Finance or Outright ?

[southtexas]

Originally Posted by The Joker

Done both. If you can't a discount, get 0% finance. It's a no brainer. Money is better in your account then theirs.

A dealer won't offer both. Discount depends on what watch you are getting.

this

[sdwtchlvr]

People are going to have varying opinions on this. I see it this way, if you can't afford to pay cash for it but have an option at 0% financing, I see no reason why you shouldn't take advantage of that as long as the watch is paid off before you start paying interest. I've done this several times on different large purchases and I have ALWAYS paid them off in time...same as cash IMO. Now if you're accruing finance charges, that is silly. I would just save up if that was the case.

[brkanand]

If you are very eager to buy your first Rolex, and don't have patience, go for financing but limit this to just one watch. Furher purchases should be with cash saved the hardway.

In my case all watches were purchased with saved money ONLY after making provisions for ALL other priorities.

[Brenngun]

Originally Posted by Tripsjohn

Thanks for all the replies gals / girls, nice to have a wide range of opinions as always.

I was considering finance because :-

1. I am in the mindset to buy now & can pay deposit.
2. I don't want to wait & save to then maybe not want to spend as much later down the line WHEN Rolex puts the prices up (hasn't been a year when they haven't has there ?).
3. If I get 3 years 0% finance it is letting me relax a little with money for a while & allowing me some months to pay off £1,000+ a month. It wouldn't take me anywhere near 3 years to pay off.

Like some have said, I'd prefer to get the item now (at today's price) but pay off the minimum or as much as I want when I can afford it so I'm clear sooner rather than later.

It just seems like a good option to go down if your not bothered about a discount.

John, First let me say I would normallly want to pay cash outright however this situation needs a little more analysis. 3 years no interest versus an unknown future discount (a discount today is really only of value if you can pay cash outright now which I believe you've stated you can't do).

Assumptions: $10K watch, 3 years for you to save up the cash to pay for it outright, 5% annual price increase from Rolex.

Scenario #1: You buy now using the 3 year 0% offer and pay off without interest. Your cost = $10K

Scenario #2: You save for next 3 years and pay cash. 3 years of price increases turns a $10K watch into $11.6K. Your cost = $11.6K (extra $1.6K). Albeit a newer production year but most models don't make a large change from year to year.

In order for both scenarios to be equal the AD 3 years from now would have to give you a 14% discount on the $11.6K watch.

Are you feeling lucky? I like the "bird in hand". I'd go with the first scenario and enjoy the 3 years of wearing my new Rolex.

[The French Dude]

Seeing the rapid increase in prices of our watches, it may be more advantageous to finance it sometimes no ? :D

[Darlinboy]

I wouldn't finance a watch.

[nick c]

I lease them for 3 years like a car

[c.rod]

brenngunn. actually the price increase will be more drastic considering the price of the deep sea is $12050 retail. so when you add in the price increase percentage wise using that price it will go up quite a bit. so in the long run, it might be better to buy it now for 0% i guess. ?

[Jake B]

Cash, always.

[Brenngun]

Originally Posted by c.rod

brenngunn. actually the price increase will be more drastic considering the price of the deep sea is $12050 retail. so when you add in the price increase percentage wise using that price it will go up quite a bit. so in the long run, it might be better to buy it now for 0% i guess. ?

c.rod, Yeah I was being conservative with my assumptions. If you make sure you pay it off before the 3 year term is up then it's definitely worth doing even with my lowball increase estimates.

[powerfunk]

Originally Posted by jay1988

Lets say you have the money for a watch but need a car.

If one has enough money to buy necessities OR a luxury watch, does he really have enough money for a luxury watch? I would say no.

I have to vote for "buy it outright." When I look down at a Rolex on my wrist, I want to think "hells yeah," not "did I make my payment this month?" I would personally enjoy the watch a little bit less knowing that I was indebted by it, and enjoyment-ROI isn't taken into consideration by the "0% interest is free money" mantra. If the payments/debt wouldn't bother you then go out and buy it right away and share some pics!

[YoyoGift8]

I can go either way depending on which option I can get a better deal/discount.

[submariner66]

Wow 0% for 3 years! Never heard of that, one year yes, but three?

I like to do a lay-away for a few months.

I have done credit too and I think it has worked out really well because of the points I redeemed. Sometimes a combination could work, finance and some savings.

[Hairdude1]

I have a used as 0% interest rate at an ad before. With that said I already had the cash. When I financed the watch they gave me a 10% back to be used on a future watch. I paid it off in two months and then purchased another with the 10% off coupon. The coupon basically covered taxes. and then paid the second off in two months. I now have another coupon!

[iLLGT2]

Originally Posted by sdwtchlvr

People are going to have varying opinions on this. I see it this way, if you can't afford to pay cash for it but have an option at 0% financing, I see no reason why you shouldn't take advantage of that as long as the watch is paid off before you start paying interest. I've done this several times on different large purchases and I have ALWAYS paid them off in time...same as cash IMO. Now if you're accruing finance charges, that is silly. I would just save up if that was the case.

Agreed 100%

[polarinda]

0%? 3 years? No brainer.

what are you waiting for? 0% for 3 years isn't really "financing" anything. Just delay payment that's all. Someting Im sure you find comfortable with. If you already have the cash, better still, do something else eg investments.

