GMT2 advice

[Mrbez]

Hey Guys,

I bought my first DJ TT a couple of months ago and I totally have the bug.

I thought I wanted to buy a GMT Batman next, but I've just tried a GMT 2 in black, and I've fallen in love...

The price is 6,200 gbp in the U.K. (Damn price increase) but I can get 4 years interest free on it.

Should I bite the bullet here, or would I save a lot of money going used or even buying in the US? I currently spend 4-5 months a year in the US with work. Maybe I am being optimistic but could it be favourable to buy in the US even with the pound so low?

[Rocket_Man]

I like the LN better as well... we are in the minority here on that one. BNIB in the US from a trusted seller is around $7,300, used can be had for $6,100 depending on the seller and age/condition.

I like the LN, it can be worn in any setting even for a sports watch.

[stash21]

personally wouldn't get a rolex on drip even at 0%.

[Nairn1980]

Originally Posted by stash21

personally wouldn't get a rolex on drip even at 0%.

Why on earth not? 0% is a no brainer IMO :)

[Mrbez]

Originally Posted by Nairn1980

Why on earth not? 0% is a no brainer IMO :)

Agreed. I can keep my cash working for me.

[stash21]

Originally Posted by Nairn1980

Why on earth not? 0% is a no brainer IMO :)

Because the risk free rate of return is also zero. So not worth the paperwork. Plus would assume a discount to available instead of 0%

[Valkyrie]

Originally Posted by Nairn1980

Why on earth not? 0% is a no brainer IMO :)

Why on earth are you so willing to go into debt for no good reason? The no brainer is to only pay cash for the purchase of any depreciating asset, especially a luxury item such as a watch.

The problem with any loan, even at zero percent, is that you must pay it back. To do that you must currently have sufficient funds available that can be drawn down over the life of the loan, sufficient future income to make the payments, or some combination of the two. While that may turn out to be true, it also might not. Everybody thinks that they are above average investors but some people really do lose money. And yes you will probably have bigger things to worry about if you lose your job but that can happen as well. And finally, some folks simply can't handle debt and get in over their head; certainly that won't be you but I bet most folks who find themselves in over their head never thought it would happen to them either.

Many people share your view of debt, probably even a majority. Of course the decision to accept the risk is yours alone. You should recognize though that the risk is not zero and ask yourself if the minimal reward is really worth it. For me, a debt free life is worth way more than a zero percent loan.

[Ste_J]

Prefer the LN as well.

I got 2 years 0% when I bought mine from Goldsmiths, so 4 years is good. Can't see why people have a problem with this.

[Jazz ham]

I can't advise on currency markets, but agree with you on the LN.

I picked this up last week from DavidSW. Like you, I thought BLNR but did not want to cough up the premium inasmuch its the same watch.

[Mrbez]

Originally Posted by Jazz ham

I can't advise on currency markets, but agree with you on the LN.

I picked this up last week from DavidSW. Like you, I thought BLNR but did not want to cough up the premium inasmuch its the same watch.

I love it. Great purchase. If you don't mind me asking, what did you pay?

[Ewellblue]

Heathrow T4 have one for sale as if yesterday, list prove less 18.5% (over a grand off). Get a return flight to Norway for £200 job done!!

[AK797]

Just a few months ago a used one was going for around £4K so parting with close to 6 now is tough to take. I would put a WTB on TZ-UK, prices there are far better, more like pre-Brexit, 4.5-5K.

[kiralymd]

Sorry, but interest free what?

Ok. 1st: be happy with the datejust
2nd: work a lot for money
3rd: buy Rolex when you have the money to buy Rolex

The good part: You've got enough time to choose a model to like - usually

[kelv_w]

How did you even get 4 years interest free? All the ADs i've asked would even give any finance on the sports models. 0% is no brainer.

[stash21]

For those that think 0% is a no brainer consider the following points.

1. I assume if you are taking credit out for a watch you have the cash but given it is covering credit it, where that cash gets invested needs to be both (a) risk free and (b) liquid.
2. Given the above that means a cash account, even the best rates are struggling to find 1%. So let's say £240 interest over the 4 year period. (Which it won't be if you are using this cash to make the monthlys). After tax this is more like £140 in your pocket.

3. In absence of getting the credit is a discount of £140 available? Whatever the cash cost is pay on an Amex cash back credit card and get 1.5% cash back (£90 plus any discount). You need to pay the balance in the interest free period.

4. Avoid paperwork, credit checks, setting up a DD to make the monthlys etc.

Still a no brainer?

