The Role of Resale Value in Your Purchase Decision

[rag5178]

I wanted to gather some thoughts and perspectives from the members of this non-Rolex forum on the role that resale value plays in your purchase decision.

Do you buy without any regard to resale value? Is your purchase decision primarily driven by resale value? Or do you sit somewhere in the middle?

The reason I raise the topic is that I sometimes feel as though there is a bit of gatekeeping in the high end luxury watch market. There is a notion that if you can't afford to buy and keep a watch forever, then you are not a "true" collector. My personal opinion is very different from this notion.

My view on the matter is that personal taste and interest in watches changes. After a year or two or three or five, I may swap a watch out of my collection that no longer fits my needs or taste for something new that does. Not only does this help me afford new watch purchases, but it forces me to be deliberate and discerning in my collection. For that reason, resale value plays a role in my purchase decisions. Also, no matter how much due diligence you do before making a new purchase, you never really know how much you will enjoy a watch until you get to wear it regularly.

Very interested to hear opposing viewpoints. I think that the majority of this forum is firmly opposed to deliberate flipping, but views on the nuance of buying without the intention to flip but with consideration to resale value is less clear to me.

[JParm]

Resale always matters. Not for investment purposes, which seems to be what everyone cares about these days, but purely to recoup a portion of funds should I decide that I've lost interest in a watch. This has happened often enough for me to know that buying with the intention to keep forever doesn't usually mean that.

Tastes change, and I'd rather let me someone else take a bath first and purchase pre-owned for anything not named Rolex.

[enjoythemusic]

It was pretty much never like this until central banks started highly devaluating (aka inflation) their currency while adding trillions to the flow to Wall Street / bankers. The problem lies firmly in the financial sector for causing massive disruption to goods and pricing.

Got Food?

So as a decades-long enthusiasts, I say it doesn't matter. It never really has. Get what you love and will wear. Speculators are trashing the hobby's true 'value' imho.

[beshannon]

Personally it is ZERO.

I buy what I like, if I choose to sell it, the money was a sunk cost and whatever I get back is a bonus.

[Easy E]

I'm somewhere in the middle. Yes, of course I consider it, but it is not a driving factor. But, I do internalize what my potential loss (or unlikely gain) will be. Like peezy mentioned, tastes change, maybe fit isn't quite what I initially thought, maybe there is another piece I would rather have more, etc. I usually have some kind of idea what my out will look like, just in case.

[mongrelnomoad]

For me, there are investments, and then there are items for which I prefer to write off the amount paid. My home (vs a rental property) is in the latter category, my watches are too. I don’t expect to ever see any of the money back, and I don’t pay any attention to their value until the day I come to sell it, if that day arrives. To date, I’ve never sold a watch.

Other than a very rarefied strata (no, not 5711s or Daytonas or 15202s or RMs), watches are not what I would consider investment material. I would also be very wary of expecting watches (both as a class, and individual models) to perform as they have in the past, in the future. Tastes change. People are fickle. Economic dynamics shift.

Tl;dr: I buy what I like with money I can afford not to need.

[jonnythrust]

I'll buy a watch if I like it, don't usually think about resale value, as most won't hold their value if buying new (with the usual exception for the waiting list brands).

Sent from my SM-G986B using Tapatalk

[brandrea]

Originally Posted by beshannon

Personally it is ZERO.

I buy what I like, if I choose to sell it, the money was a sunk cost and whatever I get back is a bonus.

I’m in exactly the same boat buddy

[JParm]

Originally Posted by brandrea

I’m in exactly the same boat buddy

Brian, GASP - we disagree on something, my friend!

[beshannon]

Originally Posted by brandrea

I’m in exactly the same boat buddy

[raclaims]

Of course it does.
it's a very large expenditure.

People love to say it's not an investment and deride all who see it as such....as if they have the moral high ground.

Yet, what could be more elitist than to say, I don't care about my money, I throw it away because I have so much of it...and anyone who cares about money is in it for the wrong reasons.

Of course you should always buy what you love but to throw away money without concern is a very quick way to not have much money!

That said, I'm def not a fan of flipping and think it destroys the hobby...but who am I to judge someone who is trying to make money?

[HHIslander]

Market value matters to a degree. I'm reluctant to buy a new watch that will lose 50% of its value right after I buy it, I'll buy used instead. It's not really all about the money, but more the idea that I am getting ripped off. I have zero tolerance for getting ripped off in any purchase decision, almost to a fault.

[brandrea]

Originally Posted by jpeezy14@hotmail.com

Brian, GASP - we disagree on something, my friend!

I knew that day would come … but we still share common views on most everything else from what I can tell

[enjoythemusic]

It's not money raclaims, it's currency. But anywho, why a watch instead of Bitcoin, Ethereum, or Dogecoin? Rhodium... You could 'trust' the stock market. Or buy bonds.

Or start a new business venture.

Why timepieces?

