There are several different types of Mexico timeshare scams and complaints to be aware of. Some scams happen before you buy a timeshare in Mexico and other scams happen after you buy the timeshare.
Mexico Timeshare Scams Before You Buy a Timeshare
To start, most timeshares can be considered a poor value when bought from a resort developer directly. It doesn’t matter if the timeshare is in Mexico, Canada or the United States. When you buy a timeshare from a resort developer directly, it almost always decreases in value by 50% or more the second it is purchased. This happens because a significant portion of the purchase price goes towards paying the sales staff commission, the sales facilities and the free gifts used to lure vacationers into the timeshare tour. There are not many products on earth that immediately decrease in value by several thousand dollars the second they are purchased. While this might not be considered a scam, it is certainly a poor value.
If you finance the timeshare through the resort developer directly, there is a good chance you’ll be paying a very high interest rate above 10% as well. Again, this isn’t necessarily a scam because it is disclosed to you in the timeshare documents, but it is certainly not a good value.
A timeshare becomes a scam when a sales agent chooses to lie to you about what a timeshare is and how it can be used. For example, a timeshare is not an investment, and if a sales agent chooses to tell you that it is, they are attempting to scam you because that is simply not true. Almost all timeshares do not go up in value after being purchased from a resort developer directly.
We’ve heard of some timeshare sales agents in Mexico telling current timeshare owners that they will buy their current timeshare if they buy a Mexico timeshare instead. The current timeshare owners believe this and buy the Mexico timeshare, and later find out that they still own their current timeshare. Any time a timeshare sales agent lies, it can be considered a scam, so watch out for this one.
If you really want to buy a timeshare in Mexico, a resale timeshare from a current owner will almost always be a better value. Timeshare resales in Mexico can be found on Ebay for as little as $1. Some sellers are even offering to pay the first year’s maintenance fees just so they can get rid of the timeshare, which would mean a free vacation for you the first year.
Mexico Timeshare Scams After You Buy a Timeshare
Mexico timeshare scams after you already own a timeshare have been popping up recently. A company by the name of Global Business Consultants is calling many Mexican timeshare owners and offering them a ridiculously high price for their timeshare. The company calls timeshare owners out of the blue and says they will buy your timeshare at a high price, but you will need to wire them a few thousand dollars for a “transfer fee” or “closing fee” first. When you wire them the money, they will not buy your timeshare and will instead pocket your money and disappear. This is one of the oldest scams in the book and it takes a variety of forms.
Another form of this Meixco timeshare scam is often performed by “listing” or “advertising” companies that offer to “advertise” your Mexican timeshare for you in exchange for an up-front advertising fee. You’ll pay the up-front advertising fee, and your timeshare will likely not sell. Again, many Mexican timeshares can be found on Ebay for as little as $1, so paying several hundred dollars in an attempt to sell your Mexican timeshare for more than $1 is not a good idea. Advertising your timeshare for sale on Ebay is only a few dollars.
If you’d like to get rid of your Mexican timeshare and are unable to sell it, you may want to contact your resort to see if they will take it back. If the Mexican resort won’t take the timeshare back, you may want to speak with a timeshare exit company. Timeshare exit companies work with lawyers to get your timeshare cancelled.
If you choose to speak with a timeshare exit company to cancel your timeshare, we typically recommend choosing one that offers an escrow payment option for extra piece of mind. When you pay with escrow, the timeshare exit company does not get paid in full until after your timeshare has been cancelled. Learn more about escrow and why it’s important here.
For a free timeshare exit consultation, give us a call, submit a contact form or initiate live chat on the right side of the page.