If SS MSRP jumps 12%, will preowned take the same jump?

[viper]

what are your thoughts?

if LVs jump to ~$5500 & SS Daytonas to ~$7800, will pre-loved models jump respectively?

just curious, i haven't watched trends in the past so i may be able to "get more" if i wait til next week or so

[C.J.]

I would think used values will see some increase I don't know about 12% though, I guess a lot would depend on the condition of the watch

[s7horton]

I'm pretty confident in saying that they won't see a 12% increase. Maybe a three or four percent increase. I doubt much more than that.

Originally Posted by s7horton

I'm pretty confident in saying that they won't see a 12% increase. Maybe a three or four percent increase. I doubt much more than that.

I agree. Unlike retail, in the used market, the market dictates what buyers will pay. The used Rolex market is quite soft, so I can't see any increase of substance.

[haakon59]

The used market responds to the dynamics and laws of supply and demand just as the retail market does. Rolex as a company doing business throughout the world may be factoring in a "price cushion" to enable them to shield themselves from loses due to currency fluctuation and current currency trends, whereas used prices typically are not quite as responsive to this concern, although with the Internal enabling private parties to trade internationally much easier, this difference might disappear over time. Also, my guess is that their aggressive pricing strategy is probably taking into account a worldwide trend towards income inequality which creates a financially stronger wealth class. From what i have seen, used watch prices tend to be tied more to the percentage of current manufacturing costs rather than the retail price. Worldwide the last few years we have seen quite a jump in commodity prices, which would affect manufacturing costs, etc. So my guess is that the used price of Rolex watches won't jump only because of the rise in retail prices (although such a rise may have an increase in manufacturing costs as part of it's rationale) but will respond more in line with current manufacturing costs and commodity pricing. At least that is my guess.

[astcell]

Used models around here are about 10% less than new, getting ready for the price hike, sigh.

[JJ Irani]

Originally Posted by viper

what are your thoughts?

if LVs jump to ~$5500 & SS Daytonas to ~$7800, will pre-loved models jump respectively?

just curious, i haven't watched trends in the past so i may be able to "get more" if i wait til next week or so

Hi Vipe,

Preowned prices will certainly go up, but certainly not as much. Also the prices on these older models will vary from model to model and from age to age. No consistency there and really no relation with the prices of the new ones.

JJ

[viper]

thanks for the input guys

i guess i'll just wait & see what happens..

i wonder if i should pull the trigger on that 16613 before the price hike!

[C.J.]

Originally Posted by viper

thanks for the input guys

i guess i'll just wait & see what happens..

i wonder if i should pull the trigger on that 16613 before the price hike!

Rolex has been mentioning a price hike for a long time now. I'm not saying it's not going to happen but, I'll believe it when I see it

[haakon59]

I should also note that Rolex as a company is supporting higher used prices by having "shows" with used Rolexes that have been reconditioned by them. Often, used Rolex watches (of course this varies with age and condition) are priced at roughly 58% of new prices (dealer cost for rolex is 58%). However, they have been touring various cities in the U.S. (I don't know about other countries) trying to raise used prices by selling their stock at 75% of new with the added bonus of a one year guarantee and reconditioning the watch. New car dealers of high end brands sometimes do the same thing by offering quality preowned cars that have been repaired/restored by their mechanics to be "certified" as in good condition. I am sure it will take several years to accomplish what they want, as 75% seems like a stretch. But Rolex has always been good at supporting the price of their product, so we'll see. Most used prices that I see vary from 50-58% of current retail prices, so when they go up, used prices also naturally go up.

[mike]

Hopefully I can report something in a couple of days. My city is having one of these shows.
I just got a call from the AD. They are expecting 40 to 50 additional Rolex pieces. No break down on what yet.

[OysterDavid]

Here in Northern California, and in my surfing the internet, I see fairly soft prices for the more common pre owned Rolex models like the TT Datejust on Jubilee. I see a VERY soft market for the lesser models like Date's, mid sized Datejusts and Yachtmasters and the higher end solid gold models. When I scan the forum boards out of curiosity (and 'cause I like the pictures) I see many of the same watches up for sale over and over again with falling prices for the mainstream models. And when I scan the on line pre owned retailers, the same watches keep smiling back at me.

As others above have noted, the pre owned market is very much a function of buyers vs sellers and when there are more watches than people wanting them, prices soften or outright fall.

It would be presumptious of me to try and target a typical pre owned buyer for demographics and then work backward and try and figure out why that person is or is not interested in plunking down thousands of dollars for a watch. Are falling real estate values the issue? Is unemployment fear the issue. Have they just decided a new car is going to be more fun than a Rolex? Who knows? But it is fun to read this forum.

Aloha.

[astcell]

My AD (Mayor's) had 141 watching on a rolling estate sale. They are in Atlanta now. None of them smiled at me though as few of them flirted. The AD told me the showing was very small, they usually have closer to 300 watches.

[Mark]

An AD in Jacksonville stated a 15% increase coming on popular sport models. Much less on others.

[JJ Irani]

Originally Posted by Rev

An AD in Jacksonville stated a 15% increase coming on popular sport models. Much less on others.

And I guess "popular" would mean the SS Sub-date, SS Daytonas and maybe the GMT-II!!!

[s7horton]

I'll be interested to see if they TT GMT (new one) gets a price increase. Seems since they just brought it out, it should have already been given the increase.

[JJ Irani]

Originally Posted by s7horton

I'll be interested to see if they TT GMT (new one) gets a price increase. Seems since they just brought it out, it should have already been given the increase.

Agreed !! Was quite shocked when I first learnt of its price being LESS than the TT YM!!