Calculation Depreciation/Value of Rolex

[portman]

I am looking into getting a second Rolex later this year. This is after 10 years after I purchased the first one - so I do think it is time to reward myself for the past 10 years of working hard...

I am looking at a Hulk Submariner and it is considerably higher in price than the GMTiic I have now.

The problem is that now I have a wife whom I need to convince. Sure I can go out there and get one but I want to keep it transparent so she doesn’t have to find out any other than from me telling her.

To do that I think I want to show her that it holds its value.

So for example, if I bought my 116710LN for $7500 10 years ago, and assume I could get $7500 if I sold it today - would you say it held its value or did it lose value?

I think the “retail” price has gone up and an unworn one online is north of $8000. So I think I did okay?

Thanks guys for answering. Thanks.

[SubMarine]

$7500 is a very hopeful and optimistic price for your pre-owned model.

[rolexryan329]

Good chance your wife won’t care to hear about inflation and the CPI but all you have to do is tell her you bought it for $7500 and now you can maybe get the same $7500 for it after wearing it for 10 years. If you wear the hulk very lightly, you can maybe sell it for a premium (relative to today’s msrp) in the future especially in today’s market due to speculation about the hulks fate. Doesn’t hurt to add that a stainless sub is a very liquid watch

[beshannon]

Originally Posted by portman

So for example, if I bought my 116710LN for $7500 10 years ago, and assume I could get $7500 if I sold it today - would you say it held its value or did it lose value?

I think the “retail” price has gone up and an unworn one online is north of $8000. So I think I did okay?

Thanks guys for answering. Thanks.

It lost value. Quite a bit actually.

Consider inflation, the currency devaluation of the US Dollar and interest rates.

Trying to rationalize the purchase of high end luxury jewelry in this manner always fails.

Either buy the watch or don't.

http://www.usinflationcalculator.com/

[tyler1980]

it lost value... and dont forget you will get way, way less than the going rate a TS is offering if you sell yours. Look at a comparable model and subtract 30%. Thats the ballpark what a seller no one has ever heard of can get and its also about what a dealer will offer to buy it for.

No one will pay market price from you if they can pay market price from a dealer they know and trust. So you have to make it worth the risk.

[Tools]

The point is that it has value, not if it held or gained.

Try to sell, or find value in, a 10 year old Timex or Tag.

[chad362wiley]

If you can wear and enjoy a watch for 10 years and recoup the majority of your money you’re doing great. A green sub should do well in the future, just buy it at retail and your money, barring drastic market changes should be there. Go for it! If you get it at retail and ever need cash you’ll get more than what you paid in a heartbeat from a TS

[tyler1980]

Originally Posted by Tools

The point is that it has value, not if it held or gained.

Try to sell, or find value in, a 10 year old Timex or Tag.

agreed. Its not a bad rental fee 10 years later. Watches or cars, a Rolex holds its own in that regard.

[Duey]

So if you bought a 116710LN 10 years ago the MSRP was I believe $5950. And if you sold it today , after a decade of enjoyment, you could probably get $7500.
That's a $1500 profit just to wear a watch for a decade. That's why we buy Rolex SS Sport models, oh and to enjoy them too .....

[hbombkid]

Might lose a little but I don’t think anything crazy. Timing is everything though especially on model. Now I did a trade etc, but my BLNR gone two years ago I wore it for a year and sold it for exactly what I paid for and I could even get more today.

Even my Sub date I paid 7200 bet I could get close to that today.

At worst tell a little fib and say it will definitely hold value and maybe even say it will go up in value 5-10%. Will she really check? I know my wife won’t and at worst buy her a necklace or earrings instead of asking questions.

[WhiskeyKoffee]

I always look at it as a "cost of ownership" issue. This is especially true for purchasing vehicles. If I purchase a car for $50,000 and two years later sell it at it's market price of $38,000, my costs of ownership was $12,000 over two years, which equals $500 per month. If you do your research and crunch the numbers, most higher end vehicles such as Mercedes or Audi have a lower cost of ownership than many of the much lower end vehicles. The reason is very simple - the higher end vehicles hold their value much better.

With this in mind, if you purchase your LVc at mssrp (which is possible, I did it a few months ago) and take good care of it, the value will hold well and when you eventually sell it (if you do) you will find that the cost of ownership over that extended period of time was very, very negligible.

Go go get your Hulk and don't feel the least bit bad about doing so!

[dmash]

It’s honestly so silly to even look at it as a store of value to begin with. A watch is something to enjoy, not a savings bond. Still to this day, I don’t understand these threads.

If you simply can’t get over this and want to look at its ‘value’, how is anyone not ECSTATIC if it’s worth even 50% of its value after 10 years (ignoring inflation)? If you bought a Mercedes for $50k and drove it daily, you’d be over the moon to sell it for $25k in 2028.

[Muxi]

I suppose it is just more fun to sometimes think of it that way, that a Rolex may hold its value. The fact is, my YG President that my brother gave me as a graduation present in 1997 which he bought for about $10k is still worth pre-owned about $11k today in our local market. It will never be sold but it could sell at that today. Another way of looking at SS models now is one’s ability to change models or upgrade without taking much of a haircut. It’s all in good fun for people who don’t really sell or trade. Compared to cars or any other item for that matter, residual value is next to nothing for most of our possessions that are not collectibles.

[datejustrms]

Originally Posted by beshannon

it lost value. Quite a bit actually.

Consider inflation, the currency devaluation of the us dollar and interest rates.

Trying to rationalize the purchase of high end luxury jewelry in this manner always fails.

Either buy the watch or don't.

http://www.usinflationcalculator.com/

x2

[Mr. K]

Time value of money? 10 years when you could've invested that money.

But, hold value? What is value? Hard cash? If you consider the value you received in enjoyment, then you have probably made a 1000 times return.

[Wcdhtwn]

It's really hard to justify buying something expensive with future valuation calculations. I'd tell her you want it, you like it, it'll make you happy.

Importantly, assuming this is the case, assure her that if something unexpected and expensive happens you have the money to cover it, and you aren't spending that savings, call it an emergency fund, on a watch.

[997.2]

Sad if you're thinking about buying a watch for it's future value

[SubMarine]

Originally Posted by 997.2

Sad if you're thinking about buying a watch for it's future value

He's not thinking about that. He's trying to rationalize the purchase to his wife and perhaps himself, as well.

[MinMay]

Originally Posted by 997.2

Sad if you're thinking about buying a watch for it's future value

It's okay...I need buyers when I sell my watch in the future

It would be sad if I put 10K for 10 years only hoping to sell it for 10K. My wife would say "Are you stupid?" :) . Smart money would have gain multiple free Rolex after 10 years

[vinny84]

You could always put your money towards something that can generate income for you as an investment but sometimes you got to find a little bit of enjoyment in your life. You can’t always think about if you did ok or not on a watch.

If you paid $7500 10 years ago and can get it back 10 years later, then to me that’s a win. Did you gain any value? Nope. Did you enjoy having a Rolex on your wrist for 10 years? I think we all know the answer to that question

Go for what you desire and enjoy it. Life is too fragile to worry over small potatoes in the grand scheme of life