Depreciation on PM Watches

[tbonesteak]

Debating making my first PM purchase and depreciation worries me. There are tons of different consumers out there - personally, I've bought some SS watches new from ADs that I knew were going to decently retain value, but now looking at PM pieces, I've been looking to buy used to save the hit.

I've been able to find a 116655 for $16k and a 116719 for $20k. I understand "buy bc you enjoy" but I feel more comfortable buying something knowing if I want out in a few years, I won't take a bath.

Each model I'm considering was selling for a lot more just 12-24 months ago and I'm worried if I buy a WG Pepsi for $20k, I won't be able to recoup more than $13-$14k in 3-5 years.

Can someone with a lot of PM experience speak to depreciation on gold model Rolexes?

[kilyung]

I buy wherever I can get the best price. As an example, I bought my 116718 BNIB from an AD for what used watches were selling at. Other times it’s hard to beat the grey sellers.

[locutus49]

I personally would avoid PM if I were a flipper. If you want to keep one for life, then buy the PM you love and don't worry about resale since you bought it to keep. Just one opinion.

[tng11]

Buy to enjoy, and not purely because of its resale value. For PM if you shop around you'll minimize any potential loss. Even then, PM tends to be a bad proposition for flippers as they take much longer to sell and pricing can be somewhat of a black box.

I do highly doubt the 116719 would drop that much over the next few years if you bought it at $20K, barring a black swan event where Rolex drops a SS Ceramic Pepsi where the bezel colours are more vibrant and less washed out...

[tbonesteak]

Originally Posted by locutus49

I personally would avoid PM if I were a flipper. If you want to keep one for life, then buy the PM you love and don't worry about resale since you bought it to keep. Just one opinion.

Kinda how I feel, but I really like both of these. The rose gold Yacht I know I'd get crushed, the Pepsi IDK.

[douglasf13]

Just look at every watch as a total loss, because you’ll enjoy it more, and then you’ll be happily surprised when you get something for it, should you decide to sell it.

[rolex75216]

Without ever owning a PM watch it is hard to provide advice. I think if I was spending that much money on a particular piece it would be something I would plan on keeping forever so would not worry to much about the resale value.

[peterpl]

Ppl who buy PM know they will lose value. Its not only Rolex but brands like VC/AP and the like will also lose. Only PP like a 5980 or something will still lose on the 2nd hand market but prob not much.

If your worried about resale dont buy a PM unless you get second hand and for a really good deal. Buy PM because you love it and for you to enjoy.

[Likestheshiny]

Depreciation is a good thing. Buy a minty used watch and save some money.

[Tangier11]

Originally Posted by Likestheshiny

Depreciation is a good thing. Buy a minty used watch and save some money.

My thoughts as well

[subtona]

Preowned

[asiparks]

At $20K that Pepsi has already taken it's biggest hit, it's unlikely to lose much more significant value unless you absolutely mash it up. It may even rise modestly over a few years.
The main problem is that it will take longer to flip, so if you do need to "cash out" in a hurry, you might have to drop the price lower than you'd like to move it

[tbonesteak]

Originally Posted by asiparks

At $20K that Pepsi has already taken it's biggest hit, it's unlikely to lose much more significant value unless you absolutely mash it up. It may even rise modestly over a few years.
The main problem is that it will take longer to flip, so if you do need to "cash out" in a hurry, you might have to drop the price lower than you'd like to move it

This is where I'm at an advantage to a "flipper." I never "need" to flip, I'll go get something new before I sell if I come across something priced right.

[joli160]

Best is to wait till you can buy them for 13-14K yourself or have more patience and wait until the PM watches are on the same price level as SS.

[tyler1980]

depreciation doesn't matter unless you sell. Paper losses are not actual losses.

SS is for selling, PM is for when you know what you want.

[watchwatcher]

You found a RG YM for 16k and a WG GMT for 20k at an AD? BNIB?

At those prices, you should be fine if you have to flip down the road.

[Al1969]

Originally Posted by watchwatcher

You found a RG YM for 16k and a WG GMT for 20k at an AD? BNIB?

At those prices, you should be fine if you have to flip down the road.

