Financing AP? Can you?

[BIG_B_n_FLA]

With brands like Rolex, Breitling, Omega and even Patek Philippe being sold in high end retail stores like Mayors and Tourneau if you have great credit you are able to finance your purchase at little to no interest. "Financially speaking why not use 0-5% interest on a $10k-$45k purchase for 24 to 60mnths. Even in this economy I am able to do a few % better in the market if I hold on to the cash and get a bit of return." So paying in full would be a bit foolish IMHO. I am considering buying my first AP and just was curious to see if there is a way to finance AP?

Ps. I know I can put it on my Amex platinum or visa Citi 0%interest free card for 18mnths lol.. but that wouldn't be route I am inquiring about. I see a lot of guys on here with really nice APs some costing more the $30k+ just wanted to ask the question of how to acquire the brand? Ap is not in the high end stores listed above, they are in the smaller boutiques that don't have lines of credit systems available. You can finance a Patek but not a AP?

FYI I save 30% of $67k salary every week for retirement and I am only 30yrs old..lol I know some you guys would want to know this info b/c discussing money is So taboo on here. We men Run to buy expensive cars all time Bmw Mercedes Audi but most would agree that the pricey AP watch would hold its value better long term. Its all relative if you think about it for a second financially speaking. Most people save for a down payment on car not the entire purchase..

[kilyung]

Cash is king

[EdChoi]

I can see your argument from a financial perspective, but I buy watches as a hobby, and as a way to pat myself on the back for work well done. So in that vain, I couldn't see myself structuring payments for something that I enjoy and buy as personal rewards...

With that being said, I would call around to different larger ADs of AP watches, and see what kind of plans they have. My local AD has some program, although I'm not familiar with the terms.

Without sounding preachy, financing indulgent purchases like watches is not something I would want to get into.

[tltulsa]

Put the money aside for the watch in a specific account...fund it when you have excess. You'll feel better in the end. "The man who owes little is little owned"-someone smarter than me. If you borrow the money, then you don't REALLY own it, at least for a while!

[ChristianN]

I've saved up and bought all my watches cash. Its the only way for me.

[HL65]

Would never buy watch for anything but cash and excess cash at that!

[craniotes]

Gotta go with the flow here -- I pay up front and in full. Sure, if I'm buying a multi-million dollar piece of property (not something that I make a habit of doing on a daily-basis, BTW) it makes more sense to get a mortgage and invest the money elsewhere, but for watches, as Mike so eloquently put it, "cash is king."

Therefore, if you've got the money on hand to throw down for the watch, do so; if not, save up a bit longer.

Regards,
Adam

[s14roller]

I see what you mean with the interest rates, and this is fine assuming you have the cash for it already and it can be used in better ways (including just staying more liquid). Some ADs will have a store CC that they can put you on, however, this is not free as the CC companies would charge them, so your discount would take that into account…

[TSW]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

X2

[Peppers90]

I agree, cash is a big negotiating factor. I have walked in with the bank envelope and said I can pay right now if you agree to my price. It works more than you'd think!

[seattle1978]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

x2

[arezzo66]

Let the hobby fund itself and you don't necessarily have to pay cash, you can always trade your watches + cash for a piece, also I would buy used vs. new, the disparity between boutique prices and real world prices is too much for me to ignore, I've learnt this the hard way after buying over eight pieces at ADs and Boutiques.

S

[Watcheroo]

No financing for me either, wouldn't even consider it for a watch.

[psv]

Originally Posted by SteelerFan65

Would never buy watch for anything but cash and excess cash at that!

Never ever finance anything as foolish as a watch. And at your income level I'd humbly suggest you stay away from watches at that price range unless you have savings, retirements, rainy day funds, housing etc taken care of.

It is your life and your money, of course, so do as you want.

[Slider817]

Tourneau in Manhattan, the Time Machine carries AP, maybe your local shop could order you one, and you could finance it.

If you really want to save money, forget authorized dealers, get a Pre-Loved Specimen from a reputable watch dealer, Pay in Cash, or trade in a less worn piece.

My personal philosophy is not to go into debt for luxuries, I know people fiance vacation homes, but that is not something I would do either.

[BIG_B_n_FLA]

Originally Posted by psv

Never ever finance anything as foolish as a watch. And at your income level I'd humbly suggest you stay away from watches at that price range unless you have savings, retirements, rainy day funds, housing etc taken care of.

It is your life and your money, of course, so do as you want.

Everything that you suggest from rainy day fund, housing and retirement are all being funded. Question to everyone who has replied that they would only buy with cash, I ask did you buy your car cash? One of the best lessons I have ever learned from studying the "rules of money " is that it not so much about how much money you make and can spend out right but more to do with what a person does with the money they make i.e. invest, leverage and mortgage. Buying with cash is not always the best option folks. Example: Financing the watch at a low 2-5% rate and putting the cash to work in a investment COULD be better. I do find cash being used by a lot of non financially savvy people honestly. Big spender but not great thinkers.... The type that would pay cash to get a 2-5% discount on a $30k car and walk away from a 0.9% financing 60mnths... Not smart

[psv]

Originally Posted by BIG_B_n_FLA

Everything that you suggest from rainy day fund, housing and retirement are all being funded. Question to everyone who has replied that they would only buy with cash, did you buy your car cash? One of the best lessons I have ever learned from studying the rules of money is that it not so much about how much money you make but more to do with what a person does with the money they make. Buying with cash is not always the best option folks. But I do find it being used by a lot of non financially savvy people honestly. Big spender but not great thinkers....

