Purchases worse than ROLEX: A perspective

[milspec]

yesterday I met a friend and as we were talking, he mentioned he got a new car. I remember he bought one new car about 6 yrs ago for $18,000. Then spent money decking it up and adding accessories. He told me that the bluebook value is only $2,500 -- $4,500, after adding 80,000miles.

Just look at the money he lost: $15,000 gone, insurance $$ for the last 6 yrs and gas $$ for the last 6 yrs ....and now his car's value is steadily declining....

So I told him he should have bought a couple of ROLEXes instead, since this car was a pleasure and not a necessity ... the value and demand of a rolex would still be there ....

Another friend spent $18,000 on furniture... one stupid dining table, 2 beds and 3 cabinets .....could have done it way way cheaper for similar quality but had the $$ to throw away .... you know how hard a time he would have if he were to try to sell this stuff back?

Another friend spent $4800 on a TV and sound system last year ... one little malfunction and it is all over .....

My parents took a european cruise ... flew from Los Angeles to Spain ... spent about $6,000 and now all they come back with is a DVD of what they did and some stories and memories that are fading fast ....$6,000..that's a freakin GMT IIc ......yeah they enjoyed, had a good time blah blah blah but got nothing much to show for that $$ ,,,,,one dvd and some pics in their digital camera.....


So the lesson is that don't feel bad about your rolex purchase ... there are enough dumb things we do in our lives that make a rolex purchase seem and actually makes it a real wise decision...just think of all other places you are throwing your money and have nothing to show for it after 5-10 yrs ....apart from buying real estate, gold or investing in the long term, there is not much out there where you can make a purchase, use it and enjoy it and your item still be in demand when you sell it...

[Nacelle]

Well said!

[airhkg]

Nuff said!

[JimSnyder]

I agree

[bodybump]

well...i dont think they made a bad decision on the purchase... Rolex might be a good investement on the other things that you mentioned...some people are not just into expensive watches..especially they cant even thought of buying a small pcs of watch that cost thousand of dollars...some people thinks if they want to buy something expensive they might as well see it big and use as often as possible..Different people different interest...I have a friend that owns 3 restaurant dont have the fanciest clothes and watches but have the fanciest car...From Mercedes S class to a BMW 6 series..they cant seem to think that buying a watch worth thousand of dollar would make them happy...A big screen LCD T.V made him happy and a really nice car too...so it depends on the persons interest...cant blame them but if you think carefuly they have enough money to buy a All gold Rolex in a heart beat...Most of this people are asians...i have seen what they own...very luxury things but not on a Rolex watch...

[miked10270]

It's called "Opportunity-Cost" by economists. Something (say a holiday) costs what you have to forego (say a Rolex) to get it. So it really comes down to choice between the two and deciding what will give you the most pleasure.

or example, in '97 my then girlfriend and I had a month holiday in North America. SKydiving, camping, driving from Tucson to Calgary, and generally "adventuring". Instead of spending that money on a holiday, I COULD have bought a couple of Rolex's, or a nice car, or paid off a fair part of my mortgage... But we then would never have had the experiences which bonded us so thoroughly. Now we're married with 3 kids, etc... we can still look back on the month we spent together which could so easily have broken us, but made us instead. So it was money well spent.

That said, when we finally married (very quietly) earlier this year, the Bride wore a Yacht-Master in lieu of the white dress & reception, and we paid off the house instead of the month on RMS St.Helena. Even with hindsight, I wouldn't have spent the money any differently.

Regards,

Mike.

[timackerman]

Originally Posted by miked10270

It's called "Opportunity-Cost" by economists. Something (say a holiday) costs what you have to forego (say a Rolex) to get it. So it really comes down to choice between the two and deciding what will give you the most pleasure.

or example, in '97 my then girlfriend and I had a month holiday in North America. SKydiving, camping, driving from Tucson to Calgary, and generally "adventuring". Instead of spending that money on a holiday, I COULD have bought a couple of Rolex's, or a nice car, or paid off a fair part of my mortgage... But we then would never have had the experiences which bonded us so thoroughly. Now we're married with 3 kids, etc... we can still look back on the month we spent together which could so easily have broken us, but made us instead. So it was money well spent.

