Rolex Finance Question (UK)

[Infernouk]

Hey guys

So I am looking into getting a rolex as my first nice watch. I will be planning on buying it 0% finance since I dont want to lay down £5000 in one go.

My questions are: (note these are UK focused since I live in London)

For a new submariner what sort of price am I looking at?

For anyone with finance how much deposit is required for 36month finance and what would the monthlies come out at roughly?

Can anyone recommend the best place to try out? Im thinking goldsmiths at the moment.

Basically I just need to see how much the monthlies are going to be to see how easily it will be to live with, deposit isnt fixed as i could buy outright but I want to draw the payments out as long as possible to provide more monthly money to work with.

Thanks for any help with recommendations and figures for me to work off of!

[Infernouk]

anyone able to help me out with some info on this or point me in the right direction?

Thanks guys!

[esm]

Best bet to visit or call your local Goldsmiths, Ernest Jones and/or Fraser Hart.

Usually requires 20% deposit then you can divide the remaining by the interest free terms.

There will be a slim chance of getting a discount if you go with the interest free option.

If you are a share holder card for Ernest Jones, then you are entitled to a 10% discount on top me thinks. Best to check with them directly.

[gwalker]

Most on here strongly recommend not financing a watch. I'm one of those. Even if they offer 0% over 36 months you won't be given any discount. I've been in Jewelers that do in house financing and been offered 0% but then I asked about discounts and they offered either the 15%ish discount or the 0%. Financing is never free. If that means saving for 6-12 more months do that. I would say a SubC will be about 140 pounds a month for 36 months at 0%. There are often hidden fees with financing as well. Generally a bad idea for any kind of jewelry. The only things I finance are some of my cars RV house and boat.

[Infernouk]

Originally Posted by esm

Best bet to visit or call your local Goldsmiths, Ernest Jones and/or Fraser Hart.

Usually requires 20% deposit then you can divide the remaining by the interest free terms.

There will be a slim chance of getting a discount if you go with the interest free option.

If you are a share holder card for Ernest Jones, then you are entitled to a 10% discount on top me thinks. Best to check with them directly.

Thanks my loval rolex AD's are just under an hour away though so I was looking for some idea first, Im not really concerned with discount I wasnt expecting one.

Originally Posted by gwalker

Most on here strongly recommend not financing a watch. I'm one of those. Even if they offer 0% over 36 months you won't be given any discount. I've been in Jewelers that do in house financing and been offered 0% but then I asked about discounts and they offered either the 15%ish discount or the 0%. Financing is never free. If that means saving for 6-12 more months do that. I would say a SubC will be about 140 pounds a month for 36 months at 0%. There are often hidden fees with financing as well. Generally a bad idea for any kind of jewelry. The only things I finance are some of my cars RV house and boat.

Hey thanks for the info, finance seems the best way in my opinion, my dad has financed all his watches for years since theres no point paying out all the money in one go in his / my view. I wasnt expecting a discount on a premium product so I would be happy to pay tag price at 20% deposit then remained divided by 36.

[The Joker]

Originally Posted by gwalker

Most on here strongly recommend not financing a watch. I'm one of those. Even if they offer 0% over 36 months you won't be given any discount. I've been in Jewelers that do in house financing and been offered 0% but then I asked about discounts and they offered either the 15%ish discount or the 0%. Financing is never free. If that means saving for 6-12 more months do that. I would say a SubC will be about 140 pounds a month for 36 months at 0%. There are often hidden fees with financing as well. Generally a bad idea for any kind of jewelry. The only things I finance are some of my cars RV house and boat.

The fact is in London on an SS Sub I doubt an AD will give any discount anyway, unless you have a really really good relationship. Probably have trouble finding one at an AD.

So if you wanna buy at an AD take the 0% enjoy the watch.

Will be 20% deposit.

[Infernouk]

Originally Posted by The Joker

The fact is in London on an SS Sub I doubt an AD will give any discount anyway, unless you have a really really good relationship. Probably have trouble finding one at an AD.

So if you wanna buy at an AD take the 0% enjoy the watch.

Will be 20% deposit.

Thanks for the info, was what i was expecting. Is the AD retail £5K for SubC? i havent actually seen any new as seller in my local area only sell used.

[superdog]

Never finance luxury. Unless you know for certain your income/expense ratio will never change and you can always afford it. But if you know this, why not simply just buy it.

[Infernouk]

Originally Posted by superdog

Never finance luxury. Unless you know for certain your income/expense ratio will never change and you can always afford it. But if you know this, why not simply just buy it.

because it makes more sense to have the money it would cost to buy outright in your bank to cover any surprise expenses, I have the money to buy it outright but its not how i do things.

