What are gray market watches, pros and cons?

[bearone2]

Originally Posted by clock

Buy the seller (DavidSW), not the watch.
David and other trusted guys have impeccable track records, so no worries.
I would never pay full boat and/or taxes from an AD.

i too, dealt with davidsw & will deal with him in the future. warranty card is in my name with dealer info on nib 116713ln.

my ad charged $20 to fit the bracelet & remove all plastic.

i've worn various rolexes for 48 years & none have ever required any warranty service.

[GradyPhilpott]

Originally Posted by Tools

Close.

the Gray Market is always imported from outside a country, bypassing the authorized Distributor.

How is this accomplished?

[bdex75]

Originally Posted by locutus49

Can't you save taxes in the US by buying out of state and having it mailed to you, assuming the AD is not a chain with a branch in your state? Whether that is enough savings to beat a trusted seller I don't know. Depends on if the AD also offers a discount.

I'm leaning towards a trusted seller for my next, but my wife is a bit nervous about that.

Yes...........and no.

Do you pay the sales tax up front, no. As long as AD ships the merchandise to you and does not have a location in your state. However, there is an IRS form (the number escapes me now) that should be filled out with your income tax return at which time the applicable taxes should be paid.

Do people fill this form out? Generally not.

[SMD]

Originally Posted by locutus49

Can't you save taxes in the US by buying out of state and having it mailed to you, assuming the AD is not a chain with a branch in your state?

Technically, no, not legally anyway.

[SMD]

Originally Posted by bdex75

Yes...........and no.

Do you pay the sales tax up front, no. As long as AD ships the merchandise to you and does not have a location in your state. However, there is an IRS form (the number escapes me now) that should be filled out with your income tax return at which time the applicable taxes should be paid.

Do people fill this form out? Generally not.

One small clarification -- this is a state tax issue not a federal issue. Whenever you purchase from out of state, you are required to file a "use" tax return to declare all your purchases and then pay the applicable state/local taxes. Do people do this? We have since we are in a profession where it would be a real issue if we did not, but most do not. This is why there was all the uproar over getting Amazon to collect state taxes on items they sell.

[jhcam8]

I've done quite a few deals, both ways, with some of the sellers mentioned here. I'm not sure I'd call them grey market - more like resellers.
Always buy the seller - whether it's an AD, grey, or private and your troubles will be minimized.

[drhr]

Pro/con already laid out, quite subjective and personal, always grey for me if the discount is acceptable, so far so good . . . .