How much does it cost to cancel a timeshare?

How much does it cost to cancel a timeshare?

How much it costs to cancel a timeshare varies by service providers, but is often at least several thousand dollars per timeshare contract.

Many timeshare cancellation companies do not offer publicly available pricing. Cancel Timeshare is the only company with set pricing that is available for anyone to see online. However, we know from experience that the cost to cancel a timeshare usually ranges from $3,000 to $8,000 per contract or deed. It is usually more expensive to cancel a financed timeshare contract because there may be attorneys involved in the process.

Sounds expensive, right?

That's because it is, but it is still less than what you will likely pay to continue owning a timeshare. We know our standardized pricing of $299 per month for 12 months is the best game in town, but is still a lot more than most people would like to pay. We understand. Let's remember though - cancelling your timeshare is a one time expense. In contrast, owning a timeshare you have fees and may even have loans on top of that.

Not as expensive as owning a timeshare.

These recurring timeshare expenses add up. According to the American Resort and Development Association (ARDA) which is the lobbying arm for the timeshare industry, the average timeshare owner pays just over $1,000 per year in maintenance fees alone. That means in a world where maintenance fees never go up, in ten years the timeshare owner would have spent $10,000. That doesn't mean they even travelled on it. It just means they paid a bill to have the right to use it. That's money that gets spent over and over again without much in return.

If we add timeshare financing costs on top of the fees, then it really starts to get crazy. Timeshare loans are pitched as mortgages, but have interest rates more similar to credit cards.

‍Why are these loans so outrageously expensive and high interest?‍

Timeshare loans have no collateral - if you default on your timeshare the bank cannot sell it for what you paid or anywhere near it. In lending, financial risk is directly correlated with interest rates. The riskier the endeavor for the lender the higher the interest rate. The major downside for anyone paying one of these timeshare loans is that the note is usually carried over 10 years.

To give an example -

Let's say you bought a timeshare for $20,000 and financed $18,000 with the timeshare company for 10 years and received an interest rate of 14.99% (sounds reasonable and close to reality for most timeshare companies, right).

That means your monthly payment would be $290.29 and if you paid each payment without paying extra you would pay in total $34,834.80 or $16,834.80 more than the amount you financed originally.

So What Should I Expect To Pay?

If you decided to work with our company and had one timeshare to cancel you would pay $3,588 total to cancel your timeshare over 12 months with payments of $299 each. For timeshare owners who have two timeshare contracts needing cancelled it costs $499 per month for 12 months. For timeshare owners with three or more timeshare contracts needing cancelled then it costs $599 per month for 12 months. But again, we are the only company I know of that offers standardized pricing that is available online for everyone to see.

Thinking of going with a different company, I would say the easiest way to predict their pricing is to read their BBB reviews/complaints to see what others have stated. We have prepared a few resources to compare timeshare exit companies here.