More and More AD's opening up "Preowned" watches

[Viggo]

Hi guys.

It seems like most of the stores (AD's) I'm doing business with is starting to open up Pre-owned dealership on watches. Seems like the way to get a slice of the cake is to join the "dark side" ;-)

[Rushne]

Yeah I have seen that as well.

Do you think it's because, previously their sales tactic would be to say "Well yes the watch is expensive but it's kind of like an investment, and you will be able to sell to get money back"

Then if they dealt with the preowned department at the AD and were offered half the purchase price, people would just flip out.

Now days, you buy a Daytona from them, walk over to preowned and get X times more than what you paid. :D

[Harry-57]

My AD has been selling used watches including Rolex for years. Some of them don't get as far as the display.

[Cru Jones]

Are the "used" watches marked as unworn while the "new" racks are empty?

[Daytonaman799]

I was in Bucherer in Palm Beach over the weekend. They have NOTHING but demos in the Rolex boutique BUT in the used watch section they had EVERYTHING under ths sun. Subs, Deep Sea, Daytona’s, GMT’s, etc. tons of them at current market prices.

[1William]

It is the market and I am surprised that most of the AD's are not doing pre-owned.

[padi56]

Originally Posted by Harry-57

My AD has been selling used watches including Rolex for years. Some of them don't get as far as the display.

Exactly and so do most others worldwide anyone would think this is something new for gods sake. Bought a few used from ADs in the 1980s-1990s and into 2000.

[GB-man]

Yes I was offered a pre owned watch lol even though the price was fair I said no thanks.

The smart ADs would have gotten into preowned years ago. Hell many brands are doing it themselves.

[Slow Lane]

My AD said they can't sell any used piece for more than the retail price of its current equivalent - hence refused my offer to sell them a 14060 Sub and recommended Crown & Caliber. If that is policy then I'm not sure its much of a business for them as it would only work for extinct or unfancied models.

Back in 2019 I did sell them my Explorer for about what I paid for it but that was clearly less than the then current retail.

[gerry100]

Buying at Grey prices from an AD with a certified service( and 2 yr warranty) seems like a good value proposition.

Thats how I got my watch a year ago.

Stooped by the AD a few months ago and they had a GMT Pepsi at "gray" price IIRC.

The ADs get to capture gray margins and the buyer gets the warranty - win-win.

[Srct]

Watches of Switzerland in the uk seem to have a few pre owned Rolex for sale at ‘market rates’ . I wonder if there is an advantage it trading in ( though I tend to keep what I buy )to an AD as you may get a better cost of change and actually get to buy from an AD , as they can make a margin on the used watch .

[SpiritSoul]

Originally Posted by Srct

Watches of Switzerland in the uk seem to have a few pre owned Rolex for sale at ‘market rates’ . I wonder if there is an advantage it trading in ( though I tend to keep what I buy )to an AD as you may get a better cost of change and actually get to buy from an AD , as they can make a margin on the used watch .

WoS trade in prices are very low..... better off trying Watchfinders to get more back.

[daOnlyBG]

Yes, I also have noticed this trend.

There are many ADs that have preowned sections and have had them for years. It makes sense: if you, a repeat customer who doesn't otherwise trade with third parties, either online or in person, where else would you go to "upgrade" that 5-digit Sub you bought in '90? (whether that's an upgrade or not is beside the point)

Since the secondary prices began exceeding the new prices, though, some ADs have been leveraging their preowned sections to capture more of that secondary pricing. Two ADs in the greater area of my hometown (think Windy City) have been doing this for some time.

The first AD actually sells to their security guards, who in turn wear them for a brief period before selling back to the AD. The security guard casually explicitly admitted to me as much while I was waiting for my sales associate. Those same watches end up in their preowned section.

Another AD sells stuff to the public and then offers- about a year later- to take back the watch and offer the same reference, brand new in box, as long as (1) the watch is in really good or excellent condition (any minor hairline scratches can be "lightly polished") and (2) the market hasn't plunged. The original customer, in effect, gets an extended year of warranty (same model but new watch & warranty a year later) and the AD gets to sell it for street value. Win-win!

I present anecdotal evidence not to make a general rule about what ADs do, but rather break all general rules; there are other ADs in the area that (1) have preowned section but do not sell Rolex and (2) don't have any preowned section at all, as they don't think they look good to their customer base when presented with a principal-agent problem.

There's no cookie cutter/blanket statement that applies to all preowned sections. But there are ADs that leverage said sections in ways they might not want to publicly admit!

[train-time]

Originally Posted by Slow Lane

My AD said they can't sell any used piece for more than the retail price of its current equivalent - hence refused my offer to sell them a 14060 Sub and recommended Crown & Caliber. If that is policy then I'm not sure its much of a business for them as it would only work for extinct or unfancied models.

Back in 2019 I did sell them my Explorer for about what I paid for it but that was clearly less than the then current retail.

Total BS! ADs selling pre-owned at current market is the rule, not the exception.