That said, when we finally married (very quietly) earlier this year, the Bride wore a Yacht-Master in lieu of the white dress & reception, and we paid off the house instead of the month on RMS St.Helena. Even with hindsight, I wouldn't have spent the money any differently.

Regards,

Mike.

I completely agree, it's all about what you view as important, and what will provide you with the "best benefit". For me, a car is essential because I live in a city that is so widely spread and transit service that is horrible. Being able to drive to work or wherever in a warm car, instead of waiting outside for the bus (in weather ranging from -5 to -40 Celsius for about 8 months of the year) is worth much more then the declining cost of my car.

Travel is the same, how does one put a price on memories and experiences with loved ones?

[chenx15]

I agree with you with the cars except ofcourse when you buy super luxurious ones. furnitures are not really meant for resale i'm willing to spend money for an amazing sofa, recliner, or an office chair and table. entertainment systems i usually have patience for that i got my 50 inch hdtv for 1,300 dollars. trips are pretty amazing and i'm willing to spend 10,000 dollars for a memorable one. Rolex worth every penny and every single price increase.

[GerardoG]

Bravo!

[meloncap78]

Every point in this thread is well spoken and holds truth in itself in one way or another. Great points everyone. Threads like this one really make me think.

[Nica64]

Agree!!! sometimes taking a vacation after working so hard is very nice, I bet your parents had a nice time on that European vacation.

[ArizonaHD]

Overlooked factors:

I will always pay a premium for a premium car, I want a car that is capable, fast and safe so I pay, if all I wanted was a basic death trap I'd buy a Hyundai or GM. Even an Mercedes E or S class looks expensive, until you understand it can and will save your life, then it is money well spent.

A $4800 TV is not the worst investment, I mean would you order every digital cable channel and watch it on a 25" sears console TV? If you have a large family or go to the movies often the TV can easily pay for itself in the money you save going to the theater and buying a box of licorice for $5 a soda for $4 a pop.

Furniture is another area where you buy quality, why own a nice home and decorate it with ugly junk.

Even the title of this thread acknowledges at least to you that a Rolex is a bad purchase "purchases worse than a Rolex..." Yes it holds its value, but does not appreciate the way investments normally do. You want to know something that really holds its value and is always in style CASH!

Real estate is a mixed bag but it always seems high when you are ready to purchase and low when you want to re-sell (right now you CANNOT SELL). There are many people are being financially destroyed right now because they believed real estate to be "a sure thing" and that workers making 40K in their area would buy a 600K track home. Sorry no sure things or easy money.

A vacation, well I like to go out and do things, if you are happy sitting home looking at your watch, at least you are settled in for your life at the retirement home.

[JohnEaton]

Purchases worse than ROLEX: A perspective

I'd say Citi or Crude futures six months ago and any Madoff investment comes to mind...
[My SS Daytona is still worth $2-3K more than I paid for it]




Re: You want to know something that really holds its value and is always in style CASH!

For deflationary times YES, but How long before inflation or hyper-inflation kicks in, how will you cash hold up then?

[casadecamporolex]

Originally Posted by JohnEaton

Purchases worse than ROLEX: A perspective

I'd say Citi or Crude futures six months ago and any Madoff investment comes to mind...
[My SS Daytona is still worth $2-3K more than I paid for it]




Re: You want to know something that really holds its value and is always in style CASH!

For deflationary times YES, but How long before inflation or hyper-inflation kicks in, how will you cash hold up then?

One of the positions I had in mid 2008 were corporate bonds in a small unknown company called Lehman Bros. Each $100 worth about 1.5 cents now. Paper cheaper than toilet paper.
Talk about a turn of events never seen before, wiping out $$$$$$$'s.
Cash is good now, gold bullion is a must for 2009.

