If You Were Me (5396r-012)

[TTAlex]

I am relatively new to this, so would like your advice.

I bought a Patek 5396r-012 from a trusted seller here for what I felt was a good price. I love the face of the watch, love the numerals, enjoy the rose gold and leather look. Alas, it's a bit too small for me. I even had a chance to wear it at the store first, and felt it would work. But it doesn't really. I'm a big guy and this is a thin 38.5 diameter.

I paid around $37k, which I felt was a good deal on this watch. Now, about a month later, I've inquired around for a trade, and the value is 20% less. I'd be down around $7k on it in 30 days, including from the seller I bought from. Obviously, I thought I'd be able get more of my money out of this watch if it didn't work. Nobody TOLD me that, I just thought.

Again, I'm new to this, and I hope it's okay to post these numbers here as I don't often see prices being discussed like this. Can edit if necessary.

What would you do in this situation? Keep it for a while? Try to sell it yourself? I don't think I want to "schlep" it myself for an extra 1-2k. But it might be worth it if I can get back what I paid.

Also want to be clear I'm not looking for a buyer with this post (although certainly not against discussing). Just wondering what the heck to do!

[watchbowl]

That’s one amazing watch! 20% loss on a watch is normally the top end I’d expect to lose and that would be based on a cash sale not a trade in but this varies from watch to watch.

With you only owning the watch for a month then that is big hit and prices aren’t likely to change much (unless it is a 5711!).

If I was to sell this I would sell it to a trader. To me it’s not worth the hassle and risk plus I’m impatient when it comes to tyre kickers.

[jon_jon]

Most people "flipping" Pateks don't typically talk about the price difference when buying and selling. It is on a different scale compared to Rolex because the prices are on a different scale. You are not talking about a $1k-$2k loss as with a SS Rolex, but often $10k or more difference with a Patek. It can be more if you bought new from an AD. But as with all things, we learn from our personal experiences. That is why almost half the discussion topics here in the Patek section is about SS Nautilus as many people are very sensitive to minimizing loss on resale. But ultimately you have to get the watch you want, rather than what others want and/or with a sole purpose of minimizing loss on resale.

If you purchased a new (or nearly new) luxury car for $35k-$40k from a new or preowned car dealer and decided to sell it in a month, most people would expect a loss, although probably not as much as 20%. Cars are fairly liquid, like stocks listed on the srock exchange. However Patek watches are not as liquid and have a fairly small market, more like the bond market for individual bonds.

Hope this experience doesn't discourage you from Patek watches as they have some really nice watches. Just bear in mind, this hobby can get expensive if you buy and sell a lot.

I would sell it outright to a reseller and take the loss. It is painful, but not any different from taking a loss on the stock market or any other investment loss.

[nyc2la]

Originally Posted by jon_jon

Most people "flipping" Pateks don't typically talk about the price difference when buying and selling. It is on a different scale compared to Rolex because the prices are on a different scale. You are not talking about a $1k-$2k loss as with a SS Rolex, but often $10k or more difference with a Patek. It can be more if you bought new from an AD. But as with all things, we learn from our personal experiences. That is why almost half the discussion topics here in the Patek section is about SS Nautilus as many people are very sensitive to minimizing loss on resale. But ultimately you have to get the watch you want, rather than what others want and/or with a sole purpose of minimizing loss on resale.

If you purchased a new (or nearly new) luxury car for $35k-$40k from a new or preowned car dealer and decided to sell it in a month, most people would expect a loss, although probably not as much as 20%. Cars are fairly liquid, like stocks listed on the srock exchange. However Patek watches are not as liquid and have a fairly small market, more like the bond market for individual bonds.

Hope this experience doesn't discourage you from Patek watches as they have some really nice watches. Just bear in mind, this hobby can get expensive if you buy and sell a lot.

I would sell it outright to a reseller and take the loss. It is painful, but not any different from taking a loss on the stock market or any other investment loss.

I would say one main difference is you can’t use losses on watches to offset gains like you can on stocks, unfortunately.

[AK797]

20% loss after a good discount on a PM piece is standard so don't worry about that, and esp so if you don't want the hassle of a private sale. The dial doesn't look perfectly aligned either to my eye so I'd let it go.

[TTAlex]

Appreciate it guys. Good feedback. Please keep it coming. Here's a better pic of it.

[sensui]

Hi TTAlex....sorry for the remorse but I wanted to thank you in posting to confirm some real numbers since like jon_jon mentioned, no one really talks about these types of numbers usually in the Patek/haute horology game (maybe some find it degrading, insulting, whatever the case). I agree with others this seems to be very typical loss when it comes to these types of watches. Should do close research and make sure you buy what you want to wear.....value retention is nice to me but I have to like the watch.....I always buy watches I want to wear and balance the consideration with value retention then decide accordingly...AKA if I was after the 5396....I would have waited for a nice used example for someone else to take the hit.

