Rolex and Consumer Credit.

[patek5107]

I was talking with a good friend the other day and he revealed that he owed about $50,000- on credit cards and personal loans.

I was absolutely shocked.

He then told me he was applying for a new credit card to get a new Submariner Date LV.

I told him that was stupid - I told him to repay his loans.

Do many people here use consumer credit to fund a Rolex purchase?

I remember reading a few days ago on here - a guy have bought his watch via American Express. That same person then said he was going to buy another Rolex the same way....

Then we hear that Americans are in debt!

I have seen some stunning collections here! Mine is crappy compared to the serious people here! Unfortunately my education / skills don't allow me to earn more - so I am realistic in what I can afford.

[Chipmunk]

I buy mine cash.

[m_later]

Straight cash here.

Buying on an Amex isn't necessarily bad. As long as its just their standard card then the person is paying in full each month and also can earn some Membership Rewards points. I wanted to put my new purchase on my American Airlines MC so that I'd get miles but in the end it wasn't worth the 3% fee to do it.

[LAJM]

x2

[Rippin]

Never paid for good watch with a credit card, always used cash. That's how you usually get the best discounts.

[Earl Camembert]

Originally Posted by Rippin

Never paid for good watch with a credit card, always used cash. That's how you usually get the best discounts.

[BlackpoolRolexCoaste]

Cash is King.

[dr_bypass]

My latest purchase (16613) was:
1- 16610 trade-in
Plus
2-$1500 cash
Plus
3-$1500 on credit card (payed in full before cut date)

[bayerische]

Over here in Finland (EU, same to an extent, but it does differ a bit) personal loans aren't very common. They exist, but the interest rate is usually 20% or more, so I guess most people know better... Let's say 20% interest on 50.000 euros would be silly to say the least!

There are credit cards that may offer 5000 or even 10.000 euro "credit" that is you can shorten your debt in percentages each month. They usually take an interest between 5-15% + 3 month euribor, euribor currently 0,641%.

What you don't see here is AMEX offering a rate payoff. It's full sum, or you are in a world of trouble.

Another thing you don't see is a jewelry store offering finance. It simply doesn't exist.

What is somewhat of a problem here, is usually people under 22, students, etc. taking "fast-loans" That is an instant loan, that you have on your account within minutes even on weekends. They are small amounts, but the loans have an interest rate in the hundreds of percents. Payback time is usually 2 weeks, and 100 euro will be 130 euro in two weeks. The people taking these loans are "poor" students, or drunken party goers, who suddenly find themselves without any money, and doesn't want to stop partying.

Another market that will have a crash over here is housing/real estate. Banks have been trowing money left and right, lending more money than the worth of the estate. A lot of people will get in trouble. Europe's problems are a bit delayed compared to the US, but we will get our share.

So back to OP,
50.000 dollars in personal debt. Well if you are 100% sure you'll have no problems paying it off, and a reasonable interest. I guess it's OK, but only if it meant getting a Gold YM-2 and a Gold Submariner.

[TheDeuce]

All mine were paid by wire transfer - the most recent to DavidSW. Life is good!

[TRolex]

Consumer Credit for a watch !!! I hate everykind of credits from banks except mortgage credit.
But, In my country credit cards are very useful for example if you want to buy something and it is 500 usd you can pay it 50usd X 10months or 100usd X 5months, etc... it is up to you to choose but not more than 12 months (some credit cards give optional 12months plus 3 or 6 months) and no commission. Credit card limits are up to your salary but usually bank gives 2 or 3 times more than your salary. And you earn bonus prizes (cash, gifts) if you use these cards.
Banks earn lots of money from the credit cards but people spends too much with these cards after that they become they couldn't pay their payments and go to courts and lose a lot of things.
When you go to shopping you see something and want to buy you see 700 usd its price and think if i buy with a credit card and divide it to 10 months it will cost me 70 usd monthly and buy another another another and see the credit card balance comes 1000 1500 usd monthly. and you will pay this months and you will buy things again on that period.

