Resale value in 2019

[Cat_lover]

While having a general discussion with AD he mentioned that aside from a selected few professional models, re-sale value of Rolex is not that great in 2019.

Especially for DateJusts (both SS and TT) and more so for diamond dial/bezels. One would only be able to get back around 50% of price one paid if lucky.

Is that true? What are your views? Also chime in if anyone was able to sell their recently purchased Rolex for a good price (aside from professional models).

I am just curious as I have no plans to sell any watch (I like to keep my belongings) but it was once thought that Rolex (even dressy models) keep their value well and it is a secure investment, but 50% of what one paid and that only if lucky coming from an AD made me wonder.

[JacksonRain]

50% off?! Surely this was a typo. Did you mean 15?

You are correct, there is most wiggle room with precious metal pieces, especially those with diamonds, more so in the ladies selections, less so in professional models or highly desired, limited production pieces, such as the rainbow Daytona, for instance.

Two tones are next, especially DJ and or smaller/ladies pieces.

Difficult to get any discount on any stainless steel, from most ADs in mostly every part of the world, damn near impossible for any stainless steel professional model.

Good luck and happy hunting!

[Cat_lover]

Originally Posted by JacksonRain

50% off?! Surely this was a typo. Did you mean 15?

You are correct, there is most wiggle room with precious metal pieces, especially those with diamonds, more so in the ladies selections, less so in professional models or highly desired, limited production pieces, such as the rainbow Daytona, for instance.

Two tones are next, especially DJ and or smaller/ladies pieces.

Difficult to get any discount on any stainless steel, from most ADs in mostly every part of the world, damn near impossible for any stainless steel professional model.

Good luck and happy hunting!

I think my question was misunderstood, I edited it for clarity. I meant to say that if one bought a DJ for say, 10000 he would only be able to get back around 5000 if he decides to sell it after a few months (opinion of AD).

[JacksonRain]

Originally Posted by Cat_lover

I think my question was misunderstood, I edited it for clarity. I meant to say that if one bought a DJ for say, 10000 he would only be able to get back around 5000 if he decides to sell it after a few months (opinion of AD).

Forgive me. I understand now. No that's not true. If you buy smart then you keep a lot of your money. You have to also sell smart too. Buying a brand new dj with a 10 percent off TT, you may lose a couple thousand but not 50 percent.

[Mandy01]

Originally Posted by JacksonRain

Forgive me. I understand now. No that's not true. If you buy smart then you keep a lot of your money. You have to also sell smart too. Buying a brand new dj with a 10 percent off TT, you may lose a couple thousand but not 50 percent.

Agree a Datejust TT may lose 15-20% MSRP, that is why you may try to negotiate some discount at the moment of the sale, I got my Datejust TT jubilee on 2018 and got 8%. I think 50% depreciation for TT is excessive.

[Nairn1980]

Originally Posted by JacksonRain

50% off?! Surely this was a typo. Did you mean 15?

You are correct, there is most wiggle room with precious metal pieces, especially those with diamonds, more so in the ladies selections, less so in professional models or highly desired, limited production pieces, such as the rainbow Daytona, for instance.

Two tones are next, especially DJ and or smaller/ladies pieces.

Difficult to get any discount on any stainless steel, from most ADs in mostly every part of the world, damn near impossible for any stainless steel professional model.

Good luck and happy hunting!

Definitely not 15 when it comes to TT datejusts, diamond pieces, lady models etc. You’d be doing amazingly well to only lose 15% when the AD would need to bring it in, do anything necessary to it, and make a profit (yet having to be enough under list to be attractive). 50 makes more sense as a trade sell for the models I mention above

[JacksonRain]

Originally Posted by Nairn1980

Definitely not 15 when it comes to TT datejusts, diamond pieces, lady models etc. You’d be doing amazingly well to only lose 15% when the AD would need to bring it in, do anything necessary to it, and make a profit (yet having to be enough under list to be attractive). 50 makes more sense as a trade sell for the models I mention above

I agree, if paid in full, plus tax, and then on trade in price, you may be left with only half. But buying ladies PM full retail plus tax AND selling via a trade means you're getting screwed every which way, from the front end and on the back end...

