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

[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.

[Zakalwe]

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.

I generally would use 0% finance despite having the cash for a watch purely because it makes financial sense to do so. However when I bought my BLNR in January they (Aurum) said they didn't offer it on that watch. Subsequently I didn't even bother to ask when I bought my OP as it wasn't a big deal to me. I don't really understand why it might matter to them. Sure they're not earning a commission for selling on finance like a car dealer does, but I don't see what the downside would be.

[faimag]

What do you mean "take 0% on a rare watch" ???
Like, pay with credit card and arrange monthly installments with 0% interest???

If so, why would the AD care? The interest goes to the bank...

[3sheets86]

I think that they must have to fund it slightly to make it 0%. That's what happens in the motor trade which is why if discount is available you can have one or the other but not both.

[3sheets86]

Originally Posted by faimag

What do you mean "take 0% on a rare watch" ???
Like, pay with credit card and arrange monthly installments with 0% interest???

If so, why would the AD care? The interest goes to the bank...

In the UK the Goldsmiths group offer 0% on Rolex with their own finance company.

[Zakalwe]

Originally Posted by faimag

What do you mean "take 0% on a rare watch" ???
Like, pay with credit card and arrange monthly installments with 0% interest???

If so, why would the AD care? The interest goes to the bank...

Hereabouts the large jewellery chain that operates the majority of Rolex AD's offers it's own 0% finance loan on many of it's products, including watches.

Originally Posted by 3sheets86

I think that they must have to fund it slightly to make it 0%. That's what happens in the motor trade which is why if discount is available you can have one or the other but not both.

Ok that makes sense. In which case you've answered your own question. They could sell a popular sports reference within seconds and without hassle for cash, so if offering finance loses them money on the watch, even a small amount, I can see why they wouldn't be keen.

[Dogdad]

It usually cost a fee for a business to offer 0% interest .

[3sheets86]

Originally Posted by Zakalwe

Hereabouts the large jewellery chain that operates the majority of Rolex AD's offers it's own 0% finance loan on many of it's products, including watches.



Ok that makes sense. In which case you've answered your own question. They could sell a popular sports reference within seconds and without hassle, for cash so if offering finance loses them money on the watch, even a small amount, I can see why they wouldn't be keen.

They shouldn't offer it then should they.

[Zakalwe]

Originally Posted by 3sheets86

They shouldn't offer it then should they.

You asked if it upsets AD's, I gave you a reason why. I'm just answering your question!

[Speedbird-1]

"0% interest" means you will probably
pay a slightly higher, non-negotiable price.
If you offer cash, you'll probably get a deal.
Not much, is really 'free' in commerce.

'Swings and roundabouts' as we say....

[3sheets86]

Originally Posted by Zakalwe

You asked if it upsets AD's, I gave you a reason why. I'm just answering your question!

I wasn't meaning it at you, I was meaning it in frustration at them for offering it when they probably really prefer you not to take it.

[Yobber76]

If it's a method they use to sell their merchandise, I wouldn't think they would care. Perhaps offering to pay a decent cash down payment (maybe 20%) up front to help the transaction would make it more appealing for them if they have a fee to the finance company.

[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.

[3sheets86]

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.

So it obviously does cost them doesn't it.

[Uppersouth]

The 0% financing options often require dealer participation of up to 5% of the financed amount. So yes, for the AD they’d rather not give up the margin on hot references.

[beshannon]

Originally Posted by 3sheets86

Do you think it upsets AD's if you take 0% on a rare watch when they offer it?

I would never stop to think about it.

[Mystro]

Go for it. 0% is free money.

[TeddyS]

Maybe get a 0% on purchases credit card. It’s quite normal to find cards that offer this for up to 36months. Then at the end of the term, if you want you can get a 0% on balance transfer card and transfer it over for a further 36 months.
Personally I use my Amex Cos I’m a fiend for the air miles


Sent from my iPhone using Tapatalk

[3sheets86]

I'm alright now but I'm just thinking that because I have done it in the past I might have muckied my ticket with them for a new Daytona or SD43.

[2th_doc]

Most ADs will not offer IN-HOUSE FINANCING on a “hot watch” such as a Daytona C, SS Pepsi, SS Skydweller. Now if you choose to use your own credit card which may have 0% then thats fine.


Sent from my iPhone using Tapatalk

[Devildog]

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.

I doubt it. Mappin & Web is part of the Aurum Group (as is WoS and Goldsmiths)

All use V12 Retail Finance who administer loans from Secure Trust Bank PLC (its not "their own" finance as is often believed)

My understanding is that the retail outlet itself does not bear the cost of offering the finance, each of the group companies do, so its unlikely that your local retailer has taken any pain as a result of you purchasing a previous Daytona on 0%.

What may have happened is that as you financed your last watch, they don't see you as a serious VIP/purchaser who has the resources to buy more references from them and therefore you've been overlooked for Daytona C purchasers who do.

[travisb]

I've dealt with ADs that offer 0% but won't allow it to be used towards a SS Daytona. It's the only exception. Can be used on any other reference.

[TeddyS]

I would hope that they don’t black ball you because you used a service that they offer. That would be ridiculous


Sent from my iPhone using Tapatalk

[LINVS]

0%, but they earn at least 38% on the watch, clear some inventory, and make contact with a verified customer?

Oh, and did you have to spend $100k to get a shot at that Daytona?

Sounds like a good deal.

[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.

[tyler1980]

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.

thats kind of like saying does your CC company get mad when you pay in full every month? Nope. They need a mix of accounts to hedge against the defaults. A lot of people miss payments and generate fees and end up making them a lot of money or they default. Their pay in full people guard against everyone defaulting at the same time.

Usually the APR is based on credit anyway so getting zero percent makes good credit people buy because its a cash flow tool and they buy more. Other people think its 0% then they get their credit run and its not zero percent anymore. They still buy because you are sort of committed at that point.

[breitlings]

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.

pragmatic

[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.

[Fleetlord]

Yes, it upset them because it cost them money for the 0% plan. The buy down could be up to 15% of the purchase price.....depends on the length of the loan and deal worked out with the finance company.

Traditionally watches like Daytonas are sold without financing because there is 0.0 reason for the dealer to lose a cent on that watch. The buyers are able and willing to pay immediately and in full without hesitation or the use of margin draining finance options.

I'm surprised they processed the transaction at all. They could have made full boat on the next bloke with no effort whatsoever.

[Fleetlord]

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.

Those stores or (their corporate office pays and the cost is allocated to the store)
for those consumer financing plans.

For example a 36 month 0% interest plan has a merchant fee of 12% of the transaction.

24 months would be 8.5%....etc

That's why many dealers don't offer it on SS Rolex sports. They are leaving money on the table via the consumer financing merchant fees when they don't have to. Cash customers are stumbling in to the store all the time, just wait to sell without margin lost