Questions before purchasing a Rolex

[Astes]

Hello everyone!

Before I start out, I'd like to say thank you for your time in advance. I've been a long time lurker on these forums, and have finally decided to sign up, and ask my questions. Hopefully in the future I'll be better set to also participate in Rolex debates.

Anyway, for a long time, I've been saving up for a Rolex. There are many reasons for this. To name a few personal interest, the story, investing my money and tax advantages for my country. On to the point. As a first time Rolex buyer with minimal to no experience, it can be hard finding the right purchase. Obviously individual opinion matters a lot, but I'm also looking to get the best deal and the greatest value for my money.

1. How consistent are the prices with Rolex watches? Are they ever dumped?

2. How reliable are Rolex watches as an investment. Can I expect them to keep their value/raise in value over time. What's the difference between different models etcetera.

3. Where do you recommend purchasing Rolex watches? Say that location is no issue. I'm thinking about these factors when asking: Best price, reliability, preferably the ability to avoid taxes (I am Danish and have ties in America. Could also travel to countries within Europe or Japan/China).

4. What's important to notice when purchasing a Rolex? What defines it's worth, it's future price/consistency? Also what is important documentation to bring.

5. Are there any advantages to purchasing an already used Rolex? If purchasing a used Rolex what are the absolute musts? For instance is verification of originality enough, or is the receipt needed for future sale.

6. What are the advantages of purchasing a new Rolex outside of the receipt. Will used Rolexes always fall in price (if not under which conditions?)

7. If you need help finding the true value and price for a Rolex. Where would you go to and what would you do? Say I find a piece on eBay or elsewhere.

Thank you a lot in advance. I really appreciate the help, and I hope my questions are welcomed.

Sincerely,
Astes

[beshannon]

Originally Posted by Astes

How reliable are Rolex watches as an investment.

Where do you recommend purchasing Rolex watches?

Watches are not investments and I recommend purchasing at an Authorized Dealer if this is your first.

[dera]

The cheapest place by far right now are European AD's if you get the VAT off. Nr.2 is Canada.
Avoid USA and the TRF "trusted sellers", you can get way better deals if you shop around, from real ADs, with real dated papers.

Japan is not bad either for preowned, for brand new, it's not very attractive.

Rolex watches are a great investment, as long as you have a good source, and are active in trading them. They are not a long-term investment. Buy them right from the correct AD, and you can pretty easily do 15-30% profit with them if flipping watches is your thing.

[TimeRookie]

Originally Posted by Astes

Hello everyone!

Before I start out, I'd like to say thank you for your time in advance. I've been a long time lurker on these forums, and have finally decided to sign up, and ask my questions. Hopefully in the future I'll be better set to also participate in Rolex debates.

Anyway, for a long time, I've been saving up for a Rolex. There are many reasons for this. To name a few personal interest, the story, investing my money and tax advantages for my country. On to the point. As a first time Rolex buyer with minimal to no experience, it can be hard finding the right purchase. Obviously individual opinion matters a lot, but I'm also looking to get the best deal and the greatest value for my money.

1. How consistent are the prices with Rolex watches? Are they ever dumped?

Very consistent and generally no. There be some less popular models that AD's sell to grey market to move stock

2. How reliable are Rolex watches as an investment. Can I expect them to keep their value/raise in value over time. What's the difference between different models etcetera.

Depending on the model, they will drop a bit and then generally hold their value, depending on the model. The Subs, GMT's and Exp II models are the safer bets. They have generally kept pace with the inflation rate. Vintage models are high right now.

3. Where do you recommend purchasing Rolex watches? Say that location is no issue. I'm thinking about these factors when asking: Best price, reliability, preferably the ability to avoid taxes (I am Danish and have ties in America. Could also travel to countries within Europe or Japan/China).

I don't know this. I buy locally.

4. What's important to notice when purchasing a Rolex? What defines it's worth, it's future price/consistency? Also what is important documentation to bring.

The classic stainless models are you best bet. Buy from an AD or one of the trusted sellers here to ensure you're buying a real Rolex.

5. Are there any advantages to purchasing an already used Rolex? If purchasing a used Rolex what are the absolute musts? For instance is verification of originality enough, or is the receipt needed for future sale.

If you buy a used Rolex in great shape you will have saved yourself any initial drop in price. You need to be very careful of the seller. If you find a watch you like ask on here and the experts will help you. (I'm not one of them)

6. What are the advantages of purchasing a new Rolex outside of the receipt. Will used Rolex's always fall in price (if not under which conditions?)

New means you're the first to wear the watch. There is something to be said for putting on a brand new Rolex. See above re: popular models

7. If you need help finding the true value and price for a Rolex. Where would you go to and what would you do? Say I find a piece on eBay or elsewhere.

