How did you finance your Rolex?

[Nycturbovr6]

If you really can't wait I would go for it but only if it's 0%

[chris nyc]

Who finances a watch?? I pay cash for any watch purchase...

[scarlet knight]

0% interest does not equal financing. The devil is in the interest. But why get embroiled with the contract, etc. If you are ready for a Rolex, just take the hit, put it on your credit card and pay it off immediately or write a check.

[chris nyc]

Originally Posted by sunnyd

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.

But that is NOT what the OP is suggesting... he is financing to afford something he can't!

It's entirely different to have the cash set aside and to finance at 0% to keep your money and allow it to earn interest or make other "investments". To finance without having the means to pay it down at any given time, is just foolish, imho, for a luxury item.

Mortgages, car loans, etc...those are different.

[5Zigen]

If you can't afford to purchase the watch, just take a little more time to save up. It is not worth putting oneself into debt for a luxury item especially a watch.

If you strain your financial situation with the financing of a watch, what happens if something more dire comes up? Try to borrow again and put yourself into further debt?

Not worth it.

[sunnyd]

Originally Posted by chris nyc

But that is NOT what the OP is suggesting... he is financing to afford something he can't!

It's entirely different to have the cash set aside and to finance at 0% to keep your money and allow it to earn interest or make other "investments". To finance without having the means to pay it down at any given time, is just foolish, imho, for a luxury item.

Mortgages, car loans, etc...those are different.

Then I agree...if you can't afford it with cash then financing it (even at 0%) is a bad idea.

[MonBK]

When I was a teenager I started saving for a Rolex on a Monday.

I put away $1,000 off my salary every day and on Friday I went to an AD and bought a DD.

[otisc]

Originally Posted by sunnyd

We think alike!

I understand the debt argument, but is it really "debt" if I can pay it off at any time?

And that's the rub -- the OP can't pay it off any time, they still have to save two more years to get the money to cover it. Not cool.

[locutus49]

There is a psychological component.

When we paid off our house, experts were saying a paid off house was "dead equity" and you could invest the money and make more than the mortgage amount.

But for us, the comfort and security of having a paid off house meant more than rolling the dice on keeping a mortgage and investing the money to make a few bucks more.

There is something to say for knowing you are debt free. At least for my personality type. But I'm older and of another generation.

[FTX I]

Originally Posted by MonBK

When I was a teenager I started saving for a Rolex on a Monday.

I put away $1,000 off my salary every day and on Friday I went to an AD and bought a DD.

[Eric Chan]

It is best to have all funds in place first. But I do get the whole thing about needing to scratch an itch ASAP. I would only do this if the AD offered 0% financing.

[Hoover]

Cash money for me. I only acquire a new one when all my other bases and investments are covered but if someone else wants it bad enough then yolo.

[walds11]

Cash money only!

[broulstone]

It was a present from my lovely wife

[Mfrankel2]

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.

Nothing's "free" or 0% Someone's paying the finance fees and in this case it'would be the AD out of their profit margin. When you buy for cash, you can either negotiate a better price from the AD or even better, buy from a trusted seller for quite a bit less (as they are not "paying" for the cost of your 0% financing)

[Porker]

If you must finance, get a personal loan and buy the watch off a grey dealer - much cheaper cost of ownership than buying at list off an AD

Just make sure u get it insured!

[landroverking]

Never have. Payed cash or passed.

[sunshine9393]

I'm saying this in the nicest way possible....

DON'T YOU DARE borrow money to buy a Rolex.

If you're not in the situation where you could walk into an AD and buy one with cash/credit card to be paid off immediately, then you most likely have other pressing financial responsibilities to take care of first. And if you take care of your finances properly, one day, there will be multiple Rolexes in your watch box AND you'll have the time and space in your life to enjoy wearing them.

[DPE]

Wait until you have the money, you will recent the payments after many months of trying to find the payments. You will have moved on to your next purchase before the first is paid.

[shay2nak]

Balance transfer on my CC for 11 months @ 0%. Could be up to 15 months. I put in $2k just because I wanted a monthly amount I was cool with. This leaves all the money in my possession just in case sh*t happens.

Originally Posted by drakulie

I was offered 0% financing for 30 months when I bought my sub. They were not offering any discount for paying cash. I put a large percentage down, and kept the cash to do other things with. Different strokes for different folks.

Oh, and I was also given a 4 year warranty.

My house is a different story,,,,, wife and i bought it cash.

Originally Posted by melrob1

I understand everyones point about these luxury purchases being cash only. I also understand there are people that love watches and want the same opportunity that people that can afford to pay cash. Life is too short and I'm a proponent of doing what makes you happy as long as it's within reason. Before I could afford to pay cash I financed my first DJ about 14 years ago. I loved Rolex and always wanted one. I was doing well and coming up in my field but I could never get to a point of saving enough. So I saved about 20% and then I financed 0 % the rest. I worked hard and paid it off without having to pay interest. To the OP my advice is to do what makes you happy. But also do it in a smart way. Save enough to where you can make a monthly payment that would pay off the zero percent interest. Some places offer 12 month while others offer 24. Just do not pay interest and don't over extent yourself. People wast money all the time eating out, drinking, etc. If OP's luxury is watches and he has to not spend in other area's for a year or two but has the watch on his arm to justify it why not? Don't get yourself into financial trouble but if you can do it DO IT! Enjoy because tomorrow is not guaranteed!

