Trading Power with RCI

Before getting into the explanation of Trading Power, I’d like to stress the importance of always buying timeshare resales versus purchasing a timeshare direct from the developer.  Timeshare is a “use” product much like a car.   It is not a financial investment. Its value is in taking vacations with your loved ones.

For example, after buying a brand new car off the showroom floor and using it for several years, you decide to sell it. Obviously, you’re not going to be able to sell it for the same price you paid for it.  Timeshares are similar in this respect – when you purchase a timeshare direct from the developer there are a lot of front loaded marketing and sales costs (advertising, gifts, etc.) that affect the sales price.  Thus, timeshare resales at the same resort (with the same trading power as when originally sold) can be purchased at much lower prices and can save the buyer literally thousands of dollars.

Now let’s talk about Trading Power.  I’ve received a number of inquiries recently about the value of Trading Power and questions about why it may be important when considering the purchase of timeshare resales.

What does “trading power” mean?

Trading power is the assessed value of an interval week that is deposited for exchange for another week at a different RCI resort.  The assessed value is determined by a like-to-like principle and is based on a number of factors.  Some of these factors are demand for the destination where you own and which you are depositing, the number of similar deposits received by RCI, the quality of the resort, the size and season of your deposit and how far in advance you made the deposit.

Supply and demand rules dictate this type of exchange and owners can greatly enhance their trading power with high demand weeks, high demand resorts and high demand destinations.

While all exchanges are made based on trading power, it requires higher trading power to exchange to high demand areas like Hawaii that have a limited supply or during highly demanded weeks of the year, e.g., Christmas Week, 4^th of July, New Year’s Eve, etc.

How can you maximize your trading power with RCI?

Timeshare exchanges require planning ahead.  The earlier you deposit your RCI resort week, the more trade value you will have for your next exchange.  In order to maximize your deposit you should deposit your week 9 – 12 months in advance.  This improves your opportunities for exchange confirmation, compared to weeks deposited after yours with similar trading power.

You can also maximize your trading power by depositing a high demand week. As an example: if your home resort is on the southern California coast, you would want to reserve a week sometime between the end of June through the second week of August.  Why?  Because kids are out of school, the weather is beautiful and it’s a high demand time.

If your timeshare home resort is in a ski resort  you would want to reserve a week from late December through the end of March as that is peak season for skiers and thus high demand.  Once you have reserved a high demand week at your home resort, then you deposit the high demand week with RCI within the 9 – 12 month window in order to receive the maximum trade value.

Why should I deposit my week early?

RCI allows its members up to 24 months before their start date to make a deposit.  Depositing your week early helps to maximize your trading power.  When you deposit your week 9 – 12 months in advance, you receive the maximum trade value for what you are giving RCI.  If you deposit your week less than 9 months before your vacation start date, your trade value goes down.  So, the earlier you deposit your week, the better the chances are of getting the exchange you want.

Some deposit tips and reminders:

Remember, your Deposit Trading Power varies based on when you deposit. Depositing from 2 years to 9 months in advance will maximize your Deposit Trading Power.

In addition, upon depositing, you can take advantage of searching and exchanging your week for another vacation. You don’t need to know where or when you want to travel as long as you’re not planning to return to your home resort on your next vacation.

It’s important to keep your maintenance fees current. Note that these fees may need to be paid to your home resort before you can deposit with RCI.

RCI Deposit Credits

This is a great feature for RCI Members.  Any “unused” trading power is placed on their account as a Deposit Credit, to use toward a second vacation.  The Deposit Credit happens when a member exchanges to a location with a lower Exchange Trading Power than their home resort.

When searching for an exchange, you should look for what you need versus something identical to what you own.  As an example – if you own a two bedroom unit but there are only two of you traveling, you may be just as comfortable in a one bedroom or studio unit.   The difference in trading power is put back into the members account in the form of a Deposit Credit that can be used toward future exchanges.  This makes it possible for a member to take one week of vacation and potentially get a second week of vacation.

What can I do with my Deposit Credit?

There are two options – use it to book a second vacation of equal or lesser value than the Deposit Credit or combine it with another Deposit to increase that Deposit’s trading power, thus giving the member an exchange vacation with higher exchange trading power.

Advantage Vacation specializes in timeshare resales of Hilton timeshares and Wyndham Vacation Club timeshares which are both RCI affiliated resort developers.  If you are interested in purchasing a timeshare resale or selling your timeshare, contact one of our licensed real estate professionals today.  We would be happy to assist you and we never charge an upfront fee to sell your timeshare.

We are based on Maui and can also assist you in the purchase of a Maui timeshare with a Westin timeshare resale at the Westin Kaanapali Ocean Resort Villas or with a Marriott timeshare resale  at the Marriott Maui Ocean Club.  Remember, smart people buy timeshares – but smarter people buy timeshare resales!

Advantage Vacation is a member of the American Resort Development Association (ARDA) and offers the best buys on the timeshare re sales market today. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed.

We are leaders in the timeshare resale secondary market, have been in the timeshare industry for over 30 years and are Accredited Members of the BBB with an A+ Rating.

Advantage Vacation is using Twitter and Facebook to help educate people on the changes in the timeshare industry along with current timeshare tips, up to date timeshare news and timeshare FAQ’s.

We hope you will follow us and our blog, Timeshare Blogging by Advantage Vacation for the latest news and reviews. If our site does not answer your question or questions, please email us your question and we will answer it and add it to our library. Make your voice heard – what questions do you have?

At Advantage Vacation you can be assured you are working with professionals who believe that honesty and integrity are the most important aspects of the business they are in – timeshare resales. Our business has been built on relationships and we pride ourselves on providing excellent service to our clients.

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