Agree flippers are not 'helping' matters. Flippers should try something else with far better ROI.

[Hard_Six]

Originally Posted by jpeezy14@hotmail.com

Resale always matters. Not for investment purposes, which seems to be what everyone cares about these days, but purely to recoup a portion of funds should I decide that I've lost interest in a watch. This has happened often enough for me to know that buying with the intention to keep forever doesn't usually mean that.

Tastes change, and I'd rather let me someone else take a bath first and purchase pre-owned for anything not named Rolex.

I firmly agree with this

[Tools]

Buying jewelry with the idea that I'm going to sell it later is simply bizarre.

[Goin2drt]

Zero

[rag5178]

Originally Posted by enjoythemusic

It's not money raclaims, it's currency. But anywho, why a watch instead of Bitcoin, Ethereum, or Dogecoin? Rhodium... You could 'trust' the stock market. Or buy bonds.

Or start a new business venture.

Why timepieces?

Agree flippers are not 'helping' matters. Flippers should try something else with far better ROI.

Hey Steven, can you elaborate a bit on your first point contrasting money and currency?

[rag5178]

Originally Posted by Tools

Buying jewelry with the idea that I'm going to sell it later is simply bizarre.

Very interesting to get another perspective. For me, it is bizarre to assume that every watch I buy will remain a part of my collection forever.

[JParm]

Originally Posted by Hard_Six

I firmly agree with this

Having said that, I just broke my own rule and will have an incoming from a boutique shortly.

The fact that there aren't many on the grey market and the delta between new and pre-owned is so small (coupled with me being a very impatient person) caused this unique instance.

[Wahlberg]

There are 3 watches I want. Two should be discounted, so that’s the only thing I care about. Just give me the feeling of making a good deal.

I also think a lot of brands and watches are way too expensive and brands followed the Rolex price jumps even though they don’t have anything to back it up. They just tagged along. Just look at Omega, Zenith, … and others who are all at 8-10k usd/euro all of a sudden.

[enjoythemusic]

Originally Posted by rag5178

Hey Steven, can you elaborate a bit on your first point contrasting money and currency?

Oh my... I think that topic is kinda not a TRF thing. Simply said, currency is an absolutely horrible 'storage of value'. I also tend to be... ummm... 'different'... in my approach to some things. In the end this is TRF, and please get the timepieces you love and will wear... and keep. Think of it like HODL.

[rag5178]

Fair enough, Steven, just piqued my curiosity since, as you say, you seem to provide a 'different' viewpoint than my own. I always appreciate new perspectives.

[JakeK]

Zero. Like Steven and Brian, I buy what I like. Full stop.

[rag5178]

Originally Posted by JakeK

Zero. Like Steven and Brian, I buy what I like. Full stop.

In the event that what you like has a very low resale value, would you look to buy preowned or you just don’t really care at all what secondary market says about price. If you like it, you buy it at retail no matter what?

[JakeK]

Originally Posted by rag5178

In the event that what you like has a very low resale value, would you look to buy preowned or you just don’t really care at all what secondary market says about price. If you like it, you buy it at retail no matter what?

Good question. In general if I can find a good pre-owned deal I’m all for that. With that said, the amount of effort I would put into finding the “right one” pre-owned is low.

[enjoythemusic]

Originally Posted by JakeK

Good question. In general if I can find a good pre-owned deal I’m all for that. With that said, the amount of effort I would put into finding the “right one” pre-owned is low.

^^^^ well said, ditto.

A vintage piece with factory fresh service is a plus.

[Crashblue]

I buy what I like but I tend to buy hype pieces way ahead, 15202 in 2010, Chronometre Bleu in 2012, … the list goes on and on however I hardly ever sell anything probably one watch every 5 years.

Sounds great at first but I couldn’t justify paying todays market prices for most of my hype pieces so there won’t be a 5712 e.g. for me if the market doesn’t cool down.

[MrGoat]

With most anything (Rolex included) I look for the best deal possible. When I purchased mine I had to justify the purchase to myself that I wasn’t just “throwing 10k out the window”. I justified it through the solidarity of the brand and the rigidity of the product, the fact that I paid more for a used one than I would have for the same one brand new 22 yrs ago and then I let my heart take hold and bought something I’ve wanted for 26 yrs now.

Future value doesn’t matter to me in my life at the moment but if I was to lose everything or when I’m long gone and my family could really use that 10k I blew on a watch, I sincerely hope it was a good investment.

That being said, I wear it like I stole it and have no regrets. If I didn’t wear it and just had it on a pedestal I couldn’t justify spending that money on myself.

I can’t even fathom making a relatively pricey decision that didn’t have even a slight percentage of the decision based off value.


Sent from my Apple privacy invasion product

[llngoc]

I have never sold one watch in 20+ years and someone told me I was hoarding. :-)

Close to selling a 5711 not too long ago but could not go through with it.