[daOnlyBG]

50% is a bit of a stretch. Actually, it's a big stretch, even by wholesale standards.

2019 saw premiums and waitlists on some stainless steel Datejust 41 models. Go figure that one out.

What do you mean by "investment"? If you're referring to "quick flips," a handful of stainless steel models (and one PM Daytona) will get you very quick cash, normally at a multiple of 1.5-1.7x MSRP. If you mean something that you can sit on for decades and do better than the stock market, you're wasting your time.

[Andad]

Your AD is buying new watches from Rolex at -38%.

If he buys your Rolex and wants to factor in a service and a minimum of +20% profit on resale.
You have your answer.

Of course the prices in the private sector depending on the model can be much different.

[mountainjogger]

Originally Posted by directioneng

Your AD is buying new watches from Rolex at -38%.

If he buys your Rolex and wants to factor in a service and a minimum of +20% profit on resale.

You have your answer.

Of course the prices in the private sector depending on the model can be much different.

Agree. Not sure why many people do not get the math.

And it applies to Grays or aftermarket independents also. You have to have a significant spread between buy and sell to make a living. To pay for then cost of doing business and to put food on the table.

Somehow, many luxury watch consumers think that AD's or Grays should work for free - and buy their watch for the amount it will be resold for, or pretty darn close. But paradoxically, they would be outraged if you asked them to provide goods or services to you for free or cost. Never got this paradox.

Unless a person inherits his or her wealth, the only way a person can afford a luxury watch is if they made a "profit" in their chose profession. And like it or not, you have to do pretty well to buy a Rolex. So, here is what I don't understand. How can a person think it is great when they make large enough profits in their business so that they can buy a Rolex, but then grouse with heart felt indignation when an AD or a Gray makes a profit also?

[ArtNouveau]

Originally Posted by mountainjogger

Agree. Not sure why many people do not get the math.

This. I once had one of the best known NY Diamond District watch dealers tell me his “formula” for buying a used excellent condition watch was to offer 40% of its retail price. This assumes most brands sell to their dealers at roughly 60% of MSRP. The reseller would then try to sell for 20-30% more than his buy price.
Of course certain “hot models” that resell for more than MSRP would get higher offers, but lesser demand pieces like those with precious metal and/or diamonds would get less.

[Kyle3130]

Watches are not investments and people who treat them as such are ruining this hobby for the true enthusiasts!

[Panych]

Originally Posted by Kyle3130

Watches are not investments and people who treat them as such are ruining this hobby for the true enthusiasts!

Why can’t hobby be an investment and how it can ruin it?
Look at vintage or exclusive cars, paintings, post stamps, etc. i would say quite the oppositе; the watch hobby heats interest in watches and makes them as an object of investment.

[Kyle3130]

Originally Posted by Panych

Why can’t hobby be an investment and how it can ruin it?
Look at vintage or exclusive cars, paintings, post stamps, etc. i would say quite the oppositе; the watch hobby heats interest in watches and makes them as an object of investment.

What I meant by that is the “investment” aspect attracts most people who are only chasing a buck and not genuinely interested in the product itself. That is what is bad for the hobby. Basically there is an inverse ratio of price of a Rolex to the quality of member on this forum. When the prices go up, members come out of the woodwork asking about prices and when the price is down, there is meaningful discussion about the watches we enjoy.

[Panych]

Originally Posted by Kyle3130

What I meant by that is the “investment” aspect attracts most people who are only chasing a buck and not genuinely interested in the product itself. That is what is bad for the hobby. Basically there is an inverse ratio of price of a Rolex to the quality of member on this forum. When the prices go up, members come out of the woodwork asking about prices and when the price is down, there is meaningful discussion about the watches we enjoy.

I got what you meant Kyle This is the fact, that any hobby attracts different people, real enthusiasts and ones who are willing to make money on keen people. It was, is and will never end.
Now, in my view, it is keen people who drive prices up. In addition, due to positive economic developments in some developing countries, the watch enthusiasts’ cohort is increasing, enhancing demand on watches including on Rolex.

