Ad discount on Pm Model

[Bucky]

I am wondering how much discount ad's give on PM models as I am sure they do not shift as quickly as Ss pieces. (If you can find them in the uk).

I tried on a yg GMT blk dial and a yg blue dial sub. I was interested in the yg black dial sub but they did not have it in stock.

U.K. Price on the sub was £25050. I asked what the best price they could do was and got told the best was £23k. Which figured around 9%. The sales assistant also mentioned that if I was going to take the watch for the discounted price that no finance package was available. They offer a 0% finance deal over 4years.

Over the years on this forum I have read that you should be getting 20% discount on pm models as standard. I know Ss models will not be discounted.

What discounts would you expect to get on a pm model. Submariner?




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[Fleetlord]

The 0% financing plan costs the dealer around 9% in buydown fees, so it's either that or they discount what the buydown would have been if you pay for the watch in HARD CASH.

You won't get both.

[homerish]

Also the 20% is not a discount u will get in the UK as the price £ is cheaper by 8-9% vs euro pricing so your basically getting 18%

[KBM]

20-25% sounds about right, at least in the US, where I purchased my 619.

[Bucky]

Originally Posted by Fleetlord

The 0% financing plan costs the dealer around 9% in buydown fees, so it's either that or they discount what the buydown would have been if you pay for the watch in HARD CASH.

You won't get both.

But if I paid HARD CASH should I be getting a bigger discount from a dealer for a pm model?

[Stevec14]

Originally Posted by homerish

Also the 20% is not a discount u will get in the UK as the price £ is cheaper by 8-9% vs euro pricing so your basically getting 18%

Yep - this is my take on it too. It's more expensive to buy in the US/EU to start with, thus the greater opportunity for discount I guess.

[homerish]

On a watch I wanted to buy the best I got was 8% in the UK vs 20% in Spain but in the end they end up the same and only vat refund makes the difference

[904VT]

Originally Posted by Stevec14

Yep - this is my take on it too. It's more expensive to buy in the US to start with, thus the greater opportunity for discount I guess.

The USD is one of the few currencies to have kept up with the Franc. For Rolex, US sales are revenue without a large negative translation effect

[tyler1980]

look at it this way:

Paying in dollars and getting vat back its like 30% cheaper than US RRP+sales tax. Add in a 9% discount they offered you and your close to 40% off if you are not British. US grey dealers can't even beat those prices. There is no incentive to discount more than that as there are plenty of international buyers passing through the UK. There are no SS models to be had so they logically then look to the PM models as those deals are just as good.

cash or card i doubt it matters as they have no trouble selling PM in the UK either, especially london so i think a 9% discount offer is extremely generous and on par with a larger discount other countries may offer as the starting price is higher to begin with in other places.

The longer the SS shortage goes on in the UK the harder the PM's are going to be to find. Its already happening. BLRO, WG sub, and gold daytona's are hardly on display anymore in London. 6 months ago every AD sill had them. YG GMT and Subs are getting scarce too although most AD's have at least one or the other. If you notice the only SS models available in the Uk are also the only ones w/o a PM version: Explorer II AK, MG. No one seems to want those but if they want a Sub and can't get a SS they get a smurf or a BLRO if they want a GMT.

[SodiumMonkey]

You won't get the best price by just asking for the best price in my experience. Put yourself in their shoes. If someone asked you that, would you just go straight to literally your bottom dollar price? Doubtful. I'd try to negotiated further down.

[locutus49]

Most dealers prefer you finance rather than pay HARD CASH. Hard cash does nothing for them.

Originally Posted by Bucky

But if I paid HARD CASH should I be getting a bigger discount from a dealer for a pm model?

[hugs]

Originally Posted by locutus49

Most dealers prefer you finance rather than pay HARD CASH. Hard cash does nothing for them.

Why is this? I have noticed it hundreds of times with cars, the total lease price can be negotiated lower than the cash price. Why don't people finance then immediately pay it off.