[Srct]

Originally Posted by SpiritSoul

WoS trade in prices are very low..... better off trying Watchfinders to get more back.

Yes I get that , was more coming from the angle that an AD might sell you a watch at retail if they are getting the trade in that they will make a margin on - while you may not get a great trade in value the cost of change would be lower. There was a post about a trade in of a 116900 for a SD43 at retail so made me wonder if that what was going on.

[favre12rodgers]

Same reason new car dealers like Honda, Kia, VW, etc. are buying up pre-owned 6 figure cars and selling them......more profit in this than new.

[BrooklynBezel]

As a newer watch collector I prefer shopping at ADs with a pre-owned section.

It seems to me that if I have to choose between "going grey" and buying pre-owned from an AD, it's better to shop at the AD and develop a sales history with a used Rolex watch I want... as opposed to buying jewelry or a Tudor I don't want from an AD that doesn't offer pre-owned.

[lava flow]

Originally Posted by train-time

Total BS! ADs selling pre-owned at current market is the rule, not the exception.

not in the UK

my AD sells pre owned but cannot sell at 'grey prices' - this policy is dictated by Rolex and is written in stone as they say

break this rule and you loose your AD status

[johnwigan]

Originally Posted by daOnlyBG

Another AD sells stuff to the public and then offers- about a year later- to take back the watch and offer the same reference, brand new in box, as long as (1) the watch is in really good or excellent condition (any minor hairline scratches can be "lightly polished") and (2) the market hasn't plunged. The original customer, in effect, gets an extended year of warranty (same model but new watch & warranty a year later) and the AD gets to sell it for street value. Win-win!

Lose Lose! For the person in the queue waiting for that watch. And for the person who pays the inflated price.

[Divingdeep87]

Wonder if I could trade my BLNR for a BLRO.. Don’t care if the earn on that deal twice.

[thesharkfactor]

My AD called me the other day to say they can't supply the Oyster bracelet I ordered (and paid for) for my BLRO.
She was very helpful though, she said that while I can't buy a Oyster bracelet for this watch at the moment, but I could trade the watch in for the same watch on Oyster.

I didn't ask her to elaborate on how (or when) that trade would go.

On reflection, how would it go - I give you this used, daily worn BLRO Jubilee, you give me that new BLRO Oyster at rrp and +££,£££ cash on top. This would be a tremendous deal, for me.

I don't think she knew what she was talking about.

[brandrea]

Yes it’s a thing.

[1665fan]

Originally Posted by lava flow

not in the UK

my AD sells pre owned but cannot sell at 'grey prices' - this policy is dictated by Rolex and is written in stone as they say

break this rule and you loose your AD status

So what prices do they sell preowned?????? 16710 Pepsi retailed for $3000 at one time….. you think they are selling them under their original retail??? Or they sell them for the $9500 value of a new Pepsi???? Or they look in the Rolex price guide that does not exist???? I’m confused…..

[TheVTCGuy]

This brings up an interesting point, how does an AD price a pre-owned. If it is a true AD (with stock) it wouldn’t make much sense to have a new 116500 at MSRP, sitting next to a pre-owned one at the current market price of three times MSRP?

[Harry-57]

Originally Posted by lava flow

not in the UK

my AD sells pre owned but cannot sell at 'grey prices' - this policy is dictated by Rolex and is written in stone as they say

break this rule and you loose your AD status

Interesting. How about for £100 less than grey prices - whatever that means? The definition seems vague. Possibly they haven't laid out the full scope of the clause. ADs do that. Give you half the picture to put the emphasis where they want it.

I don't know what prices my AD sells used Rolex watches for. I'll ask if I remember.

[thesharkfactor]

Originally Posted by lava flow

my AD sells pre owned but cannot sell at 'grey prices'

I think an AD would be looking for more than current market grey price.. same as an approved used Mercedes costs more than the same car from another used car dealership.

[1665fan]

Originally Posted by thesharkfactor

I think an AD would be looking for more than current market grey price.. same as an approved used Mercedes costs more than car from another used car dealership.

Yes so that puts CPO Pepsi around 33k and new one 10k……….I’d love to see the dynamics of that Demand would skyrocket because most non forum members don’t know they sell for that much and would create more FOMo and deman

Not saying your wrong I agree with you with the preowned/fresh service/guaranteed authentic would be high Grey prices…..

[Booth9999]

Originally Posted by train-time

Total BS! ADs selling pre-owned at current market is the rule, not the exception.

I bought a lightly used SD43 from my AD for $11,700, at least 3-4000 less than market price; it was the same price as a new SD43 so I ten to believe it might be a rule at least at my AD.

[hambone1983]

the inherent conflict of interest makes this kind of set up a sham. I think a lot of new watches are "bought" and somehow disappoint the buyer and then "returned." Then the piece is moved to the pre-owned section, at double or triple MSRP. The temptation to do this has to be overwhelming

[uniqueMR]

Watch out gray dealers :)