Pros/Cons of trade in with AD?

[Maxdad]

Sorry if this topic has already been raised, I searched but couldn't find anything. Tell me, if you are looking to buy a new Rolex and already own one that you intend to sell, to help fund the new purchase, is there any benefit in trading it in with the AD....I would guess (?) that the benefit is, you 'might' get higher up the famous 'list' for the model you want to buy, BUT probably at the cost of getting a low trade in price for the watch you're selling (lower than you could get selling on the open market like Chrono24)? Any help guidance appreciated. Thanks.

[ExplorerI]

Pro it’s easy and no chance of getting swindled.

[donas]

I've traded one Rolex into an AD, that was years before I joined TRF and started learning the ins and outs, so to speak. I didn't know any better at the time and let's just say I didn't get quite the amount the watch was worth. The same is true with trading to a grey, it's just the nature of the game; they have to get it at a price that they can apply a hefty mark up to and make some money. If you want the easiest and safest route, trade it; if you want to get the most out of it, sell it yourself. As far as the "list" goes, good luck figuring out that game.

[Maxdad]

Originally Posted by donas

I've traded one Rolex into an AD, that was years before I joined TRF and started learning the ins and outs, so to speak. I didn't know any better at the time and let's just say I didn't get quite the amount the watch was worth. The same is true with trading to a grey, it's just the nature of the game; they have to get it at a price that they can apply a hefty mark up to and make some money. If you want the easiest and safest route, trade it; if you want to get the most out of it, sell it yourself. As far as the "list" goes, good luck figuring out that game.

Thanks Donas...so, no benefit re the list then? Doesn't help your cause...so, this mysterious 'list' process, have I got this right, once you have actually managed to get on a list of any kind with an AD (assuming you have no existing relationship), you just wait, it's as simple as that, there's no procedure adopted by the ADs, they each do their own thing, allocating watches to whom ever they want, (as and when deliveries with unknown contents arrive), VIPs, VVIPs, no real regard for any chronological order...you just need to get your name down for your chosen model and wait...period? That about right?

[KatGirl]

Sell it yourself! Why give Rolex even more money than they are getting now? As for the wait list, I’m on on several, and haven’t heard from any of the AD’s, despite following up every so often. I know I’m not alone. Good luck, whatever you decide.

Kat


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[donas]

Originally Posted by Maxdad

Thanks Donas...so, no benefit re the list then? Doesn't help your cause...so, this mysterious 'list' process, have I got this right, once you have actually managed to get on a list of any kind with an AD (assuming you have no existing relationship), you just wait, it's as simple as that, there's no procedure adopted by the ADs, they each do their own thing, allocating watches to whom ever they want, (as and when deliveries with unknown contents arrive), VIPs, VVIPs, no real regard for any chronological order...you just need to get your name down for your chosen model and wait...period? That about right?

In my opinion you hit it on the head, lol. There will certainly be some that come along with a different opinion. Experiences vary, mine has been dismal at best. I only have one AD within several hours of me, I have visited them every couple months asking to be placed on a "list". They take my information and it seems put it straight into the trash when I leave. One time they asked me if I was willing to put a deposit down and I told them I'd pay for the whole watch up front. They wouldn't take my money.

Usually, I'd say just go grey, but the mark ups these days are absurd.

[Kevin of Larchmont]

Originally Posted by KatGirl

Sell it yourself! Why give Rolex even more money than they are getting now? As for the wait list, I’m on on several, and haven’t heard from any of the AD’s, despite following up every so often. I know I’m not alone. Good luck, whatever you decide.

Kat


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How does Rolex get more money if you trade a watch in at the AD?

[Kevin of Larchmont]

Sometimes people seem shocked that an AD doesn’t pay open market price for a trade in Rolex, I often read the word “lowballed” here on TRF. People forget or ignore that ADs have to sell that watch at open market price. Also, because ADs can only sell new Rolexes at suggested retail the pre-owned Rolexes are the ADs best opportunity to profit from the sale of a Rolex. To answer the question at hand the pros of trading in a watch at the AD are convenience, security and leverage against the next Rolex; the cons are you don’t make a killing on the sale. So if you are in it for the watches then trade it in and if you’re in it for the money then flip it.

[OrangeSport]

Pros

Easy and safe

Cons

Won't get the best price

[KatGirl]

Originally Posted by Kevin of Larchmont

How does Rolex get more money if you trade a watch in at the AD?

The AD will buy it or take it in trade for less than it’s worth, then resell it with a large mark up, thus increasing their profits. Rolex takes 2/3 of the money the AD’s make on any of their merchandise. That is the Rolex business model.

Kat


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[Kevin of Larchmont]

Originally Posted by KatGirl

The AD will buy it or take it in trade for less than it’s worth, then resell it with a large mark up, thus increasing their profits. Rolex takes 2/3 of the money the AD’s make on any of their merchandise. That is the Rolex business model.

Kat


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Documentation or it never happened. Rolex can’t harvest profit from the sale of used goods purchased directly by the AD, this is insane. As for an AD buying and then selling a product for more than they paid for it that is capitalism in a free market economy. Profit is not a dirty word.

[OrangeSport]

Originally Posted by Kevin of Larchmont

Documentation or it never happened. Rolex can’t harvest profit from the sale of used goods purchased directly by the AD, this is insane. As for an AD buying and then selling a product for more than they paid for it that is capitalism in a free market economy. Profit is not a dirty word.

