Rolex Market Madness

[Trog]

WTH is going on out there! Over the last two weeks, I posted two Rolex sport watches for sale (Sub and GMT) on our local Craigslist forum.
In both cases, the watches were sold within a day at asking price.

I realize with no inventory available at AD’s the used market has become the popular go-to place to pick up a steel Rolex. But what makes my experience troubling, is that in both cases, the buyers were pretty young (in their 20’s) and admitted to having to borrow the funds to finance this purchase.

Now it could be argued that Rolex is an investment and borrowing money to buy one makes sense. But it just seems inappropriate to go into debt to finance a luxury watch.

Am I out of touch with today’s reality…where everything is bought on credit?

[123Blueface]

Never, ever finance a luxury item unless it’s a Same As Cash offer where you can keep your money invested and pay gradually, within allowed time, with zero interest.
Young folks don’t understand that generally.

[Heady Topper]

I don't think two buyers represent today's reality. That said, I see no problem with people doing that. Example, I'm not into cars and drive a beat up Mazda 3 but wear a Rolex lol

[Yellowfury]

the more concerning trend is people rolling existing loans on their trade-ins to new loans on their new car. you're instantly underwater on your loan.

[Cooper33]

The most concerning thing is you actually successfully selling 2 Rolex using Craigslist

[Trog]

Originally Posted by Cooper33

The most concerning thing is you actually successfully selling 2 Rolex using Craigslist

I've got coffee coming out my nose...thanks for the laugh!

[exador]

OP, you obviously priced them too low. The Instakiddie buyers will take a quick selfie with the watch and then flip to a Grey for $500 profit.

(sorta)

[Calatrava r]

More people use credit for this stuff than they will admit is my guess. It is sad when young people get on the treadmill so early in life and have nothing to show for their years of labor later in life but piles of debt.

[2nastie]

These kids are on the hypebeast mentality. Thinking watches are an investment as well as a social media status element.

Straightforward speaking, they have no business owning these piece at this stage of their life. Pretty naive.

I've run into a few locally as well that are willing to sink in $20k CAD + in order to flip watches for $1k return (5% or less than in some cases as return). These aren't sneakers or Supreme people!

[RyanJ]

Who are we to say when someone is ready to own a Rolex? It is just a damn watch. Not a thing special about it.

I will make sure to tell the 20 somethings that I work with who are pulling in 15k a month or more that they don't deserve a mid tier steel watch. Haha..

To many, Rolex is the watch equivalent of high end sneakers or Supreme merchandise. All of it is just over hyped toys.

[peterpl]

Your just lucky. Plenty cant sell their watches atm or they can but not at their asking prices.

[Jabbo84]

This country was and still is built on credit

[2nastie]

Originally Posted by RyanJ

Who are we to say when someone is ready to own a Rolex? It is just a damn watch. Not a thing special about it.

I will make sure to tell the 20 somethings that I work with who are pulling in 15k a month or more that they don't deserve a mid tier steel watch. Haha..

To many, Rolex is the watch equivalent of high end sneakers or Supreme merchandise. All of it is just over hyped toys.

I'm sure you missed the part where the OP said these individuals had to borrow in order to purchase these watches.

It's not an age discrimination. Its the mindset of over-leveraging when you don't have the financial means in order to be the cool kid.

[Yellowfury]

missed out on when rolex was a hypebeast thing.

Just got out of my 20s (aka just turned 30) last month and I only hear of rolex as being something you bought to show you "made it". I'd say right now AP and RM have more mind cache among younger people due to rappers and other celebs.

[Nikrnic]

My 20 yr. old nephew says my Rolex are cool but he wants an AP. hehe..

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[Mystro]

Originally Posted by RyanJ

Who are we to say when someone is ready to own a Rolex? It is just a damn watch. Not a thing special about it.

I will make sure to tell the 20 somethings that I work with who are pulling in 15k a month or more that they don't deserve a mid tier steel watch. Haha..

To many, Rolex is the watch equivalent of high end sneakers or Supreme merchandise. All of it is just over hyped toys.

OT: What occupation is this??? My wife can’t find anyone under 35 worth the cost of even training them for a federal job with full benefits. They can’t (or won’t) show up for a interview on time and when they do they interview poorly in front of a review board. This isn’t age discrimination but a real observation with trying to hire/work with this generation. I am glad I retired early and don’t have to deal with it.

[~JJ]

Originally Posted by RyanJ

Who are we to say when someone is ready to own a Rolex? It is just a damn watch. Not a thing special about it.

I will make sure to tell the 20 somethings that I work with who are pulling in 15k a month or more that they don't deserve a mid tier steel watch. Haha..

