Why do we purchase new from an AD when....

[Bisquitlips]

A sincere question.

Why is it that we go to an AD and purchase brand new at exorbitant prices, when there are so many fine examples of pre-loved Rolexes out there begging for new homes?

Rolex is a lifetime watch and with the proper research and inspection of a timepiece, even a novice like me can make a pretty good determination of whether a watch is worthy of the price being asked. Even if a watch does need some TLC, it would seem to be less expensive by far to have a good watchmaker service it than to pay new prices.

And I don't think warranty is at issue as the vast majority of Rolexes never need service during the warranty period!

So why is it we continue to go to AD's for them? Perhaps the only thing that will drive me to an AD in the future is the hard to come by model with a special dial, or perhaps a new model that has come on the market.

I guess what has spurred this question is that my first Rolex was from an AD in Switzerland. It was really an unexpected gift from my wife, but from an AD. And then my next three were beautiful healthy timepieces with complete packages (except for bezel protectors). One even came with a leather pouch and another with service records, appraisal, and original receipt. I am just as happy with these as I am my first one and much more satisfied with the investment made.

So with the rumor that Rolex is again considering a price hike in May or June, will you still go to an AD or consider a pre-loved timepiece? And will this be a new trend. (In my opinion enough with the wretched price increases!).

I know, I know......... but really, I have had nothing to drink today!

[Omega_Precision]

I think we purchase new because we want our names on the warranty and it's the joy of the purchase. Fresh watch and you are the sole owner.

Buying used would get you a good discount as the original owner may take a hit. There are some dealers out there that sell BNIB for a discount too, it's all about secondary market.

[Bisquitlips]

Hey Henry,

Good point, but a Rolex is timeless in it's style. Having three very nice "used" ones they are fresh to me and I am now the sole owner.

I agree about the secondary market. There are, for example the Daytona, that didn't give enough of a discount on the secondary to make not buying from an AD that advantageous.

[Troy]

I have bought from 2 TRF'S and have been happy both times,for Rolex, 3 but one was banned by the Mod's for being a ahole. Would rather support the forum but being in Canada it is harder as we have the population of Manhattan...lol
but my money spends like anyone Else's
It is all good we have the largest UN- defended boarder for now

[mailman]

Someone has to buy BNIB so others can buy them used down the road.

[diablojota]

my first rolex was new from an AD. My next ones will be either pre-loved or from a GMD. The prices are now beyond what I consider to be reasonable for me. For others that may not be the case. I had my Sub for 5 years before it needed service so the warranty doesn't mean much to me as I know how good these watches are.

[The GMT Master]

You make an excellent point, Richard, and there are many good reasons why buying pre-loved is a better way to go. I don't know about you, but there's something about getting a completely fresh watch, pristine in every way, peeling off the stickers for the first time, safely in the knowledge that any marks or knocks it might pick up will have a story and a memory for you, and not for any previous owner. Yes, it does cost more, but if you manage to find a truly great AD who treat you like a king, it makes the whole experience that much more special. I think it's nice that you know that it's 100% yours, no one else has had the chance to enjoy it, and thus it's your own unique, private, personal timepiece. To quote the old Rolex advertising material, "a crown for every achievement," what better reward could you have for working hard, saving up, and earning the prospect of a shining, perfect, brand new luxury timepiece?

Don't get me wrong, I'd certainly consider buying second hand. You can get a nice bit of discount, and, especially in hard financial times like these, find a nice piece that has been taken care of well for a very reasonable price. I suppose a little bit depends on which model you were going for: if it was a sports watch, then it's a far easier choice, but if you, for example, wanted a Datejust with a specific dial/bezel/bracelet combination, then the hunt is always going to be far, far more difficult. In any case, I think there is the right moment for both paths, and I expect I will be buying new and pre-loved in the future.

Thanks for raising an interesting question

[ijen0311]

My first was BNIB, but my next ones will most likely be used (if I can find them - example, couldn't find my AK with pink sticks used). I have great respect for my AD and don't mind paying a little more $ to buy from them, but the price difference for new/used is too great...

[I6-S54B32]

I let someone else get raped by markup and taxes, and then I buy the item. Just like any car, you lose some real cash if you sell within the first 4 years.

[davidm]

I've purchased one new Rolex from an AD. It was a Sub Date for my son upon graduating from college. I felt it was a worthy acomplishment, and it should be new, so I felt fine paying for it. Me on the other hand, grey market or used only..........David

[vh_bu98]

The three Rolexes that I have purchased have been BNIB from an AD.

1) LV - Difficult to get at the time and the secondary market was over MSRP.

2) Platinum YM - I got 10% off and no tax or shipping charge.

3) Ladies Datejust - It was a discontinued model with a unique dial that I couldn't find any where else.

My next Rolex will most likely be a SS Daytona and the pre-own market doesn't offer enough of a savings to make it worth it.

