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Are high end watches (e.g., Patek) gaudy?

Discussion in 'Classic Menswear' started by JohnnyCrockett, Jan 8, 2010.

  1. Godot

    Godot Well-Known Member

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    For me the $20,000 Patek is not gaudy enough. For $20,000, I want to at least impress the cocktail waitress. Call it a character flaw.
     
  2. mafoofan

    mafoofan Well-Known Member

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    Good point. . .I don't know if they will actually appreciate in value. . .but a rare watch should hold most, it not all, of its value.

    A watch from a good company like Patek or Audemars or IWC will retain a great deal of its value. In most cases, you can get back as much as 75 percent of what you spent a couple years after picking it up from the dealer. Anyway, very few watches lose all of their value, which is inevitable in the case of most cars.
     
  3. SkinnyGoomba

    SkinnyGoomba Well-Known Member

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    A watch from a good company like Patek or Audemars or IWC will retain a great deal of its value. In most cases, you can get back as much as 75 percent of what you spent a couple years after picking it up from the dealer. Anyway, very few watches lose all of their value, which is inevitable in the case of most cars.

    I wouldnt call something that will allow you get back as much as 75% of the original value over a long period of time to be a long term "investment".

    Classic cars do well in many cases (popular models), I'm willing to bet that the right selection in vintage watches would do well also.
     
  4. mafoofan

    mafoofan Well-Known Member

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    I wouldnt call something that will allow you get back as much as 75% of the original value over a long period of time to be a long term "investment".

    Classic cars do well in many cases (popular models), I'm willing to bet that the right selection in vintage watches would do well also.


    Watches are terrible investments overall, but they are far better investments than your typical luxury car. That's all I'm saying.

    Anyway, vintage watches appreciate just as well as vintage cars.
     
  5. SkinnyGoomba

    SkinnyGoomba Well-Known Member

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    Watches are terrible investments overall, but they are far better investments than your typical luxury car. That's all I'm saying. Anyway, vintage watches appreciate just as well as vintage cars.
    Agreed, but I simply wouldn't use the word investment, since it implies that you intend to make some financial gain by holding it and bought it specifically for that purpose.
     
  6. aj_del

    aj_del Well-Known Member

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    A watch from a good company like Patek or Audemars or IWC will retain a great deal of its value. In most cases, you can get back as much as 75 percent of what you spent a couple years after picking it up from the dealer. Anyway, very few watches lose all of their value, which is inevitable in the case of most cars.
    Dont think an entry level Patek or AP (around 20000) or IWC (8000-10000) is going to retain 75% value a couple of years down the line. I think they would be around 33-66 % in most of the cases. Its the high end watches from the high end manufacturers which will retain most value and in very few cases would they start appreciating. Of course cars will lose value much faster ...
     
  7. gdl203

    gdl203 Well-Known Member

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    Note that foo wrote 75% "of what you spent", not 75% of MSRP. I agree with his assessment.

    Simply put, the moment you buy the watch, its value has already dropped to (1-d)*MSRP, where d is the commonly obtained discount on that specific watch.

    As manufacturers raise list prices over the years, that BNIB discounted value goes up, but so do the values of previous vintages of the same watch, almost proportionately actually. So the natural depreciation of value exist but it is counter-balanced by list price increases that raise second-hand prices.

    If one bought at a good discount initially, the value after a couple of years (and assuming a mint condition) is likely to be between 70 and 100% of price initially paid.
     
  8. Big A

    Big A Well-Known Member

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    Anything fancier than a Swatch is garish, and will get you thrown right out of the Everglades Club.
     
  9. aj_del

    aj_del Well-Known Member

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    Note that foo wrote 75% "of what you spent", not 75% of MSRP. I agree with his assessment.


    I bed to disagree with your and foo's assessment of the residual value. I also meant 33-66% of the market price rather than MSRP.
     
  10. mafoofan

    mafoofan Well-Known Member

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    Greg is right about the effect of escalating MSRPs on used watch values. I bought an IWC Big Pilot (the original, not the fucked-up version) for about $7,500 back in 2005. I sold it last year for $9,500. Granted, that watch is a special case in some respects, but I think the main reason why it was so easy to re-capture my original cost (and profit, even) was that IWC drastically increased its price over the years. In addition, I have sold Rolexes and Panerais at the same price I paid for them new from a dealer.

