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REMEMBER: When a consumer purchases a 2011 Chevy Impala with an average base sticker price of about $24,000, the very second the new owner drives off the lot, BAM, it will plummet nearly $7,000.00 (about 30%) in resale/trade-in value.
The second year it will lose almost another $2,000 in value and so forth until at the end of five years it will have depreciated in value about $13,500 (nearly 60%) or more, depending on mileage, wear and tear, etc.
Of course over that time taxes and fees will cost the new owner upwards of $3,000. If they finance at an interest rate of (e.g.) 8% that is another $5,000 down the drain, and repairs not covered by any warranty could cost a $1,000 or more.
If they did finance w/no ‘down’ at 8% they’ll need to make a monthly payment of about $486.00 for 60 months (5 years), and when it is all said and done the Chevy owner now only has, for all the money they poured into that Impala, a used car on their hands that is out of warranty, shows signs of being ‘worn’ and is likely in need of repairs. And when they go to sell or trade in (and buy again) they will gladly take whatever the market will bear at that time.
The point is that almost everything consumers purchase (cars, computers, planes, boats, RV’s, Jet Skis, etc.) ALL lose value (from day one). So the next time a prospect mentions that they heard (or know for a fact) that timeshares lose their value, etc. don’t get upset, argue or take it the wrong way.
Instead, agree that future market conditions are always unpredictable but that owning a well maintained TS (vacation home) will protect them from the increased future rental rates of ‘accommodations’ and that based on the hotel and motel industry’s past 100 year track record they haven’t yet demonstrated that they’ll likely lower those nightly/weekly rates any time soon.
And it wouldn’t hurt to toss in the fact that unlike that Impala, they’ll never have to trade in their 2-bedroom TS and buy another one every three to five years. It is the savvy TS Pro who represents future values of ownership in such a manner who’ll laugh all the way to the bank.
TODAY’S VIDEO: Gary Numan – Cars
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