Time Shares Good Or Bad?

Many of you have or will go at some point to one of those time share presentations while on vacation. They lure you in with a $100 meal voucher or free snorkeling as long as you attend a sales presentation that is supposed to last 90 minutes but always seems to last hours. There is one in Mexico that an employee told me their moto is "You cry before you buy". I've heard they keep people hours before they let them leave. On the question, the reality is that you are paying a present value for all your future vacations now. The challenge with those is your maintenance fees, which you have to pay whether you use it or not every year, always go up. When I've taught in person I usually go through a case of analyzing a time share and the numbers lets just say were not too favorable. Especially if they are financed at high interest rates.

Can you think of other cases where you might do a NPV analysis on a decision?