Milgauss - To Finance or Not!

[dannyboy123]

I know the answer to this really, but keep tossing it about in my head.

I already own a sub, had it 20yrs. I've been keen on a Milgauss GV for ages and can get it from my AD with a 15% discount, as I'm travelling overseas soon I can get it "duty free" from their outlet and save another 15%, all totally legit, one does wonder how long that loophole will go on for.

Threads on this forum suggest prices look like Rolex are going to go up 8-15%. At this point I can buy it for the equivalent of US$6,700 (clearly I'm outside of the USA).

With a young family I'm never going to have 7 grand lying around. We're not particularly disciplined savers, spare cash tends to go on stuff for the house, weekend breaks etc so I can't see a Rolex saving fund working out either - it'd get turned into the family holiday fund, new kitchen fund etc.

I would add despite being a new family (kids 3 and 5) we're not on the bones of our butts and are relatively well set up, nice place, good school zones etc - savings aside.

I can finance it at about 4% (3-5yrs). As a monthly amount it can be absorbed fairly easily and with less beer swilled probably the net effect to outgoings is $nil (but who can lay off the beer!)The wife says go for it, but each time I'm about to pull the trigger I feel guilty.

For this reason I think after a month or so of dancing around the AD is understandably losing his patience - I don't see the deal being on the table for too much longer. Basically I buy it in the next week or so, or I don't.

I do have a bit of a collection of push bikes, new and also older collectibles some of which I was toying with slowly flicking off to reduce the debt.

Maybe I should be happy with my sub. I really want that GV, walking past it everyday is doing my head in.

[Grumpy Badger]

I'll be your enabler! No pockets in a shroud and, especially since your Long-Haired General is on side, go for it!

[brownbear]

Personally, I would not finance a watch.

[skyedog]

Originally Posted by brownbear

Personally, I would not finance a watch.

+1

[Zed Homme]

You know what to do.

In your second to last sentence you also mention that you already have some debt.

If I were you, I would stuff a little cash into a piggybank and when said bank is full, get your watch. Life has its way of delivering unforeseen surprises and expenses so I wouldnt suggest adding to your debt. There will always be another Rolex to be bought in the future, and a TRF seller can get you savings to sweeten the deal. I'd hold off for now.

Just my $0.02

[dddrees]

Originally Posted by zed homme

you know what to do.

In your second to last sentence you also mention that you already have some debt.

If i were you, i would stuff a little cash into a piggybank and when said bank is full, get your watch. Life has its way of delivering unforeseen surprises and expenses so i wouldnt suggest adding to your debt. There will always be another rolex to be bought in the future, and a trf seller can get you savings to sweeten the deal. I'd hold off for now.

Just my $0.02

x2, x3, x4

[speedo]

if you want my honest opinion, i wouldn't finance a watch. if you want it and you are willing to sacrifice your push bikes then you'll have the cash.
btw, i was hesitating for a very long time and for a similar reason so i know the feeling and the gv is beautiful indeed.

[cedargrove]

From a pure financial standpoint, there is an argument that financing a Rolex can save you money instead of waiting until you save up enough, considering how prices keep increasing. This is based on the premise that you are guaranteed to eventually buy the watch.

Personally I need to feel financially comfortable with any purchase I make. The way you have described your situation leads me to believe you are not entirely comfortable with this decision.

[wdalew5]

You only live once......

[Jannal]

Originally Posted by cedargrove

From a pure financial standpoint, there is an argument that financing a Rolex can save you money instead of waiting until you save up enough, considering how prices keep increasing. This is based on the premise that you are guaranteed to eventually buy the watch.

Personally I need to feel financially comfortable with any purchase I make. The way you have described your situation leads me to believe you are not entirely comfortable with this decision.

[Runnin' Rebel]

CASH IS KING, save up and pay cash, that would make you feel like a million bucks if you paid cash !

[dannyboy123]

Originally Posted by JAGERVEGAS

CASH IS KING, save up and pay cash, that would make you feel like a million bucks if you paid cash !

Funny you should say that. Years ago when I was 16 and mad on cycling I went to Chas Roberts in London and had a custom bike frame made. It cost me 355 pounds. I paid cash and ensured I got it all in 5 pound notes. It felt kinda good handing over a huge wad of cash. 71 used notes is quite a big stack!

[unitas12]

Originally Posted by JAGERVEGAS

CASH IS KING, save up and pay cash, that would make you feel like a million bucks if you paid cash !

Couldn't have felt better myself. Funny how Rolex made me feel the 10k was a deal for my daytona. I bought my used TT gmt-c for 7400 so about 25% off. I have seen nice milguass go for 4500 in nice condition.

[Cru Jones]

You have savings set aside....is it earning 4%? If not, buy it outright....just need the discipline to replenish the savings.

Good luck! Looking forward to the GV pix....

[watch watcher]

If the wife says it's OK...then it IS OK...

[rolexsweep]

Originally Posted by watch watcher

If the wife says it's OK...then it IS OK...

that is all that needs to be said!

[(213)GMT]

If you have to finance it then you can't afford it. I would never finance a luxury item. JM2C

[zkd217]

I'm sorry what are push bikes?

