Official Rolex Certified Pre-Owned Announcement - 1st Dec

[rambo99]

Originally Posted by Trailboss516

A lot of US ADs (Tourneau/Bucherer) already sell used Rolex, I guess just now they will come "CPO" with the Rolex CPO card.

i wonder who would buy those rolex certified preowned watches, huge premium over the current grey market price!

[ROLEX MAN]

Yes and the sales assistant just bought your "trade-in"

I have been offered full RRP on my watches!!

[77T]

https://newsroom.rolex.com/?cmpid=rolexcom_newsroom

And

https://newsroom.rolex.com/about-rol...wned-programme

Note the date it was posted on the official newsroom page. November 30, 2022 in the first link.

But the actual release is dated Dec. 1st in the second link.

So everyone lost the bet?

Now that it’s on their own website, Rolex has the daunting task of enforcing encroachment.

For years, resellers have used a “Certified Pre-Owned” moniker. It meant anything from a reseller polishing the case all the way to a freshly RSC-serviced watch.

A question - if any dealer chose to add the cost of an RSC service into their SG&A - what is different?

As long as all RSC required work items were performed, and because RSC only works on authentic watches, and because the RSC does a theft list verification, and the Watch gains a 2-year international warranty, then Bob’s could say it’s the same CPO watch as a participating AD offers. Except for the CPO card, Bob’s gets a 2-yr. RSC card.


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[Auric Goldfinger]

Originally Posted by WatchGuy1966

fake news, IBTL

Originally Posted by Zoomerang

Are you sure this isn't supposed to be released on April 1st?

Originally Posted by enjoythemusic

Am not at liberty to say more, but i've posted like the above... and regretted it soon afterwards. So as a consolation, rest assured you're in good company :)

News soon....

How’s the humble pie for breakfast?

[77T]

https://www.bucherer.com/rolex-certi...&start=0&sz=62



Searching over 100 CPO’s 90% (or more) were DJ’s and OP’s. But if you’re in US, you can’t buy the 21,000CHF GMT. (Forgetting that $18k can be paid on Chrono24 everyday)

That seems to be different from the greys who will ship anywhere.


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[Mystro]

This is a huge acknowledgment that Rolex has accepted the current watch buying market and will never return to how it was 10 years ago. In other words the good old days of how you could buy a Rolex are gone for good and Rolex will try to buy up the secondary market and control its volume.

This was long overdue for Rolex but it won’t change the market or the state of availability in a positive way.
It will drive up the secondary grey market prices with less volume of available inventory.

Rolex is all about control and they initiated this a few years back with the servicing and parts accounts and it screwed their independent watchmakers. The Rolex customer was left with less servicing options and more at the mercy of Rolex.

Now they will try to control the secondary market. It can only cause a secondary market rate increase with less volume circulating in the free market.

This will also give even more control to the AD in deciding who gets what Rolex model and how much junk jewelry you need to buy to purchase a pre owned Batman.

[Driver8]

Personally I think it's a great idea, and there is a potentially great upside to this for the 'enthusiast-consumer' (as opposed to the 'investment-consumer') - and that's pricing.

If (and it's a big if) Rolex were to price lower than "market", they will undercut and therefore deflate grey prices since greys can't complete with Rolex's Certified Pre-Owned guarantee. On the other hand, I don't think Rolex pricing higher than market will really affect the market at large (at least not in the short term) as there's currently a lot of stock that doesn't seem to be shifting at certain greys I've looked at recently anyway. Rolex may choose to price higher than market for the Certified Pre-Owned guarantee, but I can't see greys raising prices in the current market as they simply can't offer the CPO. So for them the current market price is the market price as they can't add any additional value to what they're already selling.

Pricing will be interesting. Rolex know full well that their RRP is a lot less than the market price, but they'd be foolish to raise RRP too much as they'd be opening themselves up to potentially "doing a Panerai" - i.e. following market trends and then getting caught out when things turn. But they may use their pre-owned pieces as a way of testing (and manipulating) the market. They could price high to test the waters, and then lower if needs be without damaging their standing.

A lot will depend on Rolex's goal with this - undermine and undercut the grey market, or simply to open up a new and highly lucrative income stream. Stock is obviously the biggest issue, but assuming Rolex have a handle on that, then it's interesting times.

[enjoythemusic]

Originally Posted by DeVille

We're about to see some interesting shifts in the market...

YES! And imho this is a very good thing.

Originally Posted by 77T

As long as all RSC required work items were performed, and because RSC only works on authentic watches, and because the RSC does a theft list verification, and the Watch gains a 2-year international warranty, then Bob’s could say it’s the same CPO watch as a participating AD offers. Except for the CPO card, Bob’s gets a 2-yr. RSC card.

Yes, interesting and well said. Bob probably doesn't do theft assessment (anyone know for sure) so buyer beware. i see timepieces from time to time on a certain popular FB sales board that my intuition says could very well be stolen goods. They also seem priced 'more attractively' than you'd expect as they have no box, no warranty card, no full set of links...

