Are you actually "getting your money back"?

[cerendigit]

Hello Guys,

When I first got into Rolex, one of the main motivation factor was the fact that if/when I grew out of a certain watch/style, I could pretty much always sell it back and get "most" of the money back, in order to buy the next watch.

This is a very compelling argument, and it's one that I hear often coming from watch dealers (surprise, surprise), but what I've come to realize (newsflash) is that you won't be able to ask the same prices as watch dealers, and that selling watches cost money (fees, etc).

So I was just curious if you guys are actually able to "get your money back", and if you could share some stories of some watches you had to sell.

I'll start:

I had a GMT 116710LN box&papers from 2007, I bought it before they got discontinued, and I sold it after the model was discontinued (about a year after I bought it). I was expecting to make money when I sell it. I sold it to a watch dealer, and had to haggle to barely break even. I could have sold it on chrono or ebay, but the fees would have killed me.

You?

PS. (after reading some of the replies) I'm not looking to "get rich" by selling watches, I just like the idea that you can buy a Rolex, have your taste evolve (like it always does), and when it does, you can sell it for almost what you bought it for, and then get the watch that you should have gotten.

[kieselguhr]

On a private sale it is possible. You just have a lot of hurdles to jump over. The biggest one being convincing your target customers you are legitimate.

Also consider that selling platforms like eBay, chrono24 will want their cut of the transaction as well. So if the watch in question isn’t commanding a price significantly higher than what you paid for it, you’re still in the negative.

Selling to an established preowned watch dealer is the easiest route. If the watch is the flavor of the week and market demand is high, you may even get more than what you paid retail. Everything else, be prepared to cringe.

Thinking of selling to an established authorized dealer like Tourneau? Yea just don’t.

Your best bet is a private sale locally. But there are complications with that as well so make sure you pick a nice public spot and be aware of your surroundings before, during, and after the transaction.

2014. Sold a 16610 locally for a little bit less than what I paid for it. I still lost money because the watch needed fixing.

[037]

If your money is tied up in a watch rather than making money on a true investment, you're probably losing. The amount you spent on the GMT in 2007 would have purchased about 200 shares of AMZN, which today would be worth around $360,000.

The concept of watches as any kind of investment is an odd one to me.

[Calatrava r]

You will not make money from this stuff. I know the hot sports models hold their value but it is not wise to sell a watch an AD selected just for you, if you value your relationship with them.

[wach16]

Originally Posted by kieselguhr

On a private sale it is possible. You just have a lot of hurdles to jump over. The biggest one being convincing your target customers you are legitimate.

Selling to an established preowned watch dealer is the easiest route. If the watch is the flavor of the week and market demand is high, you may even get more than what you paid retail. Everything else, you are about to cringe at the offer you will get.

Agree...I havent lost a substantial amount for watches I have sold but I factor in the fact that I enjoyed wearing them into the "cost" as well.

[LooseCann0n]

Surely this depends on your timeframe...

If you hold for a “few” years you will make money, in absolute terms at least. Perhaps this is 5 years to take advantage of the continual official price increases.

Would not expect to make money over one year unless you have a hard to get watch (eg SS sports from 2015 onwards).

This provides me (well, mainly the wife) comfort in that should we need access to cash and needed to sell a watch, we would get our money back - at least this is how I can justify the purchase of multiple watches to her. It is this idea, taken to extreme that has probably led to “watch as an investment” discussions... however, as is always mentioned in the same thread discussing this, you would be better off in a world tracker fund in most cases.


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[77T]

I think the answer is tied to the timeframe you buy and then hold the watch. If you’re flipping each year, then you must be a shrewd buyer to get the best deal.

If you have a 5 year or more ownership interval, you ought to do better than break even.

I don’t say it is an investment, I say that is wearing a Rolex for free.

Yes, as 037 said, you have lost opportunity costs. But remember that if you had invested the $10-20K rather than bought a Rolex, then you could lose a large portion of an investment due to a stock market downswing.

That isn’t going to happen with your Rolex over a 5 year period. And even if some financial crisis dampened secondary market values, you’d still be wearing a Rolex.


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[~JJ]

I’ve honestly never thought about potentially selling a watch before purchasing it. However, I’ve thought about what a mint condition of that reference is selling for used to get a better deal during the purchase (...haven’t purchased a new watch in the last 3-years since my collection feels complete).

For a luxury watch, buy the model you desire most at market price and forget about resale. If you go in thinking about liquidity then your crystal ball better detect the market for any given period of time. Plus, consider your time/$ for snapping photos (light box, etc.) creating a listing and vendor fees, ensuring safe delivery and receipt of $$$ is to much stress for me to consider it an option just to get a watch, ymmv.

