Rolex Forums - Rolex Forum - View Single Post - Cost Analysis of the New Sub C (or any Rolex for that matter)

Dan2010 · 1 October 2010, 12:19 PM

I'm a finance guy so I wanted to do a little cost of ownership analysis on the new Sub C since there are a great many people who think it's too much for a SS watch. This analysis can apply to any Rolex for that matter.

I will use my own recent purchase of the Sub C as an example. I paid $7,600 after sales tax. Now a Rolex will last what, 50, 75, 100 years? Lets say it will last for 75 years. Exclude the regular watch maintenance cost every 5-7 years as all Rolex's will require this.

If I take the cost of $7,600 and divide it by 75 years you get $101. This is my annual cost of owning this watch. Now will I personally get to enjoy this watch for the next 75 years? Odds are probably not but between myself and giving it to one of my kids someday, we will get 75 years of use out of it. When you break it down, $101 a year aint bad to own this or any other Rolex that has such longevity. But wait, it gets better. In 75 years, if one of my kids wants to sell this "vintage Sub C", I can almost guarantee you they will get more than $7,600 that dear old dad paid way back when. So guess what, the only real cost has been the cost of the maintenance and that is assuming that one of the kids sells it only for $7,600. If they sell it for more someday, the premium may even cover that cost too. In the end, we quite possibly owned this great watch for FREE. And for all you other finance geeks, yes I am ignoring the time value of money in this analysis.

Now is it a great INVESTMENT? I never said that. I just analyzed the cost of ownership. Could I have used that $7,600 and turned it into more money. Well duh. But I wouldn't have enjoyed it as much as owning something as fine as this Rolex. Could I of waited and gotten a better deal? Well duh again but remember this analysis can be applied to that $10,000 Daytona too. For me, I was willing to pay the premium.

The whole point of this is, if you plan on keeping the Sub C or any other watch for the long term, you may find the cost is not so bad after all.

1 October 2010, 12:19 PM	#1
Dan2010 "TRF" Member Join Date: Apr 2010 Location: South Carolina Watch: Panerai 914 Posts: 6,540	Cost Analysis of the New Sub C (or any Rolex for that matter) I'm a finance guy so I wanted to do a little cost of ownership analysis on the new Sub C since there are a great many people who think it's too much for a SS watch. This analysis can apply to any Rolex for that matter. I will use my own recent purchase of the Sub C as an example. I paid $7,600 after sales tax. Now a Rolex will last what, 50, 75, 100 years? Lets say it will last for 75 years. Exclude the regular watch maintenance cost every 5-7 years as all Rolex's will require this. If I take the cost of $7,600 and divide it by 75 years you get $101. This is my annual cost of owning this watch. Now will I personally get to enjoy this watch for the next 75 years? Odds are probably not but between myself and giving it to one of my kids someday, we will get 75 years of use out of it. When you break it down, $101 a year aint bad to own this or any other Rolex that has such longevity. But wait, it gets better. In 75 years, if one of my kids wants to sell this "vintage Sub C", I can almost guarantee you they will get more than $7,600 that dear old dad paid way back when. So guess what, the only real cost has been the cost of the maintenance and that is assuming that one of the kids sells it only for $7,600. If they sell it for more someday, the premium may even cover that cost too. In the end, we quite possibly owned this great watch for FREE. And for all you other finance geeks, yes I am ignoring the time value of money in this analysis. Now is it a great INVESTMENT? I never said that. I just analyzed the cost of ownership. Could I have used that $7,600 and turned it into more money. Well duh. But I wouldn't have enjoyed it as much as owning something as fine as this Rolex. Could I of waited and gotten a better deal? Well duh again but remember this analysis can be applied to that $10,000 Daytona too. For me, I was willing to pay the premium. The whole point of this is, if you plan on keeping the Sub C or any other watch for the long term, you may find the cost is not so bad after all.