How did you finance your Rolex?

[Rolex addict]

I pay cash unless there is no significant discount. Then, I will use their money at 0% only. The Money is always in the bank to pay cash for anything I buy. A lot of people here are saying not to finance toys. I bet they finance cars, jet skis, boats, etc. One just needs to be smart and not overextend themself. Get insurance just in case something happens. Financing shouldn't be your first choice, but it's not a bad option under certain circumstances.

[SUPERDOC]

Originally Posted by sunnyd

If it's 0% financing (which a lot of Rolex boutiques are offering), then I'd do it. I would invest the cash I didn't spend up front and put it into the market to earn > 0% return.

I've considered that...but how much extra Cash do you really earn?

with the online banking it may be easier...but at the time I played with this idea, the effort involved in doing all of that wasn't worth my time...
and if I just left the cash in my 'High' interest savings...it would be hard pressed to go untouched...

I agree with everyone else here....an unnecessary Luxury good is not something you Finance....

Its something you buy in celebration of having earned/saved the money...

It's "a Crown for every Achievement"....not "a Crown for every credit line"

[Ken B]

I paid for it with my Cash back CC. Then I paid it off. This allowed me to save another 2%. I love cash back... My rule, never finance luxury items.. A watch costing more than any timex in my mind is a luxury item. This rule helped me from buying things I could not honestly afford.
Financing can be a required when you are young and establishing your life.. Buy a car to get to work and so on. Buy a house to live in.. beyond that use financing anything with care.

[Racerdj]

I would wait and not finance. I speak from experience from 1988 when I did just that. After the honeymoon wore off, the payments kept coming and taught me my lesson. I sold and purchased what I could afford and enjoy and waited.

[Tseg]

What would your government do? Do you want to be like your government?

[sdiver68]

0% is free money, and cash does not strengthen your negotiating position. In fact, cash can weaken your negotiating position in many case, such as in purchasing a car.

Consensus is wrong, if you know what you are doing and aren't financing to afford something you could not otherwise. Take the free money and keep yours invested.

[scarlet knight]

No one ever borrowed themselves rich.

[Rolex addict]

Originally Posted by sdiver68

0% is free money, and cash does not strengthen your negotiating position. In fact, cash can weaken your negotiating position in many case, such as in purchasing a car.

Consensus is wrong, if you know what you are doing and aren't financing to afford something you could not otherwise. Take the free money and keep yours invested.

Personally, I very rarely seen this. Cash is a strong tool to compliment your negotiating skills. The only time it hasn't worked for me is on highly sought after items. If a dealer knows that someone else will be along soon and pay full price (ie. the brand new body style Mustang, Camaro, Daytona, BLNR, etc), you're not getting a deal. In that case, you are correct in cash not increasing your bargaining power. I do agree 100% that one should not finance a watch if excess funds aren't in the bank to cover it. If you have it, use someone else's money and let yours earn interest. I don't think anyone here would walk past a $20 bill on the sidewalk, so why give up interest on a CD or other savings account?

[superdog]

Originally Posted by Rolex addict

I pay cash unless there is no significant discount. Then, I will use their money at 0% only. The Money is always in the bank to pay cash for anything I buy. A lot of people here are saying not to finance toys. I bet they finance cars, jet skis, boats, etc. One just needs to be smart and not overextend themself. Get insurance just in case something happens. Financing shouldn't be your first choice, but it's not a bad option under certain circumstances.

Any way you slice it, debt sucks. Again, my own opinion.

However, for me, nothing feels better than knowing I don't owe anyone anything.....(except for damned taxes).

I prefer to not have something, than know that it put me in debt. Of course, a home is a different story, as that is not necessarily a luxury item. That said, I bought a home that I could pay for at the closing, instead of buying more home, but needing a mortgage.

I also wanted a Porsche 911 (my dream car) to decorate the garage as a weekender, but could not comfortably afford it. I bought a 5.0 mustang instead.

Still love the home, still love the mustang. Not exactly what I would have wanted, but I want debt less than I want anything else.

