Depreciation

[Padstar]

Hi i would like to pick your brains about depreciation on Rolex watches.

If we exclude "special" models and discontinued / limited edition models, how much do you believe the following depreciate from RRP before they hit a plateau and retain their value;

1) Stainless Steel sports models
2) Stainless steel traditional models
3) Bi metals
4) Gold

[RHIII]

Originally Posted by Padstar

Hi i would like to pick your brains about depreciation on Rolex watches.



If we exclude "special" models and discontinued / limited edition models, how much do you believe the following depreciate from RRP before they hit a plateau and retain their value;



1) Stainless Steel sports models

2) Stainless steel traditional models

3) Bi metals

4) Gold

1) Least
2) Minimal
3) More
4) Most

Not sure how to get much more accuracy than that...


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[tyler1980]

Originally Posted by RHIII

1) Least
2) Minimal
3) More
4) Most

Not sure how to get much more accuracy than that...


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less than a car. not bad really if you consider its a used luxury item

[RHIII]

Originally Posted by tyler1980

less than a car. not bad really if you consider its a used luxury item

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[brandrea]

Originally Posted by RHIII

1) Least
2) Minimal
3) More
4) Most

Not sure how to get much more accuracy than that...


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That’s in the right range

[Cru Jones]

Originally Posted by RHIII

1) Least
2) Minimal
3) More
4) Most

Not sure how to get much more accuracy than that...


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I’d have said:

1) least (unless you’re talking YM/YMII)
2) more (a DJ doesn’t have “minimal” depreciation, it takes a good hit)
3) even more
4) most

But, anyway, buy to keep and you’re set.

[Sublovin]

Originally Posted by Padstar

Hi i would like to pick your brains about depreciation on Rolex watches.

If we exclude "special" models and discontinued / limited edition models, how much do you believe the following depreciate from RRP before they hit a plateau and retain their value;

1) Stainless Steel sports models
2) Stainless steel traditional models
3) Bi metals
4) Gold

It doesn’t work to put them in broad categories like that. Also, technically the watches are classic and professional , not sports and traditional. For example, a Steel Skydweller (classic) at the moment does not depreciate at all, it actually sells for a premium, while many classics sell at a discount.
Many steel professional models are selling for a premium right now, where the Air King can easily be found at discount.
Could go on and on, but you get the idea

[beshannon]

Originally Posted by Padstar

Hi i would like to pick your brains about depreciation on Rolex watches.

If we exclude "special" models and discontinued / limited edition models, how much do you believe the following depreciate from RRP before they hit a plateau and retain their value;

1) Stainless Steel sports models
2) Stainless steel traditional models
3) Bi metals
4) Gold

Over what period of time? Do you even understand what depreciation is?

[Tangier11]

I think it really depends on what you are looking to do. Are you looking for an investment or a Rolex? Not trying to be a smart A** But for me I buy whatever Rolex I actually want and don't worry about resale. Just my 2 cents

[HogwldFLTR]

This is a market like any other market. It needs to be examined real time and not based on wished for results. There are always exceptions!!! It fluctuates depending on many things.

[el-heffe]

If you're thinking this way, then you've probably spent money you shouldn't have. The watches are for pleasure. If you're not ok spending that kind of money on a watch, then don't buy it. Thinking like this will keep you from truly enjoying it.


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[bonovox]

Originally Posted by el-heffe

if you're thinking this way, then you've probably spent money you shouldn't have. The watches are for pleasure. If you're not ok spending that kind of money on a watch, then don't buy it. Thinking like this will keep you from truly enjoying it.


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+1

[Ruud Van Driver]

Originally Posted by el-heffe

If you're thinking this way, then you've probably spent money you shouldn't have. The watches are for pleasure. If you're not ok spending that kind of money on a watch, then don't buy it. Thinking like this will keep you from truly enjoying it.


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This.

[vman]

Originally Posted by el-heffe

If you're thinking this way, then you've probably spent money you shouldn't have. The watches are for pleasure. If you're not ok spending that kind of money on a watch, then don't buy it. Thinking like this will keep you from truly enjoying it.


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[mk2jag]

Originally Posted by el-heffe

If you're thinking this way, then you've probably spent money you shouldn't have. The watches are for pleasure. If you're not ok spending that kind of money on a watch, then don't buy it. Thinking like this will keep you from truly enjoying it.


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well said!

[landroverking]

Too many variables.
But here we go. Assuming no increase from Rolex.
SS 10-15%
Bi-Metal 25-40%
PM 50%.
Just best guess.

[HogwldFLTR]

Originally Posted by landroverking

Too many variables.
But here we go. Assuming no increase from Rolex.
SS 10-15%
Bi-Metal 25-40%
PM 50%.
Just best guess.