[Whiskey]

I've had this discussion with many people. The ones who always lose are the cigarette-smokers.

I have a buddy of mine who's pretty much a half-pack a day smoker.

I've asked him to estimate what he spends in a year on smokes. I believe the figure he gave me was something like $3500 a year.

I've told him had he saved that money he could have had a nice watch, a car, or a trip.

I find that both genders tend to frown on my expensive watch.

1. Women because they figure I should be spending it on what else......a woman.

2. Men, because they believe I should be spending it on a woman.

[candycandy]

My 2 yens:

Cars: I'd pay for safety features and dependability (also considered safety IMHO). So that's why I only buy new cars. Sure, it gets hit pretty bad in depreciation, that's why I try to buy the ones with highest 'perceived' resale value. I currently drive Prius since that's my wife wanted to drive.

I used to buy/sell high-end and vintage musical instruments. It was nice 'investment' for a while, but with influx of fake vintage and new 'vintage-look' instruments coming from major manufacturer and fakers, I don't thing its fun anymore.
I still like high-end, hand-made "Made in USA" musical instruments (like Alembic), but I'd rather buy Rolex now that I think about it... anything more portable is better for me.

I think money is there to spend. Only thing you have 100% control in your life is when you end your life (as in, end it earlier than **insert your choice of higher being** decides). I'd rather spend my money, live my life, than to live a frugal life, and 'maybe' retire with lots of money and no physical strength to do anything with.

2 yens, and those yens are worth more than dollars now... lol

candycandy

[NG1208]

Seems to me that things got a bit off track with this thread. I took Milspec's original post to be food for thought in cases where someone (like me) might feel guilty about spending so much for a watch. The real point as I took it was that people who aren't watch freaks spend money on other things without thought. I don't think he intended to talk anyone into buying a watch instead of a car.

I thought it was an excellent point.

Now, if you'll excuse me, I must go out to get some cigarettes, whiskey, beer, cigars and lottery tickets!

[Rolexitis]

Originally Posted by NG1208

Seems to me that things got a bit off track with this thread. I took Milspec's original post to be food for thought in cases where someone (like me) might feel guilty about spending so much for a watch. The real point as I took it was that people who aren't watch freaks spend money on other things without thought. I don't think he intended to talk anyone into buying a watch instead of a car.

I thought it was an excellent point.

Now, if you'll excuse me, I must go out to get some cigarettes, whiskey, beer, cigars and lottery tickets!

to the first part and to the second!

[sna77]

nothing says excitement like sitting in your living room staring at a $7k watch all day instead of taking a vacation... ;)

[DS/B MINI S]

Originally Posted by sna77

nothing says excitement like sitting in your living room staring at a $7k watch all day instead of taking a vacation... ;)

Sadly some folks on here would do just that

[2careless]

Thanks for this thread. It's good to reflect during this silly season.

[MARLEYBARR]

Anyone who purchased a new or used Rolex for less than $4000.00 in the past could more or less either come out roughly even or make some money in the recent marketplace. A 2 to 4 thousand dollar Rolex is considered "affordable" by potential customers. With the recent numerous price increases, shelling out $6000++++ for new will make it very difficult to buy Rolex as a positive "investment" especially w/ the used market being flooded at the present. Only buying used really right will allow potential profits in the future (or buying new at an incredible discount.)

[MAC4130]

Originally Posted by milspec

yesterday I met a friend and as we were talking, he mentioned he got a new car. I remember he bought one new car about 6 yrs ago for $18,000. Then spent money decking it up and adding accessories. He told me that the bluebook value is only $2,500 -- $4,500, after adding 80,000miles.

Just look at the money he lost: $15,000 gone, insurance $$ for the last 6 yrs and gas $$ for the last 6 yrs ....and now his car's value is steadily declining....