I realize I am in a bit in the extreme, but I really really really don't like debt.


I think the OP has left the convo, but if he hasn't, I hope this thread has not turned him off. It is worth saving and waiting. Life is short, and it is worth it to take the time to set yourself up properly. Again, I realize that I go to extremes...but I am sure there is a happy medium for many.

[Im Lauf der Zeit]

This is not a purchase to go into debt for. Cash only.

[00pumpkin]

I financed my first but have paid cash for the rest. I don't think there is anything wrong with financing as long as you don't go overboard like with any other purchase. Every situation is different....

[Case61]

I'll add one more voice to the cash side. Note: I see little meaningful difference between paying all cash, and financing at zero with the remaining amount invested separately (though these days seems hardly worth the trouble). In either case you've got the purchase covered. I think the caution most people are expressing is actually going into debt and paying the financing out of future presumed income.

[Heo2]

Cash

[Rolex addict]

Originally Posted by superdog

Any way you slice it, debt sucks. Again, my own opinion.

However, for me, nothing feels better than knowing I don't owe anyone anything.....(except for damned taxes).

I prefer to not have something, than know that it put me in debt. Of course, a home is a different story, as that is not necessarily a luxury item. That said, I bought a home that I could pay for at the closing, instead of buying more home, but needing a mortgage.

I also wanted a Porsche 911 (my dream car) to decorate the garage as a weekender, but could not comfortably afford it. I bought a 5.0 mustang instead.

Still love the home, still love the mustang. Not exactly what I would have wanted, but I want debt less than I want anything else.

I realize I am in a bit in the extreme, but I really really really don't like debt.


I think the OP has left the convo, but if he hasn't, I hope this thread has not turned him off. It is worth saving and waiting. Life is short, and it is worth it to take the time to set yourself up properly. Again, I realize that I go to extremes...but I am sure there is a happy medium for many.

Nothing wrong with a Mustang Just to argue semantics with several posts, what is really considered going in debt? I have plenty of money in the bank, but used 0% financing for my Daytona. If I wasn't making that payment to the bank, I would be paying it back to myself. Either way, I'm making a payment. If I had to pay to it off immediately, the money would be there and not hurt my financial status at all. So am I really "in debt" by financing the purchase? I think the basic theme overall is to not purchase any "toy" if it puts a financial burden on you. If that payment or chunk of money out of your account has any negative effect whatsoever, don't do it. That is sound, common sense financial advice.

[Ferdelious]

I personally don't see a problem financing if its 0%, my AD offers 24 months I believe. As long as the watch is within your financial reach is there really a difference paying your monthly payment to a lender or putting that same amount in a savings account? Now I wouldn't finance 100% of the value I would at least put 50% cash down.

[brettpaul]

I finance with 100% cash up front!!

[dstacy]

Originally Posted by Case61

I think the caution most people are expressing is actually going into debt and paying the financing out of future presumed income.

This is exactly what the nay-sayers are missing in this thread. The OP isn't making an "either - or" choice. He/she doesn't have the cash to make the purchase or cover the debt. He/she is betting on the ability to earn it in the future and being able to pay it back. That is a bad scenario for a luxury item or a toy purchase.

[btinl]

I pay cash for my watches. I doubt you can negotiate a discount if you are financing a watch.

[Wllnv19]

Originally Posted by Roger1079

I will be the one to go against the grain. With AD's you can ALWAYS get a 10 all the way up to 20 months interest free depending on the time of the year. Your money will always do more for you in your account than someone else's. Pay cash and you are out all of that money right away. Finance for 20 months at 0% and your money has nearly 2 years to work for you while the bank waits to receive it and you get to enjoy the watch. That is a win win to me.

I have financed every watch I have owned. I have also had the available cash to pay for every watch I have owned at time of purchase. All of them were at no interest terms and paid off within that window of time. They waited 10 months for their money while I "had my cake and ate it too".

