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I have been a Grand Velas (GV) (in Nuevo Vallarta, Mexico) timeshare owner since it opened 4 years ago. Got sent there from Velas Vallarta (which we had booked and then got moved to when Velas Vallarta was full) and sent on the timeshare presentation (we already owned at Carriage Hills (RCI timeshare) in Canada).
Were so impressed by Grand Velas, we bought on impulse a Master Suite (studio) for 25 years for around $24k USD. Have visited there every year since and have loved it. Was there last week and sent to an owner's meeting to tell us about improvements to the resort, which turned out to be another salespitch to upgrade our suite size. However, beyond that there also is a new program (since Aug'08) they are offering to owners to change their ownership from the traditional timeshare with yearly maintenance fees (MF) to one with no maintenance fees. Seemed too good to be true - there is an initial cost but and a slightly higher All Inclusive (AI) fee than we had with the 'old program' but in the long run it looks like it would save us money, even if we stayed in the same suite size (which we need to increase soon anyways as our kids are getting older). We would be paying $11300 to upgrade to a larger room and get a new 25 weeks + 25 elite weeks (available only May-Oct) + 50 Holiday Systems International (HSI) weeks, but no more maintenance fees.
The first year cost difference is:
Current: AI fee would increase from current ($160 AI fee in March - 20% = $128) 2 people x 7 days = $1792 + current MF ($1034.86 in 2008) = = $2827
Upgrade: ($264 AI fee in March - 20% = $211) 2 people x 7 days = $2957
Although the upgrade is higher in year 1 (bc of higher AI fee), the AI fee is not expected to increase as much as the MF would over the next 25 years. Good assumption?
The thing is, there are resales online for as low as $9000 for a Master Suite same as I currently own. However, that one would also incur a MF as it would be under the old program.
Below are my notes from my conversation with the sales manager.
Does anyone have any experience with or heard of a 'no maintenance fee' program as offered? Any help is appreciated.
1. CURRENT PROGRAM I HAVE (21 years left to use):
ALL INCLUSIVE daily rate $USD
normal fee
$125 per person 2006
$132 per person 2007 (5.6% increase from 2006)
$160 per person 2008 (21% increase from 2007)
20% discount off all inclusive
3 complimentary Grand Velas Rituals (per person)
3 25 min Back Massage (per guest)
20% off other Spa Services
MAINTENANCE FEES $USD
$913.77 ($781+tax) 2006
$959.40 ($820+tax) 2007 (5% increase from 2006)
$1034.86 ($877+tax) 2008 (7% increase from 2007)
Estimated next 20 years total combined: $32,792
2. UPGRADE OPTION I HAVE BEEN OFFERED:
(presented Mar'09) - Rod Cook (Sales rep), Paul Rado (Sales Mgr)
Grupo Velas Upgrade Package (to non Maintenance Fee (MF) program) - they're doing it to reduce confusion at front desk whereby every owner has different benefits and also to increase sales (easier to sell new units with no MF)
Upgrade options:
1. $5200 - if stay @ Master Suite (guaranteed with still upgrades to larger units on checkin if available) with all other upgrade benefits
2. $11300 - upgrade would move us from a Master Suite to Parlour 1 or 2 Suite (1 bedroom), with a Grand Class 1 room Casa Velas (CV) address (@ CV - equivalent to a large Master Suite)
Disadvantage of CV address is that the resale value would be probably less than GV
Advantage of CV address is that it is cheaper compared to a GV address
Disadvantage of Upgrade
- pay higher AI fee (but this is offset by no MF)
Eg. With Grupo Velas Upgrade: GV AI fee:
($264 AI fee in March - 20% = $211) 2 people x 7 days = $2957
Eg. Without Grupo Velas Upgrade (keep as is paying MF): GV AI fee:
($160 AI fee in March - 20% = $128) 2 people x 7 days = $1792
+ MF ($1034.86 in 2008) = $2827
ie. $130 more with upgrade
Eg. GV AI fees vary depending on time of year:
May-Dec 2008 $216 - 20% =$173
March 2008 $264 - 20% - $211
AI increases based on cost of living (according to Paul, but has been 5-21% in past years, he said AI increased more recently to force owners to switch to new program) vs MF fee increases are more dramatic (5-7% based on past history).
Benefits of Upgrade:
- can use more than 1 week per year (8 weeks per year, 4 weeks per visit)and not pay MF
- can reload the trust after we have used up our 25 weeks (even in less than 25 years) ie. when we use our 25 weeks we can then pay 5 years worth of All Inclusive (AI) use and get 25 more weeks
Eg. GV AI fee: ($264 AI fee in March - 20% = $211) 2 people x 7 days = $2957 x 5 years = $14785
Eg. CV AI fee: $135 x 2 x 7 x 5 years = $9450
- Elite weeks have to be used in the year or are lost, but can pull some from the future
- $200 fee per year (only if trade in for RCI or Registry Collection) but waived off AI fee if staying at GV
- Every 2 referrals get 1 week free
- easier to resell: no MF, 100% of benefits are transferrable to new owner, including no MF
Were so impressed by Grand Velas, we bought on impulse a Master Suite (studio) for 25 years for around $24k USD. Have visited there every year since and have loved it. Was there last week and sent to an owner's meeting to tell us about improvements to the resort, which turned out to be another salespitch to upgrade our suite size. However, beyond that there also is a new program (since Aug'08) they are offering to owners to change their ownership from the traditional timeshare with yearly maintenance fees (MF) to one with no maintenance fees. Seemed too good to be true - there is an initial cost but and a slightly higher All Inclusive (AI) fee than we had with the 'old program' but in the long run it looks like it would save us money, even if we stayed in the same suite size (which we need to increase soon anyways as our kids are getting older). We would be paying $11300 to upgrade to a larger room and get a new 25 weeks + 25 elite weeks (available only May-Oct) + 50 Holiday Systems International (HSI) weeks, but no more maintenance fees.
