08 Jun Should I Buy A Pre-Owned Luxury Watch?
As we know quality, status, and luxury all come with a price, and depending on your tastes, this could get rather costly. This is one of the many reasons that the demand for pre-owned luxury watches has exploded in the last few years.
Anybody looking to make an investment in a quality watch should consider buying pre-owned. Now, many of you may be hesitant on taking the pre-owned route or may be unclear on why buying pre-owned is an exceptional idea. Let’s look at some of the most compelling reasons on why taking the pre-owned route has become prominent in the luxury watch market.
Pre-Owned Watches Cost Less
The number one incentive for most people to favor a pre-owned watch is economics. The biggest hit of depreciation is during the transition from new to pre-owned.
Buying a watch brand new is much like buying a car brand new – Cars will depreciate by many thousands of dollars the second you drive them off the lot. It’s the same for watches, they will depreciate substantially when taken out of the box or store, but whether it’s worn for a week by you or someone else, it’s going to be the same watch – only a lot cheaper.
An added bonus is that the changes and updates in the luxury watch market are incremental, each previous generation looking nearly identical to its newer self – Buying pre-owned gives you the luxury of paying far less while keeping up with the latest trends.
There Are More Pre-Owned Watches To Choose From
The next major incentive to take the pre-owned route is availability. The pre-owned market opens up access to a whole new level of options to choose from. On a regular basis watchmakers shelve earlier designs to make way for current, upgraded versions. All of these discontinued watches will be available in the pre-owned market giving you added models and designs to choose from.
Additionally, the lower entry level price of the pre-owned market opens up access to luxury brands and models that would otherwise be unaffordable when buying brand new for many purchasers.
Depreciation Can Be Used To Your Advantage
The best way to buffer against the risk of depreciation is to buy pre-owned. Additionally, buying a pre-owned luxury watch will allow you to take advantage of depreciation.
Unlike buying a brand-new car, a luxury watch will settle in price after the transition from new to pre-owned and the depreciation will slow considerably.
So, if you decide to sell the watch ten years down the road, you will be getting back something close to the price you bought it for, meaning you’ve been wearing an extravagant watch for free for a decade. The further good news is, some even increase in value through the chain reaction of price increases on new models, demand and rarity. So, if you choose your model carefully, you might even find you’ve made a profit.
Costs Associated With Buying A New Watch
Lastly, let’s take a look at the costs associated with buying a brand-new luxury watch. As with most brick and mortar businesses, jewelry stores have high overhead costs. They have to pay for: rent, staff, cases, benches, safes, security, utilities, tools, stock, advertising, an accountant and the list goes on. These overhead costs frequently deter authorized dealers from offering discounts on new watch purchases which can generally range from five to twenty percent.
Now, a huge selling point to buy new in the luxury watch market is warranty. Yes, having a warranty is great but do you genuinely need it? A standard warranty will generally range from one to five years but these time pieces are built to last much longer than the lengthiest warranty. People seem to be reluctant to buy a watch without a warranty remaining but don’t realize that with proper care and maintenance, a luxury timepiece should easily last thirty years or more. I will cover further details about warranties and proper maintenance in another article.
In addition to the usual overhead costs, jewelers pay more for insurance and security than most businesses. Even when they have top of the line security in place, a jewelry store will pay high premiums for insurance. This only leads to one thing- marked up prices on inventory. Manufactures will sell to the jewelry shops at a set price, then depending on the costs associated with the shops overhead costs will determine the price you or I will pay when buying a brand-new watch.
Now, when taking the pre-owned route, you are able to bypass this robbing process by buying directly from the seller. Yet another reason why the pre-owned marketplace is a superior idea when purchasing a luxury watch.
To sum it all up, there has rarely been a better time to take the pre-owned route when buying a luxury watch. Along with being examples of elegant craftsmanship, they are also now one of the savviest investments you can make.
Take the time to make a knowledgeable decision and the watch you choose can benefit you by appreciating in value. In the meantime, you get to own a mini work of art, and you can’t put a price on that.