[Stitch]

Worth noting that some AD's in the uk offer 0% finance on most of their stock so if you can get a better rate of return on your cash in a suitable investment vehicle then it's not necissarily a bad thing taking all your assets etc into account.

[RollieNZ]

Originally Posted by Stitch

Worth noting that some AD's in the uk offer 0% finance on most of their stock so if you can get a better rate of return on your cash in a suitable investment vehicle then it's not necissarily a bad thing taking all your assets etc into account.

Except that usually the 0% finance price is full retail.
Whereas a discount usually applies for cash.

So you have to allow for that in your calculations.

[Stitch]

In some cases maybe but not all . Negotiate discount first then ask fir 0%

[

B][/B]

Originally Posted by RollieNZ

Except that usually the 0% finance price is full retail.
Whereas a discount usually applies for cash.

So you have to allow for that in your calculations.

[Stitch]

In some cases maybe but not all . Negotiate discount first then ask fir 0%
Also, very few discounts on rex over here at the moment from ad's
[

B][/B]

Originally Posted by RollieNZ

Except that usually the 0% finance price is full retail.
Whereas a discount usually applies for cash.

So you have to allow for that in your calculations.

[bayerische]

And not to forget the taxation over here.

Without any "wright-offs"... (lack of better word)
On a 50.000 euro yearly salary you pay 19.845 euros in taxes. That's 40% People! It's awesome over here. "Free education, and all"

[multimedia]

Careful with all the sweat talk Andreas. We don't want people to start getting the wrong ideas here, and all of a sudden start overpopulating the Nordic countries - do we?

As somebody coming from the country with the highest taxes in the world (all taxes combined) - that being Sweden, I definitely know what you're saying.


Regarding buying a watch on credit; I'm not saying it's wrong, but personally I make sure to have the money on my bank account before committing to any purchase.

Cheers,
Joe

[Eric89]

I would never buy a luxury item, such as a rolex, unless I had the cash to pay for it. That said, I've used my credit card to buy one before but always pay it off in full at the end of each month. To me, a credit card is uses only as a conveniece and for the added protection and reward points, not as a form of a loan. Just my opinion.

[marie]

Originally Posted by Eric89

I would never buy a luxury item, such as a rolex, unless I had the cash to pay for it. That said, I've used my credit card to buy one before but always pay it off in full at the end of each month. To me, a credit card is uses only as a convenience and for the added protection and reward points, not as a form of a loan. Just my opinion.

X2
Automatically pay any/all CC off before the end of the billing cycle. Only use them for convenience, reward points and added protection. We never ever carry a balance. The funds are available before any purchase is made or it doesn't happen.

[SUPERDOC]

Originally Posted by Eric89

I would never buy a luxury item, such as a rolex, unless I had the cash to pay for it. That said, I've used my credit card to buy one before but always pay it off in full at the end of each month. To me, a credit card is uses only as a conveniece and for the added protection and reward points, not as a form of a loan. Just my opinion.

This is in line with my policy..I try to put as much as I can on a credit card..cars, watches, groceries...really racks up the points...
but, I use it as I would a debit card...I'd never spend what I don't have....

I refuse to ever pay a credit card financing fee..

[viper]

Originally Posted by Eric89

I would never buy a luxury item, such as a rolex, unless I had the cash to pay for it. That said, I've used my credit card to buy one before but always pay it off in full at the end of each month. To me, a credit card is uses only as a conveniece and for the added protection and reward points, not as a form of a loan. Just my opinion.

same here

[007Willster]

Originally Posted by Eric89

I would never buy a luxury item, such as a rolex, unless I had the cash to pay for it. That said, I've used my credit card to buy one before but always pay it off in full at the end of each month. To me, a credit card is uses only as a conveniece and for the added protection and reward points, not as a form of a loan. Just my opinion.

Same here...

[bayerische]

Originally Posted by multimedia

Careful with all the sweat talk Andreas. We don't want people to start getting the wrong ideas here, and all of a sudden start overpopulating the Nordic countries - do we?

