Used watch depreciation?

[deaddog]

I am just starting to learn about the used watch market. I understand the "buy the seller" theory and why its so important (and even more so than with clothing). But, can you guys help me out with the current market and depreciation - are there any rules of thumb? Lets say we are talking the (relatively) low end of high-end watches (omega, maurice lacroix, some rolex, some breitling, baume and marcier, some cartier). Assume the watch is a year or two old and has been well-cared for by a watch collector. What type of discount should I expect to pay off of the current new price - street price, not retail - from a reputable but not necessarily authorized dealer? 50%, 75%. If we are talking Brioni suits, I'd say 90% - but how about watches?
Thanks

 

[deaddog]

Perhaps a more succinct title was in order.

 

[gdl203]

There's no magic formula - IME it depends mostly on the brand & model and the supply/demand equilibrium for them. I've seen used mint watches with expired warranty trade for 100% or more of the current MSRP, simply because it's a model in high demand that's hard/impossible to find at dealers. More generally speaking, I'd personally put about 10-15% of retail price as value for a full warranty (pro rata if soon to expire), a couple hundies discount on lack of boxes, and a highly variable discount (10-30%) for the seller risk.

 

[DrZRM]

Rolex holds it's value very well, as does Panerai. Often people sell them used very close to what they paid (as MSRP increases steadily). Rare pieces will often increase in value. Most other brands will drop quite quickly. I've bought all of my watches used, some were better deals than others, but for Omega you can often get a retailer to come 30% off from MSRP. I've paid about 60% off Omega MSRP for my Speedmaster Broad Arrow and my Aqua Terra (each was out of warranty or pretty close to it) . It was about the same for my IWC GST Chrono (more than 50% off MSRP, though no box or papers on that one). The Sinns were much closer to retail, but there is only one source for the watches in the US (watchbuys) so they come up used less often. Omegas will often sit on timezone.com for weeks dropping their price from day to day.

If I needed to, I imagine I could sell them all very close to what I paid, if not for a slight profit. And my Sinn 142 has shot up in value since the company stopped making that model. That said, don't get into watches to make money, if you are lucky you just may not lose too much.

Buy the seller not the watch is right. But I don't think there is ever a reason to buy a new watch anywhere near retail. Patience is key, and I would not use Ebay unless you can meet in person at a watch store to have case and movement authenticated.

 

[OCULUS]

I have collected vintage watches for years and have only bought or traded new pieces very rarely. The posters above have captured it well: Sure some names like Rolex command a lot of attention, and generally price, but they have their dogs too (their dress line is pathetic); similarly, Patek sport watches are not what moves their market.

In today's heavy sports-watch market, you are going to pay a premium for the bracelet, so be sure it is tight (not worn out) and has the extra links for fitting, etc. and shop where they have a good selection of what you are looking for. Learn about them, find a local watchmaker who can service it and then "buy the seller."

Because styles and designs (and bracelets often too) are all over the spectrum, your 50-75% range sounds reasonable, especially if it has not been worn daily, etc. If you happen to like one of the less-sought after models, you can get a better deal. It's fairly competitive so you aren't going to get too far aflield as long as you do your research.

And, don't overlook your local jeweler, I bought a Rolex GMT (two-tone) at significant discount from our local authorized dealer, just because he had had it long enough that the new models had sprouted another jewel in their movmements; otherwise it was brand new in his case.
Good luck.

 

[deaddog]

thanks much - this is all very helpful. I went to a local jeweler to look at a Maurice LaCroix Pontos Chrono I was looking to buy used - unfortunately it was too big for me. But, I really liked a LaCroix Masterpiece Grand Guichet - it was marked $4700 (which he said was msrp) and with very, very little prompting from me it was offered for $2700 - authorized dealer w/ 2 year warranty. More than I want to spend but a sweet watch. If the guy is in the ballbark on the msrp, thats over 40% off. The website I found the pix on says msrp is $250 - that is still 37%.

Here is a picture:

Attachment 17469

 

[Fiddy]

Originally Posted by DrZRM

Rolex holds it's value very well, as does Panerai.

+1

Models to focus on with Panerai include special edition pieces and those from their historic collection. As far as Rolex goes, you can never go wrong with a SS Daytona -- and right now there are many to be had at great prices.

Good luck with your search.