Financing AP? Can you?

[BIG_B_n_FLA]

With brands like Rolex, Breitling, Omega and even Patek Philippe being sold in high end retail stores like Mayors and Tourneau if you have great credit you are able to finance your purchase at little to no interest. "Financially speaking why not use 0-5% interest on a $10k-$45k purchase for 24 to 60mnths. Even in this economy I am able to do a few % better in the market if I hold on to the cash and get a bit of return." So paying in full would be a bit foolish IMHO. I am considering buying my first AP and just was curious to see if there is a way to finance AP?

Ps. I know I can put it on my Amex platinum or visa Citi 0%interest free card for 18mnths lol.. but that wouldn't be route I am inquiring about. I see a lot of guys on here with really nice APs some costing more the $30k+ just wanted to ask the question of how to acquire the brand? Ap is not in the high end stores listed above, they are in the smaller boutiques that don't have lines of credit systems available. You can finance a Patek but not a AP?

FYI I save 30% of $67k salary every week for retirement and I am only 30yrs old..lol I know some you guys would want to know this info b/c discussing money is So taboo on here. We men Run to buy expensive cars all time Bmw Mercedes Audi but most would agree that the pricey AP watch would hold its value better long term. Its all relative if you think about it for a second financially speaking. Most people save for a down payment on car not the entire purchase..

[kilyung]

Cash is king

[EdChoi]

I can see your argument from a financial perspective, but I buy watches as a hobby, and as a way to pat myself on the back for work well done. So in that vain, I couldn't see myself structuring payments for something that I enjoy and buy as personal rewards...

With that being said, I would call around to different larger ADs of AP watches, and see what kind of plans they have. My local AD has some program, although I'm not familiar with the terms.

Without sounding preachy, financing indulgent purchases like watches is not something I would want to get into.

[tltulsa]

Put the money aside for the watch in a specific account...fund it when you have excess. You'll feel better in the end. "The man who owes little is little owned"-someone smarter than me. If you borrow the money, then you don't REALLY own it, at least for a while!

[ChristianN]

I've saved up and bought all my watches cash. Its the only way for me.

[HL65]

Would never buy watch for anything but cash and excess cash at that!

[s14roller]

I see what you mean with the interest rates, and this is fine assuming you have the cash for it already and it can be used in better ways (including just staying more liquid). Some ADs will have a store CC that they can put you on, however, this is not free as the CC companies would charge them, so your discount would take that into account…

[TSW]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

X2

[Silvio Mosiello]

Originally Posted by TSW

X2

X My life!

[seattle1978]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

x2

[psv]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

Never ever finance anything as foolish as a watch. And at your income level I'd humbly suggest you stay away from watches at that price range unless you have savings, retirements, rainy day funds, housing etc taken care of.

It is your life and your money, of course, so do as you want.

[BIG_B_n_FLA]

Originally Posted by psv

Never ever finance anything as foolish as a watch. And at your income level I'd humbly suggest you stay away from watches at that price range unless you have savings, retirements, rainy day funds, housing etc taken care of.

It is your life and your money, of course, so do as you want.

Everything that you suggest from rainy day fund, housing and retirement are all being funded. Question to everyone who has replied that they would only buy with cash, I ask did you buy your car cash? One of the best lessons I have ever learned from studying the "rules of money " is that it not so much about how much money you make and can spend out right but more to do with what a person does with the money they make i.e. invest, leverage and mortgage. Buying with cash is not always the best option folks. Example: Financing the watch at a low 2-5% rate and putting the cash to work in a investment COULD be better. I do find cash being used by a lot of non financially savvy people honestly. Big spender but not great thinkers.... The type that would pay cash to get a 2-5% discount on a $30k car and walk away from a 0.9% financing 60mnths... Not smart

[psv]

Originally Posted by BIG_B_n_FLA

Everything that you suggest from rainy day fund, housing and retirement are all being funded. Question to everyone who has replied that they would only buy with cash, did you buy your car cash? One of the best lessons I have ever learned from studying the rules of money is that it not so much about how much money you make but more to do with what a person does with the money they make. Buying with cash is not always the best option folks. But I do find it being used by a lot of non financially savvy people honestly. Big spender but not great thinkers....

Or maybe they have enough money not to worry about the compound interest the amount required for a watch purchased. And yes, I pay cash for everything that has to do with consumption including cars. Housing or student loans is the only thing worth financing IMO. That is the rule I live by.

[iLLGT2]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

Agreed... My whole collection is cash only , even when badgered occasionally with a financing plan ! Only way to be IMO, I wouldn't feel comfortable financing a 30k watch, same usually goes with my cars...

People argue liquidity this and that, but, if you can then why not?

[capote]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

I don't need to scan three pages of advice. This is it
Either you get it or you don't. Chances are you will crash and burn later if you don't get it.

[craniotes]

Gotta go with the flow here -- I pay up front and in full. Sure, if I'm buying a multi-million dollar piece of property (not something that I make a habit of doing on a daily-basis, BTW) it makes more sense to get a mortgage and invest the money elsewhere, but for watches, as Mike so eloquently put it, "cash is king."

