Using used Rolex trade in as bait for new Rolex trade in with AD.

[gameon]

I’m not sure why the trade in model matters. Isn’t about profit? If I trade in 3 DJ’s at say $4500 each and they can sell them at $6000 each and then sell the new Rolex to me at MSRP then they can make an extra $4500 above what they would of made just selling me the new Rolex. Versus contacting someone from a list they have and only making profit on the new watch.

[zengineer]

Originally Posted by gameon

I’m not sure why the trade in model matters. Isn’t about profit? If I trade in 3 DJ’s at say $4500 each and they can sell them at $6000 each and then sell the new Rolex to me at MSRP then they can make an extra $4500 above what they would of made just selling me the new Rolex. Versus contacting someone from a list they have and only making profit on the new watch.

Let us know how it goes. No point in debating.



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[ap1]

Originally Posted by WilsdorfNDavis

The one in Willow Grove?


So you are saying that they are selling NEW Rolex watches for OVER MSRP?


Highly doubtful.


Are you sure that happens on NEW Rolexes? (As in brand new, straight from Rolex)


Quickest way to have your AD status pulled...

This AD has been my trusted dealer for new Rolex for years and has always done right by me. I’ve referred several friends there that have been treated great too. They are very professional in all of our dealings over the years. I picked up my black Daytona from them recently to add to my fleet, all at msrp. No secondary market values here. I’m an AD guy even if I have to wait.




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[Harry-57]

My AD gets enquiries along these lines. They are very selective and will occasionally take a trade in, or buy a used Rolex that they originally sold, providing the original owner is selling it.

It won't get someone onto a list they are not already on and it won't bump them higher. As well as my AD's tendency to be highly selective, the instance of Rolex watches being taken in is low because owners want too much for them - in my AD's view.

[WilsdorfNDavis]

ap1 - I figured as much, they've been around for over 30 years now.

[nyyankees]

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[dannyp]

Originally Posted by JRell

Don’t think it will work with a datejust, but worked with me for my 114060 to 124060.

Exactly. And if you went in with a Hulk wanting a Cermit (or, let's face it, any stainless watch besides a Panda), willing to trade straight up, I have a feeling the chances of doing so would be excellent.

[Gab27]

Depends on the watch you are trading and the watch you want. If you are trading in a Daytona C or a Meteorite BLRO, this would probably be extremely effective given the AD can sell it above MSRP and probably can sell it almost immediately. If it is a less popular watch (specifically, one that doesnt sell on the secondary market for way above MSRP), YMMV as this is much less financially enticing.

My local AD gets a lot of really good used Rolexes and I am sure they use their new stock in many of those trades as it just makes business sense.

I don't think the specific watch you are mentioning is likely to have a lot of convincing power.

[cgaites]

Assuming that the AD has a second hand business, then I’d assume it just comes down to the math. Is the market price of your trade 50% greater than the MSRP of the new watch your trying to buy? If so, then sure the AD will probably do the trade.

From what I’ve read on this forum, an AD’s gross margin on a new Rolex is probably around 40%. So, an AD is making about 4K on 10K MSRP Submariner. If your willing to trade a a watch with a market price of 15K straight up on said Submariner (so a trade in value of $10K), then the AD will probably see the potential extra 1K in margin from the second hand sale as worth the effort/risk of dealing with selling your used watch. You however will be in no better position then if you’d just paid $15K for the Submariner on the secondary market and sold you old watch yourself at market price.

[gameon]

Originally Posted by zengineer

Let us know how it goes. No point in debating.



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Isn’t that the point of posting on a forum for discussion? Sorry your offended.

[Vipes]

Tourneau has every current sports model in their pre-owned section at over retail. So what are we even talking about?

[zengineer]

Originally Posted by gameon

Isn’t that the point of posting on a forum for discussion? Sorry your offended.

you're.

I'm not offended. My point was we are all just guessing, and actually knowing would be better.


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[JR16]

Originally Posted by gameon

I’m not sure why the trade in model matters. Isn’t about profit? If I trade in 3 DJ’s at say $4500 each and they can sell them at $6000 each and then sell the new Rolex to me at MSRP then they can make an extra $4500 above what they would of made just selling me the new Rolex. Versus contacting someone from a list they have and only making profit on the new watch.

Or they can have a customer spend $50k on jewelry and they can reward them with a Rolex at msrp … that’s way more profitable than your scenario


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[JoseR]

Originally Posted by 1kw

Authorized Dealers can charge whatever they want. One watch dealer in Pennsylvania called precision watch charges above MSRP on all the sports models and is not shy about it.

Your right. A friend of mine buys from them and is a good customer. When he told me how much he paid for certain Rolex, I thought it was a from a grey dealer until I google Precision Watch and noticed they were an AD. I kept my opinion to myself because he's been dealing with them for a long time.

[Aplover5]

Traded black dial 116500 even for Panda. They can do the math!

[WilsdorfNDavis]

Originally Posted by JoseR

Your right. A friend of mine buys from them and is a good customer. When he told me how much he paid for certain Rolex, I thought it was a from a grey dealer until I google Precision Watch and noticed they were an AD. I kept my opinion to myself because he's been dealing with them for a long time.

