Should you finance a timeshare? The math says no

TL;DR

Interest kills returns: A typical 10% loan over 15 years can double the purchase price of the contract, while the asset depreciates immediately.
Rental value gaps: Most points do not rent high enough to cover monthly mortgage payments. For example, a 525,000-point Club Wyndham allocation rents for $2,625–$6,300/year, but a financed contract often requires similar or higher monthly outlays.
Better option: Buying on the secondary market often costs 50–80% less than developer pricing, eliminating the need for financing entirely.
Specific Brand Reality: Club Wyndham points average 0.5¢–1.2¢ per point, while Marriott Vacation Club points can reach 35¢–90¢, yet maintenance fees remain high across the board.
The Verdict: Unless you plan to use every single point annually and can afford the cash flow hit, renting from the secondary market is mathematically superior to financing.

The Financial Trap of High-Interest Developer Loans

When you sign with a resort developer, you are rarely looking at a standard bank loan. Developer financing is often the most accessible option at the sales presentation, but it comes with predatory interest rates. While a standard car loan might sit at 6% to 8%, timeshare financing can easily climb to 10% or higher.

Consider the math of amortization. If you finance a $50,000 contract at 10% interest over 15 years, your total repayment exceeds $96,000. You are not just paying for the timeshare; you are paying the bank for the privilege of buying a liability. In this scenario, you are paying twice for the asset. The first cost is the principal, and the second is the interest. Over a 15-year span, interest payments can total nearly the original purchase price itself.

Compare this to a standard mortgage on a real estate property. Real estate generally appreciates over time, potentially offsetting the interest cost. A timeshare, however, depreciates the moment you leave the sales office. You cannot sell it for what you paid. When you add the high-interest debt to a depreciating asset, the negative equity compounds year over year. This is the core reason why financing a timeshare fails the financial test. You are borrowing money at a high rate to buy something that loses value immediately.

Rental Income vs. Loan Payments: A Brand-by-Brand Breakdown

To understand why financing is a bad idea, we have to look at the revenue potential of the points you are buying. Owners are often told that their points are an investment. The reality is that the secondary market determines the value, not the developer. We have compiled data from the secondary market to show what these points actually rent for annually.

If you finance a contract, you need to know if renting your points out can cover your monthly payment. In most cases, the answer is no.

| Brand | Points Unit | Secondary Market Value | Typical Allocation | Annual Rental Income | | :--- | :--- | :--- | :--- | :--- | | Club Wyndham | Club Wyndham Points | $0.0050 – $0.0120 | 50,000–1,000,000 | ~$2,625–$6,300 (525k pts) | | Marriott VC | Vacation Club Points | $0.3500 – $0.9000 | 1,000–15,000 | ~$2,800–$7,200 (8k pts) | | Hilton GV | HGV Points | $0.0100 – $0.0250 | 2,000–50,000 | ~$260–$650 (26k pts) | | Diamond | Diamond Points | $0.0800 – $0.1800 | 2,500–100,000 | ~$4,100–$9,225 (51.25k pts) | | Bluegreen | Bluegreen Points | $0.0080 – $0.0160 | 4,000–60,000 | ~$256–$512 (32k pts) | | Westgate | Westgate Points | $0.0040 – $0.0100 | 50,000–500,000 | ~$1,100–$2,750 (275k pts) | | WorldMark | WorldMark Credits | $0.0700 – $0.1400 | 5,000–30,000 | ~$1,225–$2,450 (17.5k pts) | | Vistana | StarOptions | $0.0250 – $0.0550 | 30,000–200,000 | ~$2,875–$6,325 (115k pts) |

Take Westgate Resorts as a prime example. A typical 275,000-point allocation rents for roughly $1,100 to $2,750 per year. If you are financing a new purchase, your monthly payment is likely higher than $100, just in principal and interest, not including maintenance. This means your rental income barely covers a fraction of the debt service.

Even at the higher end of the spectrum, like Diamond Resorts, where a 51,250-point allocation might rent for $9,225 annually, the financing costs on a new purchase are steep. Developers sell Diamond points at a premium. The secondary market value (8¢–18¢ per point) is significantly lower than what new owners pay. You are borrowing money to overpay for the points, then trying to rent them back at the market rate. The spread is too wide to make financial sense.