As somebody coming from the country with the highest taxes in the world (all taxes combined) - that being Sweden, I definitely know what you're saying.


Regarding buying a watch on credit; I'm not saying it's wrong, but personally I make sure to have the money on my bank account before committing to any purchase.

Cheers,
Joe

Right Joe, we wouldn't want that, would we?

Wonder how scandinavia is so scarcely populated?

[TheDude]

I use my Amex for everything and pay off full balance every month.


I agree with Eric that the benefit to using Amex on big purchases is the extension of the warranty and their willingness to pay out on repairs that might be needed during the extended period.


Also, getting the Amex points cannot be overlooked.

[Nairn1980]

I have to say whilst I agree with you all, I do not pay for Rolex watches by cash.

I am one of the ones who has credit card debt for them.

I bought mine and my fiancees on a very low-rate credit card, and pay it back per month.

I am safe in the respect that both watches are worth significantly more than the outstanding balance.

Might not be "right" but thats what I do.

I also have my mortgage and car payment, but I love Rolex so much, and if I saved for years the price increases would be so much more, so I am happy to pay them up. Credit cards are nothing new for me though, I have an AMEX for all my monthly spending, which gets cleared off every month and I earn cashback on everything I buy.

I am 30 next week and have been a regular credit card user since I was 18. I have never in my life missed a payment, and as a result have excellent credit. I am however smart in credit card choices....never pay interest monthly on regular spending. The only interest I pay is on my one balance for the Rolex watches, and I have that at 6% APR (UK RATE) so it costs me very little.

[4 Ranges]

Use card for points, then pay it off in cash. Love upgrade to first class using Amex points. :)

[bran319]

When I buy from my AD I pay cash so I can get a good discount.

It it's a grey market dealer I put it on my card for the points and pay it off at the end of the month so I can earn the miniscule interest on my checking account.

Either way I always only use discretionary funds to purchase a luxury item. Going into debt for a rolex isn't very bright!

[king1412]

Originally Posted by Nairn1980

I have to say whilst I agree with you all, I do not pay for Rolex watches by cash.

I am one of the ones who has credit card debt for them.

I bought mine and my fiancees on a very low-rate credit card, and pay it back per month.

I am safe in the respect that both watches are worth significantly more than the outstanding balance.

Might not be "right" but thats what I do.

I also have my mortgage and car payment, but I love Rolex so much, and if I saved for years the price increases would be so much more, so I am happy to pay them up. Credit cards are nothing new for me though, I have an AMEX for all my monthly spending, which gets cleared off every month and I earn cashback on everything I buy.

I am 30 next week and have been a regular credit card user since I was 18. I have never in my life missed a payment, and as a result have excellent credit. I am however smart in credit card choices....never pay interest monthly on regular spending. The only interest I pay is on my one balance for the Rolex watches, and I have that at 6% APR (UK RATE) so it costs me very little.

The problem with buying luxury items when you don't have the cash is the credit card cost catches up to you and you have to sell your 4 month old LNIB Daytona below market value.

http://www.rolexforums.com/showthread.php?t=122954

Cash is king. No cash = No luxury items like Rolex.

[Nairn1980]

Originally Posted by king1412

The problem with buying luxury items when you don't have the cash is the credit card cost catches up to you and you have to sell your 4 month old LNIB Daytona below market value.

http://www.rolexforums.com/showthread.php?t=122954

Cash is king. No cash = No luxury items like Rolex.

That was a bit of a dig!
I did not plan to keep the Daytona forever. I have had it and sold it and not lost.
Not the end of the world, I now love my LV.

We are all different...

[00pumpkin]

I bought my Rolex on credit at Mayors. I was only 23 when I bought it and had only been working (post college) for 4 months. I didn't exactly have $5,500 cash lying around.....and I'm not ashamed of getting it on credit. I would do it again in a heart beat. Pepsi's aren't easy to find now and I snatched one up right as they were becoming hard to find. I paid it off in just over a year.......