[khalifam]

If you purchased something hot.. like a sub or GMT, Daytona etc you'll definitely see your money back + a profit. You could even sell to a dealer and make some profit!

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[RTG]

Originally Posted by kieselguhr

On a private sale it is possible. You just have a lot of hurdles to jump over. The biggest one being convincing your target customers you are legitimate.

Also consider that selling platforms like eBay, chrono24 will want their cut of the transaction as well. So if the watch in question isn’t commanding a price significantly higher than what you paid for it, you’re still I. The negative.

Selling to an established preowned watch dealer is the easiest route. If the watch is the flavor of the week and market demand is high, you may even get more than what you paid retail. Everything else, be prepared to cringe.

Thinking of selling to an established authorized dealer like Tourneau? Yea just don’t.

Your best bet is a private sale locally. But there are complications with that as well so make sure you pick a nice public spot and be aware of your surroundings before, during, and after the transaction.

2014. Sold a 16610 locally for a little bit less than what I paid for it. I still lost money because the watch needed fixing.

Great post. Sums it up perfectly.

[Khans14]

A suggestion as to if you sell it yourself: have the meeting at a local police department parking lot. I have never sold a watch, but I have bought tickers, furniture, etc. I have always had the meeting in a police department's parking lot. Lots of cameras and police near by..... I would be stunned if someone tried to get cute doing the deal there and it has always worked for me. IF the other guy refuses the location, you should walk the heck away from the deal.

[tp0821]

I always cringe when I overhear a boutique sales associate tell a prospective buyer that the watch they're looking at will "be a good investment"

[cerendigit]

Originally Posted by ~JJ

Plus, consider your time/$ for snapping photos (light box, etc.) creating a listing and vendor fees, ensuring safe delivery and receipt of $$$ is to much stress for me to consider it an option just to get a watch, ymmv.

Indeed, selling watches is a full time job.

Originally Posted by LooseCann0n

Surely this depends on your timeframe...
If you hold for a “few” years you will make money, in absolute terms at least.

Sure, but you mean that I should wait long enough that the "market price" of the watch gets so high, that I will be able to sell it at the same price that I bought it at, but still well under the current market price.

Originally Posted by kieselguhr

Your best bet is a private sale locally. But there are complications with that as well so make sure you pick a nice public spot and be aware of your surroundings before, during, and after the transaction.

Originally Posted by Khans14

A suggestion as to if you sell it yourself: have the meeting at a local police department parking lot. IF the other guy refuses the location, you should walk the heck away from the deal.

I'm surprised at how many people are recommending selling watches locally (i.e. in person). Do you guys actually do that? How do you accept the payment? I can understand doing that for a piece of furniture or a used pair of skis, but would you sell a 116618LB in person?

[kieselguhr]

Originally Posted by cerendigit

I'm surprised at how many people are recommending selling watches locally (i.e. in person). Do you guys actually do that? How do you accept the payment? I can understand doing that for a piece of furniture or a used pair of skis, but would you sell a 116618LB in person?

At the time, a 16610 wasn’t ~$8,000.
Also wire transfers can be done on the phone.
I have sold unmentionables (per forum rules) in person for much more.

[mosanman]

Personally I don't buy my watches as an investment.
But having said that, through my own experience, I have found that generally with my Rolex watches, I have been getting my money back when flipping, if not more.

Before I got into Rolex, I had Bretilings and Omegas, where I would lose thousands when I got bored and moved them on. My last watch was an Omega PO, which I had for a month but the thickness was too much, so I moved it on at a huge loss.

I bought my 116710LN in 2016 just before the shortages hit hard.
Got it BNIB with stickers intact from a grey for £4900, I think the retail was £5500 at the time.
Had no intentions to sell this, but after getting the Pepsi in 2018 I decided to sell it as it wasn't getting any wrist time.
Sold it for £5950 in November 2018, just before it was discontinued (still kicking myself over this). Nevertheless, I was still chuffed because I got paid to wear a Rolex for 2 years!

I also managed to get a BNIB 116613LN from a grey for £9000, which was less than MSRP.
Had it for about a month but found it too flashy and moved it on for £8900. The £100, I saw as a cost of wearing the watch for a month, so all in all, got my money back.

Also had a 116610LN which I got at MSRP, and moved on after a couple of months because of the lugs. Managed to pretty much break even on this piece.

Currently I have 2 Rolex in my collection, a 2009 16610LN which I bought used for a good price and a 126710BLRO which I managed to get at MSRP.
Should I sell either, given the current market conditions, I'm certain I will make money on the Pepsi, and I'm pretty sure I'll be able to get what I paid for with the Sub.

[cerendigit]

Originally Posted by mosanman

But having said that, through my own experience, I have found that generally with my Rolex watches, I have been getting my money back when flipping, if not more.