Thanks for the comments guys and no offense but I didnt ask for the pros and cons of finance I believe that to be a personal choice based on circumstance. I just wanted hard figures on what I can expect.

[The Joker]

£5320 I think

[Welshwatchman]

Originally Posted by Infernouk

Thanks for the info, was what i was expecting. Is the AD retail £5K for SubC? i havent actually seen any new as seller in my local area only sell used.

The RRP is £5320.

The lowest I've seen one preowned is £4300 so the depreciation is pretty low.

As far as finance is concerned, if you're young, live at home, have a decent income and no other large financial commitments, why not.

Drink a little less booze and get the girl to pay for the cinema (joke people) for a change and you're golden.

The watch will likely be worth £4k+ once you own it and if you spend a couple of grand less on rubbish in the meantime you are up on the deal.

That said, an old fogie like me would need to pay cash and get a good 15% discount to boot.

[Reu]

Never finance luxury?? Have a word?! It's down to the OP what he chooses to do. Does that mean that people don't put holidays or whatever on a credit card?? Dont think so... It's the way of the world and ultimately as long as the debt gets paid off without knocking anyone than what's the harm.

In terms of financing is never free??? That's complete tat too!! 0% is 0% which means if the cost is approx £5,300 you will end up paying only £5,300 - No more, no less.

Discount isn't offered on SS in London, and if it is, it's minimal.

Whilst on the subject of financing... I couldn't help but notice that someone else had recently posted asking how people buy thier Rolex's. Almost all of the people who responded stated that they chose the finance/credit option but then immediately went on to say that they then shortly afterwards paid it off in full blah blah blah like some form of justification for taking credit.

It's bizarre, I mean do people realise that if someone decides to buy a watch on finance it's not a reflection of the financial status of the buyer, it's simply the preferred method for a particular purchase.

If the AD is offering 0%, why pay in full if you know at any point you can wrap it up. It doesn't make you a better person to pay in full at the point of purchase. Each to thier own, either way whatever people prefer, but don't discourage anyone who wants to take the 0% finance option if that's what they want to do.

That theory belongs with the same 'does one deserve a Rolex' and 'earn your Rolex' bin.

Sorry to go off on one, but it really gets to me about how people go on about how cash is king etc. Trust me having a wallet full of cash usually belongs to the no-marks of the world who insist on carrying thier full potential in thier back pocket.

[astrazen]

Originally Posted by gwalker

Most on here strongly recommend not financing a watch. I'm one of those. Even if they offer 0% over 36 months you won't be given any discount. I've been in Jewelers that do in house financing and been offered 0% but then I asked about discounts and they offered either the 15%ish discount or the 0%. Financing is never free. If that means saving for 6-12 more months do that. I would say a SubC will be about 140 pounds a month for 36 months at 0%. There are often hidden fees with financing as well. Generally a bad idea for any kind of jewelry. The only things I finance are some of my cars RV house and boat.

Never any hidden fees with the 0% at the reputable high street AD's. Sure you wont get a discount but then you wouldnt in London with cash anyhow.

Get the 0% and enjoy your watch.

[aeon888]

Originally Posted by superdog

Never finance luxury. Unless you know for certain your income/expense ratio will never change and you can always afford it. But if you know this, why not simply just buy it.

I think he have the money, he just don't want to pay it at full cash considering it's nice to use financing to strengthen your credit score at the same time.

In the US, if you keep buying cash, no matter how many rolexes, cars or expensive luxuries you bought with cash when you need to buy a house (unless you have cash to buy it), you still need a good credit score and the only way to increase it is by having a credit line and paying it on time.

For 2 years, I have been paying cash here in the US when I first came here. I didn't have a credit history or a credit score to begin with. So even when I bought my wife's engagement ring worth 9k cash, my U-boat watch $3800 cash, our wedding bands also in cash and all monthy expenses in cash BUT when I applied for a credit line of only $350 in a cheap clothes store I was DENIED. That was years ago though LOL

So, yeah it is good to get a financing even if you can afford to buy cash so you can build your credit score.

[Hammer]

I go along with the saving up idea, but chances are, by the time you might have saved the money, the bloody price has gone up again. If it's interest free, and the monthly payments are not a problem, it looks like a no brainier to me.

[astrazen]

Originally Posted by Reu

Never finance luxury?? Have a word mate?! It's down to the OP what he chooses to do. Does that mean that people don't put holidays or whatever on a credit card?? Font think so... It's the way of the world and ultimately as long as the debt gets paid off without knocking anyone than what's the harm. In terms of financing is never free??? That's complete tat too!! 0% is 0%. Discount isn't offered on SS in London, and if it is, it's minimal.

+1

I think alot of folk on here like to take the moral high ground.

If you can borrow for your house, car, boat etc why not the watch?