Where is the OP finding these great deals? I seen BLROs in the 23K range preowned, but not 20.

[tng11]

Originally Posted by Al1969

Where is the OP finding these great deals? I seen BLROs in the 23K range preowned, but not 20.

Right here!

https://www.rolexforums.com/showthre...ght=116719blro

I would also be a buyer at $20K. One I've been watching for a while was priced around $21K, and the seller has now increased their price to $24K. Not surprisingly, it remains unsold.

[Al1969]

Originally Posted by tng11

Right here!

https://www.rolexforums.com/showthre...ght=116719blro

I would also be a buyer at $20K. One I've been watching for a while was priced around $21K, and the seller has now increased their price to $24K. Not surprisingly, it remains unsold.

There you go. Thanks

[tbonesteak]

Originally Posted by tng11

Right here!

https://www.rolexforums.com/showthre...ght=116719blro

I would also be a buyer at $20K. One I've been watching for a while was priced around $21K, and the seller has now increased their price to $24K. Not surprisingly, it remains unsold.

I saw this one too, what I referenced above.

[watchwatcher]

Originally Posted by tbonesteak

I saw this one too, what I referenced above.

Yeah...that also sold in two days (or less)...that price is not the norm around here. The trusted sellers going price is about 23k and every now and then you will see a private seller with one up for sale for less. But, the trusted has the name and reputation in his favor and you've got to be willing to take a chance if you want to go the private route.

Bottom line, if you can score either of those watches for the prices you mentioned, you'll be fine. I could be completely crazy, but I seriously doubt you would have to worry about selling a BLRO for 13-14k in a few years.

[Duey]

Originally Posted by tng11

Right here!

https://www.rolexforums.com/showthre...ght=116719blro

I would also be a buyer at $20K. One I've been watching for a while was priced around $21K, and the seller has now increased their price to $24K. Not surprisingly, it remains unsold.

The seller needed the cash...
It was snatched up so Fast by a Trusted Seller here and now the TS has it up for $23,875.

[tbonesteak]

Originally Posted by Duey

The seller needed the cash...
It was snatched up so Fast by a Trusted Seller here and now the TS has it up for $23,875.

I've sourced one here in NY for $20k from a reliable source - although clock is ticking bc I know at this price right now it will move fast.

[Esoteric]

Originally Posted by Duey

The seller needed the cash...
It was snatched up so Fast by a Trusted Seller here and now the TS has it up for $23,875.

The seller didn't need the cash, he was bored with the watch!

[tbonesteak]

Originally Posted by Al1969

Where is the OP finding these great deals? I seen BLROs in the 23K range preowned, but not 20.

No, obviously not new from an AD, these were preowned from different sources.

But even here, a BLRO sold on this board for $20k just a few days ago.

[Roll the Lex]

Bought a pm new on trf.
Oh well took a bath on that.

My thinking when I bought it was as long as it doesn’t lose as much as the same amount put into a luxury car, I’m happy.

So if in 10yrs I can get more than a few thousand back I’m good. Not that I’m selling it then.



Sent from my iPhone using Tapatalk

[JUSTIFIED]

As a % of MSRP, PM watches likely don't depreciate any faster than other watches. Also, ADs should have more margin for negotiation. Recently bought a Daytona Rose Gold at 12% off, which was in line with used prices for that watch in good condition. I've never purchased a used watch and likely never will. Just me, but not keen on wearing something worn by others.

Like others have said, purchase to enjoy....if it retains a decent % of its value then all the better.

[Vipes]

If you get a BLRO for 20k then you should be good. I don’t think this watch will ever go down to 13-14k.

[cassin907]

depreciation doesn't matter unless you sell. Paper losses are not actual losses.

SS is for selling, PM is for when you know what you want.

wise counsel

[Chiboy]

PM can be a fine choice, IMO, but it is an expensive proposition if you are an "it has to be BNIB for me" kinda person. I personally wouldn't have gotten anywhere near $5k-$10k of pleasure out of peeling off the stickers of my Daytona, and it not only looks new when you get it, but will have hairline scratches on the clasp in two days no matter how new or how much you paid for it. My opinion (thankfully).