Use our calculator to see exactly how your specific loan payment compares to your potential rental income.

The Maintenance Fee Squeeze

The loan payment is only half the battle. You also must pay annual maintenance fees, which increase every year. These fees are mandatory, regardless of whether you use the resort or rent your points out. When you factor in the interest on the loan plus the annual maintenance fee increase, the break-even point becomes almost impossible to reach.

For brands like Hilton Grand Vacations, a typical 26,000-point allocation might rent for $260–$650 per year. While the rental value seems low, the maintenance fees for Hilton contracts are substantial. If your maintenance fees alone approach the upper end of your rental income, you are paying the bank and the resort to rent your own property.

In some scenarios, specifically with lower-value contracts like Bluegreen, the math is even starker. With a 32,000-point allocation renting for only $256–$512 a year, there is almost no room to pay off a financed debt. Bluegreen has been acquired by Hilton Grand Vacations in 2024, and while the parent company has changed, the value proposition of the points remains tied to these secondary market realities. Financing these low-yield contracts is essentially funding a loss every year.

Even Travel + Leisure Co. brands, which are some of the largest, show this trend. A 525,000-point allocation generates $2,625–$6,300 annually. If your loan payment is $500 a month ($6,000 a year), you are barely breaking even on interest alone, before paying a single dollar of maintenance fees. This ignores the time and administrative cost of actually finding renters for your points.

The Secondary Market: The Real Solution

The alternative to financing is buying on the secondary market. This is where the math flips. You can buy a timeshare for a fraction of the developer's list price. Because you pay in cash or with low-interest personal financing, you avoid the high developer rates.

When you buy used, you are buying the contract value, not the resort's marketing price. A 50,000-point Club Wyndham contract might sell for $5,000 on the resale market, compared to $10,000+ at the developer. By avoiding the high interest loan, you own the asset outright within a few years. Once owned outright, the only costs are maintenance fees.

Furthermore, buying resale protects you from the "lock-in" of developer financing contracts. You retain the flexibility to sell later if your circumstances change. Since the data shows that points like WorldMark have a resale rental value of 7¢–14¢ per credit, buying a contract at 50% of face value preserves that margin. You buy at 50% face, rent at market rates, and the spread is yours.

If you buy at face value and finance it, the developer takes the margin. If you buy used, you keep the equity. The data supports this: Vistana (Sheraton / Westin) contracts often have 30,000–200,000 StarOptions allocations. Buying these on the secondary market avoids the steep financing markup.

When Does Financing Make Sense?

We must acknowledge that there are rare exceptions. Financing might make sense if you are purchasing a fractional real estate share with a deed that appreciates, or if you can secure a loan rate significantly below the rental yield. However, based on the provided brand data, this is statistically unlikely for standard timeshare points.

For example, if you can secure a mortgage at 4% and the rental yield is 10%, the math works. But look at the numbers: a 525,000-point Wyndham allocation rents for roughly $6,300 maximum. If that contract cost $100,000 (high end of new), that is a 6.3% yield. If you pay 10% interest on that loan, you are losing 3.7% annually before fees.

The only time financing is viable is when you do not plan to sell the timeshare within the next 15 years, and you intend to use every point personally. If you are buying strictly for vacationing and want to ensure availability, paying cash preserves your liquidity. If you are buying as an investment to generate rental income to offset costs, the data clearly indicates that rental values (ranging from $0.0040 to $0.9000 per point) do not cover the cost of capital at current interest rates.

Next Steps for Owners and Buyers

Before you sign any financing documents, run the numbers against the current market rental rates. We encourage you to verify your specific allocation's potential income using our Timeshare Rental Calculator. If your loan payment exceeds 50% of the potential rental income, you should reconsider the purchase.

For owners who are already struggling with financed timeshares, the solution is often to rent out the points to offset fees or to exit the contract. Check the specific resale values for your brand. Whether it is Marriott Vacation Club or Club Wyndham, the secondary market is always lower than the retail price.

Ultimately, the decision comes down to cash flow. Financing adds a layer of debt to a consumer product that depreciates. In 2026, with interest rates remaining relevant, the cost of capital is a significant barrier. The smartest financial move is to buy used, pay cash, or simply rent when you go. The numbers do not lie: financing a timeshare is a negative sum game.