0% is just what it says.

[Puffy]

I do corporate financing and going 0% is great debit and credit management

Why in earth pay cash when you're getting a free deal?

put the rest if your money in an isa or day trade it and watch the sub pay for itself

0% financing, always

[Reu]

Originally Posted by Puffy

I do corporate financing and going 0% is great debit and credit management

Why in earth pay cash when you're getting a free deal?

put the rest if your money in an isa or day trade it and watch the sub pay for itself

0% financing, always

Must be a UK thing!!

[EchoBlueUK]

You're unlikely to get any discount on a 0% finance deal sooooooo it's not really 0% is it? More like 15% finance COST assuming you can get this level of discount. You'd be hard pushed to get a return on your deferred cash to top 15% over 36mths unless you're pretty good at and into self trade investments.

[mrbill2mrbill2]

Just be late on one payment a you'll see that 0% financing explode to 19% to 25%.

Remember sh$t happens.

Just my opinion.

[DiamondJack]

We're clearly a strange bunch in the UK and most people I know would be more embarrassed about haggling for the discount than opting for the 0% option.

We all opt for 0% whenever we pay for anything on our credit cards providing we pay it off at the end of the month......0% finance is just a longer term.

I personally don't have an issue with it providing it's a financial choice ....... The problem arises when it's not just a financial option but the only way of acquiring the watch i.e. No savings and this approach can leave you high and dry if circumstances change such as loss of servicing income.

Now with a Rolex, there is still a relatively high residual value so not a huge issue ...... But many people finance everything from furniture, carpets, clothes and even holidays where residual value is nothing ........

[Bobble]

I bought my watch outright, but only because I didn't know you could get 0%, I didn't get a discount either. I would have gone for 0% then put the same amount £5250? into premium bonds to see what I could have won, even if it was just £25 then that is profit, of course you could win £1 million. Whilst you will never get any interest, and the cost of living is about 4.5% per year, your £5250 in premium bonds will always be worth £5250, and your finance will be £5250 at the end of your 2-3 years. Complete no brainer to me

Even if you haven't got the cash to put aside, it will only ever cost you £5250 and as long as you can pay the payments.... who cares

[Pete00]

If no discount, sure 0% makes sense. If discount is available (call it X%), then like someone hinted at, it's about opportunity cost. Will you be able to earn AT LEAST X% on the cash in pocket over Y yrs by keeping the money? That I guess is the pure financial argument.

[gwalker]

Originally Posted by astrazen

Never any hidden fees with the 0% at the reputable high street AD's. Sure you wont get a discount but then you wouldnt in London with cash anyhow.

Get the 0% and enjoy your watch.

I was really unaware discounts in the UK were that hard. In that case you would be dumb not to take the 0% IMO. I know I would. Some people say debt free is great but the financing does build credit so you get Better rates in the future, you keep the majority of the cash in your possession, and pay the same. Huge win IMO.

[Reu]

Originally Posted by gwalker

I was really unaware discounts in the UK were that hard. In that case you would be dumb not to take the 0% IMO. I know I would. Some people say debt free is great but the financing does build credit so you get Better rates in the future, you keep the majority of the cash in your possession, and pay the same. Huge win IMO.

I'm not saying it's bad elsewhere in the UK but I can only comment on London where I live... and we get SHAFTED, on EVERYTHING!!!!

[OrangeSport]

I did this in October. Had the cash, but was offered interest free on a Sub after agreeing a 5% discount. No deposit needed, but I put down £2k anyway.

[peter2704]

do it ,life is too short

[Miopyk]

I've bought several watches from Goldsmiths on 0%. I'd rather keep my money in my pocket (or invested elsewhere) and use their money to fund my growing collection since it doesn't cost anything. The discount argument is valid if you can get one but as others have said UK Ads are not very generous so the 0% offer is the next best thing.

Buy it, enjoy it and revel in the fact that someone else is picking up the tab for your enjoyment.

Miopyk

[gimpex]

Originally Posted by Miopyk

Buy it, enjoy it and revel in the fact that someone else is picking up the tab for your enjoyment.

Miopyk

Certainly buy it and enjoy it , but no one else buy you is picking up the tab - its just split into a number of payments , rather than one , but you are still paying for it.

[77T]

A couple of thoughts...

0% isn't truly "free" - your credit rating will be affected and something later on might cost you more (car loan, HELOC, equities margin, etc).

It only makes sense IF you could pay cash - and actually have the cash on hand - and can invest wisely enough to beat the bond rate.

What you "save" with 0% financing is the lost opportunity cost. In other words you avoid interest and actually earn money on the cash you would have paid.

The old adage that it's free money doesn't apply when one really can't otherwise afford the item without financing, and are just taking on more debt load to live beyond one's means.