[Halitosis]

Originally Posted by stash21

For those that think 0% is a no brainer consider the following points.

1. I assume if you are taking credit out for a watch you have the cash but given it is covering credit it, where that cash gets invested needs to be both (a) risk free and (b) liquid.

Why on earth would the cash need to be liquid? As long as payments remain up to date the lender cannot call in the balance, and as long as he can find £130/month he wont even need to draw down on the principal and can invest long term.
Take the 0% unless you can negotiate a decent cash discount.

On the more important matter of BLNR vs black Mrbez, go with your gut and don't be influenced by current fashion. I like the BLNR but don't believe it justifies the £350 premium. I love the green GMT hand and lettering on the black, and believe it is more of a 'timeless' (excuse the pun) classic that can be worn with most anything. I am biased in that I've only owned 2 watches in the last 20 years - both black bezelled GMTs

[mattty]

Even still take the 0% as you wont get a discount so it will make you feel you've had something.

Never know in the next 4 years that £6k might come in handy and you wont have to sell your watch to raise the funds.

[The Libertine]

Buy what you truly like, as you will save money in the long run!

[brandrea]

Originally Posted by The Libertine

Buy what you truly like, as you will save money in the long run!

This is very good advice

[immy]

Every ad I spoke to did not offer 0% on Rolex sports models, including Goldsmiths who I purchased from, where did they offer 0%, and ste how long ago did you get that deal in Goldsmiths?

[peterpl]

TBH my personal view is I would never get a rollie with a loan. There are plenty of other investments you can do which will enable you to get a Rollie outright.

[immy]

Paying an APR isn't a smart move in my opinion, but 0% is a no brainier. It doesn't mean you can't afford it, your just spreading a payment with no additional cost, and keeping your money in the bank. However each to their own. What works for one person doesn't necessarily suit another.

[Monsta]

Avoid going into debt especially on a luxury item. Cash is king imho.

[Nairn1980]

I still believe 0% is a no brainer and have funded other watches this way. In the past I have also negotiated a discount and used a 0% credit card.

The paperwork is hardly much and DD amount is agreed there and then. You can pay back early with no penalty whenever you want to clear it.

However I've found no dealers recently even being prepared to do 0% on sports models although one did offer 12 months. UK ADs on SS models are generally offering no discount anyway so if you can get some 0% I'd say it's worth having.

People will always have different opinions, but mine is that 0% is a no brainer!

[Mrbez]

So, went to take advantage of the 4 years interest-free and the watch had sold.

I got lucky and found another jeweler who offered me 2 years interest-free over the phone. Put the deposit down and went to pick it up today, only to be told that I was misinformed and Rolex watches are not part of their 0% interest-free.

I knew I wasn't going to walk out without it, so out came the debit card and the rest is history!

[bmrisko]

Debit? Man, that pains me...so many great reward CCs out there.

Anyways, congrats, it is a fantastic watch!

[watchwatcher]

Great watch...congrats!

[smg8]

Threads on finance on any forum (car forums when it comes to PCP/leasing, watch forums etc) always descend into the same - basically people have an inability to consider the circumstances of anyone but themselves.

What suits one person doesn't suit someone else, simple as. There isn't a right and wrong.

For some people the idea of making overpayments on a mortgage and getting it cleared and living a comfortable mortgage free life is appealing. For others keeping mortgage payments to a minimum, using their spare money to invest on the stock market or into their own business which may result in a much greater return than any interest saving on paying a mortgage off early is much more appealing.

Personally I have used IFC in the past, I have a portfolio of funds returning over 20% last year and would rather put the £'s into that and pay the watch off on IFC. Particularly if we consider that in the UK many Rolex models aren't actually depreciating assets. But that is due to my appetite to risk. Which isn't the same as the next guy.

On the flip side I have also purchased some with cash and then stuck them in my personal balance sheet as assets.

Summary is there isn't a right and wrong, and most importantly congrats to the OP on a great purchase :-)

[Stevec14]

Agreed. 0% actually makes sense compared to paying cash (assuming you have the cash in the first place, which is the important bit). Let your money work for you and pay not a penny interest. No brainier. Depreciation is the same. If you pay cash you lose the difference. If you pay finance at 0% it's the same just you have earned on the balance in the interim. Being honest, these have such low depreciation rates (you can't compare to cars), that the finance will almost certainly be ahead of what the watch is worth.

Anyway, as always it's horses for courses....I took 2 yrs interest free on mine when I had e cash available....

In any case, congrats on the watch. Lovely purchase.

[T. Ferguson]

Paid cash and got a great watch. Well played.