I have been buying and collecting watches for 30 years and keep trade my used watch for over 10 years. The most important points of advice I could give someone regarding watches are: Almost always, you get what you pay for...and, if you buy a quality, pre-owned watch, and able maintain it in good condition, your watch will act as an investment.
I am 55 years old and I have had an interest in watches since I was 25. Almost anyone that knows me is aware that I am a watch "Snob" or “watch fever”. And every one of those people also have asked me "How can you justify paying that much money for that stupid watch?" Every now and then, a buddy will say "I just don't understand you, my HKD$450 Casio works just fine".
Listed below are the three points that I will argue in the Rolex vs. Casio debate. Individually, none of them are enough to support my argument....but collectively they provide some rational support for the Rolex, or other high end watch Like AP, PP, VC, FM, RD or JLC. Again, I am not trying to criticize Casio watch, they are good solid digital watch that can offer your hundred of functions that you cannot finishing learning after 4 years of usage!
A high end watch will last for years and decade, even it would be passed down as a family heirloom from generation to generation. Quality watches are more durable and can better withstand wear and tear. They will run for years and years, and with a little TLC* and maintenance, they can be kept in like new condition. Like I said...you get what you pay for.
On the other hand, low end watches wear quite easily. In many cases, wear or damage is irreparable. Many people even call them "disposable" watches for this very reason.
As a general example, a rough guess would be that 90% of Rolex watches are probably still in use after 30 years....while perhaps 90% of Casio watches are in the garbage within the first 7 years.
You get to use it. You get to wear it. People get to see it. Although many people will deny it, one of the most compelling reasons to wear a nice watch is the prestige.
A high end watch’s investment appeal is probably the most compelling reason to own a quality, pre-owned watch. Prestige and quality won’t convince your spouse to agree with this argument. But a pre-owned watch’s ability to appreciate might be convincing.
Let me start by giving a personal example.
This is the price of Daytona, GMT Master and Submariner over the past 15 years.
Daytona estimated price at Rolex AD
GMT Master II
Imagine that you had purchase a Rolex Daytona black dial in 1998 with list price $33,360, and I remember that Daytona Steel is not an hot item in that time as people tends to buy Gold Rolex still, as a 80’s HKer culture for Gold Rolex, however we could see the gradual changes of Trend for more people going for stainless watch.
In that time, you can get as much as less 15% discount.. but as of Today, someone still can get less 14% of Discount! Wow, WHO!?
So what you paid was HKD$33,360 less 15% was HKD$28,356, I remember still you can get a box of Char Siu Rice when you bought this watch at Rolex AD. As no one wants to buy Daytona in 1998, and 1999…
So if you keep the original Warranty certificate, box and the Red seal and if possible original invoice. If that watch has not been polished, you can sell it in the market with HKD$55,000 to dealer, and HKD$76,000 to end user via eBay! If that watch has not been used at all, the price could be even higher! Note that the Daytona Black is now selling HKD$95,000 and have almost no stock in every Rolex AD, we have to wait for month... So Daytona seems to be the most sought after new Watch from Rolex! An outstanding Investment item.
What have you earned, you worn it everyday for the 15 years!... Does it worth!?
Friend and relatives always come to me for advice about purchasing a watch, and I will always tell them to NOT buy a new watch. Instead, I would strongly recommend buying a slightly used one on eBay from a reputable seller, sometime the depreciation is less than the new one. Note that the new Day Date is coming, it is the right time to look for some potential good Rolex Day Date as an investment!?
TLC means Tender Loving Care.
HK SnobRemarks, 2011 Price means Dec 2011, as within 2011, Rolex price has been adjusted for 4 Times, and Tudor for 5 times.
Note also since Dec 2011 till now Sep 2013, Rolex price has not been adjusted, When do you think Rolex will increase price again. I can tell you it might come soon, somewhere end of the year or before Chinese New Years latest.