Resale value in 2019

[t65tampa]

I would rather have a watch that depreciates after purchase, but that I absolutely love to wear over buying a watch for potential value appreciation that doesn't really do it for me emotionally.

I can only wear one watch at a time, so whatever I put on had better turn me on.

[joli160]

AD income tax, rent, VAT, wages etc. 50 percent sounds not unreasonable

[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.

[MasonDixon]

Originally Posted by Cat_lover

What are your views?

Simple. I buy watches to wear and enjoy, not for their resale value.

[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.

[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.

[dhknola]

1) AD's job is to sell watches and minimize returns so of course he is going to give a nonsense* number on a trade in.
*As noted, this may apply to 'cool' Rolex models, which includes all ladies watches. And that may be there position on a 36mm DJ, but that is because they operate on buying cheap or being content letting you walk out the door and in to the 'second hand mine field'.

[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.

[1665fan]

Datejusts are always losers in the watch world...nothing new

[Calatrava r]

This has always been the case. Watches are lousy buys if the money is really needed somewhere else. The fact a few hot SS models are "scarce" and command a premium could change any time at the whim of the manufacturer.

[Cat_lover]

Interesting viewpoints. However:

1. AD was not talking about trade-in value. Here they don't do trade-ins aside from 10 days exchange policy. He was talking about resale value in case you try to sell privately.

2. As I mentioned before, I buy things to enjoy and keep regardless of if they keep their value or not, otherwise no one would be buying diamond jewelry or watches encrusted with diamonds. I was just curious because if you see on chrono24 etc, the asking price for recent models in good condition is way more than 50% of the retail. This is true even for diamond/TT/ladies watches.

3. Regarding the bread and butter of grey market dealers, there is no objection on getting profit from what you do for a living but things should be ethical and transparent. I have known grey market dealers ripping off people in need of money for emergencies offering way below the actual value of watches and then selling for more than 100% profit.

4. I totally agree with the person saying that some grey sellers are spoiling this hobby for true watch enthusiasts but I think there is no harm in at least knowing what you should expect in case you HAVE to sell your watch for one reason or other.

[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.

[Panych]

In my view, apart from horological things such as robust movement, good quality, high accuracy, there are two other factors which helped Rolex to achieve today's popularity; these are good price retention and investment potential.
Therefore, whatever someone speaks, it is pleasure realize that buying Rolex watch today you will not loose much money tomorrow or even have some profit.
Look at other brands such Panerai, IWC, JLC. Why do they suck now? Are they not good watches? No, they are great watches and some even better then Rolex. The main issue with them is that they are very soft on the pre-owned market and people do not want to loose money.

BTW, what does it mean a “true watch enthusiast”? Are there any characteristics of this definition, since otherwise it sounds very subjectively...

All of course is my subjective opinion.

[77T]

To be fair, the OP’s AD was sharing an opinion on Rolex models that aren’t in high demand. So resale value of almost any SS/TT professional model is not included in that opinion.

He was also sharing the derivative: what he knows from an inside view. In other words, how low he or any other jeweler could buy 1-y.o. DJ’s from the secondary market.

(Not that OP’s AD is doing that, but that jewelers have a view of that)




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[JasonBetts]

Originally Posted by Panych

In my view, apart from horological things such as robust movement, good quality, high accuracy, there are two other factors which helped Rolex to achieve today's popularity; these are good price retention and investment potential.
Therefore, whatever someone speaks, it is pleasure realize that buying Rolex watch today you will not loose much money tomorrow or even have some profit.
Look at other brands such Panerai, IWC, JLC. Why do they suck now? Are they not good watches? No, they are great watches and some even better then Rolex. The main issue with them is that they are very soft on the pre-owned market and people do not want to loose money.

BTW, what does it mean a “true watch enthusiast”? Are there any characteristics of this definition, since otherwise it sounds very subjectively...

All of course is my subjective opinion.

Totally agree with you.

I’ve been pondering about your question too lately.

I came to a conclusion: ‘True watch enthusiast’ is someone who buys a watch without any care of the value of a watch later on. it’s a taboo to even think about selling that watch at a loss, breakeven or profit.

Maybe it’s like a marriage vow: i love you for better or for worse, till death do us part thingy?

Of course it’s my subjective conclusion too.


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[scubadds]

I think the word investment gets thrown around often, and it has so many definitions...
I often see "watches aren't investments", I can't say they are wrong by the literal meaning

However, I think some people use the word loosely.
I saw one comment that watches aren't investments as investments have a known value, returns, etc. Basically a NYSE/MBA type of definition for the word investment. Perhaps watches as a category don't fall under that definition. It generally isn't something to list on your investment portfolio.

But a common expression of investment is "putting time or money into something that one hopes will be worth more in the future" or a" monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit."
Watches certainly can fall into that category, but not all do. Now, as to whether they are good or bad "investments" can be debated. But all the watches I own (not that many) can be sold for a good bit more than I purchased them. So, I would think of them as "good purchases" as I also enjoy them. Were the purchases luck? No, I did some research and continue to do some research if I know that the second I walk out of my AD that I would take a large financial loss, I would be more hesitant to purchase that watch...same way I try to pick vehicles that have a chance at holding their value better than other makes or models...even though I know they are generally a depreciating asset.


A Rolex isn't a small purchase for everyone, I would think it foolish for someone to walk in and buy a Rolex without some research unless the amount they are spending is inconsequential to them.
Trying to bridge the gap between the two sides