More headwinds for Rolex Resale Market?

[inadeje]

Sweeping import tax/duty changes across the EU, initially implemented by France, but expected to be adopted swiftly across all EU member states, could be affecting the used watch market? Especially gray dealers outside the EU who habitually sell into it?

[jsobral]

Dayum!

[amh]

Dealer shelves to soon be overflowing!

[rolexjackson]

Doubtful it will have much affect on things


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[INC]

Originally Posted by inadeje

Would sweeping EU-wide import tax/customs changes, originally implemented by France but expected to be quickly adopted by all EU member states, affect the pre-owned watch market?

I think it's about something else. This message from Chrono24 reminded me that since the buyer pays through their online system, they should collect the VAT+TAX at the time of payment and transfer this money to the French tax authorities. It's also possible that after this was brought to their attention, they shut down their system because they were not prepared for this local legal obligation.

It follows that if I am correct in this, then the only change is that who "collects" the tax, since the amount is fixed. So, when Chrono24 will comply with the rules, the purchase will be easier and cheaper for customers, since from then they will no longer have to worry about the customs procedure, because their products will be delivered to them as if they were ordered within the EU.

[Podmornica]

The main issue for resale market at this point is liquidity. Hardly anything moves even at lowered prices. The stock is mostly sitting there waiting for buyers. What used to move within days is now taking weeks and months at much lower prices compared to a couple of months ago.

On the other hand, big gray dealers are hardly paying you anything near those online prices they are asking for. Most of them will not even offer you cash, but a useless store credit.

They are on their last leg when it comes to holding stock. The cost of wages, rent and everything else is squeezing them and they are holding their last breath hoping the market will rebound since they are overleveraged and bought at much higher prices than those currently sold in the market.

[1665fan]

I said DAMN when I saw a regular 16520 for 66k lol…..I am assuming NOS full set….if so it’s worth close to that

[TomLou]

I looked at Chrono24 and there is a 2T Daytona 16523 in excellent condition
with box and papers, bought new in Kowloon, HK, in 1990 - from Zurich Rolex AD
Today this Hong Kong resident wants 116.954 Euro ??
I wish him the best of luck

[amh]

Originally Posted by Podmornica

The main issue for resale market at this point is liquidity. Hardly anything moves even at lowered prices. The stock is mostly sitting there waiting for buyers. What used to move within days is now taking weeks and months at much lower prices compared to a couple of months ago.

On the other hand, big gray dealers are hardly paying you anything near those online prices they are asking for. Most of them will not even offer you cash, but a useless store credit.

They are on their last leg when it comes to holding stock. The cost of wages, rent and everything else is squeezing them and they are holding their last breath hoping the market will rebound since they are overleveraged and bought at much higher prices than those currently sold in the market.

Not seeing it. A certain Blue & Blue reference hasn't has held rather steady for months.

[Philadelphialawyer1]

Not seeing it. A certain Blue & Blue reference hasn't has held rather steady for months.

Please explain what you mean by this. Can I swindle a blnr at a better price now than last month?

[GB-man]

Originally Posted by 1665fan

I said DAMN when I saw a regular 16520 for 66k lol…..I am assuming NOS full set….if so it’s worth close to that

Indeed a terrible price as per the norm on C24 the museum of unsold watches. I sold a significantly rarer example (E serial fully brushed) complete set unpolished and was barely able to get 50k earlier this year before the market tanked.

Unless that’s NOS it’s worth maybe half what they’re asking.

[fsprow]

Originally Posted by Podmornica

The main issue for resale market at this point is liquidity. Hardly anything moves even at lowered prices. The stock is mostly sitting there waiting for buyers. What used to move within days is now taking weeks and months at much lower prices compared to a couple of months ago.

On the other hand, big gray dealers are hardly paying you anything near those online prices they are asking for. Most of them will not even offer you cash, but a useless store credit.

They are on their last leg when it comes to holding stock. The cost of wages, rent and everything else is squeezing them and they are holding their last breath hoping the market will rebound since they are overleveraged and bought at much higher prices than those currently sold in the market.

Gee, I know several resellers and none are on “their last leg”. Most are buying low and selling at a profit. Inventory levels are indeed high however. All have business interests other than watches as well. They have been through these cycles many times. Pretty much like many businesses are dealing with now.

[Calatrava r]

Originally Posted by Podmornica

The main issue for resale market at this point is liquidity. Hardly anything moves even at lowered prices. The stock is mostly sitting there waiting for buyers. What used to move within days is now taking weeks and months at much lower prices compared to a couple of months ago.