The only watch I financed on longer terms was my 116509 Daytona. I had and currently have the cash to satisfy the loan however could not bring myself to drop cash in the mid 30,000 range on a watch. I know it makes no logical sense, but it works for me. I have no buyers remorse and not carrying any other debt makes it something I rarely think about.

If you want it, get it. If you are fine with the finance terms, do it. For me financing luxury nonessentials is fine so long as you are not neglecting necessities to pay for it.

Agree 100%

[james1787]

I did not finance mine, it was paid from the proceeds of a work bonus.

[TheButcher]

to sport a solid gold watch means that you should have the cash to pay for it in my opinion. but to each there own ,

[RICHARD_LEWIS]

Originally Posted by NeedRolexNow

I've saved up some money. If I wait until I save enough to pay cash it will take another 2 years of saving. I want yellow gold and I like the Yachtmaster and Day Date with a presidential gold band. I'd like to own both but for now I'll be happy to own one.

What's the right time to finance? 20% of purchase price saved?

It's a massive itch waiting.

2 years of saving isn't that long - if I were you I would save, and save hard, for the next 2 years so you can buy your DD2 or YM in the comfort of knowing its YOURS and you don't owe a debt.

Like some of the posters here, I'm not against financing per se, but would much rather save and own outright once I make the purchase. The other thing too is that while you're saving you can visit AD's and try on different watches - you'll probably find what you want change over time, so saving allows you to have some fun Rolex hunting!

[FTX I]

I only cash here. Better discounts. But I don't agree with those who think you need to have saved twice the money to buy a new watch. If I had twice the money, I'd buy two watches.

[fizz54]

If it's 0% financing, you're going to be paying the full boat for retail and taxes. They need to cover their cost of financing, and they will eat into their own profits to do so. I'd pay cash, avoid the sales tax by buying from an out of state AD. Good luck!

[superdog]

Originally Posted by Rolex addict

Nothing wrong with a Mustang Just to argue semantics with several posts, what is really considered going in debt? I have plenty of money in the bank, but used 0% financing for my Daytona. If I wasn't making that payment to the bank, I would be paying it back to myself. Either way, I'm making a payment. If I had to pay to it off immediately, the money would be there and not hurt my financial status at all. So am I really "in debt" by financing the purchase? I think the basic theme overall is to not purchase any "toy" if it puts a financial burden on you. If that payment or chunk of money out of your account has any negative effect whatsoever, don't do it. That is sound, common sense financial advice.

You bring up great points.

And I agree with your logic. I suppose its all a matter of comfort levels and preference.

Being an anxious person, I like knowing I'm all paid off.

[Headshrinker]

You have to agree with the vast majority of TRFs; Rolexes are unnecessary luxury items. To have one is the satisfaction that you have worked long and hard to get one. I don't like to see people in debt for something just because they feel they need to have it. There are more important priorities if funds are not readily available. I have a friend that started a Rolex Fund account.

[Rockrolex]

I would not finance a luxury purchase (and a YG DD or YM certainly falls into that category) if it's going to cost me a finance charge. If an AD is offering 0% financing for an extended period, you know he is not going to discount the purchase price.

I have put all my luxury purchases on my CC (which earns me points) and I pay off the card in full every month. The only time I pay cash is if I'm going to be hit with a service charge for using the card.

I also have never made a luxury purchase if I didn't have the cash on hand to cover the purchase. But that's just me. I wouldn't presume to tell anyone else how to spend their money.

[manny89]

Cash or on my Amex. Can see why it would appealing to youngsters as it allows them to build credit history.

I say youngsters but I'm 25 myself haha!

[PTruong]

Cash only for a watch.

[sunnyd]

Originally Posted by sdiver68

0% is free money, and cash does not strengthen your negotiating position. In fact, cash can weaken your negotiating position in many case, such as in purchasing a car.

Consensus is wrong, if you know what you are doing and aren't financing to afford something you could not otherwise. Take the free money and keep yours invested.

We think alike!

I understand the debt argument, but is it really "debt" if I can pay it off at any time? Plus if the cost of funds is 0, then I'd rather divert my money into other investments.