I wouldn’t be surprised. I had a client, a major bank, who tried to implement exactly that and amend the contract to demand a % once per year.

[Kevin of Larchmont]

Originally Posted by OrangeSport

I wouldn’t be surprised. I had a client, a major bank, who did exactly that and whose contracted demanded a % once per year.

Really? Does Rolex take a percentage of the used jewelry sales too or do they just demand tribute from the used watches? Does Rolex have a roving army of forensic accountants to inspect the ADs books and spot check the used watches? Is there a used watch serial number database that Rolex keeps? Do they track purchase and sale prices to calculate the tribute owed them? Is this why Rolex shuts down ADs, for unpaid tribute on used watches?

I’ve read a lot of conspiracy theories on TRF but Rolex charging a percentage on the sale of used inventory legally purchased by the AD is the wildest one yet.

[KatGirl]

Originally Posted by Kevin of Larchmont

Documentation or it never happened. Rolex can’t harvest profit from the sale of used goods purchased directly by the AD, this is insane. As for an AD buying and then selling a product for more than they paid for it that is capitalism in a free market economy. Profit is not a dirty word.

Not sure why this is upsetting you. I merely suggested that the OP get as much for their watch as possible, rather than allowing Rolex to profit from a resale.

Kat


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[Maxdad]

Now now, no arguing folks.....everyone is just trying to help, I appreciate it....perhaps I should have just said, IF I trade in, does it help me get a new Rolex quicker from the AD? Thus perhaps worth getting less money for my trade in....perhaps?

[28mm]

Originally Posted by KatGirl

Not sure why this is upsetting you. I merely suggested that the OP get as much for their watch as possible, rather than allowing Rolex to profit from a resale.

Kat


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When you say 'Rolex' is profiting from the sale do you mean the Authorized dealer? Rolex doesn't profit if the dealer takes a watch in on trade and then sells it. Or are you saying they do?

[RolexPD]

It’s essentially the same pros/cons as trading in a car versus selling it yourself

[Srct]

It may give the AD a reason to sell a new model to you as they have the opportunity of making the margin on the used watch. For me the question would be what is the cost of change with the AD v selling at market price and buying in the grey market.

[Bizcut1]

Everyone's cranky.

[Harry-57]

Originally Posted by KatGirl

The AD will buy it or take it in trade for less than it’s worth, then resell it with a large mark up, thus increasing their profits. Rolex takes 2/3 of the money the AD’s make on any of their merchandise. That is the Rolex business model.

Kat


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Got any proof?

[Harry-57]

Originally Posted by Maxdad

everyone is just trying to help

Not everyone.

Why not ask an AD or three? My AD takes traded in Rolex watches but since I have never tried to trade one of mine in, I don't know what they would offer. They tell me that sellers tend to be too greedy and often get their asking prices declined, but we've never discussed numbers. Few if any of them go on display. There are waiting lists for used/vintage models, same as new ones. There will always be a mark up involved. Running a business costs money.

As to giving a potential buyer an advantage, this is also unknown and will depend on the AD and the trade in. If you have a watch they really want this might produce a result, in theory. More usually it's a question of waiting your turn and offering a trade in when the time comes.

[Daveclock]

Originally Posted by Kevin of Larchmont

How does Rolex get more money if you trade a watch in at the AD?

What they are fumbling to say, is Rolex don't get any money - the Private/Company the AD may.

Rolex make and sell watches for their Charity....that is their business model.

IMHO you thinking yourself higher up an imaginary list!? ...LOL they just make the profit from you and look to NEXT....

[john333]

Originally Posted by KatGirl

Not sure why this is upsetting you. I merely suggested that the OP get as much for their watch as possible, rather than allowing Rolex to profit from a resale.

It isn’t a matter of being upset, but rather spreading disinformation. I have never heard of this and it makes zero sense. There’s no way ADs would be gobbling up preowned Rolexes for resell if they had to fork over 2/3 of their profit to Rolex.

[JRell]

Only way I have ever done it. Easiest, you get the watch you want at MSRP, and you know it is legit. You create a trusted relationship and never have to go grey.

[rmwill]

A noob private seller will never get top dollar. Too risky for buyers. Trade it in.

[brandrea]

To the OP … I’d be inclined to work with you AD if they accept “trade ins”. Yes, you won’t realize the most money out of it, but you’ll have a worry free trade in, and you can be totally transparent as to what you are trying to accomplish

[gerry100]

Originally Posted by RolexPD

It’s essentially the same pros/cons as trading in a car versus selling it yourself

agree

[MRBolton]

Could it also harm a relationship by indicating a lack of buying power by wanting to sell a piece of your collection?

[dannyp]

If your preference is to acquire watches new, from an AD, then there are serious advantages. Yes, on paper your trade-in value will be low, but the moment you walk out (with a new watch, now valued at "market") you'll be even or likely ahead. Dealer also has an incentive to move you up the list because they can resell your watch at market (but have to sell the new one at MSRP). Essentially, in real-world dollars, AD can make a lot more on that new watch by taking a "hot" one in trade and reselling.

Slight (or not-so-slight) added benefit: Many (most?) states only require sales tax be paid when cash changes hands, not when goods are traded for one another, so you'll save up to 10% vs. buying from the dealer for cash.

[htrap2294]

Why would I sell to an AD? My AD offered $4K on my 2020 214270 MK2. Well below market value. On top of this, wanted to sell me a 2013 Explorer II for $10K. $10K is fine price wise, but I’m not trading in my watch at $4K and adding $6k on top.


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