In August 2016, Vistana’s parent company claimed that the average interest rates it charges when it gives timeshare loans for Vistana and Hyatt Residential timeshares is about 13%.[i] They also reported that the average transaction price for a timeshare sale at that time was $17,575.[ii]
Let’s look at a concrete example of what that means. Let’s say you buy a timeshare for $17,575, pay 20% upfront and financed the rest with a $14,060 loan from the timeshare developer. Let’s say it’s a 10-year loan[iii] at the average rate of 13%. That means by the end of the 10 years, you would have paid over $10,000 in loan interest – on a $14,060 loan!
If you are considering buying a timeshare and you need financing, you may want to check out this article on Bankrate.com about taking out a personal loan to buy a timeshare.