Do you think it upsets AD's....

[KBM]

Well, if they offer it to begin with, can't see why it would upset them.

[SLS]

Depending on how long the term is, it will cost the business at least 8% of the amount financed. So there goes any chance of a discount. Nothing is for free.

[vinny84]

I would take the 0% financing if it’s offered. Let your money sit in the bank and just make installments.

[DPE]

Why would it upset them ? and if it did surely they would not offer the 0% deal ?

[Ichiran]

Having such finance scheme is a way to boost the revenue for these ADs. Some of these ADs are listed companies and they have their own share prices to think about.

Obviously this arrangement hits their profit margin but if consumer leverage is the way forward, then so be it. Having more revenue will bring about higher profit anyway.

Back to OP's question, I do not think having one or two models off the finance scheme will affect the AD's profit margin significantly, unless they sell a lot of 500c/5711 which is apparently not so due to the scarce supply.

[hugs]

Depends if they offer it themselves or with a third party.

If they sell you credit through a third party (i.e. a bank) they will likely receive payment for this (much like a car purchase these days - they prefer to sell via finance as they feceive payment from whatever bank they refer you to)

It is likely the particular employee was annoyed simply because they had to do extra paperwork!!

[Speed]

Originally Posted by vinny84

I would take the 0% financing if it’s offered. Let your money sit in the bank and just make installments.

I don’t think that’s the way it works. I believe you have 0 payments for a set time, then you owe the entire amount at a point in the near future.

Someone please correct me / fill in on the usual process.

[DylanFox]

Tourneau offers 18 month 0% interest.

[torifile]

Originally Posted by Chiboy

What I would do when buying a watch where the AD is more doing you a favor by selling it to you than you are doing them a favor by buying it is to ask, "Do you mind if I (use a credit card) or (take you up on your 0% financing offer)?" If they say, "We can't stop you from doing that but would prefer you didn't" then I would not take advantage. If you show interest in making THEM happy while they are making YOU happy, it may go a long way to establishing that relationship you are looking for.

Originally Posted by breitlings

pragmatic

When did you all get so whipped? Seriously. The incentives in the Rolex world seem so screwed up. You act like they’re doing you a favor by allowing you to buy a $15k watch. I’m not in the market for a Daytona but if this is how I was treated were I fortunate enough to have that coin, I’d quickly change my mind. No watch is worth that, especially if I’m having to pay full freight for it.

[torifile]

Originally Posted by Speed

I don’t think that’s the way it works. I believe you have 0 payments for a set time, then you owe the entire amount at a point in the near future.

Someone please correct me / fill in on the usual process.

That’s right. Usually some multiple of 6 months. Still, $15k sitting in the bank or a mutual fund will make more than 0%. I’ll sometimes take 2-3% offers depending on whether I’m actively managing my portfolio at the time.

[Seibei]

They would not be offering it if it upset them, would they?

[Sant476]

I just bought my new watch with the 0 percent. They told me you cannot get a discount on the watch if you finance it, bc they pay the bank the interest. They offer up to 15 percent on certain models and obviously 0 on others regardless of how you pay. And I believe there are some loop holes such as if they give you a small discount (like covering the tax) on certain models and there is no downpayment they will give you 0 percent for 10 months or if you put 15 percent down you get 0 percent for 30 months. I didn't pay much attention to those specifics bc I knew what I wanted and I got no discount and put 15 percent down.
I forgot the
I am not sure if they would finance SS sport models though.

[Speed]

Originally Posted by torifile

That’s right. Usually some multiple of 6 months. Still, $15k sitting in the bank or a mutual fund will make more than 0%. I’ll sometimes take 2-3% offers depending on whether I’m actively managing my portfolio at the time.

Ah. Thank you.

I recall asking at an A. Lange & Sohne boutique in Las Vegas a while back...I didn’t remember all the details, but clearly if you dint have the cash in reserve, the deal turns into a nasty loan in 6-12 mos.

[Devildog]

Originally Posted by Speed

Ah. Thank you.

I recall asking at an A. Lange & Sohne boutique in Las Vegas a while back...I didn’t remember all the details, but clearly if you dint have the cash in reserve, the deal turns into a nasty loan in 6-12 mos.

That would be a deferred payment deal in the UK. Pay nothing for 6 months and then the balance is due

The way the deals the OP is discussing work is that you pay a deposit (minimum 10%) and then pay the balance in equal monthly installments over 6, 9, 12, 18, 24, 36 or 48 months. There's no deferred amount or hidden surprises - just a minimum spend and minimum credit balance for the deal to be available.

So a £6,000 watch would be £600 deposit and say £155.55 per month over 36 months.

You can't sell 0% finance deals in the UK with anything other than 0% rates. The finance companies even have to waive arrangement fees, etc, as the total payable cannot exceed the cost price of the item of they can't sell it as 0%.