[Alastris]

Originally Posted by Kyle3130

Watches are not investments and people who treat them as such are ruining this hobby for the true enthusiasts!

This, and they're also just plain stupid for thinking a watch is an investment.

[Marcjvr]

Originally Posted by Alastris

This, and they're also just plain stupid for thinking a watch is an investment.

If you can get a Daytona at MSRP you can immediately sell it for a risk free return of 50-80%...sounds like a world class investment to me

What’s stupid about that?

[Alastris]

Originally Posted by Marcjvr

If you can get a Daytona at MSRP you can immediately sell it for a risk free return of 50-80%...sounds like a world class investment to me

What’s stupid about that?

IF you can get a Daytona sure. You've described some who is buying a highly coveted watch with the intention of flipping it immediately, and I agree with you it is a good investment.

We are talking about allowing your perception of ROI dictate the decision of buying a watch you intend to wear and use now.

[RJRJRJ]

I think he is saying that is what he would give you if you traded in a model that was easy for him to get more of directly from Rolex.

[nnigel46]

Buying used vs new.........if you brought used a couples years back in today’s market you will make a profit but buying new is most certainly a loss

[Harry-57]

Hobbies attract a diverse cohort of participants for a number of different reasons, and a number of common reasons. They are inclusive, not exclusive.

[APPRF]

50% is too much. Never buy PM,TT, or even SS DJs new unless you want a relationship with AD to be able to purchase SS sports. In the current market some SS DJs are also scarce, you may be able to get back more than 90% if bought new. The only TT that you can make money on if you bought new is the Root Beer. Even the famous Daytona, you will lose money if you buy a TT Daytona new. I buy watches to wear though. Never thought of making money on them, and I always wear them, but it feels nice if they have good resale value.

[kepler22]

There is not really any incentive for an AD to give you a decent price on most models as a trade in, as they have to factor in service costs prior to putting it back in the window and even for a sought after professional model they cannot charge more than MRSP

[Alex71168]

Ask for a discount on TT or PM or look at used market if you want to minimise loss, long term you will always see a rise. If you buy used make sure you get box papers and is a reputable store.

[APPRF]

I think if a Rolex is out of warranty a box and papers is not important. A reputable dealer, and the option of taking it to an RSC for service report after buying, and checking it against stolen register with the option of returning if everything doesn't check out is enough. You can buy the watch cheaper without papers, and you will have an RSC service receipt and report proving it's an authentic Rolex. Having said that I wouldn't go for a no box and papers, but if I find something I like that wouldn't be a deal breaker for me.

[J.P.Jones]

Originally Posted by APPRF

I think if a Rolex is out of warranty a box and papers is not important. A reputable dealer, and the option of taking it to an RSC for service report after buying, and checking it against stolen register with the option of returning if everything doesn't check out is enough. You can buy the watch cheaper without papers, and you will have an RSC service receipt and report proving it's an authentic Rolex. Having said that I wouldn't go for a no box and papers, but if I find something I like that wouldn't be a deal breaker for me.

Unless you buy a used watch with an option of selling the watch sometime later.
Then it's a major factor in resale value.
Same goes for used McIntosh amplifiers. B&P are a substantial factor.

[djgallo]

You will not lose 50%.

I would never sell a used Rolex to an AD.

That’s like selling a used car to a new car dealer! You never get a fair market offer from the new dealer. Instead, always sell on the open market...you will, in most instances, achieve the best price doing it like this.

[beshannon]

Originally Posted by Cat_lover

Resale value in 2019

Is that true? What are your views?

What if it is true?

I buy my watches to own, wear and enjoy. How about you?

[padi56]

Originally Posted by beshannon

What if it is true?

I buy my watches to own, wear and enjoy. How about you?

Have to agree Brian its pity more Rolex owners did the same, but in many of today's Rolex owners the watches now are seen as little more than ££££$$$$$.

[jvb.nc]

Originally Posted by beshannon

What if it is true?

I buy my watches to own, wear and enjoy. How about you?

there are still a few of us left.