3 Ways Developers Trick You Into Timeshare Upgrades

Those who own timeshares should acknowledge that timeshare companies are notorious for using high-pressure tactics to attract new buyers and convince them to upgrade. This is comparable to an auto shop convincing you to purchase unnecessary services beyond your initial request, such as changing air filters and tires. If you’re tired of being relentlessly pressured by your timeshare developer to upgrade, this article will expose the tactics they use and explain why it’s best not to fall for them. Once you understand these tactics, you’ll be able to identify if you’ve been caught in a timeshare upgrade scam and begin developing a plan to extricate yourself.

Is a Timeshare Upgrade Really Necessary?

Recall the moment when you made the decision to purchase a timeshare. It’s likely that you were swayed by glossy images of contented individuals enjoying themselves on beaches in places like Cabo San Lucas, Mexico or Miami, Florida. Additionally, the sales pitch made vacation ownership seem like an effortless and lavish option.

So why is your original purchase suddenly inadequate? Why is your timeshare company insisting that you need an upgrade?

Although your timeshare may lose value over time, and your resort will inevitably require renovation, maintenance fees and special assessments exist for this purpose. You never truly need to upgrade your timeshare, and your company shouldn’t coerce you into purchasing a new membership that you don’t genuinely desire.

Unfortunately, many timeshare owners are pressured into upgrading. They’re informed that the new membership will provide an improved experience and replace their prior membership. Alternatively, they’re persuaded that upgrading will result in lower maintenance fees, despite the opposite being true.

The following are some upgrade tactics to be wary of.

The Membership Upgrade That Becomes Two Timeshares

The merging of companies has had a significant impact on persuading – and in some cases, coercing – timeshare owners into upgrading their membership. A prime example is the amalgamation of Hilton Grand Vacations and Diamond Resorts.

Hilton Grand Vacations is a Florida-based timeshare company that owns hundreds of properties across the globe, while Diamond Resorts is a lower-tier timeshare provider that was acquired by HGV in 2021. The merger resulted in the creation of a new membership known as HGV Max, which claims to offer owners from both companies an enhanced vacation experience.

HGV is known for offering a range of memberships, such as Hilton Grand Vacation Club and Hilton Grand Vacations Elite. However, HGV Max is distinct in that it allows you to stay at both Diamond and Hilton Grand Vacation timeshare properties.

The merger between HGV and Diamond Resorts demonstrates how two companies merging often leads to the creation of new membership tiers. While timeshare mergers can offer more vacation destinations, they can also result in increased charges. Therefore, it’s crucial to be aware of what you’re committing to and how much you’ll be paying before agreeing to any upgrade.

Some developers view timeshare upgrades as an opportunity to persuade you to sign up for another timeshare. Unfortunately, many timeshare owners make this regrettable decision. Sales representatives from various companies may tell owners that their upgraded membership will replace their previous property, but in reality, they’re enrolled in a second timeshare and are now responsible for paying two sets of maintenance fees.

Equity Discounts and Lower Maintenance Fees

Timeshare developers often use the lure of equity rollover to encourage timeshare owners to upgrade their membership, suggesting that the amount invested over the years will go toward the price of the new timeshare. However, this is a dishonest tactic as it is not an actual discount. For instance, just like one wouldn’t sell a $300,000 home and put the equity toward a $1 million home of the same size, it is impractical to apply equity to the purchase of a higher-valued timeshare property. The developers use this strategy to convince customers to pay unreasonable prices for the new membership, which often comes with slightly better amenities. Additionally, timeshare companies may require upfront fees, further increasing the cost of the upgrade. Some developers claim that upgrading will lead to lower maintenance fees, but in reality, they mean that the new membership is cheaper than the current one. Thus, timeshare owners will still need to pay their current maintenance fees plus fees for the new property.

Confusing Contract Jargon

Developers may use confusing language in timeshare contracts to trick people into buying a timeshare, making it difficult for them to cancel it once the rescission period has passed. If you have already been misled by this tactic, be cautious when considering a timeshare upgrade.

When presented with new contracts for upgraded memberships, be sure to scrutinize them for any potentially problematic clauses. Specifically, the contract should clearly state that your original membership or deeded week is being taken back by the developer.

If this information is not included, it is highly likely that you are being signed up for an additional timeshare, which means more membership and maintenance fees. This is not an upgrade, but rather a new financial burden imposed by the developer.

Don’t Fall for a Timeshare Upgrade

To sum up, the reality is that timeshare upgrades are often a ploy for developers to sell you more timeshares or memberships that add stress rather than value to your vacation experience. This is just one more reason to avoid buying a timeshare altogether.

However, if you find yourself in a situation where you have unknowingly been burdened with an additional timeshare, don’t hesitate to contact Centerstone Group. We are a full-service advocacy group that specializes in protecting timeshare owners from scammers using high-pressure tactics, resale scams, and unauthorized wire transfers. With an A+ rating and 4.78-out-of-5 stars on Better Business Bureau (BBB), our team of timeshare exit specialists is well-equipped to help resolve your contract issues. Call us today to schedule a free consultation.