The first year cost difference is:
Current: AI fee would increase from current ($160 AI fee in March - 20% = $128) 2 people x 7 days = $1792 + current MF ($1034.86 in 2008) = = $2827
Upgrade: ($264 AI fee in March - 20% = $211) 2 people x 7 days = $2957
Although the upgrade is higher in year 1 (bc of higher AI fee), the AI fee is not expected to increase as much as the MF would over the next 25 years. Good assumption?
The thing is, there are resales online for as low as $9000 for a Master Suite same as I currently own. However, that one would also incur a MF as it would be under the old program.
Below are my notes from my conversation with the sales manager.
Does anyone have any experience with or heard of a 'no maintenance fee' program as offered? Any help is appreciated.
1. CURRENT PROGRAM I HAVE (21 years left to use):
ALL INCLUSIVE daily rate $USD
normal fee
$125 per person 2006
$132 per person 2007 (5.6% increase from 2006)
$160 per person 2008 (21% increase from 2007)
20% discount off all inclusive
3 complimentary Grand Velas Rituals (per person)
3 25 min Back Massage (per guest)
20% off other Spa Services
MAINTENANCE FEES $USD
$913.77 ($781+tax) 2006
$959.40 ($820+tax) 2007 (5% increase from 2006)
$1034.86 ($877+tax) 2008 (7% increase from 2007)
Estimated next 20 years total combined: $32,792
2. UPGRADE OPTION I HAVE BEEN OFFERED:
(presented Mar'09) - Rod Cook (Sales rep), Paul Rado (Sales Mgr)
Grupo Velas Upgrade Package (to non Maintenance Fee (MF) program) - they're doing it to reduce confusion at front desk whereby every owner has different benefits and also to increase sales (easier to sell new units with no MF)
Upgrade options:
1. $5200 - if stay @ Master Suite (guaranteed with still upgrades to larger units on checkin if available) with all other upgrade benefits
2. $11300 - upgrade would move us from a Master Suite to Parlour 1 or 2 Suite (1 bedroom), with a Grand Class 1 room Casa Velas (CV) address (@ CV - equivalent to a large Master Suite)
Disadvantage of CV address is that the resale value would be probably less than GV
Advantage of CV address is that it is cheaper compared to a GV address
Disadvantage of Upgrade
- pay higher AI fee (but this is offset by no MF)
Eg. With Grupo Velas Upgrade: GV AI fee:
($264 AI fee in March - 20% = $211) 2 people x 7 days = $2957
Eg. Without Grupo Velas Upgrade (keep as is paying MF): GV AI fee:
($160 AI fee in March - 20% = $128) 2 people x 7 days = $1792
+ MF ($1034.86 in 2008) = $2827
ie. $130 more with upgrade
Eg. GV AI fees vary depending on time of year:
May-Dec 2008 $216 - 20% =$173
March 2008 $264 - 20% - $211
AI increases based on cost of living (according to Paul, but has been 5-21% in past years, he said AI increased more recently to force owners to switch to new program) vs MF fee increases are more dramatic (5-7% based on past history).
Benefits of Upgrade:
- can use more than 1 week per year (8 weeks per year, 4 weeks per visit)and not pay MF
- can reload the trust after we have used up our 25 weeks (even in less than 25 years) ie. when we use our 25 weeks we can then pay 5 years worth of All Inclusive (AI) use and get 25 more weeks
Eg. GV AI fee: ($264 AI fee in March - 20% = $211) 2 people x 7 days = $2957 x 5 years = $14785
Eg. CV AI fee: $135 x 2 x 7 x 5 years = $9450
- Elite weeks have to be used in the year or are lost, but can pull some from the future
- $200 fee per year (only if trade in for RCI or Registry Collection) but waived off AI fee if staying at GV
- Every 2 referrals get 1 week free
- easier to resell: no MF, 100% of benefits are transferrable to new owner, including no MF
We only talked to Tino at owner services.From my understanding, nil maintenance fee +compulsory higher AI fees only applies to new purchasers or for owners to purchase a new contract(upgrades). If I get another resale now,do I finish off the sellers' original contract or do I need to upgrade w/Velas? If you go next time,can you find out more info on "existing contracts" from Tino? His office is close to the parking lot. Angela
None of the people we talked to, who own at the Grand Velas too, converted that week but the Grand Velas told us that most of them do. Who would you believe in telling the truth? 
The mandatory A-I fees started out at $42.25 pppd for the owners! It is $160 pppd today for the owners at this resort now. Some of the older contracts pay less than that so a pretty good deal. Restaurants in the tourist areas are quite expensive in Mexico and certainly if you order several drinks with your meal and during the day on the beach or at the pool side too. It adds up very quickly if you like your drinks.
You did good negotiating but make sure that it is written in your contract too.
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