Your thoughts on value / depreciation on 18K Rolex

[JParm]

I'm looking at purchasing a pre-owned 18k watch, preferably the 116718 pictured below (not my picture). I'm looking to spend market value, which is around the 20k price point.

My question to you all is should I expect a loss if I were to sell in the next 1-5 years due to emergency / unforeseen circumstances? I know that no one here can see into the future, but I also know that stainless steel watches tend to keep their value vs. all gold models. What has been your experience in the past, and how do you see it playing out with the current state of the watch industry?

This is huge purchase for me, so I appreciate all feedback. Thanks!

[beshannon]

Be sure to factor in the rise of interest rates over that time period and the subsequent effect on world currencies.

[AgentHsu]

Since you're not a dealer/trusted seller, it will be hard for you to sell at that price point, since a buyer can buy one for the same cost from someone they know/trust. Dealers have networks and clients who will sell their used watches, and they resell at, say, $20k for this particular watch for a profit. Most likely you'll lose $2k or so assuming the market does not change much.

Some vintage gold sports models will hold up better because they've already taken deeper dips, and are more rare in the market place.

But to answer your question, I do not think you'll take a huge hit. Maybe $2k or so if you're in a rush to sell

[AK797]

I paid £16K for mine and sold for £14K two years later. So cost me £1K a year to wear.

[watchwatcher]

You probably will take a loss if you have to sell in the short term...unless there is a price rise. There are, however, a lot of variables that go into this, such as age, condition, etc.

If you're buying close to the 20k mark, it shouldn't be too bad, though. I wouldn't sweat it...totally worth it for that one. One of the finest 18k models around, IMO.

[HorologyK]

I don't think there is any way of knowing the future loss or potential loss. If you're already hedging your losses before buying, maybe you should go with something else.

[jrs146]

Originally Posted by HorologyK

I don't think there is any way of knowing the future loss or potential loss. If you're already hedging your losses before buying, maybe you should go with something else.

This is usually the best advice you can get

[ferrissteve11]

Maybe consider the White Gold BLRO variant as a PM model ?

[JParm]

Originally Posted by AK797

I paid £16K for mine and sold for £14K two years later. So cost me £1K a year to wear.

May I ask your reason for selling, if it's not too personal? Did you tire of the watch is what I'm getting at?

[Danny83]

It would probably cost you 10%

[texex91]

Depends what you end up buying for, market conditions at time of sale, condition of watch, etc, etc.

As noted 10-20% is good estimate.

[JParm]

Originally Posted by ferrissteve11

Maybe consider the White Gold BLRO variant as a PM model ?

That model is beautiful for sure, but as I now have a 16710 and the fact that all my watches are steel, I'm looking to go towards a slightly different look.

[kilyung]

I bought my 116718 bnib from my AD for $18k 5yrs ago. I could make $2k today. It's all about buying right and taking a gamble. Of course you should buy a watch because you like it.

[dysondiver]

the day you buy it , is the day you sell it ,,,, old motor trade saying ,,,
but id think if bought right , the cost of ownership would be humble money , if not a bonus

[Etschell]

at that price point you wont lose or gain much within 1.5 years. however, if a 20k watch is material to your net worth or cash position i wouldnt buy it.

[Loevhagen]

This: http://www.ablogtowatch.com/demand-p...ches-plummets/

[vman]

I'd treat that purchase as a write off on day one. If you worry that you may not cash in an emergency, then perhaps you need to pad your rainy day fund before making this purchase.

[kilyung]

Originally Posted by Loevhagen

This: http://www.ablogtowatch.com/demand-p...ches-plummets/

Respectfully, Ariel's trying to apply logic to something that is an emotional decision. Seriously, what logical rationale can one voice to justify spending money on a $20k watch?? You can't. It's an emotional decision.

[JParm]

Originally Posted by Loevhagen

This: http://www.ablogtowatch.com/demand-p...ches-plummets/

Yes, I read this today as well. That's what makes it a bit scary if anything were to happen. We're not cash strapped by any means, and I would hope it would be something I'd keep forever, but the fact remains that it is a 20k watch and not a 5k one.

[ap1]

I'd say -20%

[Etschell]

Originally Posted by kilyung

Respectfully, Ariel's trying to apply logic to something that is an emotional decision. Seriously, what logical rationale can one voice to justify spending money on a $20k watch?? You can't. It's an emotional decision.

depends on your financial circumstances. to some 20k is essentially like 20 bucks.

[Samui]

Dont buy it if you care about depreciation

[RGAmos]

If this represents a "huge purchase" for you, you probably should not buy it. It's just a watch, admittedly a fine one, but steel will serve you as well.

[kromdom]

Originally Posted by horologyk

i don't think there is any way of knowing the future loss or potential loss. If you're already hedging your losses before buying, maybe you should go with something else.

^^^^^this

[AK797]

Originally Posted by [email protected]

May I ask your reason for selling, if it's not too personal? Did you tire of the watch is what I'm getting at?

No, I sold because I have a YG Subc and I also bought two gold pieces with black dials since so they were all a bit similar. Still love the watch tho and will probably buy the SS next year.

At 20K you will take minimal loss so I would go for it if you love the watch and sounds like you are ready for PM.

[Hollister]

Originally Posted by [email protected]

I'm looking at purchasing a pre-owned 18k watch, preferably the 116718 pictured below (not my picture). I'm looking to spend market value, which is around the 20k price point.

My question to you all is should I expect a loss if I were to sell in the next 1-5 years due to emergency / unforeseen circumstances? I know that no one here can see into the future, but I also know that stainless steel watches tend to keep their value vs. all gold models. What has been your experience in the past, and how do you see it playing out with the current state of the watch industry?

This is huge purchase for me, so I appreciate all feedback. Thanks!

I think your money's safer going for a steel Patek, at that level.

[Hodog16]

Think it's reasonable to buy at 20k and expect around 17.5-18k in trade value assuming the watch stays in relatively good condition.

If you buy it right often the sellers will take it back in trade since they know the background of the watch.

[JohnnyNoDate]

Keep in mind that selling any watch over $15k is very difficult and/or a large time investment if you're not a dealer.

You will definitely take a hit if you're unable to sell it privately.

[fungo]

In most cases if you dont want to take a hit on resell value, then PM watch is not it. If you think there is chance of flipping it in near future, then go with popular SS models, like blnr or sub.

[BNA/LION]

If you want it, can afford it and are willing to take approximately a $2K hit if you have an emergency... Then Buy It! IMHO It seems like you want it, the YG will add a different look to your collection and the enjoyment you will get from it is immeasurable. Best of Luck!