Buyer #1 in 2016

$29,670

Buyer #1 paid $29,670 for 8,500 timeshare points in the Diamond Resorts “US Collection” program.

$5,950 down payment
• Plus $750 in purchaser closing costs.
• Automatic enrollment in THE Club with annual fee (in 2017) of $245/year .
• Using the “Interval International” exchange program feature would require $189 transactions fees (in 2017) .

Buyer #1 paid an additional $2,083 for just the first year of his estimated annual assessment fees. (This mandatory annual fee is likely to go up in later years ).

Buyer #1 in 2017

$141,458

Next year, the same Buyer #1 paid Diamond $141,458 for 43,500 points in the Diamond “US Collection”.

In this purchase, after deducting $66,995 of existing timeshare interests as trade-in, Buyer #1 paid $15,300 down for a balance of $59,913.

This $60,000 debt was financed by Diamond Resorts at an unknown interest rate . But we know when Buyer #1 bought even more timeshare points from Diamond in 2018, that purchase agreement showed a 16.99% annual interest rate .

Buyer #1 also paid $7,233 for his first year of annual maintenance dues.

Buyer #1 in 2018

$202,633

In 2018, Buyer #1 convinced himself (or was convinced) to buy $202,633 of timeshares! After deducting $171,128 of existing timeshare as trade-in and $6,486 down, Buyer #1 paid $25,769 this time around.

His purchase agreement showed he could only choose between two options:
1. Pay everything upfront in cash or credit card
2. Get financed by the Diamond

If Diamond financed it, according to the contract Buyer #1 was going to pay 16.99% in annual interest for ten years of monthly payments! That’s $453.70 per month for ten years (120 payments) on a principal of $25,769. That’s $54,444 over the life of the loan.

In addition to all that, Buyer #1’s first year of the annual mandatory maintenance fee was $9,105!

Buyer #1 tried to join a class action lawsuit against Diamond as a non-party individual about alleged violations of the Securities Act . The case was dismissed by a judge in 2019 .