[allanofcalifornia]

I would only purchase a new one from a local AD if that model was popular and very little discount for a pre-owned one (i.e. Daytona). Otherwise, I rather save thousands of dollars and buy a pre-owned Rolex. After leaving the store, just like buying a car, the watch loses a lot of value.


Allan

[Lamone]

For peace of mind.

[rajurama]

I really cant explain but a new BINB freshness is just a great feeling unwrapping the plastics! and yea nothing can beat that new car smell! So im more on the fresh appeal! I have bought my watches as keepers and never as an investment or sort and I hope and pray I never would need to sell it. However I donot have issues buying a well pre loved watch! :)

[Bisquitlips]

Originally Posted by The GMT Master

You make an excellent point, Richard, and there are many good reasons why buying pre-loved is a better way to go. I don't know about you, but there's something about getting a completely fresh watch, pristine in every way, peeling off the stickers for the first time, safely in the knowledge that any marks or knocks it might pick up will have a story and a memory for you, and not for any previous owner. Yes, it does cost more, but if you manage to find a truly great AD who treat you like a king, it makes the whole experience that much more special. I think it's nice that you know that it's 100% yours, no one else has had the chance to enjoy it, and thus it's your own unique, private, personal timepiece. To quote the old Rolex advertising material, "a crown for every achievement," what better reward could you have for working hard, saving up, and earning the prospect of a shining, perfect, brand new luxury timepiece?

Don't get me wrong, I'd certainly consider buying second hand. You can get a nice bit of discount, and, especially in hard financial times like these, find a nice piece that has been taken care of well for a very reasonable price. I suppose a little bit depends on which model you were going for: if it was a sports watch, then it's a far easier choice, but if you, for example, wanted a Datejust with a specific dial/bezel/bracelet combination, then the hunt is always going to be far, far more difficult. In any case, I think there is the right moment for both paths, and I expect I will be buying new and pre-loved in the future.

Thanks for raising an interesting question

Best reasons I have heard so far in support for purchasing new from an AD Chris!

Now let me ask this. If a preowned Rolex does have a few nicks and scratches, I believe that 99.5% of the time every one of those blemishes can be taken out with the only exception being those that are too deep.

I like the point about the experience of it all! I certainly can relate as my first one was from an AD, but now that I have experienced both sides of that fence, I have to ask myself was it worth the extra $4000.00 to $5000.00 it cost me. I sincerely do not think that it was.

When Springer sold me the prettiest A series GMT II I must say I was ecstatic when I put it on for the first time! Just as much so as when I did at Bucherer's in Lucerne. It was pristine and a complete package, so nothing was missing either emotionally or physically from that purchase.

Again, very good points Chris!

[TheVTCGuy]

Excellent question Richard....

I have bought from both, and I must admit, I truly relish the experience of buying from an AD a little more. There is just something about walking in to a fine store like that, (usually) being treated kind of special for a little while (at least until you pay and walk out the door), and just feeling... important ( I guess). I'm making myself sound shallow here, but it's an experience I enjoy, just being honest. Notice the genuine smile on my ugly face in the picture below. I'll never forget that day as I picked up my Grail, a brand new SS Daytona. What a day....

[TempoKing]

He... as well is considering to buy from one of our fellow TRFers..............

But I have no idea Who..???

[Alcan]

Originally Posted by Bisquitlips

nothing was missing either emotionally or physically from that purchase.

Richard, I think you hit the nail on the head with that sentence as to why many buy AD only.

For me its a simple matter of economics. I can buy more watches for less money by buying used.

[Bisquitlips]

Originally Posted by TheVTCGuy

Excellent question Richard....

I have bought from both, and I must admit, I truly relish the experience of buying from an AD a little more. There is just something about walking in to a fine store like that, (usually) being treated kind of special for a little while (at least until you pay and walk out the door), and just feeling... important ( I guess). I'm making myself sound shallow here, but it's an experience I enjoy, just being honest. Notice the genuine smile on my ugly face in the picture below. I'll never forget that day as I picked up my Grail, a brand new SS Daytona. What a day....

Paul,

You do NOT sound the least bit shallow to me at all! I understand that sentiment completely. And I will do so if I ever need to purchase at an AD as in the example of the Daytona or rarity.

A lot of people put genuine value on the special AD experience!

Good thoughts!

[submariner16610]

For me its more practical to buy a "like new condition"pre owned on a reliable pre owned dealer or on a reliable person here in trf. coz if u buy brand new, once you wear the watch, you already loose 30% of its value. the moment you slip it on your wrist its already 2nd hand. Not unless i could get 20-25% on ad's, i would consider new.But for the retail price, its not practical to buy a new one. like new would be fine with me.

Some people would really like to go to the ad's to have peace of mind. there are people who really wants brnd new.

My suggestion is if you would really like to go brand new, try the internet sellers.you can get a much better deal. Just do a research before doing the purchase.be sure to check the seller's credibility.

