How Safe Are AD Deposits?

[Mervynilous]

I wouldn't do this and see it as an absolute sign of concern for any AD that would even suggest this arrangement. It, to me, indicates they are experiencing a cash crunch. That's the last situation that I want to give my money away at 0% return for an indefinite length of time.

The thing that has me scratching my head is the actual buyers accepting these arrangements. Many say they weren't expecting a call, weren't the best of customers, we far down the list, etc. If that's the case, it means all the people above them on the list refused, and the AD has made it pretty far down its list. Likely with a much shorter list of possibilities if the call recipient says no.

I wouldn't give a full deposit with no ship/pickup date under normal circumstances. So there's no way I would now. But, if I were even going to consider it, I'd require a discount. And with the names growing short on the list, I'd quite possibly get one.

[Wck88]

I'd take my chances though

[inadeje]

Originally Posted by golfgrouch

There are some ADs requiring deposits to reserve timepieces during the COVID-19 shutdown. However, with the combination of a severe supply constraint, a demand drop, and government mandated business operation restrictions, it stands to reason that there is elevated solvency risk for ADs. So the question is, how safe are deposits at ADs?

Would you feel comfortable placing a deposit now at an AD?

For the lawyers out there: Is there any recourse?

100% recourse. Just leave your deposit with a credit card (not debit) and your card issuer will cover you. There is zero risk of loss if the merchant (AD) goes bankrupt and/or does not provide the goods purchased. Should the unthinkable happen simply approach your bank and file a charge back for goods not received. The merchant will have 7 calendar days to demonstrate that they provided the goods (which they could not) and the funds are automatically subtracted from their account. If they have no money or have filed for bankruptcy, visa/master will join the creditors for payout. Either way, you’re covered and you will have already received your money back.

[*LexLover]

Originally Posted by pickettt

I feel like I'm gambling when I leave my shirts at the cleaners lately.

Don't laugh at much on this forum, but this got me.

[Event Horizon]

I thought they were safe until reading some of the comments on here.

Thanks for sharing guys.

[Chewbacca]

Originally Posted by golfgrouch

There are some ADs requiring deposits to reserve timepieces during the COVID-19 shutdown. However, with the combination of a severe supply constraint, a demand drop, and government mandated business operation restrictions, it stands to reason that there is elevated solvency risk for ADs. So the question is, how safe are deposits at ADs?

Would you feel comfortable placing a deposit now at an AD?

For the lawyers out there: Is there any recourse?

Credit card, no worries.

Cash, nope.

Get a detailed receipt indicating their responsibilities and give a 3mo window. If they exceed it, they give it back.

[stlwatchlvr]

Originally Posted by Chewbacca

Credit card, no worries.

Cash, nope.

Get a detailed receipt indicating their responsibilities and give a 3mo window. If they exceed it, they give it back.

Ditto


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[AshCashEmAll]

Originally Posted by golfgrouch

There are some ADs requiring deposits to reserve timepieces during the COVID-19 shutdown. However, with the combination of a severe supply constraint, a demand drop, and government mandated business operation restrictions, it stands to reason that there is elevated solvency risk for ADs. So the question is, how safe are deposits at ADs?

Would you feel comfortable placing a deposit now at an AD?

For the lawyers out there: Is there any recourse?

In the case of a bankruptcy... you will have to chase them for that deposit back. Better to not put any deposit and say you have cash in hand when they have the watch in hand.


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[Njw]

For anyone in the UK receiving these calls from WOS group, they are referring payment through a third party and you may NOT be covered under the usual regulations.

https://www.moneysavingexpert.com/ne...oppers-beware/

[gold&black]

You would be rather foolish putting a deposit down for any watch right now. I would not risk it and if they went under you would lose it all!

[Marcjvr]

Originally Posted by SlideRacker

I’d rather take my chances on a cruise ship.

Post of the month

[nachopc]

AD’s are audit from Rolex, to be an AD you must prove your solvency. If an AD goes bankrupt Rolex Montres normally should bailout the AD specially those customers who paid a deposit.

Normally luxury brand covers any wrong-doing, I’m talking from my experience.

I guess now is the best moment to buy-deposit a Rolex in an AD.


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[Danny83]

If its an AD I would. They are waiting to get back to work like most of us

[Goonthree]

My friend put 20k down at ad ($39,350 retail) and I would pay in full in advance because I trust my ad. I also have a great relationship with ad. To me 40k @ 2% interest ain't much but it shows trust. We are taking only $800 interest in an year.