Again the question is was it a NEW watch or a USED watch...

[Hemdog]

Originally Posted by 1665fan

Going to need better bait than some old datejusts……

I agree- what bait works best on your garden variety authorised dealer?

[gerry100]

The only AD I know had a used GMT in the case. The SA said it was traded by a customer who wanted a different bezel color combo. ( only used Rolex in the case IIRC). Believe it was around the $15K Grey price.

Looks like trading a car. The dealer makes the margin it needs to and you dont make money on the deal except in rare cases

[JoseR]

Originally Posted by WilsdorfNDavis

Again the question is was it a NEW watch or a USED watch...

I believe they were new. One was the new Kermit 126610LV and the other the Pepsi on jubilee 126710 BLRO. He got them a few months ago, so I assume they were new and they sure look new to me. I'll ask next time I see him.

[Rrpdc]

Originally Posted by WilsdorfNDavis

The one in Willow Grove?


So you are saying that they are selling NEW Rolex watches for OVER MSRP?


Highly doubtful.


Are you sure that happens on NEW Rolexes? (As in brand new, straight from Rolex)


Quickest way to have your AD status pulled...

Totally agree. Seriously doubt that claim.

[Big Tex Rolex]

Based on the above comments, ADs must vary.

My two experiences …

Rolex Boutique … “Rolex does not allow us to sell preowned watches.”

AD … “Maybe, but it would have to be a watch bought here, by you.”

I also thought the math would work for them, but they did not seem interested at all, even when I was buying (picking up) from them my 126613LB, and asked if they wanted my 116613LB, that I was wearing … my SA said hide that … making me think there is some credence to these recent postings that ADs are under instruction from Rolex to sell to “new buyers”.

Also, I offered them, another time, my 14060M, bought new from an AD in 2005, worn +/- 200 times, in exchange for the privilege of buying the new 124060 … I told them, give me whatever you want to for the 14060M, just sell me the 124060 … no interest from the AD.

Used to be an AD had a section for preowned watches … now it seems ADs (at least my AD) are not interested in that market, at least presently.

[JoseR]

Originally Posted by WilsdorfNDavis

Again the question is was it a NEW watch or a USED watch...

Just spoke to my friend and asked him about it. He told me that he's been doing business with Bob from Precision Watches for many years and that they didn't know when they would get those two watches in stock since the demand was so high on those watches, so Bob did him a favor and sourced then for him pre-owned and in mint condition since my friend didn't want to be on the waiting list. He has purchase new at MRSP and excellent condition pre-owned also. They have a long lasting relationship and my friend is always happy with the watches and service he gets from Precision Watches. He even invited me to go with him to meet Bob in case I'm interested in something in the near future. That was cool.

[WilsdorfNDavis]

Originally Posted by JoseR

Just spoke to my friend and asked him about it. He told me that he's been doing business with Bob from Precision Watches for many years and that they didn't know when they would get those two watches in stock since the demand was so high on those watches, so Bob did him a favor and sourced then for him pre-owned and in mint condition since my friend didn't want to be on the waiting list. He has purchase new at MRSP and excellent condition pre-owned also. They have a long lasting relationship and my friend is always happy with the watches and service he gets from Precision Watches. He even invited me to go with him to meet Bob in case I'm interested in something in the near future. That was cool.

Knew it.


So they in fact, are not selling new Rolexes above MSRP, they are selling pre-owned ones at market prices which is totally ok.

[flyboyyy]

I think it totally depends on the AD. One of them that I deal with has a huge case of used watches. Last weekend I stopped by and the SA gave ma Patek 5990 to try on that they had just taken in on trade...it was listed at $200K+. They also had/have a FPJ Bleu at 100K+, an old but pristine sub at over $100K, but right along with that is a case full of used Panerai, IWC, Omega, Tudor and other brands. A year or two ago I traded in a DJ (that I hadn't purchased there) towards a SkyDweller and they did pretty ok in regards to pricing.

So the reality is some actually do a lot of used / trade-in watches...obviously many don't.

PS, if you think Rolex flippers are bad...the same AD sold that 5990 brand new in 2020, somebody bought it at MSRP and obviously did pretty well on it.

[JoseR]

Originally Posted by WilsdorfNDavis

Knew it.


So they in fact, are not selling new Rolexes above MSRP, they are selling pre-owned ones at market prices which is totally ok.

Correct.

[GeorgeA7]

Originally Posted by WilsdorfNDavis

Knew it.


So they in fact, are not selling new Rolexes above MSRP, they are selling pre-owned ones at market prices which is totally ok.

I can also attest to this claim and confirm that Precision Watches has only sold me Rolex and Tudor watches at MSRP. My wife and I have been buying watches from them for the last 5+ years and have been fortunate enough to get some hard-to-get pieces not a cent over retail

[fishingbear]

Originally Posted by Tools

Most ADs don't care about your trade-in.

Trading in is for your benefit, not theirs. They would need to either wholesale it out or have their own corporate center overhaul it for sale and will not see it again. You will not get market value for your trade - ever.

This.

[WilsdorfNDavis]

Originally Posted by JoseR

Correct.

Good to hear!

[Santiago32]

Doesn’t work.