Daytona Pt lists for $75K; I dare you to find one for $37.5K. Just saying!!!

[037]

Originally Posted by HogwldFLTR

Daytona Pt lists for $75K; I dare you to find one for $37.5K. Just saying!!!

Today, sure, but it's only been out for about 5.5 years. Given enough time it could hit the 50-65% mark if demand doesn't exceed availability. They're already down to about 73%. That one won't be a retirement nest egg unless discontinued and demand skyrockets as a result. The Daytona RBOW line would be a great example there.

As mentioned above, PM watches are best enjoyed irrespective of current value or depreciation.

[joli160]

A typical non WIS question

[HogwldFLTR]

Originally Posted by 037

Today, sure, but it's only been out for about 5.5 years. Given enough time it could hit the 50-65% mark if demand doesn't exceed availability. They're already down to about 73%. That one won't be a retirement nest egg unless discontinued and demand skyrockets as a result. The Daytona RBOW line would be a great example there.

As mentioned above, PM watches are best enjoyed irrespective of current value or depreciation.

OK, show me a 30 to 40 year old PM model going for less than it originally cost.

[037]

Originally Posted by HogwldFLTR

OK, show me a 30 to 40 year old PM model going for less than it originally cost.

My point was made for modern, not vintage. But, there are plenty of vintage versions of modern equivalents that can be had for 50% of the modern price. The Day-Date 36 is one example in gold or platinum.

My overall point was to buy for enjoyment, not investment. I still stand by that.

[Calatrava r]

Originally Posted by landroverking

Too many variables.
But here we go. Assuming no increase from Rolex.
SS 10-15%
Bi-Metal 25-40%
PM 50%.
Just best guess.

Where can I buy a yellow Sub blue dial for 16K?

[peterpl]

PM does not depreciate 50%. LMFAO.

Please show me where I can get 50% off any PM and I will buy a bunch of them today.

[huncho]

Originally Posted by peterpl

PM does not depreciate 50%. LMFAO.

Please show me where I can get 50% off any PM and I will buy a bunch of them today.

only one i can think of right off the bat is a plat dd36

[frankfrazetta]

With very rare exceptions, you buy it then you are in loss making territory. If you plan on wearing the watch for a long time who cares? This isn't the Rolex Investment Forum.

[oroloi]

If you buy with money you get from appreciating assets it shouldn’t matter which watch you buy

[exador]

SS initially depreciates 10%, then rumours start about it being discontinued and it magically appreciates 30%

[Padstar]

Thanks for (most) of the responses. I feel the "if you are looking at it this way then you are in the wrong market" responses are a bit OTT. Is it wrong for someone to try to understand what they are getting into? If i buy a used car i wouldnt pay the new dealership price for it. I would look to find the right balance of value Vs product so that i can both enjoy its use and reduce the loss of value of the product.

My reason for asking was that i am toying with new Vs used and wanted to take into account the drop in value of a new purchase as i walk out the AD door or over a 2-3 year period so as to make an informed decision.

Thanks anyway

[watchwatcher]

Originally Posted by Padstar

My reason for asking was that i am toying with new Vs used and wanted to take into account the drop in value of a new purchase as i walk out the AD door or over a 2-3 year period so as to make an informed decision.

Thanks anyway

Here's what I can tell you. Unless you've scored one of the hot models at retail, you are going to take a hit when you walk out of the AD door, with of course the size of that hit depending on what price you paid for it.

But as far as a 2-3 year period afterwards, that isn't really enough time to tell you how it's going to do, IMO. Take the Daytona 116520. Its secondary price hovered around the 8k mark 10 years ago. I know b/c I bought one, almost 10 years ago to the day. And that was a pretty middle of the road deal, nothing spectacular. About 3 years after that, the price was about 10k...yes, I bought another one. So, the price had crept upwards, but wasn't a raging fire.Well so anyway, fast forward about 4 more years, and the ceramic version was introduced. The 116520 shot up, too. As the D500 rose, so did the 520. Take a look at the pricing today, you're looking at probably double the 8k mark of 10 years ago, again for a middle of the road deal. And as for the future, who knows what they're going to worth? But, again, it took some time to get there.

Now, of course that's the Daytona, which has been one of the strongest steel performers. Is every other steel model going to do the same? Probably not. But, just about any model from that time period has appreciated. As for TT or PM, how are they going to do? Well, in that same time period of 9-10 years ago, I remember passing on a 116718 for 16-17k because it was just ridiculous to spend that much money on a watch. The DD2 came out and early secondary pricing was right around 20k. Again, ludicrous, right? Well, look at what they're going for today. My point is, forget about 2-3 years if depreciation is a concern. Look more for about a 10 year period...for starters. My two cents.

[SS Oyster]

Show me any five digit submariner going for below MSRP (back then).