Therefore, if you've got the money on hand to throw down for the watch, do so; if not, save up a bit longer.

Regards,
Adam

[Peppers90]

I agree, cash is a big negotiating factor. I have walked in with the bank envelope and said I can pay right now if you agree to my price. It works more than you'd think!

[arezzo66]

Let the hobby fund itself and you don't necessarily have to pay cash, you can always trade your watches + cash for a piece, also I would buy used vs. new, the disparity between boutique prices and real world prices is too much for me to ignore, I've learnt this the hard way after buying over eight pieces at ADs and Boutiques.

S

[Watcheroo]

No financing for me either, wouldn't even consider it for a watch.

[Slider817]

Tourneau in Manhattan, the Time Machine carries AP, maybe your local shop could order you one, and you could finance it.

If you really want to save money, forget authorized dealers, get a Pre-Loved Specimen from a reputable watch dealer, Pay in Cash, or trade in a less worn piece.

My personal philosophy is not to go into debt for luxuries, I know people fiance vacation homes, but that is not something I would do either.

[byeedo]

Originally Posted by slider817

my personal philosophy is not to go into debt for luxuries, i know people fiance vacation homes, but that is not something i would do either.

x2

[Submarino]

If the cost of financing is less than the opportunity cost of having the cash to use elsewhere, I'd say financing is an option. When it comes to watches, financing is really not an option!!!!

[eric23]

Pay with cash! It's the best way to buy a watch!

[aboen]

Cash only for cars and watches for me.

[mannyv11]

Sometimes they have 0 percent financing deals. If you get this its like playing with their money I don't see why you wouldn't consider financing. You would be able to put 10k+ into anything else and earn extra money on it while you pay them back zero for giving you a loan.

if you find zero percent I would say jump on it every now and again dealers do this so call around and find it. =) hopefully you get the watch you want very soon

[Kringkily]

You could finance the watch but for a watch really? A car has functional use especially if it takes you to work and around town but a watch I wouldn't finance. I would wait for a bonus or something.

[BIG_B_n_FLA]

Originally Posted by Kringkily

You could finance the watch but for a watch really? A car has functional use especially if it takes you to work and around town but a watch I wouldn't finance. I would wait for a bonus or something.

Any car will serve your personal necessary needs of transportation. A watch will give u time. Luxury is the key word of this debate. You finance a luxury car why not the luxury watch? L

[dimitros]

I see KK's point, depending on where you live you might NEED a car. If you need the car to get to work to make money in the first place, go grocery shopping etc-I can see financing it if you don't have the money up front to buy it. But in that situation why not buy a beater honda with cash than finance a 3 series. I don't finance luxury cars, only buy them when I can pay for them in cash.

You need shelter, you need food, you need companionship, you need to plan for retirement, you need health insurance, if possible you need to plan for higher education for your kids.
You need a mode of transportation, you need a means of communication,
but now a days you don't really need a watch.

It just doesn't make sense to spend that much of your income for something that you really don't need. Do you expect to make much more than your present level of income in the near future? How stable is your job? If I were in your situation, I wouldn't feel comfortable spending that chunk of my income unless I had all of the above taken care of and enough saved not just for a rainy day, but rainy 6 months to a year, because you never know in this economy.
And you might argue that a high end watch is a relatively liquid asset and that you wouldn't lose much if you had to sell it, but if you are selling distressed, you will likely do so for a loss. There is a much bigger market for used 5K rolex than a used 30K AP/Patek. Easier to move a rolex than an AP/Patek.

But hey its your money...

[HL65]

Originally Posted by dimitros

I see KK's point, depending on where you live you might NEED a car. If you need the car to get to work to make money in the first place, go grocery shopping etc-I can see financing it if you don't have the money up front to buy it. But in that situation why not buy a beater honda with cash than finance a 3 series. I don't finance luxury cars, only buy them when I can pay for them in cash.

You need shelter, you need food, you need companionship, you need to plan for retirement, you need health insurance, if possible you need to plan for higher education for your kids.
You need a mode of transportation, you need a means of communication,
but now a days you don't really need a watch.

It just doesn't make sense to spend that much of your income for something that you really don't need. Do you expect to make much more than your present level of income in the near future? How stable is your job? If I were in your situation, I wouldn't feel comfortable spending that chunk of my income unless I had all of the above taken care of and enough saved not just for a rainy day, but rainy 6 months to a year, because you never know in this economy.
And you might argue that a high end watch is a relatively liquid asset and that you wouldn't lose much if you had to sell it, but if you are selling distressed, you will likely do so for a loss. There is a much bigger market for used 5K rolex than a used 30K AP/Patek. Easier to move a rolex than an AP/Patek.

But hey its your money...

Actually it is quite easy to move $100K Pateks and other high end watches if you are in the right circles and have the knowledge. Trust me I know!!

But for most you are correct and I agree with the rest of your post as it makes perfect sense!!!

[dimitros]

Originally Posted by SteelerFan65

Actually it is quite easy to move $100K Pateks and other high end watches...

Yes, a lot of them seem to move right into your hands!