So do we actually trust Bob or a FB group... or a Rolex AD. i'll take Rolex AD for the win.

[Gazoak]

Just launched in the UK. This should be interesting as to how things move forward with the over-inflated prices of new unworn watches being sold on the grey market.

https://www.rolex.com/buying-a-rolex...pre-owned.html

Not sure if this has been rolled out worldwide.

[Auric Goldfinger]

Originally Posted by byow

Auric Goldfinger was right. Thank you for the information.

You’re welcome.

Happy to prove the aforementioned doubters wrong. More to come.

Originally Posted by trackingtime

likely for the US market only for now.

US will be 2Q22.

[Driver8]

https://www.rolexforums.com/showthread.php?t=882708

[minute_man]

Originally Posted by Driver8

Personally I think it's a great idea, and there is a potentially great upside to this for the 'enthusiast-consumer' (as opposed to the 'investment-consumer') - and that's pricing.

If (and it's a big if) Rolex were to price lower than "market", they will undercut and therefore deflate grey prices since greys can't complete with Rolex's Certified Pre-Owned guarantee. On the other hand, I don't think Rolex pricing higher than market will really affect the market at large (at least not in the short term) as there's currently a lot of stock that doesn't seem to be shifting at certain greys I've looked at recently anyway. Rolex may choose to price higher than market for the Certified Pre-Owned guarantee, but I can't see greys raising prices in the current market as they simply can't offer the CPO. So for them the current market price is the market price as they can't add any additional value to what they're already selling.

Pricing will be interesting. Rolex know full well that their RRP is a lot less than the market price, but they'd be foolish to raise RRP too much as they'd be opening themselves up to potentially "doing a Panerai" - i.e. following market trends and then getting caught out when things turn. But they may use their pre-owned pieces as a way of testing (and manipulating) the market. They could price high to test the waters, and then lower if needs be without damaging their standing.

A lot will depend on Rolex's goal with this - undermine and undercut the grey market, or simply to open up a new and highly lucrative income stream. Stock is obviously the biggest issue, but assuming Rolex have a handle on that, then it's interesting times.

Excellent point and I think it would be safe for Rolex to proceed with another price increase soon, regardless of how this plays out.
I believe we are likely to see list prices being raised to current grey market levels in the near future.

And I'll risk a guess, short term, about the recent 2ndary market price drop: Climate will be reversed, fueled by fomo.

I don't see how this model will improve availability and also, acquiring a Rolex at the current MSRP level is a ship about to sail.

The only good thing is that this opens up the vintage option for those of us who have been reluctant to walk the minefield...

[jingerman]

Will be very interesting to see how the entire inventory model and pricing model plays out… so many different theories and possible loopholes yet so exciting!!


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[Gazoak]

Sorry, missed that!

[APWhale]

Originally Posted by Auric Goldfinger

How’s the humble pie for breakfast?

Thanks for sharing the news. But it would be a classier move to not add insult to injury. It is clear to see who was right and who was wrong

[rambo99]

Originally Posted by Driver8

Personally I think it's a great idea, and there is a potentially great upside to this for the 'enthusiast-consumer' (as opposed to the 'investment-consumer') - and that's pricing.

If (and it's a big if) Rolex were to price lower than "market", they will undercut and therefore deflate grey prices since greys can't complete with Rolex's Certified Pre-Owned guarantee. On the other hand, I don't think Rolex pricing higher than market will really affect the market at large (at least not in the short term) as there's currently a lot of stock that doesn't seem to be shifting at certain greys I've looked at recently anyway. Rolex may choose to price higher than market for the Certified Pre-Owned guarantee, but I can't see greys raising prices in the current market as they simply can't offer the CPO. So for them the current market price is the market price as they can't add any additional value to what they're already selling.

Pricing will be interesting. Rolex know full well that their RRP is a lot less than the market price, but they'd be foolish to raise RRP too much as they'd be opening themselves up to potentially "doing a Panerai" - i.e. following market trends and then getting caught out when things turn. But they may use their pre-owned pieces as a way of testing (and manipulating) the market. They could price high to test the waters, and then lower if needs be without damaging their standing.

A lot will depend on Rolex's goal with this - undermine and undercut the grey market, or simply to open up a new and highly lucrative income stream. Stock is obviously the biggest issue, but assuming Rolex have a handle on that, then it's interesting times.

prices already revealed on websites.

[Trailboss516]

Originally Posted by rambo99

i wonder who would buy those rolex certified preowned watches, huge premium over the current grey market price!

Depending on the delta in price....me. I know the two stainless steel models shown in a previous post (GMT & Hulk) were commanding very large premiums, and I am in the market for neither. People have different risk tolerances and the definition of what the "delta" is for their threshold on who to buy from, but I have no problem stating that I'd be willing to buy CPO from Rolex on a desired PM watch ($30k+) that is $1k, $2, $3k more expensive than a trusted gray dealer if I wasn't getting the call to buy it at MSRP. That CPO card directly from Rolex is peace of mind I'm willing to pay.

