The rescission period is the time allotted by local governments for consumers to review their purchase and legally canceling a timeshare. If they cancel their purchase during this period, the government requires timeshare companies to give purchasers a full refund.
However, there is nothing more frustrating for a sales team than to spend 6-8 hours to make a sale that later cancels.
In addition to losing their commission, many feel that they could have spent the same time coercing somebody else who might purchase and not cancel. Therefore, they will do everything they can to prevent new owners from canceling a timeshare during the rescission period.
Here are 5 strategies that many timeshare resorts use to prevent new timeshare owners from canceling a timeshare during the rescission period.
They will avoid the rescission clause that is included in the documents.
Although the rescission clause is clearly written in the documents, many timeshare agents or Legal Verification Officers (VLO) will avoid mentioning this very important item. This is a tactic they use to prevent new owners from canceling a timeshare.
The resort’s management will not allow sales reps to mention the rescission period during the sale presentation. This could lead to disciplinary action or being fired.
While reviewing the paperwork, many reps will discuss other matters to avoid the clause that outlines the rescission.
Most new timeshare owners will not review all the paperwork, and this is how many timeshare sales reps avoid their sales being canceled. After a 6-hour grueling sales presentation, new owner do not want review all the legal jargon in the documents. And if it is never mentioned by the staff, too often, they are not aware of it.
They will follow-up to overcome Buyer’s Remorse
It is important for timeshare sales staff to keep in touch with their new clients shortly after the sale. This helps prevent them from canceling a timeshare during the rescission period. Most clients will have buyer’s remorse and reconsider their purchase. After all, it might have been a very expensive unexpected purchase that was sold on emotion.
Buyer’s remorse often happens after they have taken the time to reconsider their purchase. They question whether they did the “right thing.” For this reason, sales reps need to be available just in case the client wants to cancel.
According to a Redweek article, Dr. Amy Gregory, assistant professor at the University of Florida, has been studying the impact of buyer regret and remorse and rescission decisions. She says that most timeshare buyers regret their decisions.
A whopping 85 percent of all buyers regret their purchase (for money, fear, confusion, intimidation, distrust and other reasons).”
Dr. Gregory’s Regarding Canceling A Timeshare findings are as follows:
- The average rescission rate is 15% – essentially identical to the daily average percentage of people who buy a timeshare following a sales presentation.
- 85% of all buyers regret their purchase, citing reasons including money, fear, confusion, intimidation, and distrust.
- 41% of buyers never thought they would regret their purchase but ended up doing so. 30% were neutral prior to buying, but came to regret their decision.
- 95% of all buyers go back to their resort and sales team for more information after the sale. They seek more information about maintenance fees, resale options, and pricing alternatives.
Some sales reps will treat their new owners out for a nice dinner to help “bond the relationship.” This tactic works well as the new owners are getting to know the sales agent on a personal level. After all, the salesperson took his or her own money and time to take the new owners out for a nice dinner. Why would they consider canceling a timeshare with “their new friend?”
They will follow-up by phone
Most resorts will require the sale staff who made the sale to meet with the new clients the next day, or to call them within 24 hours. This is to overcome buyer’s remorse, or in case the new owners have any further questions or clarifications. Often time, the new owners forget the verbiage during the presentation and the salesperson needs to explain the program again.
The resort may reduce the sales price.
If the new timeshare owners decide that they want to cancel a timeshare, the resort can offer to reduce the price.
A preliminary cause of buyer’s remorse is that the new owners didn’t take the time to review all the documents and to absorb everything that was said during the sales presentation. After all, they didn’t think that they were going to buy.
Often time, this “second round”rendezvous could last another 2-3 hours of negotiating. Many take the bait and purchase at the lower price, or keep the original agreement.
Unfortunately, the timeshare company may not change the original rescission period. Owners now have less time to reconsider their purchase.
Consumers need to be aware that the “today only price” offered will always be available the next day, week, or month. Don’t be afraid to return later. Resorts will not turn down the potential for a sale if it doesn’t exceed their bottom line.
The resort may offer more gifts.
If the resort offered gifts to make the sale, there are hundreds or thousands of additional monies that was left on the table. This is simply because the sale did not exceed their “bottom line” price.
If the new owners want to cancel, the management can offer more gifts to “sweeten the deal.” These free gifts might include free accommodations, free meals, free activities, free or discounted RCI weeks or other options.
New owners must be aware of the new terms that might have entered the contract. These terms could include paying rack rates for the free accommodations or paying the highest advertised prices for any gifts. This occurs in case they decide to cancel the deal. This action could add into the thousands of dollars if they decide to cancel.
Therefore, it is imperative to read the documents thoroughly before signing, or present it to an attorney.
The rescission is the consumer’s right when desiring to canceling a timeshare purchase. Although timeshare resorts will use every strategy that they can, it’s the consumer’s final decision.
It’s tantamount to a girl breaking up with her boyfriend who has spent all his time and energy wooing her. She discovers more about him and decides to terminate the relationship. He will use every tactic and strategy that he can, including embarrassment and condescension. But in the end, it is still her decision to terminate the relationship or move forward.