Sorry to go off topic.

[Jimbogigolo]

Originally Posted by hugs

Why is this? I have noticed it hundreds of times with cars, the total lease price can be negotiated lower than the cash price. Why don't people finance then immediately pay it off.

Sorry to go off topic.

Well, 0% APR stays only 0 if the buyer pays the monthly equally for the duration of the agreed term. If the buyer is late even 1 day they forfeit the agreement and get charged 25% APR for the remainder of the term (or whatever is the APR assigned based on prime rate etc.)

[904VT]

Originally Posted by hugs

Why is this? I have noticed it hundreds of times with cars, the total lease price can be negotiated lower than the cash price. Why don't people finance then immediately pay it off.

Sorry to go off topic.

In-house financing is very profitable. Whether you're a car manufacture with a finance division, a dealer with finance relationship/arrangements, or a watch manufacture or dealer such as Rolex and their ADs. Financing arrangements are the AD's business though, and not Rolex in this case.

Regarding vehicle lease pricing, buyout figures usually take all of this into account, such as early repayment. It's still very profitable as a whole regardless of when you pay off.

I personally, don't want credit inquiries every time I buy a watch. If I only bought, one every 10 years, perhaps I would have your perspective of lease or finance to pre-pay early for better value. Not worth it IMO.

[henry333]

That's a good percent in U.K. !
Don't go by the number others are saying. If you want high percent off go to
USA ..you might get that and a high price tag

[ChuckFinlay]

Originally Posted by Bucky

I am wondering how much discount ad's give on PM models as I am sure they do not shift as quickly as Ss pieces. (If you can find them in the uk).

My take...In almost 20yrs on watch forums, I have learnt:

1. Everyone knows someone who gets 25% on PM
2. Daytonas are not hard to get in SS
3. Everyone got the first of new model X in the country
4. No one uses finance, everyone pays cash for everything

The reality here in the UK is, you won't get 25% from an AD
You can try chrono24 but that has associated risks
You can go grey in the UK with little risk from a well know grey dealer
10% (to 15% at a push) may be obtainable at an AD
An AD cares not whether you use cash or card
An AD won't like cash for PM due to money laundering laws

Prices outside EU, US trusted sellers aren't really relevant. RRP starts off more and even discounted you have to allow for UK taxes if you import.

[kilyung]

As all my discounts were in US or HK, I can't contribute much to your question. In any case, they are gorgeous watches and I wear mine often.

[904VT]

Originally Posted by henry333

That's a good percent in U.K. !
Don't go by the number others are saying. If you want high percent off go to
USA ..you might get that and a high price tag

A UK buyer would get crushed converting their Pounds into USD. Roughly would pay 28, 565 pounds for a 116619LB in the US at current exchange rate with no discount (and no taxes). List is only 27, 150 pounds in the UK. Add back taxes to when you bring to UK, flights, amenities and you're looking very expensive. All those expenses, which will be more expense since you'll be paying in USD.

Combining with lack of US AD relationships, and IMO would make it very tough to make out better in the US if you're a UK buyer.

[Hodog16]

Originally Posted by ChuckFinlay

My take...In almost 20yrs on watch forums, I have learnt:

1. Everyone knows someone who gets 25% on PM
2. Daytonas are not hard to get in SS
3. Everyone got the first of new model X in the country
4. No one uses finance, everyone pays cash for everything

The reality here in the UK is, you won't get 25% from an AD
You can try chrono24 but that has associated risks
You can go grey in the UK with little risk from a well know grey dealer
10% (to 15% at a push) may be obtainable at an AD
An AD cares not whether you use cash or card
An AD won't like cash for PM due to money laundering laws

Prices outside EU, US trusted sellers aren't really relevant. RRP starts off more and even discounted you have to allow for UK taxes if you import.

