line of credit (next best). Borrowing on your home almost always beats a timeshare loan because the interest is generally tax deductible and the interest rate is much lower - currently about half or less than a timeshare loan interest rate.

But to buy from the developer with a loan and high interest rate versus finding a way to pay cash for a much lower-cost resale purchase generally means that your total cost will be at least three times as much as the resale purchase!

posted 04-19-2005 14:37               

Save yourself >$5000 and buy a Hilton resale. Use the 5000 points from your VIP purchase to start off your Hilton ownership with a nice vacation.

You need to decide which size, season and location you want for your "HOME" at Hilton. Remember that 5000 gold points are a 2 bd maintanance fee vs. 5000 platinum points is a 1 bd MF. So although you'll spend more for the platinum points you'll pay less MF each year. IMHO, buy a 5000 point pkg, you'll enjoy the greater possiblities it offers in unit size and locations.

Good Luck

posted 04-19-2005 14:57               

Or start with a less expensive resort/week until your circumstances change. There are many attractive, low cost timeshares that will give you very nice vacations.

posted 04-19-2005 15:34               

Hilton is a great club. But the offer you are being given isn't that great. You can't do that much with 3400 points. You would be better off with a minimum of 4800-5000 points.

You have been given some good advice. Simply take your time and check out all your options.

posted 04-19-2005 15:48               

Your total ten year cost including MF's, finance charges, prinical payments will be $25K+ ..
You can save your $150/mo payment, plus your $1K downpayment for a few years and buy resale.
Your savings in MF's will be used to rent.
If you are really determined to buy now and you don't own a home, you'd be better off putting $4K on a credit card and paying $150/mo payment. It'd be paid off in 3 years , even at 18%. You'll still come out ahead.