[Speed]

Originally Posted by Devildog

That would be a deferred payment deal in the UK. Pay nothing for 6 months and then the balance is due

The way the deals the OP is discussing work is that you pay a deposit (minimum 10%) and then pay the balance in equal monthly installments over 6, 9, 12, 18, 24, 36 or 48 months. There's no deferred amount or hidden surprises - just a minimum spend and minimum credit balance for the deal to be available.

So a £6,000 watch would be £600 deposit and say £155.55 per month over 36 months.

You can't sell 0% finance deals in the UK with anything other than 0% rates. The finance companies even have to waive arrangement fees, etc, as the total payable cannot exceed the cost price of the item of they can't sell it as 0%.

Ah...

Yes. That could turn into a pricey affair with a Lange 1

[Wcdhtwn]

Originally Posted by 3sheets86

If you take 0% on a rare watch when they offer it?

I got the last model ss Daytona from Mappin and Webb on 0% and they didn't seem to like it but had to do it. I wonder if it's had a detrimental effect on future rare watch offers? I've been on their list for a new Daytona since it was announced.

The owner of the AD, or the AD him/herself wouldn't be upset. But I bet it costs the sales person some commission so they probably don't like doing it.

Agree with others in this thread, that if they don't like it why do they offer it? I've never seen a sign at an AD offering 0% financing, I've heard it offered by a sales person, very discreetly, when a buyer is showing signs of price sensitivity. It must be a way to get a deal closed on someone who doesn't have the cash or doesn't want to spend it all that day.

My guess is it started as a way to move PM pieces but grew to include SS as more buyers stretch finances to get into Rolex.

[3sheets86]

I'd never buy a luxury item like a watch if I didn't have the money to pay for it if I wanted to but always consider 0% if available.

[Dnf888]

Originally Posted by Pudsey bear

I was told when I went to Goldsmiths and various other ADs that interest free credit would not be offered on ‘rare’ pieces.

I have been told the same, by my Goldsmiths’s, and considering that Mappin and Webb are part of the same group (Aurum Group) I’m surprised that the OP was given 0% on the Daytona. I’ve had 0% before, from Goldsmiths, and the finance was with Hitachi Finance. So, in theory, Goldsmiths should have given something to Hitachi Finance for doing the 0% and in a round about way, discounted the Daytona on their internal paperwork.

It’s their own fault, but I think somebody there is gonna get their ass kicked.

Unfortunately for you, OP, I think you may become famous at that AD.


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[Dnf888]

Originally Posted by Wcdhtwn

The owner of the AD, or the AD him/herself wouldn't be upset. But I bet it costs the sales person some commission so they probably don't like doing it.



Agree with others in this thread, that if they don't like it why do they offer it? I've never seen a sign at an AD offering 0% financing, I've heard it offered by a sales person, very discreetly, when a buyer is showing signs of price sensitivity. It must be a way to get a deal closed on someone who doesn't have the cash or doesn't want to spend it all that day.



My guess is it started as a way to move PM pieces but grew to include SS as more buyers stretch finances to get into Rolex.

It’s very common place here in the U.K. It’s not just for the watches, but also the jewellery that they have in store.
There are normally signs, in the window displays, in amongst the items for sale.


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[Boaters]

The way I look at it jewelry is disposable income and if you can't pay cash then forget it.

[Dnf888]

Originally Posted by Boaters

The way I look at it jewelry is disposable income and if you can't pay cash then forget it.

It’s not about whether you can pay cash for the item, it’s about what you can get back instead of using the cash. The £10k, I could have used on my wife’s watch, earns about £20 per month interest, in my Santander account. Over the 24 months of 0% Finance, I’ve received £480 discount, in a round about way. They weren’t willing to discount the watch, but they did in effect.


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[avega357]

Originally Posted by Likestheshiny

Most jewelry stores are just passing the purchase on to a loan dealer, and it doesn't cost them anything. The loan dealer benefits because there are fees associated with late payments, and they profit from a meaningful proportion of the 0% loans they make.

If the store seems reluctant, then they might be doing it in-house, but that's almost certainly a minority of the 0% offers that are out there.

Yeah, I think it is just the cost of doing business

[avega357]

Originally Posted by Wcdhtwn

The owner of the AD, or the AD him/herself wouldn't be upset. But I bet it costs the sales person some commission so they probably don't like doing it.

Agree with others in this thread, that if they don't like it why do they offer it? I've never seen a sign at an AD offering 0% financing, I've heard it offered by a sales person, very discreetly, when a buyer is showing signs of price sensitivity. It must be a way to get a deal closed on someone who doesn't have the cash or doesn't want to spend it all that day.

My guess is it started as a way to move PM pieces but grew to include SS as more buyers stretch finances to get into Rolex.

Very perceptive and analytical