Haha this is a great post and very true. Every time this question comes up people always say 25-30% for PM, which may be true for some, but my experiences say more like 15-20% is the norm at least in the US.

[tyler1980]

Originally Posted by Hodog16

Haha this is a great post and very true. Every time this question comes up people always say 25-30% for PM, which may be true for some, but my experiences say more like 15-20% is the norm at least in the US.

i read that all the time too and all it does is make me question my already bad negotiating skills. i have never gotten close in the UK. i tend to feel really good initially with 10%, then come here and everyone gets 25%

[AK797]

Post Brexit it is a different and harsh world here, ADs won't give more than 10% off PMs now unless they know you well, and Iconic and other trusted sellers buy from the EU so the weak currency means they can't charge much lower either whereas before they gave over 20% off easily and thus put pressure on ADs as well.

I'm just glad I bought a few before Brexit and the subsequent price rise. However if another 10% price rise/correction is coming then 10% off is actually like 20% so not too bad, and on a PM watch it's a nice cash saving so I'd buy sooner than later.

[Bucky]

Chronext have got a new YG sub blk dial for just over £21k. Am not in the market to buy one so wasn't to Pushy on negotiating a deal but I wonder if they would match that price if I was serious about making the purchase. Guess I have to keep saving to find out.

[Bucky]

Originally Posted by Bucky

Chronext have got a new YG sub blk dial for just over £21k. Am not in the market to buy one so wasn't to Pushy on negotiating a deal but I wonder if they would match that price if I was serious about making the purchase. Guess I have to keep saving to find out.

I meant wonder if the ad would match chronext price.

[joli160]

I think buying from an AD you will not get the best deal unless you are a very good customer. Bought my WG Sub with 28% off MRSP grey.

[Etschell]

Get the best price. Financing for a worse price even for 0 percent interest is a suckers game. If you can't pay cash then don't buy it.

[Fleetlord]

Originally Posted by locutus49

Most dealers prefer you finance rather than pay HARD CASH. Hard cash does nothing for them.

Nah...not true with retail consumer financing.

The dealer pays a percentage to the consumer finance company to offer the financing program. That percentage is passed on the consumer in the form of paying full price in lieu of a discount. Sometimes the finance company offers a buydown promotion to offer a 0% interest at a longer term than usual to entice purchases with a lower monthly payment.

The potential for discount on HARD CASH is higher because there are no fees on the back end for the dealer and the payment is complete and immediate.

[Fleetlord]

Originally Posted by 904VT

In-house financing is very profitable. Whether you're a car manufacture with a finance division, a dealer with finance relationship/arrangements, or a watch manufacture or dealer such as Rolex and their ADs. Financing arrangements are the AD's business though, and not Rolex in this case.

Regarding vehicle lease pricing, buyout figures usually take all of this into account, such as early repayment. It's still very profitable as a whole regardless of when you pay off.

I personally, don't want credit inquiries every time I buy a watch. If I only bought, one every 10 years, perhaps I would have your perspective of lease or finance to pre-pay early for better value. Not worth it IMO.

Not the same thing.

AD's pay for this promotional 0% consumer financing. a 48 month 0% plan costs the dealer 9% or higher. The plans with 28% interest revolving are free to the dealer.

There are other plans with other fees. Sometimes the CF will drop the buydown % to help promote a longer term plan to help get more sales for the dealer.

Perhaps the AD gets a kickback from the CF for number of deals financed, but that is not commonplace...especially with independents...

[Ruud Van Driver]

Originally Posted by Bucky

But if I paid HARD CASH should I be getting a bigger discount from a dealer for a pm model?

Here in Singapore, I can get about 20% off a PM Rolex from my AD. If I shop around, I could probably get a couple of percent more.

When I was looking for a TT Lady DJ for Mrs Van D, I had 15% here but was only able to get 10% back in the UK.

I think the discount, like availability on certain pieces, very much depends on where you live. I would imagine your relationship with the AD is also going to be a factor.