Thanks for sharing, you are doing pretty good. How are you selling your watches (generally speaking)? What do you recommend? (e.g. patience, in-person trades, etc)

[JayG]

Originally Posted by 037

If your money is tied up in a watch rather than making money on a true investment, you're probably losing. The amount you spent on the GMT in 2007 would have purchased about 200 shares of AMZN, which today would be worth around $360,000.

The concept of watches as any kind of investment is an odd one to me.

Exactamundo. Well said and well illustrated. The idea of watches as any kind of decent investment vehicle is delusional.

[Watch@ddict]

I don’t look at it As an investment per se but relative to other brands. For example if you bought a $10,000 hublot Big Bang a few years ago you’re lucky if it’s with $5,000 now. With a Rolex you’ll get most if not all you’re money back if you need to liquidate.


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[Bigblu10]

Personally I feel buying a luxury watch which nobody needs should be considered money gone down the river. If you need to consider it's value in order to "liquidate" it one day, you have no place buying one to begin with. My2c

[teabags001]

No offense but your whole thread is an oxymoron. You ask if you can get your money back on a Rolex that you bought. You sold it in 1 years time and broke even. It seems as if your really asking if you can make money selling your Rolex. The ADs said you could get your money back and you did. So your proved your own point? By the flow of your post OP it seems your disappointed that you didn’t make a substantial profit. Like others have said watches are not sound investments. Buy what you like and if your taste changes in the future you can sell it and if in good condition and a full set you should be able to recoup 75-80 percent of your purchase price.


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[BatmanFan]

Originally Posted by Bigblu10

Personally I feel buying a luxury watch which nobody needs should be considered money gone down the river. If you need to consider it's value in order to "liquidate" it one day, you have no place buying one to begin with. My2c

Agreed!

[glamorama]

The good thing with Rolex is that there is a liquid market and you can get out fairly easy if you want to within -20% or better usually. I have sold other watches like Bulgari and Breguet, that is a painful process of dealing with lowballers maybe for months before the right buyer comes along. With Rolex you can sell to a dealer without loosing much as the spread is tighter.

[SS Oyster]

The only two options (choices) for voting don't make sense to me.

[APPRF]

Originally Posted by 037

If your money is tied up in a watch rather than making money on a true investment, you're probably losing. The amount you spent on the GMT in 2007 would have purchased about 200 shares of AMZN, which today would be worth around $360,000.

The concept of watches as any kind of investment is an odd one to me.

Yes a watch is not an investment, but you may have bought ENRON or the like and lost all your money. Watches should be bought for use and enjoyment, and if in the process you make money then thats great. Just try to get SS Rolex, and PP at MSRP, and the rest at good discounts or second hand and enjoy wearing your watches.

[padi56]

Originally Posted by tp0821

I always cringe when I overhear a boutique sales associate tell a prospective buyer that the watch they're looking at will "be a good investment"

Have to agree gone are the days when you bought a Rolex watch to wear in good health hopefully for many years.With many of today's Rolex owners they are no longer watches bought to be worn and enjoyed, now to many Rolex are no longer watches just seen as little more than$$$$$$££££££.

[kans86]

As many said, never think about buying Rolex as investment. That said in my almost 20 years of collecting Rolex I have bought and sold many times and more or less got back what I paid. I bought and sold my watches through many venues from private, grey dealers to Ebay and auction houses. Some sold for more some for less than what I paid.

For me it's fine to lose some money as it is the expense for enjoying the watch, similar to you paying 50-100 bucks for entrance to a single concert or pop event.

[Ian Macdermott]

I treat every watch I purchase as money p****d up the wall to be blunt, I only buy watches I like and intend to keep.

[peterpl]

Originally Posted by Ian Macdermott

I treat every watch I purchase as money p****d up the wall to be blunt, I only buy watches I like and intend to keep.

Thats exactly what it should be treated as.

I have the same mentality. If I cant afford to lose that money then I wont buy the watch. Quite simple really - otherwise if your truly being honest with yourself are you actually really ready to be buying a $10-$20-30-$60k watch at all?

If your wanting to make serious coin Rolex watches and investments dont go into the same sentence.

[TswaneNguni]

Oh,I am up on the dealings Could have been much much higher if I kept them all.

Last sold a Rolex in 2008 .Keep them !

[Harry-57]

If you're looking to get the most return of what you originally paid, should the day come when you need/want to turn it back into money, a Rolex watch is a good candidate. Expectations of what you will actually end up holding in your hand are dependent on a number of variables and speculation. Added to that, since you are not a business that has invested in the infrastructure to trade watches efficiently and effectively, you're always going to be behind the curve and taking bigger risks. This has nothing to do with your watch brand. It's just how the world works.