Originally Posted by Auric Goldfinger

How’s the humble pie for breakfast?

Classic!

[d.n.d.]

Whoa auric called it!! Cannot wait to see how this plays out.

[Driver8]

Originally Posted by rambo99

prices already revealed on websites.

Ah OK, I'd not realised. Looks like they're priced quite high then. So now we know!

[1William]

Interesting information and program. As they say, "The devil is in the details". For Rolex to have inventory for this program it must come from AD's taking trades or buying watches from the pre-owned market. No one is gong to give a watch up for less than they can get from the market and if they use the pre-owned for a trade to the AD for a new watch then you could be feeding the secondary market again. There is a lot to be learned about how this is going to be implemented but one thing is for sure, Rolex has thought this through and they will benefit from the program. What and how that benefit is seen will be multi-tiered but it will involve making money and having more control in the market. I look forward to more information.

[GoingPlaces]

Originally Posted by Chewbacca

Auric Goldfinger has a track record of success. From robbing Fort Knox to expecting James Bond to die. He’s solid.

Actually he never robbed Ft Knox, just tried to blow it up. As for Bond, yes he did in fact expect him to die. Great line.

[rambo99]

Originally Posted by Trailboss516

Depending on the delta in price....me. I know the two stainless steel models shown in a previous post (GMT & Hulk) were commanding very large premiums, and I am in the market for neither. People have different risk tolerances and the definition of what the "delta" is for their threshold on who to buy from, but I have no problem stating that I'd be willing to buy CPO from Rolex on a desired PM watch ($30k+) that is $1k, $2, $3k more expensive than a trusted gray dealer if I wasn't getting the call to buy it at MSRP. That CPO card directly from Rolex is peace of mind I'm willing to pay.



Classic!

its not 1k, 2k or 3k. they are 40% over grey market price. will you accept it and take this route?

[Jshwarms]

It is also live on the USA site, so this is the real deal. Later Flippy Floppers!

[Mystro]

Originally Posted by Jshwarms

It is also live on the USA site, so this is the real deal. Later Flippy Floppers!

It’s only going to drive up the prices more with Rolex controlling more inventory and AD’s deciding how much junk jewelry you have to buy to get a preowned Batman. Buy more junk jewelry and will put you on a list for a new Batman. There will be a new list for preowned models now.
Nothing is going to change for the better. This is Rolex confirming the good old days of how you used to buy a Rolex 10 years ago are gone for good.

Grey market will respond and their prices will rise. This is a great move for Rolex controlling more of their product but not great for the Rolex consumer trying to buy a watch.

[kaiserphoenix]

12,300 GBP for a DJ41 in silver dial.

[Number3]

Originally Posted by Mystro

It’s only going to drive up the prices more with Rolex controlling more inventory and AD’s deciding how much junk jewelry you have to buy to get a preowned Batman. Buy more junk jewelry and will put you on a list for a new Batman. There will be a new list for preowned models now.
Nothing is going to change for the better. This is Rolex confirming the good old days of how you used to buy a Rolex 10 years ago are gone for good.

This is exactly my fear.

[rambo99]

Originally Posted by Mystro

It’s only going to drive up the prices more with Rolex controlling more inventory and AD’s deciding how much junk jewelry you have to buy to get a preowned Batman. Buy more junk jewelry and will put you on a list for a new Batman. There will be a new list for preowned models now.
Nothing is going to change.

Grey market will respond and their prices will rise. This is a great move for Rolex controlling more of their product but not great for the Rolex consumer trying to buy a watch.

you dont need to spend on any unwanted jewelry, just paid the asking price and walk out the door with your new rolex certified preowned watch.

[Mystro]

This is Rolex confirming the good old days of how we bought a Rolex 10 years ago are gone for good. I knew there was trouble when Rolex had empty display cases and decided the solution was display models you couldn’t buy.

Now you will have to get on a list for a preowned model at your AD. This is giving the AD more power to sell junk jewelry you don’t want.

[Kanbei04]

Hmm so if ADs will now sell pre owned for a 100% markup why would they even bother selling new for half the price? Just put the new ones directly in the pre owned case?

Never mind I see the 3 year limit now

[subtona]

Every preowned watch will be brought to Rolex specs
“Defects” cured and cases polished.

I wonder what the cutoff will be as far as age/reference?

Originally Posted by minute_man

…
The only good thing is that this opens up the vintage option for those of us who have been reluctant to walk the minefield...

Reading backwards from my above post… Rolex is notoriously insensitive when it comes to vintage, they don’t service watches after a certain age (~30years?) and once that watch is just new enough to be serviced, Rolex replaces those elements that bring value to the vintage collectors.

Thanks for sharing the news. Most interesting read in some time.



If the Minimum 3 years old holds true over time,… it can help avoid Rolex building its own ticket-master business model. Has the maximum age of CPO been mentioned?

Have to say I am happy my interest remains in the 5 digit references.