    If I buy a new Porsche 911 Turbo, I will lose a lot more money five years after purchasing it than I would if I had bought a new IWC Portuguese Minute Repeater. Change that 911 to a Mercedes C-class and the watch to a regular IWC Portuguese 5001, and the same will be true--except in 15 years, the watch will still be worth most of what I paid for it while the car will be worth less than nothing, after maintenance costs are figured in. That is the simple truth. Thus, I don't see why it's more gaudy to own an expensive watch and cheap car than vice-versa. If I were out in the suburbs or in a city where owning a car is mandatory, I'd probably pick a Honda Fit or VW GTI (if I'm feeling rich)--that way, I could afford a kickass watch.
     
  11. aj_del

    aj_del Well-Known Member

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    . I bought an IWC Big Pilot (the original, not the fucked-up version) for about $7,500 back in 2005. I sold it last year for $9,500.

    Would you mind sharing how did you sell the watch that you got such a good price ? I want to sell at least 4 of my watches
     
  12. gazman70k

    gazman70k Well-Known Member

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    I'm not even into watches and that Patek slogan is really starting to grind my gears.

    Personally, I love my Patek so much that my son will need to pry it from my cold dead hands. The little fucker will have to sweat for it, if he ever ones a Patek.
     
  13. medtech_expat

    medtech_expat Well-Known Member

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    Sold an Audemars Piguet earlier this year for about 20% more than my acquisition cost circa 2001-02.
     
  14. mafoofan

    mafoofan Well-Known Member

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    Would you mind sharing how did you sell the watch that you got such a good price ? I want to sell at least 4 of my watches

    The watch sold itself. Last year, most used Big Pilots were selling for $8-10k, depending on the condition. Mine happened to be nearly perfect.

    However, at the time, used 'transitional' Big Pilots (the ones with the faster beat movement, but the classic dial) easily sold for over $13k, condition be damned.
     
  15. Mute

    Mute Well-Known Member

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    Try selling on Timezone. I have to agree with foo's assessment. I'd actually say he was being a little conservative. Given the current economy, that may change, but so far, most of these watches seem to be keeping their value fairly well. Unlike a car, a watch doesn't always need to be replaced and therefore, many sellers would rather just keep their watch if the selling price is too low.
     
  16. LeatherSOUL

    LeatherSOUL Well-Known Member

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    Try selling on Timezone. I have to agree with foo's assessment. I'd actually say he was being a little conservative. Given the current economy, that may change, but so far, most of these watches seem to be keeping their value fairly well. Unlike a car, a watch doesn't always need to be replaced and therefore, many sellers would rather just keep their watch if the selling price is too low.

    I've lost big money in 2009 selling watches on TZ but 2009 was a crazy year for watcher buyers and a horrible year for sellers. The watches I sold and lost money on include PPs and APs.

    The only watch I never really lost money on were Rolexes but that was back a few years ago when 2nd hand prices on some pieces were way more than retail. That is not the case now.

    Timing is everything! A PP 5980 was selling for about $80k a couple years ago, now down to $45k!
     
  17. gdl203

    gdl203 Well-Known Member

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    wow - didn't realize the market took such a hit. Maybe I will find a well-priced 5110P one day ?
     
  18. LeatherSOUL

    LeatherSOUL Well-Known Member

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    wow - didn't realize the market took such a hit. Maybe I will find a well-priced 5110P one day ?

    Yes, now is the time to buy watches. Seriously.
     
  19. medtech_expat

    medtech_expat Well-Known Member

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    wow - didn't realize the market took such a hit. Maybe I will find a well-priced 5110P one day ?

    I much prefer the 5110P over the current world timer [​IMG]
     
  20. gdl203

    gdl203 Well-Known Member

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    I much prefer the 5110P over the current world timer [​IMG]

    Without a doubt.

    I just checked and 5110P prices have barely nudged 10% last year. Not exactly a crash of epic proportions.... [​IMG]
     

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