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Wyndham Points article 2 of 10
This Timeshare Advice article discusses buying Wyndham Timeshares directly from the developer. Written by TUGGERS and provided to you free by the Timeshare Users Group!
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Article II – Buying From the Developer
by TUGGER GoofyHobbie
We all have a tendency to do what we are most comfortable doing when it comes to a major purchase. A purchase of timeshare can cost tens of thousands of dollars when the purchase is direct from the developer and it can cost between one dollar and tens of thousands of dollars when purchased in the secondary market. Because, not everyone is comfortable making a purchase in the secondary market many will buy direct from the developer to get the timeshare interest that they want and feel they can afford.
If you are considering a developer purchase, be careful when going to a presentation. Try to learn as much as possible before going if that is practical. If it is not practical, make sure you learn as much about the product as possible before making the final purchase decision. If a decision is made to purchase from the developer a recision period should be available and it should not be ignored. After the paperwork is signed, take a deep breath, relax and do some homework to make sure you are still comfortable with the purchase decision. Write down questions that you have and research them carefully on TUG and elsewhere after the presentation is completed. It is not necessary that you buy the day you are presented with something you like. But, if you do buy, research what you have done before the country or state mandated recision period expires.
The overall process should present a lot of questions that you can take home and digest. That fact is not all bad; because if you take your time and listen you will first develop an interest and then you may get hungry for more information before making a retail or re-sale purchase decision that you may later regret. If you have not already visited the TUG Forums go there and search for answers to any question that a sales presentation presents. Compare the answers obtained with the written documents provided by the developer. If you still have questions get them resolved and/or re-visit any right that you have to rescind.
Wyndham Resorts that have active sales departments are set-up to provide information through trained sales people to help you learn about the latest Wyndham product. Whether or not they complete a sale is between you and them. In my opinion taking the time to go through a presentation and learn from it is a good strategy; but whether you choose to buy from the developer or buy re-sale that is a decision that you must make on your own. If you have the money, are comfortable with what you are doing, and prefer getting the product direct from the developer that is an O. K. thing to do.
Some may argue that by buying from the developer you avoid the pitfalls that can occur when dealing with unknown individuals on eBay® or elsewhere. That is true; but if you are cautious, patient, and do your research you may get a bargain by buying in the re-sale market.
There are numerous articles on TUG about how to protect yourself and ensure that you are getting what you think you’re getting. If you decide to purchase re-sale, it is your responsibility to do what must be done to get what you intended to buy at the price you intended to pay.
Do your due diligence before making your purchase. Leave no stone unturned to learn what you need to know to accomplish your goals. As you will see in Articles V and VI my choice was to do extensive extra legwork to get exactly what I wanted at the best price possible. My mission was accomplished even though, prior to the purchases, I had never bought a thing on eBay®. Your results may vary considerably from mine so be careful if you choose to buy re-sale. The focus here is to give some input about buying from the developer. If you are interested in my personal experience dealing with the developer read the detail provided in Article V.
TIP: If you already own timeshare and are looking for options that might get you VIP status with Wyndham without the acquisition of more very expensive points than you need, consider the content available in Articles III and IV. One or both may help you reach your goal.
Note: A purchaser (see Footnote) of points from Wyndham Vacation Resorts® or its affiliates can start with a small point contract and add additional developer purchases over time to reach VIP level.
****Re-sale purchases of points do not count toward VIP status.
TIP: Before buying points from the developer consider that many TUG Members agree that in the current market you, as a buyer of points, would be hard pressed to justify the price you have to pay to get VIP status. Wyndham has taken benefits away before and they can do it again.
While it is not the only reason that folks purchase points retail from Wyndham, VIP status is one of the primary “carrots” that Wyndham sales people will dangle in front of you during a sales presentation, “Owner’s Update,” “Wyndham Party Weekend,” or other marketing/sales effort.
Club WyndhamSM Plus members who purchased their points from the developer and are allocated at least 300,000 eligible points on an annual basis are considered VIP. The points that raise a member’s status to VIP (300K), Gold VIP (500K to 999K points) or Platinum VIP (One Million or more points) have to be points associated with ownership interests that were obtained as a result of a direct purchase from Fairfield Resorts, Inc., Wyndham Vacation Resorts or Wyndham affiliates. The eligible points can include Bonus Points and PIC points.
There are benefits that go with the status of VIP and those benefits get better the more eligible points you acquire. To get an idea of what the current benefits are go to the following link to access the Club Wyndham SM Plus Directory and review pages 344-345.
When a VIP member subsequently sells their Vacation Ownership Interval (VOI) to a third party purchaser, if that third party purchaser is not an immediate family member, the points associated with the VOI will not be eligible to be counted toward VIP program eligibility by the third party purchaser. In other words if you buy your points re-sale VIP benefits will not transfer to you unless you are an immediate family member of the seller.
Note: “VIP program benefits are subject to change or elimination without notice.” Source: Page 344 of the Club Wyndham SM Plus Members Directory 2009-2010.
We all welcome change that improves our vacation ownership; but not all changes are an improvement. This is especially true when fees go up or Wyndham decides to eliminate benefits.
At the time that a retail purchase is being considered by a prospective buyer, a Wyndham sales person, to close the sale, may offer the buyer the opportunity to reserve accommodations through Club WyndhamSM Plus using Bonus Points. The sales contract should state that the Bonus Points have the same Use Year (start date and end date), as the points purchased. When offered to me, the Bonus Points were available for use over a 24 month period. Do not expect bonus points to be renewed or extended beyond the applicable Use Year end date.