Try to keep it for awhile (the prices aren't going anywhere for awhile) and best luck getting into your next piece if you decide to move it.

[HKTlovewatch]

I know this piece you buy from whom ��

[thomaspp]

I will say this, I buy and own a few "big" Pateks and yet do not like the idea of loosing big money - there is no way I can justify in my mind loosing $10k or some big multiple on a watch. So the result is there is a very short list of watches I will actually consider, and I think this is now a problem for PP as many people think the same way. This is why demand for a handful of watches if through the roof while others are just not sought after. Annual calendars have seemingly been made in great quantities and there is little demand sadly.

[pam66]

Originally Posted by thomaspp

I will say this, I buy and own a few "big" Pateks and yet do not like the idea of loosing big money - there is no way I can justify in my mind loosing $10k or some big multiple on a watch. So the result is there is a very short list of watches I will actually consider, and I think this is now a problem for PP as many people think the same way. This is why demand for a handful of watches if through the roof while others are just not sought after. Annual calendars have seemingly been made in great quantities and there is little demand sadly.

i agree but PCs and hand wound chronoswiss seem to go that way as well. i was just offered 20% on a PC from an AD and chrono24 shows even lower prices.

[thomaspp]

Originally Posted by pam66

i agree but PCs and hand wound chronoswiss seem to go thea way as well. i was just offered 20% on a PC from an AD and chrono24 shows even lower prices.

Of the current catalog I would agree

[pam66]

Originally Posted by thomaspp

I will say this, I buy and own a few "big" Pateks and yet do not like the idea of loosing big money - there is no way I can justify in my mind loosing $10k or some big multiple on a watch. So the result is there is a very short list of watches I will actually consider, and I think this is now a problem for PP as many people think the same way. This is why demand for a handful of watches if through the roof while others are just not sought after. Annual calendars have seemingly been made in great quantities and there is little demand sadly.

totally d'accord btw. for PCs one has to go vintage i suppose. or possibly the 5320......not sure on numbers though.

[soundserious]

The depreciation in the semi-vintage market is even more staggering. That’s where you can get some value. For OP I’d hold it. Lovely watch.

[tng11]

Originally Posted by soundserious

The depreciation in the semi-vintage market is even more staggering. That’s where you can get some value. For OP I’d hold it. Lovely watch.

The current prices of the 3940 are really tempting I must say.

[Chiboy]

Hmm, I was just catching up on your Sky-D/Patek thread. It is easy to get caught up on this forum with spending major money and spending it often. I haven't bought often, but this forum helped me go platinum while getting tired of the SS Daytona wait. No regrets, but thankfully I only did it once.

That is a beautiful Patek. I often think that kind of watch could be a great complement to my Daytona. I do think if you aren't completely sure, or just want to minimize the depreciation hit, buying slightly used is a great idea. I did that on mine. Some folks don't like that but I never thought twice about it. It was $24,000 less than the slightly discounted price offered by the local AD. Uh, that's a lot of dough to me!

Sounds like you have already incurred the hit. I agree that you might as well either see if it grows on you, or wait for a good opportunity to sell/trade. Doesn't sound like it's going down from here.

[rfatm3f]

A lot of times I ask trusted sellers for sale values before I buy a watch. That will give you an idea of the secondary market.

The 5396 is a tough watch to sell outside of the white gold, slate dial variant, which seems to command more of a premium.

It is a great piece though and one of my favorite current pp.

[AK797]

People get a bit fed up with all the sports talk but outside sports so much Patek talk is actually of prices so it's much like the Rolex forum now.

[TTAlex]

Originally Posted by Chiboy

Hmm, I was just catching up on your Sky-D/Patek thread. It is easy to get caught up on this forum with spending major money and spending it often. I haven't bought often, but this forum helped me go platinum while getting tired of the SS Daytona wait. No regrets, but thankfully I only did it once.

That is a beautiful Patek. I often think that kind of watch could be a great complement to my Daytona. I do think if you aren't completely sure, or just want to minimize the depreciation hit, buying slightly used is a great idea. I did that on mine. Some folks don't like that but I never thought twice about it. It was $24,000 less than the slightly discounted price offered by the local AD. Uh, that's a lot of dough to me!

Sounds like you have already incurred the hit. I agree that you might as well either see if it grows on you, or wait for a good opportunity to sell/trade. Doesn't sound like it's going down from here.

Thank you. I did buy this slightly used, and saved about 25% off retail price. Also real money. So the hit is much smaller than it could / would be if I bought from AD.

[soundserious]

Originally Posted by tng11

The current prices of the 3940 are really tempting I must say.

If you like the 5040 you can get into one for $22-24k in YG. I got out of mine at the right time but have been tempted at those prices. 3940 is tempting for sure.