[Grumpy Badger]

Originally Posted by zkd217

I'm sorry what are push bikes?

Bicycles rather than motorbikes.

[dannyboy123]

The only debt we carry is our mortgage. We have considerable equity in our home, I'd say we owe roughly $185k on a place worth $800k, so we're well into the mortage. Aside from that, our other debts are very small, probably a grand h/p on a tv.

We've never been savers. We tend to finace bigger items like refurbishments, TV's, Cars over 2-5 yrs. Never having much hanging out there at one time. Actually most folk I know fall into this camp. Oddly we know quite a few affluent folk and they all spend what they earn.

I guess my logic was a bit in line with one of the comments above i.e. jump in now firstly while a rarer peice is still available and secondly jump before I'm totally priced out of the game.

We also don't travel overseas much, so the extra 15% I get off buying duty free isn't always going to be an option. It's an odd loophole. I can buy at local high street AD and collect from the airport duty free shop on way back from an overseas trip! Legal, but for how much longer I wonder?

Don't supose anyone wants a Colnago do they????

[Zed Homme]

Originally Posted by dannyboy123

The only debt we carry is our mortgage. We have considerable equity in our home, I'd say we owe roughly $185k on a place worth $800k, so we're well into the mortage. Aside from that, our other debts are very small, probably a grand h/p on a tv.

We've never been savers. We tend to finace bigger items like refurbishments, TV's, Cars over 2-5 yrs. Never having much hanging out there at one time. Actually most folk I know fall into this camp. Oddly we know quite a few affluent folk and they all spend what they earn.

I guess my logic was a bit in line with one of the comments above i.e. jump in now firstly while a rarer peice is still available and secondly jump before I'm totally priced out of the game.

We also don't travel overseas much, so the extra 15% I get off buying duty free isn't always going to be an option. It's an odd loophole. I can buy at local high street AD and collect from the airport duty free shop on way back from an overseas trip! Legal, but for how much longer I wonder?

Don't supose anyone wants a Colnago do they????

Ultimately, only you can make the decision, so if that is how you feel, go for it. Good call on discussing it with the wife first...

[MortgageGuy]

Originally Posted by dannyboy123

The only debt we carry is our mortgage. We have considerable equity in our home, I'd say we owe roughly $185k on a place worth $800k, so we're well into the mortage. Aside from that, our other debts are very small, probably a grand h/p on a tv.

We've never been savers. We tend to finace bigger items like refurbishments, TV's, Cars over 2-5 yrs. Never having much hanging out there at one time. Actually most folk I know fall into this camp. Oddly we know quite a few affluent folk and they all spend what they earn.

I guess my logic was a bit in line with one of the comments above i.e. jump in now firstly while a rarer peice is still available and secondly jump before I'm totally priced out of the game.

We also don't travel overseas much, so the extra 15% I get off buying duty free isn't always going to be an option. It's an odd loophole. I can buy at local high street AD and collect from the airport duty free shop on way back from an overseas trip! Legal, but for how much longer I wonder?

Don't supose anyone wants a Colnago do they????

Well there is a VERY easy answer here... You need a CASH OUT MORTGAGE REFINANCE... You can take out a something like 200k and use it all for Rolex watches Just kidding, I am a Mortgage Banker as you can see from my screen name so I thought a bit of humor would be fun

I personally would not finance the watch, I would wait till the timing is right. IMO if you have to ask the question you know the answer

[ptugolf]

I would not finance any luxury items. Most luxury items will depreciate in value immediately after it is purchased.

[cyglee]

In my experience, the kids alway took priority and the financial challenges are never ending... so the rolexes had to wait. I did take the plunge last year, but only after college for both boys, and life started to settle down. But now graduate schools beckon!!

[tkc324]

I wouldnt finance a watch, unless its 0% APR or I just want to earn credit card pts... but have the cash in the bank to pay it off immediately regardless. If I was in your situation, I would just save enough to buy a used GV. Like you said, you have a young family... I would never risk buying a brand new Rolex, and in times of need, loose money when i sell... to me buying used is the way to go.

[dannyboy123]

Originally Posted by tkc324

I wouldnt finance a watch, unless its 0% APR or I just want to earn credit card pts... but have the cash in the bank to pay it off immediately regardless. If I was in your situation, I would just save enough to buy a used GV. Like you said, you have a young family... I would never risk buying a brand new Rolex, and in times of need, loose money when i sell... to me buying used is the way to go.

Never much up for sale here, small population. We don't have ebay, but here's our equivalent. This is actually a good outcome, been hardly anything on here for months!

http://www.trademe.co.nz/Browse/Sear...ch_suggested=0

JJ was selling of his stuff a while back on here.

[salem65]

If you can't pay for it three times over with cash, then you cannot afford it.

[xblk33360]

Originally Posted by salem65

If you can't pay for it three times over with cash, then you cannot afford it.

i actually somehow agree with this also, unless... you're still young and single and have a decent paying job...

[esm]

Congrats on the GV in advance.

[Raucky]

pull the trigger before prices go up again, even if you take loan out. Pay it off early, beat the increase and still save money while looking good.