Look in the for sale section here to establish values.

Thank you a lot in advance. I really appreciate the help, and I hope my questions are welcomed.

Sincerely,
Astes

My answers are in with your text.

[mannyv11]

no luxury item is an investment so please do not listen to the advice that you can make 30 percent profit by flipping them regularly.

as far as rolex pricing if you do buy one it is pretty easy to get rid of and you wont take a beating on it (they hold their value).

Also Dera seems to have an issue with the TRF "trusted sellers" as he puts it, but a lot of the time for a first time rolex buyer who doesn't have any relationships with an AD they are the best option price was on a sports model IE (Submariner, Daytona, GMT, ETC).

obviously do your research on what watch you like go into a few AD's try them on and see which one sings to you.

[Rolex addict]

TimeRookie summed it up pretty well, but like most others will say here, watches are generally NOT investments. While very few specific models may increase, most will simply hold their value. As for determining which model will be very desirable in the future, my crystal ball is foggy.

[hsfrank]

As others have said watches are not an investment vehicle. While some watches may be in favor at a particular time and can commandant higher than retail price from resellers that is only a temporary situation that reflects the demands of some purchasers. Resale of high-priced watches like coins or stamps or other collectibles are subject to the buying power of others. That is to say dealers or trusted seller's or gray market can purchase these watches at substantial discounts to retail price. Therefore when you go to sell and they will offer substantially less than you paid. Why would they pay you more then what you bought it for if they could buy it for less. You have only to look in the for sale section here to see this discounts to manufacturers suggested retail price as examples of the sales of modern day watches. Of course where you to purchase a watch that winds up in limited production and high demand such as for example the Paul Newman Daytona that would prove the exception to my thoughts. Another example might be if you're able to purchase the watch at substantial discount and then flip it for a higher price.
As far as VAT is concerned if you're able to strip it off in Europe you will get a substantial discount. However you then have your own customs to deal with as you bring it in. You will then have the moral dilemma of whether to declare it or not.
The above is my personal opinions and others may differ with me

[Astes]

Wow. I'm completely overwhelmed by all of your help and responses. Thank you to each and every one of you, your help is much appreciated. I've a few follow up questions, and I hope you guys don't mind. Of course I do a lot of research on my own, but it's always nice to hold a conversation with someone rather than just reading articles, reviews and doing your own analysis.

Follow up questions

1. Unless I find a great deal, I think I'll then stick with an AD. Is it possible to shop online with AD, or do they generally require physical attendance?

2. From personal experience it is rough to shop VAT free around Europe. Not declaring the items is obviously a moral thing, and assuming that would not be the problem, usually vendors around Europe (personal experience - please do share yours) have you pay taxes at the store, and then upon declaring it in the airport you get the amount back, so that you can declare it in your own country for their tax. What are your experiences? Have you been able to get around the tax?

3. Is it possible to avoid tax when shopping online? My wife is American - I don't know if this would give me any advantages. Perhaps shipping from Canada to America? Or from one state in America to another to avoid the tax?

4. You guys mentioned some variants of Rolex that are good at holding value. Are there any that are known to be bad at holding value? I am not necessarily looking to earn money, but sort of keep the same value throughout. Unfortunately there are a ton of downsides to holding stocks and having money in your bank in Denmark, so I'd prefer to get some of it in accessories - if I then eventually decide to upgrade my watch or something else, it'd be nice to be able to sell it for roughly the same value.

5. I've had my eyes on this fella for quite a while now. Any thoughts? Pros/cons? http://www.rolex.com/watches/oyster-...4300-0001.html

That's it for now. Thank you once again for your time spent helping me, it is greatly appreciated. I assure you, in the future when I posses more knowledge on the topic, I will do the same to newcomers. Have a pleasant day!

[Sublovin]

The majority of your questions are very vague and can be answered with a little "investment" of time on your end. Do some reading, try in some watches, Etc...then ask some specific questions as you near your purchase.
The research is really a big portion of the fun. Good luck

[pd999]

If you don't pay VAT/tax when you buy a watch new, and then later sell it, you 'should' inform the new buyer; otherwise they may get hit with a penalty/tax bill, if travelling with this watch back to the country where it was originally bought.

[ltmgeller]

You can always check the sold items section of eBay to see what they are selling for. That's a good indicator of the current market value. Mens ss sports models hold their value better than other models. Women's models value drops drastically after purchase.

[Tools]

Your questions are no longer about Rolex but are about shopping and attempts to avoid legal obligations. TRF is not a shopping service but a discussion Forum about the Rolex watch.

Spend some time doing your own research about the subject and not simply asking vague questions that become opinion and lead to false assumptions.

Rolex does not sell their products on-line. On line sales are by non-authorized sales outlets..