To many, Rolex is the watch equivalent of high end sneakers or Supreme merchandise. All of it is just over hyped toys.

Did you read the original post? The concern is around financing luxury items vs age discrimination.

[Notsoprobro]

Originally Posted by 123Blueface

Never, ever finance a luxury item unless it’s a Same As Cash offer where you can keep your money invested and pay gradually, within allowed time, with zero interest.
Young folks don’t understand that generally.

As someone in his early 20s... this.

I bought my 116713 using a credit card promotion, 0% interest. Placed the money in a medium risk investment and just paid the watch off month by month. Decided to pay the last chunk off this month and having the money invested over the past 7 months accounted to an additional 6% discount on top of the credit card rewards.

[Notsoprobro]

Originally Posted by Mystro

OT: What occupation is this??? My wife can’t find anyone under 35 worth the cost of even training them for a federal job with full benefits. They can’t (or won’t) show up for a interview on time and when they do they interview poorly in front of a review board. This isn’t age discrimination but a real observation with trying to hire/work with this generation. I am glad I retired early and don’t have to deal with it.

My guess is a combination of the job/industry. I work in Fintech with a bunch of other 20 something year olds whom take the job very seriously. I will admit that a majority of my peers from high school/college are off screwing around - that's just the way it goes.

[jkap2323]

I’ve been lucky with tourneau for both my Rolex purchases. I use their interest free/financing and will stretch out the installments to whatever their max is at the time. Typically 18 month or 30. No reason to sink that much money into a watch if I can spread it out over time without paying a dollar more than MSRP + tax. I’d rather have that chunk of cash earn within my portfolio in the interim and I’ll stick to making monthly payments. Usually pay the balance off early to grab another piece if there are any I have been wanting.


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[Alastris]

Originally Posted by 2nastie

I'm sure you missed the part where the OP said these individuals had to borrow in order to purchase these watches.

It's not an age discrimination. Its the mindset of over-leveraging when you don't have the financial means in order to be the cool kid.

This.

[Sandpit]

Something I’ve been saying for ages. The western world is currently being propped up by cheap credit. It’s the same for consumers and business alike. Debt is at an all time high and that is, in my view, largely because of the attitude of people that want everything now.

When the next crash comes it is going to hurt an awful lot more than the last one.

[Billfish]

Originally Posted by Heady Topper

I don't think two buyers represent today's reality. That said, I see no problem with people doing that. Example, I'm not into cars and drive a beat up Mazda 3 but wear a Rolex lol

I like how you roll!

[akordz]

I think that's being a real Rolex fanatic but still not quite cool with having to borrow funds to get it done.

[LandWatch]

Originally Posted by Mystro

OT: What occupation is this??? My wife can’t find anyone under 35 worth the cost of even training them for a federal job with full benefits. They can’t (or won’t) show up for a interview on time and when they do they interview poorly in front of a review board. This isn’t age discrimination but a real observation with trying to hire/work with this generation. I am glad I retired early and don’t have to deal with it.

The youngsters I’ve come across in banking/ PE are focused and very hard working. Certainly, a very different experience to your wife’s ...

[derekhayden]

Originally Posted by Sandpit

When the next crash comes it is going to hurt an awful lot more than the last one.

This 100%. Most 20 somethings had no responsibilities during the last crash and were pretty unaffected. Competing with the Jones' has been taken to a whole new level with social media.

[AK797]

Originally Posted by 2nastie

These kids are on the hypebeast mentality. Thinking watches are an investment as well as a social media status element.

Straightforward speaking, they have no business owning these piece at this stage of their life. Pretty naive.

I've run into a few locally as well that are willing to sink in $20k CAD + in order to flip watches for $1k return (5% or less than in some cases as return). These aren't sneakers or Supreme people!

I agree, think the Insta-addiction is the new issue for impressionable teenagers across a host of must have items now, including sadly the perfect face and body, and with Rolex I'm sure half these young ones are thinking they can still make a profit as prices will always rise so they are double keen to borrow to buy these.

[J.P.Jones]

If you buy a house or car on credit, that's fine, but buying a watch on credit is frowned upon?

[AK797]

Originally Posted by derekhayden

This 100%. Most 20 somethings had no responsibilities during the last crash and were pretty unaffected. Competing with the Jones' has been taken to a whole new level with social media.

The phrase was Keeping up with the Joneses, which then became the source for Keeping up with the Kardashians, and how utterly awful that substitution has become in shaping today's ultra material world.

[Sandpit]

Originally Posted by J.P.Jones

If you buy a house or car on credit, that's fine, but buying a watch on credit is frowned upon?

Can a watch keep you warm during the winter months and drive you to work? In reality, luxury watches are an unnecessary item bought out of want rather than need.