When making a new retail purchase of Wyndham points, a buyer, who has not already enrolled a qualified Vacation Ownership Interval (Week), can enroll up to two qualified weeks in what Wyndham refers to as the Personal Interval Choice (“PIC”) Plus program. To get more information on PIC Plus and how it can help you achieve VIP status see Article - III.
Using Conversion to Obtain VIP Status
If you are thinking of converting former Fairfield Resorts, Inc. fixed timeshare week(s) to Wyndham points to get to VIP status, it can be done without making a retail purchase of points. However, to be eligible you cannot purchase the fixed week re-sale and later get Wyndham to convert to points. For how conversion can provide a cost effective way to VIP see Article - IV.
Article -V, you will find a mention of my personal ownership of two
My alternative to such an offer when made at various resorts owned by Wyndham was to keep my weeks or convert them through Wyndham “Corporate Direct.” In the final analysis, the “Corporate Direct” option did not work for me, although it may work for others, especially if they own what is referred to as “Blue Weeks.”
My fixed Weeks are both Red Weeks within RCI and they trade exceptionally well. So, I chose not to spend the money to make the conversion. If you are curious and want to know more about Wyndham “Corporate Direct” go to Article - IV.
The Wyndham Sales Presentation
Although, I personally have not experienced a misleading encounter with a Wyndham sales representative; it is possible that your experience may be different. Depending on who you speak with, it may appear that some sales personnel have limited and or inaccurate information, especially regarding re-sale weeks. It is probably not a good idea to get into a confrontation; but be aware that you are dealing with a person who is trying to help you be comfortable with purchasing from him or her. Although you may be able to offer plausible reasons why you should not make a purchase; they are going to have persuasive counters to your objections.
Sometimes when one goes to an “Owner's Update” they may hear things that some would consider questionable. Most, if not all of the sales people you encounter should be well trained; but, sometimes a salesperson may be new or if seasoned may say something that upon reflection is deemed misleading to the prospect. I am not telling you that they tell untruths to get a sale; but, I am saying that on occasion they may say something that is true but only if you understand what is being said in the appropriate context.
In a high pressure sales environment it is not uncommon for a prospect to become confused by the overwhelming amount of information being provided. The salesperson, can gain an advantage when his prospect becomes confused or when the prospect jumps to a conclusion that may not be correct. It is not uncommon for one to end up selling one’s self on the product. It is vital that you understand the facts presented and that you take your time.
Example: When a sales person gets a prospect in front of him and the prospect says I can buy 154,000 Wyndham Points on eBay® for as little as $1 plus closing costs and the transfer fee, the sales person without batting an eye might respond by saying something like: “A person who purchases re-sale cannot use the points to ‘exchange’ into another Wyndham Resort.”
In such a confrontation, a prospect may or may not accept what the sales person says; but if the statement is accepted at face value the prospect may later discover he misunderstood what was said. An unwary prospect might draw the wrong conclusion and state his conclusion much later something like this: “The sales person told us that Wyndham will not let a purchaser of a re-sale deed use their Club WyndhamSM Plus points to ‘exchange’ into a different Wyndham Resort.”
In many situations, if confronted, the sales person may tell you that the contract governs and if they (the sales person) said what you said they said you either misunderstood or they never said what you said they said. (Now that was a mouth full!) If the sales person is smooth in his response, the re-sale argument may be defused by the statement made by the salesperson although the prospect did not understand the response. The salesperson, as a result of his statement, may have moved the prospect back on track to buy retail.
If, later the sales person is cornered, he may say he did not tell an untruth. In his defense he might say something like: “What I meant was a person who buys a deed on eBay® cannot later make an equity ‘exchange’ for points at another Wyndham resort in conjunction with a new retail purchase of points at the other resort.” It is true that if you buy a Wyndham points product re-sale as opposed to directly from the developer, you cannot later “exchange” the deed for points at a new resort like Wyndham National Harbor when making a new retail purchase at the new resort. But, that very well may not be what the prospect thought he heard.
Note: A wealth of material comes your way if you sign a contract. If, in good faith, you sign a contract with the intent to read it carefully later; remember the admonition made earlier in this article. Make sure you know the state law or the law of the involved country regarding recision because you may want to exercise your right to rescind before the right, if it exists, expires. Whether you purchase from an individual, the developer, a real estate broker, or a seller on eBay® consider the commitment you are making, the cost to you up-front, the on-going maintenance expenses, closing or administrative fees, and how you will eventually dispose of the property.
As with all major decisions, when buying Wyndham points, retail or re-sale get your understanding verified and get the best advice possible. You may want to consider using an experienced real estate broker who can help with your due diligence, negotiations, and closing or you may, depending on the circumstances, want to consult an attorney and/or a tax advisor.
Ownership interests eligible to count toward VIP can include points purchased from the developer or its affiliates and then acquired by will, intestate succession or ownership interest acquired by “Immediate Relative” of members (parents, spouses, domestic partners, siblings, children and/or grandchildren.) Source: Club Wyndham SM Plus Directory 2009-2010, page 341.
If, you have any inquiries regarding how to use Wyndham’s product features or benefits consult Wyndham’s written documents and materials including the resort directory for additional information about how to use the product.
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