Tips to buy an used Rolex as an Investment

Tips for what should I go for Rolex as an investment!?

Many people is asking what should he goes for a Rolex as an investment.

I my mind as a Rolex collector, No Rolex should be purchased with a perceived notion of investment....Rolex should be worn and enjoyed, don't keep your Rolex in the safe. As I guess you do not gain much by keeping a Rolex in a Safe, if that is the real case, most of the Rolex AD shop manager should keep the Rolex for themselves.

 

As we should never purchase a luxury item for a dollar return. Only to enjoy it by using it!

 

If we say trying to get as much as we can from a Rolex Watch, we should not buy Brand new Rolex as if buying with the sole reason not to loose money on a future resale then buy second hand as most of the depreciation would already have been taken.
Say for an example, you buy a new Submariner after using for 2 years, you might sell to the pre-owned watch shop at a price of 60% of the original price as Watch Dealer and shop need min. 20% for their profit margin.

Example, a Submarine Ref 116610LN is selling at HKD$62,100 now.

If walk-in gets less 5% is HKD$58,995, that is your cost,

In case you can get 10%, (some people does) that will be you future profit margin as your cost is just HKD$55,890

After using two years, the new price in 2015 will be likely HKD$62,100 x 1.05x1.05= HKD$68,465 assuming Rolex increase 5% price a year.

 

So if you bought this new watch this year at your cost HKD$55,890 if you sell it in 2015 then you may get back HKD$68,465 x 0.6= $41,079

So you expense for this Rolex is just HKD$55,890 -41,079=HKD$14811 for using 2 years.

 

Then the shop sells it at 41,079 x1.2 = HKD$49,294, with profit 20% and that is a price less 24% lower than new watch. $49294/$68465x0.95 x100%= 24% cheaper for buying your used watch than a new watch in Rolex AD. That is min 20% make it attractive for the used watch buyer!

This is the deal of the buying and selling of Rolex. This is applying to those mass production watches. Those Vintage and collective watch is another cases. Remember almost all Rolex watches will hold their value in the long haul, but will loose out in the short term.

Anyway, wear your Rolex everyday, that is the best practice to gain your VALUE from Rolex.

More tips:

• Buy only from reliable shops with decades of good record.
• Trust not web site if that watch is a vintage or collectible item, go for auction.
• Buy those comes with Warranty card if possible, usually it is more expensive by 2-3%.
• Provided you know how to tell if that is the right stuff.
• Try to get discount say 5%, sometimes it works. And I always do.
• Ask for the liability of the watch.
• Bring a Man of Watch expert to go with you for an ocular check.
• Do not say you are coming from Foreign country, always say you are local as you can come back any time if there is an issue!

HK Snob