Or maybe they have enough money not to worry about the compound interest the amount required for a watch purchased. And yes, I pay cash for everything that has to do with consumption including cars. Housing or student loans is the only thing worth financing IMO. That is the rule I live by.

[Submarino]

If the cost of financing is less than the opportunity cost of having the cash to use elsewhere, I'd say financing is an option. When it comes to watches, financing is really not an option!!!!

[eric23]

Pay with cash! It's the best way to buy a watch!

[Silvio Mosiello]

Originally Posted by TSW

X2

X My life!

[aboen]

Cash only for cars and watches for me.

[mannyv11]

Sometimes they have 0 percent financing deals. If you get this its like playing with their money I don't see why you wouldn't consider financing. You would be able to put 10k+ into anything else and earn extra money on it while you pay them back zero for giving you a loan.

if you find zero percent I would say jump on it every now and again dealers do this so call around and find it. =) hopefully you get the watch you want very soon

[Kringkily]

You could finance the watch but for a watch really? A car has functional use especially if it takes you to work and around town but a watch I wouldn't finance. I would wait for a bonus or something.

[mdoc52]

Cash for indulgences (consumables) for me, jewelry, cars, watches, etc. I understand the financial side (oppty cost of those dollars) and make the conscious decision to use cash for piece of mind.

[mfserge]

Only cash payments for me. No cash = no watch. I understand your POV on 0% financing but for a piece of jewelery?? No thanks, cash all the way.

BTW, 30% savings for retirement??? Have you spoken with a financial advisor about that decision? If you're putting that into a 401k, then you are exceeding your yearly limit.

[caryyee]

Cash for me too. The only thing I have ever financed is my house. Financing, to me, leads down a slippery path unless you have good self control. Once you finance one thing, you think, gee, that was too easy, and then you start financing more consumer items.
I'm reasonably disciplined, I understand a low interest rate can mean your surplus cash can be invested elsewhere while you pay off your watch, but with interest rates so low at the moment, the extra I get from investing, probably isn't worth it my effort.

[Big Ern]

You sound like a young guy who has a good head on his shoulders and will do well. However, and please don't take this the wrong way, if you make $67k per year (pre-tax I am assuming), then buying a $30k watch is probably not a smart move. On that salary if you can get a spare $30k together go put a down payment on a rental property or put it in an investment account. Start creating wealth producing assets. Get yourself the expensive watch as a reward for getting to the next level.

Just my thoughts.

[brian8121]

Originally Posted by psv

Or maybe they have enough money not to worry about the compound interest the amount required for a watch purchased. And yes, I pay cash for everything that has to do with consumption including cars. Housing or student loans is the only thing worth financing IMO. That is the rule I live by.

x 1000
Well said.

Originally Posted by Big Ern

You sound like a young guy who has a good head on his shoulders and will do well. However, and please don't take this the wrong way, if you make $67k per year (pre-tax I am assuming), then buying a $30k watch is probably not a smart move. On that salary if you can get a spare $30k together go put a down payment on a rental property or put it in an investment account. Start creating wealth producing assets. Get yourself the expensive watch as a reward for getting to the next level.

Just my thoughts.

x1000


I really don't see the point of opening a line of credit over a watch if you don't have to - and if you do have to, then I would re-prioritize IMHO. By the OP's logic, why not finance everything (e.g. groceries, vacations, etc)? In aggregate it adds up to the cost of a watch. No offense OP, but it almost sounds like you're trying to talk yourself into it.

I'm in a fortunate enough position where I can pay cash for my watches. I didn't get there being 'not smart' as the OP says. Bottom line, you should do whatever you're comfortable with. Finance an AP if you want to and enjoy. Just my opinion, maybe I'm crazy.

[HL65]

Originally Posted by brian8121

x 1000
Well said.



x1000


I really don't see the point of opening a line of credit over a watch if you don't have to - and if you do have to, then I would re-prioritize IMHO. Why not finance everything? No offense OP, but it almost sounds like you're trying to talk yourself into it.

I'm in a fortunate enough position where I can pay cash for my watches. I didn't get there being 'not smart' as the OP says. Bottom line, you should do whatever you're comfortable with. Finance an AP if you want to and enjoy. Just my opinion, maybe up crazy.

With you my 100% friend...Two words: Credit Crisis.

[brian8121]

Originally Posted by SteelerFan65

With you my 100% friend...Two words: Credit Crisis.

Exactly!

I'll be pretty upset if we hit another one of those because people were borrowing to buy APs or PP Grand Complications.