[brandrea]

Originally Posted by nachopc

AD’s are audit from Rolex, to be an AD you must prove your solvency. If an AD goes bankrupt Rolex Montres normally should bailout the AD specially those customers who paid a deposit.

Normally luxury brand covers any wrong-doing, I’m talking from my experience.

I guess now is the best moment to buy-deposit a Rolex in an AD.


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This is very interesting. What happened in your situation ?

[Kliminator]

Put down a deposit for a DD40, special order in a configuration they didn't have. Had the watch a month later

[Calatrava r]

Originally Posted by RX0

Putting a deposit down requires a lot of trust. I always put 50% deposit with my AD and my AD had been in business for 3 generations. All the pieces had been delivered and never fail me.

If my AD tell me that they can get me a Patek 5726 or a blue dial skydweller again, I will put the deposit immediately even right now.

With your great relationship with this store, you would think they would forego deposits in your case. I have never understood deposits on hot pieces anyway. What's the point. They can sell them easily for cash immediately. Why tie up anyone's money.

[brandrea]

I wouldn’t be doing this right now in the current business environment. It feels like no business is bulletproof. YMMV

[Michael V]

Credit Card -- Charge Back.

I have done it several times when a derilict seller attemted to defraud me.

[datejustrms]

I wouldn’t be at all concerned if the deposit was made with an AMEX credit card. They go to the wall for their cardholders.

[Meyrin]

"Would you feel comfortable placing a deposit now at an AD?"

Most definitely not, I wouldn't do it. I can´t even be sure that my Rolex AD (a smallish family-owned business) will re-open if and when things get back to normal. At the moment here in locked-down Germany I don't even feel comfortable going to the supermarket once a week!

[train-time]

Deposit in this market, No Way! Too risky. First you will have to survive this global pandemic. Next, your AD will have to survive the shut down. Then the US economy will have to survive an economic meltdown with way too much debt and paper behind the economy. I think the risks outweigh the gains for just a watch. Be safe!

[avidflyer]

Originally Posted by pickettt

I feel like I'm gambling when I leave my shirts at the cleaners lately.

What size? Monogrammed?

[GovernorsGovernor]

Other creditors will be in line ahead of you, so you have to decide how much that bothers you.

[nachopc]

Originally Posted by brandrea

This is very interesting. What happened in your situation ?

The “ mother brand “ fixed the bankruptcy with the new AD as a result of this bankruptcy.


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[GovernorsGovernor]

Originally Posted by Calatrava r

With your great relationship with this store, you would think they would forego deposits in your case. I have never understood deposits on hot pieces anyway. What's the point. They can sell them easily for cash immediately. Why tie up anyone's money.

Sir, you win the internet today! You are completely right!! These people who claim to have great relationships with their ADs, yet putting down 50-100% have it completely backwards!

If you are putting down 50%+ on a watch, you have a TERRIBLE relationship with your AD! (The AD has the great relationship, not you! Lol)

Yeah, your family has been friends with their family for 3 generations, and blah, blah, blah...

But guess what? They don't view you in the same light as you view them! Lol... They either see a poor negotiator, a sucker, the next guy in line, or all of the above.

Folks, wake up. You have it completely backwards.

[dwjpaypal]

Originally Posted by Njw

For anyone in the UK receiving these calls from WOS group, they are referring payment through a third party and you may NOT be covered under the usual regulations.

https://www.moneysavingexpert.com/ne...oppers-beware/

Could you elaborate?

I have paid for my new Daytona via the link that was sent through. It doesn’t seem to be through a third party, it seems to be part of their site, running through checkout shopper.

On my Amex it’s listed as a purchase from watches of Switzerland.

I’m not too concerned about the UKs largest AD going under, but just interested as I though I was pretty savvy with this type of thing.

Thanks
David


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[Harry-57]

If they are declared bankrupt you will be in a queue. In the course of my business I have crossed paths with a number of clients who went bankrupt while owing me money. In 2008 they were dropping like flies. I have never received a penny from any client that went bankrupt. Once their assets are gone there is nothing. After the administrators, who commonly take eye watering qualities of money/asserts for themselves before inviting creditors to form a queue, the Revenue, Customs, landlords, credit card companies and telecom companies are usually next in the queue. They stand the highest chance of getting something back - if there is anything to give creditors.

Personally I would not go there. Remember, going under isn't always a disaster for the company. It is commonly a planned, controlled, process, undertaken for sound business reasons. And it's at times like this when companies are most likely to vanish.

[Tricolore66]

Exactly, zero risk here.

Originally Posted by SimpleMan91

If they take Amex why not


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[WatchNutcase]

A little bit of common sense easily answers the question