Originally Posted by Rozay

I have purchased on 0% finance and paid off over 2 years, at the same time I did have funds to pay off the whole thing if I was to be out of work and have to tighten the belt...

worked for me as if I bought outright then i'd have taken a chunk of money and I very much doubt I would have re-saved that over the 2 years...

it really all depends if you wouldn't miss the monthly payments within your budget?

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.

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.

Originally Posted by 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.

+1

If you have the money, 0% is the way to go if you can get it. What's the rush in paying off the whole thing unless you're worried you don't want debt to show up on your credit report or whatever.

[Reu]

Love these threads - all the self-rightous show boaters pop out from the woodwork demonising those who take finance on a watch.

Historically the U.S. users of this site tend to ironically chime in about taking credit and not being able to afford.

Does no one quite understand that there is a bigger picture?! If it costs a single penny in interest or additional charges than I wouldn't go with it. If that's not the case, though, why not?!

Most ADs in the UK now offer £0% financing. For those that don't know... UK I dealers don't offer discount, on anything, literally. If you are not getting a better deal to buy in cash then go take the 0% interest - boost your credit rating and utilise the money you would have put down somewhere else - many alternative high yielding return investments out there where you'll make money!

0% isn't for just those who can't afford the payment up front...

[fullcourt]

cash

[Heo2]

It's a piece of jewelry that hangs off your wrist and there is no such thing as 0% interest. Someone is paying for borrowed money and that someone is the end user. Right now interest rates suck. So don't say that your money sitting in the bank justifies borrowing for jewelry. Find a trusted seller, make your best deal, and pay cash. Still cheaper than paying full boat at the AD.

If you can't pay cash go buy something cheap that looks good and save money. Work overtime, eat out less often, get rid of the high-maintenance girlfriend. Do something to make more money. But to go in debt for a luxury item is crazy.

[sunnyd]

Originally Posted by Heo2

It's a piece of jewelry that hangs off your wrist and there is no such thing as 0% interest. Someone is paying for borrowed money and that someone is the end user.

Someone is paying for the borrowed money but at 0%, it's not the end user, it's the AD. Assuming you can't get a cash discount, why is it worse to take on a 0% interest loan?

[Reu]

Originally Posted by Heo2

It's a piece of jewelry that hangs off your wrist and there is no such thing as 0% interest. Someone is paying for borrowed money and that someone is the end user. Right now interest rates suck. So don't say that your money sitting in the bank justifies borrowing for jewelry. Find a trusted seller, make your best deal, and pay cash. Still cheaper than paying full boat at the AD.

If you can't pay cash go buy something cheap that looks good and save money. Work overtime, eat out less often, get rid of the high-maintenance girlfriend. Do something to make more money. But to go in debt for a luxury item is crazy.

Another TRF user who assumes people who take advantage of finance cannot afford it in the first place.

WRONG!!!!!

If the AD doesn't charge you for taking 0% and they are not willing to discount, regardless, then how is the end user paying interest - assuming you honour your contractual obligations and don't get any non or late payment fees??

[Reu]

Originally Posted by sunnyd

Someone is paying for the borrowed money but at 0%, it's not the end user, it's the AD. Assuming you can't get a cash discount, why is it worse to take on a 0% interest loan?

True.

[RHIII]

I think the REAL bottom line is -be a RESPONSIBLE consumer. Don't buy something you can't afford. How you buy something...that's YOUR call.

I've never financed a watch and probably never will..but ( I saw Tom post something about his AD offering 0% for 30 months) that's pretty attractive on ANYTHING. IF you can afford it!!!!

We can all talk discounts and how much all night long. We ALL know that not all ADs will even give you one!!! AND even then - WHAT consititutes a real discount!!!!!

[Dyim]

Originally Posted by btinl

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

If the AD does not offer discount on cash purchase, I would look for another one.

Originally Posted by sunshine9393

I'm saying this in the nicest way possible....

DON'T YOU DARE borrow money to buy a Rolex.

If you're not in the situation where you could walk into an AD and buy one with cash/credit card to be paid off immediately, then you most likely have other pressing financial responsibilities to take care of first. And if you take care of your finances properly, one day, there will be multiple Rolexes in your watch box AND you'll have the time and space in your life to enjoy wearing them.

+1

[Reu]

Originally Posted by RHIII

I think the REAL bottom line is -be a RESPONSIBLE consumer. Don buy something you can't afford. How you buy something...that's YOUR call.



I've never financed a watch and probably never will..but ( I saw Tom post something about his AD offering 0% for 30 months) that's pretty attractive on ANYTHING. IF you can afford it!!!!



We can all discounts and how much all night long. We ALL know that not all ADs will even give you one!!! AND even then - WHAT consititutes a real discount!!!!!

Voice of reason.

[Muzz]

If you save for it (even waiting 2 years) it will feel far more special. Just my 2 cents, but financing enables impulse buys that may be regretted down the road with no way out.