newbie question about pricing....

[jolochua]

Sorry for the newbie question....

I just want to know if the price of the 2nd hand pieces thats not that popular.... Will also increase after couple of price increase of rolex?!?

Im fond of wearing the exp39mm .... And recently purchased champagne dial precision... And The new AK....

I mean i bought exp and ak bnew.... But i didnt buy it for investment... Just incase i need to flip it like say after 5years... By any chance that i can sell it same amount as i bought? Im just wondering and thinking out loud..

Thank you for your time...

[JohnBoy]

Welcome! I just noticed your post - so heres a quick response. If I understand, you bought these new, plan on keeping for perhaps five years, then flipping if you need money. You will be able to sell them, but they will not be rare or particularly collectible - so you will take a beating. The markup on new Rolexes is about 40 percent, so you can play with the numbers - but until they become rare/vintage (if they ever do), new Rolexes are a pretty poor investment. The bright side is that you are able to wear them - and thats worth money to be sure. Luck!

[jolochua]

Thanks for the reply.... So thats true for all the new models... Including the subc ln and lv??

[gwalker]

Only time will tell. I've seen both of those at decent discounts so if you didn't pay msrp plus taxes you can probably get what you paid back in 5 years. But if you paid full price plus taxes I HIGHLY doubt the used prices will be that high. Also by then most watches will need a service so that's another factor.

[Frosty]

Many years ago, a friend of mine that has been involved with Rolex Watches for a long time told me this.

He said a modern Rolex is not a good investment. It is a better value, long term, than other watches for two reasons.

Rolex is well known for quality, whether it is a coolie in Hong Kong or a cab driver in New York, they have heard of it. This is good for resale or if you have an emergency and have to make a trade. This is not always true of other high end brands.

A Rolex in mint condition is usually worth half of what the same new model is currently selling for. You also must figure in the service history. So, it will take a while for a return on your investment.

This seemed to make sense at the time, I have often wondered if it still held true.

[77T]

The general experience of residual value has shown Rolex is retaining more of its initial price over time. The key is the time horizon over which you measure that and the model you choose.

Take a look at this chart courtesy of the minus4plus6 website: http://www.minus4plus6.com/PriceEvolution.htm

Looking at the Expl. & A-K and if you had bought one of each in 2002 (10 yrs. ago) then each would be worth less than the original purchase price if you sold them today.

However, looking at the Expl.II & the Sub over the same time period, each would be worth the same or more than their original purchase price.

Past experience is not a guarantee of future results, but you can tell that trends and tastes vary enough that prediction of future value solely on the basis of MSRP inflation isn't a sound theory.