[Bisquitlips]

Originally Posted by Alcan

Richard, I think you hit the nail on the head with that sentence as to why many buy AD only.

For me its a simple matter of economics. I can buy more watches for less money by buying used.

That is another very good thought that I didn't mention. Which would I rather have? One $13K plus tax timepiece from an AD, or 2 $6.5K timepieces from the secondary market.

[Bisquitlips]

Originally Posted by Lamone

For peace of mind.

Hey Ben,

I certainly can understand that, but I truly think that if you buy the seller, do some research, and look well into your going you will be fine in the transaction.

[BillA]

I have had about 6 Rolex's, every one was purchased pre-owned, dont feel like paying list price, and all good experiences. Why do people only buy from AD, a reason I have not seen prior, is because they do not want to get scammed. There are lots of scams out there, and we don't want to lose thousands of dollars, so some pay more at AD to guarantee authenticity. However, if you buy from a repuatable person, I think you will do fine and save alot of money.

One other reason I did not see posted was the warranty issue in the US. The Rolex warranty in the US says it only applies to original owner. I posted this on another website, I purchased a pre-owned SS Daytona from a fellow enthusiast, his name on the warranty card, not mine, watch is one year old. I brought it in last week to the NYC RSC for regulation, they looked at the warranty card, hesitated for a second, I told them it was a "gift", they wrote that on the paperwork, and 30 minutes later the watch was regulated, no charge. I think that is all it needed, if there were other problems, may not have been so lucky to get it covered under the warranty. Hope this helps.

[lm21]

Originally Posted by BillA

... because they do not want to get scammed. There are lots of scams out there, and we don't want to lose thousands of dollars, so some pay more at AD to guarantee authenticity...

One other reason I did not see posted was the warranty issue in the US. The Rolex warranty in the US says it only applies to original owner...

Bingo. I'm the type of person who doesn't like doubt, especially when thousands of dollars are on the line. AD's represent (theoretically anyways) a SURE THING - accountability without doubt - period. This includes obtaining the genuine article in the initial transaction and subsequently being able to have it serviced if/when it's necessary down the line. The experience, as mentioned previously, is pure gravy but certainly to be appreciated as well!

Having said all that, however, I'm not even close to being rich and I wouldn't dream of paying full price for any model - no matter how in demand it is. The key for me is to find a happy medium - an AD who will deal...

[Yume-sama]

Safest method possible. And I don't like having things other people touched. Especially on a place as intimate as the wrist!

Plus, with the discount my AD offers me I can not find a better deal, especially with the currency exchange rate which means I can't shop around in the USA.

[tubojunk]

I want my name on the warranty card! :)

[SUB4Me]

I used to buy new but don't anymore. It a much better deal to buy used/refurbished. You buy a new one wear it for 6 months and its all fricken banged up anyway, no sense in buying Rolex new anymore.

[SUB4Me]

Originally Posted by rajurama

I really cant explain but a new BINB freshness is just a great feeling unwrapping the plastics! and yea nothing can beat that new car smell! So im more on the fresh appeal! I have bought my watches as keepers and never as an investment or sort and I hope and pray I never would need to sell it. However I donot have issues buying a well pre loved watch! :)

Freshness??? Its a watch not an Banana.

[emagni]

I usually get 15% to 20% off of Rolex watches from my AD that my family have done business with for the past 10 years. We also enjoy 25% to 35% off of other brands....Cartier, etc. We funnel all of our purchases through one person given them the purchase power and have resulted in 15 to 16 Rolex purchases to date. We have receive discounts that were comparable to those sold as new online.

It's not until recently that I have notice some pre-owned prices dropping more dramatically and out-of-sync against the price increase curve. We usually can get our AD to almost match what is offering out there on the web. Our AD keeps up with what the market is offering a particular watch for and is keen enough to mark it 1% to 3% more from that price point and sometime 1% to 3% less. Now I'm see ADs offering 20 to 25% off, even more than that as the price goes up for the more expensive gold models. The only hassle is if we want to avoid sale taxes we have to ship it out of state. This is the world I know until recently when I finally cross over and bought from a sponsor. Fear was my main reason for buying from an AD....not as much any more :-) Plus it's harder for some of us to buy preown for special occasions (e.g. graduation, anniversary, etc.) or as a gift for someone special who has reached an important milestone in their life.

The lessons for me are:
- buy brand new when it comes to your first Rolex, the feeling will be embedded forever and even more so when you buy from an AD with a competitive price point
- buy new when you buy it as a gift and it doesn't necessary have to come from an AD and as long as it comes from a reputable source
- buy every watch after your first can be a pre-own if: you're not filthy rich; it looks as good as new unless you like the vintage look; and you bought it for more than 40% off of a price of a new one

Maybe we can all funnel out purchase power to one AD and get a consistent 30% to 35% off on new watches. Isn't there like a 40% to 42% profit margin on Rolex watches? LOL

[eminere™]

I just like whatever I buy to be new, not second-hand.