So I told him he should have bought a couple of ROLEXes instead, since this car was a pleasure and not a necessity ... the value and demand of a rolex would still be there ....

Another friend spent $18,000 on furniture... one stupid dining table, 2 beds and 3 cabinets .....could have done it way way cheaper for similar quality but had the $$ to throw away .... you know how hard a time he would have if he were to try to sell this stuff back?

Another friend spent $4800 on a TV and sound system last year ... one little malfunction and it is all over .....

My parents took a european cruise ... flew from Los Angeles to Spain ... spent about $6,000 and now all they come back with is a DVD of what they did and some stories and memories that are fading fast ....$6,000..that's a freakin GMT IIc ......yeah they enjoyed, had a good time blah blah blah but got nothing much to show for that $$ ,,,,,one dvd and some pics in their digital camera.....


So the lesson is that don't feel bad about your rolex purchase ... there are enough dumb things we do in our lives that make a rolex purchase seem and actually makes it a real wise decision...just think of all other places you are throwing your money and have nothing to show for it after 5-10 yrs ....apart from buying real estate, gold or investing in the long term, there is not much out there where you can make a purchase, use it and enjoy it and your item still be in demand when you sell it...

Agree!
I do not regret any Watch purchase!

[tnt]

I purchased 3 Rolexes for my husband....he says...ok...which made me feel like wasted the money

few weeks back, I bought a pre-owned Porsche 911 turbo for him, with $50k cashed out straightly from my savings..+ insurance....and he jumped to the ceiling.....he cleans his turbo everyday....I have never seen that happy as he is right now....so, I think it was a very worthy purchase for his happiness

[rpryan55]

Originally Posted by tnt

I purchased 3 Rolexes for my husband....he says...ok...which made me feel like wasted the money

few weeks back, I bought a pre-owned Porsche 911 turbo for him, with $50k cashed out straightly from my savings..+ insurance....and he jumped to the ceiling.....he cleans his turbo everyday....I have never seen that happy as he is right now....so, I think it was a very worthy purchase for his happiness

Please send me your address so I can leave my wife and marry you.

[miked10270]

I purchased 3 Rolexes for my husband... bought a pre-owned Porsche 911 turbo for him

Originally Posted by rpryan55

Please send me your address so I can leave my wife and marry you.

Err... YOUR end of the queue is about a half mile down there!

Mike.

[tphan]

This is the reason why we don't have the M5 park in the garage. Three years from now my ss daytona might drop another thousand or so but not with the BMW.

Buy gold and/or land is the answer.

[Cato]

Yeah, tell me about it! I lost enough money in the stock market to buy a new Patek Phillipe. If I'd have bought a PP, at least I'd have the watch still!

[ErikAalto]

I walked out of the Toyota dealership having paid $25,300 for my Toyota Prius (all taxes/registration included). I probably could have gotten a $13,000 base model Corolla (maybe out the door for $10k less), but the fact is it would not have made driving the cheaper car any more enjoyable even if I had a Daytona on my wrist if I took the difference.

Granted, my watch spends about nearly 24 hours a day on my wrist, it is honestly secondary to all of those things that you mentioned.

We spend a considerable amount of our lifetime on our furniture, in our car, and remembering our trips. What kind of life have you lived if all you can reflect on is a bunch of watches that you bought rather than experiencing life itself?

I would not hesitate to take a $6,000 vacation with my wife over buying a new Rolex. I would not hesitate to refurnish my house with $6,000 over buying a new Rolex. I would not purchase a vehicle that was $6,000 less nice, over buying a new Rolex.

In any of those situations, if I bought a new Rolex, I'd have a pissed off wife who could have had a nice vacation, a lot of nice new furniture, or a much nicer car.

Who cares about depreciation? Does everything you do in life have to focus on cost? Don't you remember those Mastercard commercials? 6 round trip tickets to Barbados - $6,000, Room/Board/Activities - $4,000, spending time with your loved ones - PRICELESS?

[Art 1]

Agree 100%.