Not everyone can pay off in one go. Doesn't mean you can't enjoy a bit of luxury. Make sure you get something you really like.

[MalcolmSquare]

Originally Posted by superdog

If I still owe money on it, it's harder to enjoy.

x2.

[airchitect]

"finance it" and you will make money. You are making money by avoiding the inevitable cost increase, by being able to invest your funds in something else now, and yes (imho and depending upon where you live) if you buy a desirable model like a sub, gmt, etc...there is a possibility of making money in the long run (meaning decades). We all see these watches in the "for sale" section of this forum selling at or above their original purchase prices everyday. You wont flip it in 5yrs, but maybe 10-20. You may just break even, but even if you do lose some money selling it in 5, it will be nothing compared to any other toys you could spend money on like a car, boat, strippers, gambling, booze, smoking, huge useless house....you get the point...

[superdog]

If you can afford this no problem, but want to take advantage of financing at 0%, I suppose that makes sense. I personally would not, but can see the argument for it.

If you financing because you cant afford it, then you should not be buying it.

[Shikar]

I would advise patience till you can buy one outright.

Regards.

[zion_rasta]

Bikes, watches, cars... Outright.

No debt is the new rich...

[ftgokie]

I just called one of my local AD and they will finance at 0% for 1yr and also give me the discount.

I asked about 2 or 3yrs financing and they said yes, but not with a discount and not at 0%...

[WatchWeb]

Originally Posted by ftgokie

I just called one of my local AD and they will finance at 0% for 1yr and also give me the discount.

I asked about 2 or 3yrs financing and they said yes, but not with a discount and not at 0%...

I'm in the UK & the AD is a national Jewellers if that makes any difference.

They said usually 1&2 years but they do 3 years if their having a quiet spell. Might as well get the 3 before their busy at Christmas

[AMCK87]

It depends on what you can earn on your money. If you can regularly earn 12-15% on your investments, why wouldn't you take financing at 2%? However, if the cash would just be sitting in your bank account anyways, then there is no reason to pay interest. I also wouldn't finance a purchase if doing so diminished the discount I would be receive.

[jwill051]

Being a no debt guy, cash only.

[james1787]

The only thing I have "financed" right now is my mortage. I don't even finance house "upgrades".. it's all saved up for. I don't like any sort of debt. I've been there once before many years ago, no intention of ever going back.

I bought my one and only Rolex 12ish years ago when I was younger, single, getting nice bonuses from a company I worked for at the time. My watch was paid for in cash as it was a present I bought for myself. Nowadays with a mortgage, kid on the way, etc... it would be an out of the question purchase but I'm glad I did it when I did.

[ftgokie]

Originally Posted by Tripsjohn

I'm in the UK & the AD is a national Jewellers if that makes any difference.

They said usually 1&2 years but they do 3 years if their having a quiet spell. Might as well get the 3 before their busy at Christmas

I agree, 3yrs at 0% is a no brainer. Its not costing anything extra. Id say go for it, unless the monthly payments would cause any financial problems.

The way I look at it, if you are going to have to finance ANYTHING...if you lose your job and can still pay for it, then I would say go for it, but if you lose your job and cannot afford to make the monthly payments, I would not.

I do not finance anything that my disability check cannot cover. I have not spent a dime of my disability check in the 10yrs I have been getting it, my house, cars and Harley are paid for. I have income from working for the Dept of Veterans Affairs and I also have 6 rental properties that I get as well. So if I was to lose my job, I would still be able to pay the bills that I do have plus live. I have also saved up into an account that if I do lose my job, I have 3 yrs worth of income to fall back on.

But yes, I would definately finance if you can afford it! Good luck!

[honeybear]

Originally Posted by Kyu

Heck, I can't be the only guy who walks into a verizon store and signs up a contract and offer to pay for the entire year or two full in advance, just to avoid bills.

You need to learn to set up automatic payments, it's not so difficult to do. The same with credit cards, mine are set to pay the amount in full automatically.

[Kyu]

Originally Posted by powerfunk

If one has enough money to buy necessities OR a luxury watch, does he really have enough money for a luxury watch? I would say no.

I have to vote for "buy it outright." When I look down at a Rolex on my wrist, I want to think "hells yeah," not "did I make my payment this month?" I would personally enjoy the watch a little bit less knowing that I was indebted by it, and enjoyment-ROI isn't taken into consideration by the "0% interest is free money" mantra. If the payments/debt wouldn't bother you then go out and buy it right away and share some pics!

when i look at my wrist and see another watch i think more like... what others say when they look at their fiances or wives
"oh wtf did i do "

Originally Posted by honeybear

You need to learn to set up automatic payments, it's not so difficult to do. The same with credit cards, mine are set to pay the amount in full automatically.

true, and I know how. I've set everything at work in that matter. But also a headache time to time if an incorrect amounts gone out and etc etc. Which is rare.
Personally I just dont like the whole monthly thing, For business Not much of a choice, so for personal matters I'd like to keep it as simple as possible.

should see the look on peoples confused face when they ask me "how do you like that car ? how much do you pay monthly" and I respond "Honestly I have 0 idea"

[thewatchguy93]