On the other hand, big gray dealers are hardly paying you anything near those online prices they are asking for. Most of them will not even offer you cash, but a useless store credit.

They are on their last leg when it comes to holding stock. The cost of wages, rent and everything else is squeezing them and they are holding their last breath hoping the market will rebound since they are overleveraged and bought at much higher prices than those currently sold in the market.

Every used watch dealer I know is doing great. They are way of ahead of the game, when their retail prices soften, they just buy for less. If some folks are cashing out in this market, it creates a steady flow of inventory at attractive prices to the used watch dealers. This notion that any dealer has to turn over thier entire inventory every few days to stay in business is very silly.

[77T]

Headwinds aren’t due to taxing decisions of small segments of the market.

Widespread political and financial disruption would be headwinds.

Rolex announcing a 10x increase in production would be headwinds for their brand’s secondary market.


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[subtona]

Originally Posted by fsprow

Gee, I know several resellers and none are on “their last leg”. Most are buying low and selling at a profit. Inventory levels are indeed high however. All have business interests other than watches as well. They have through these cycles many times. Pretty much like many businesses are dealing with now.

That is my understanding speaking with my regular dealers

[Incroyable12]

You can often bypass Chrono24 by Googling the watch description and the dealer's website will pop up.

[Wahlberg]

Originally Posted by Calatrava r

Every used watch dealer I know is doing great. They are way of ahead of the game, when their retail prices soften, they just buy for less. If some folks are cashing out in this market, it creates a steady flow of inventory at attractive prices to the used watch dealers. This notion that any dealer has to turn over thier entire inventory every few days to stay in business is very silly.

Originally Posted by fsprow

Gee, I know several resellers and none are on “their last leg”. Most are buying low and selling at a profit. Inventory levels are indeed high however. All have business interests other than watches as well. They have been through these cycles many times. Pretty much like many businesses are dealing with now.

I believe you guys. The dealers you are likely talking about are actual veterans who have been doing this for a long time. Not the rookies who started in 2018 and after who are likely having issues.

All depends on your piggy bank which you have saved up for after x decades and/or whoever is funding your business as a new dealer.

[offrdmania]

Dealers are still going to say that inventory is low in order to keep the false narrative going that there is demand even though most of the big dealers are sitting on dozens of the hot models. If inventories were truly in fact low, these dealers wouldnt be turning down the chance to buy these hot models when average blokes like you and me try to trade them in, yet they are turning them down left and right. They want to keep prices as high as possible for the longest amount of time so that they can liquidate the inventory that they bought at the height of the market.

[-RolexMan-]

Originally Posted by offrdmania

Dealers are still going to say that inventory is low in order to keep the false narrative going that there is demand even though most of the big dealers are sitting on dozens of the hot models. If inventories were truly in fact low, these dealers wouldnt be turning down the chance to buy these hot models when average blokes like you and me try to trade them in, yet they are turning them down left and right. They want to keep prices as high as possible for the longest amount of time so that they can liquidate the inventory that they bought at the height of the market.

I concur.

[Al1969]

Originally Posted by offrdmania

Dealers are still going to say that inventory is low in order to keep the false narrative going that there is demand even though most of the big dealers are sitting on dozens of the hot models. If inventories were truly in fact low, these dealers wouldnt be turning down the chance to buy these hot models when average blokes like you and me try to trade them in, yet they are turning them down left and right. They want to keep prices as high as possible for the longest amount of time so that they can liquidate the inventory that they bought at the height of the market.

[train-time]

Originally Posted by offrdmania

Dealers are still going to say that inventory is low in order to keep the false narrative going that there is demand even though most of the big dealers are sitting on dozens of the hot models. If inventories were truly in fact low, these dealers wouldn't be turning down the chance to buy these hot models when average blokes like you and me try to trade them in, yet they are turning them down left and right. They want to keep prices as high as possible for the longest amount of time so that they can liquidate the inventory that they bought at the height of the market.

I believe this an excellent assessment of the current secondary market. It boils down to how long this resale pricing narrative can work or how long they can hold out and survive. We are in a transition period between the market that we are exiting and the new market that is knocking at the door.

[lear60man]

Originally Posted by train-time

I believe this an excellent assessment of the current secondary market. It boils down to how long this resale pricing narrative can work or how long they can hold out and survive. We are in a transition period between the market that we are exiting and the new market that is knocking at the door.

I dont want to answer that door hahaha. Good time to buy luxury items is heading our way.