If you are researching for the cost of cancellation of timeshare and wondering whether it is too expensive to get out of it, you are in the right place.
You see, attaching an exact cost of canceling a timeshare is hard as the fees can vary depending on the type of timeshare you have and also different situations. However, whether it is expensive to exit a timeshare can be easily understood if you consider the following scenarios:
Scenario A: The owner wants to get out of more than one timeshare he holds and still owes money on each, in addition to the maintenance fees.
Scenario B: Owner wants to get out of one timeshare he holds and has paid it off fully. He has owned it for a couple of years so the maintenance fees, though rising, is not out of control yet.
From the above, it’s quite clear that situation A is more complicated than B. So even without knowing any exact details and figures, one can safely deduce that for the timeshare owner in scenario A the cost to cancel the timeshare will be more than the timeshare owner in scenario B.
The other thing to consider is the long-term financial situation. Let’s say for Scenario A the exit process requires up to 3-5 years of maintenance fees. For someone who is already under the pressure of a bad “investment”, this is a lot of money.
However, when compared to the lifetime cost of staying with the timeshare, the cancellation fee is an obvious choice and a better long-term solution.
To understand this better, let’s take Scenario A and break it down further:
Suppose the timeshare owner pays the standard maintenance $800-$1000 annually. So over a period of 15-year the combined maintenance fees for the two timeshares (that increases between 6-10% annually), and remaining mortgage costs comes to a total of $45,000 or higher.
The specific numbers don’t actually matter. It is clear from the above example, that the owner could either pay the full price over 15 years or save 10-12 years worth of expenses by getting rid of the timeshare with the cancellation fee.
The best way to find out the cost of the cancellation fee is to give the timeshare exit company a call to go through a free consultation during which you will be provided with an estimated cancellation service cost which on an average is about $4000.
When putting this way, comparing the cost of continuing with the timeshare and cost of canceling it, the choice becomes a no-brainer.
So to answer the Questions – What is the cost of canceling a timeshare? Answer: It’s $400 on an average, Better to get a free consultation and find it out. Is it expensive to cancel timeshare? No, when compared to the total cost to remain stuck with it if you keep the timeshare.
Hope this has answered your question? You can use the form on top of this page to get a free consultation for canceling your timeshare.