Real cost of Rolex ownership

Real cost of Rolex ownership

Author
Discussion

benjijames28

Original Poster:

1,702 posts

91 months

Saturday 25th February 2017
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I've been a watch obsessive for nearly 3 years now, going from Casio to Rolex and settled down with my Tudor Pelagos which has been on my wrist nearly 2 years, day in day out.

My life took a drastic change of direction 12 months ago, split with wife, sold house, net girlfriend, girlfriend pregnant, now I've got a son. Luckily my outgoings are low due to my lifestyle and my job is as secure as can be.

I've got some money in bank from my house sale, not a lot but it's there. I have considered buying a watch I've loved for a long time, in fact I owned the old 36mm version, it's the Rolex explorer 1.

Now they are pretty hard to find but I've found one. It will be at my local Rolex ad for me next Saturday.

4800 of your finest British pounds, but what is the real cost of owning such a watch?

That model like a lot of Rolex watches is in high demand. There will be a bit of a dip in value buying new but I rekkon it's worth an easy 4k should you need to sell it in the first few years of ownership.

So the real cost of buying that watch is 800 pound plus a secured deposit of 4000 which you should get back.

I can't afford to buy a house in my own, so the money is either gonna sit there doing nothing, or I'm gonna end up upgrading my car. We all know how much I would lose on a car.

So compared to owning a car or buying say a stty watch like a brietlng, the cost of owning a in demand Rolex is very very low.

My Tudor Pelagos cost me 2400 cash from an ad brand new. I could sell it tomorrow to watch finder for 1600, or private for 2000, it's cost me a few hundred quid a year and given me so much enjoyment. It's my everyday hero and I wouldn't be without it. So really it's cost me as much as a shopping centre citizen watch. Bargain.

Man maths at its finest.

Of course after 5 years the Tudor will need a 300 pound visit to Rolex servicing, and after 10 years the Rolex will need a 1000? Pound service. But we don't need to think about that.

ClaphamGT3

11,269 posts

242 months

Saturday 25th February 2017
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You have a wife and young child, you can't afford to buy a home but you'll drop £4k on a watch?

The world's gone mad.....

LaurasOtherHalf

21,429 posts

195 months

Saturday 25th February 2017
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ClaphamGT3 said:
You have a wife and young child, you can't afford to buy a home but you'll drop £4k on a watch?

The world's gone mad.....
Indeed it has but I suspect (hope) that is a comment on the housing market rather than a slur on the OP. And irrelevant to the question I guess..

However, my DJ purchased new for £1800 (I think) in 1997, has had one service to replace the glass that I drunkenly chipped at £330 (even though it was running perfect) and just at the end of last year, another to replace a worn rotor pin at £370. It's first failure in 20 years. It may have added a little to the household insurance policy but I really can't quantify that.

As I was young I spec'd it rather sporty, with oyster bracelet, blue face and batons and every time I visit my jewellers (who ordered it new for us) he asks if I want to trade it-I never will of course but I appreciate him trying! He has said he would retail at circa £3500 so I assume I could walk in tomorrow and get at least what it has cost me (£2500).

What other high end goods can you say that about? There are certainly very few, even less if you discount the current classic/sports car bubble.

I've worn it every single day for 20 years, working in the building trade, in the office, on the car and especially after it's recent service, it looks pretty much brand new and keeps time like it too. Some people buy Rolex's for the image, some the investment and some even on a whim. I buy them mainly because they are very fking good at what they do.

And it's cost me nothing.

benjijames28

Original Poster:

1,702 posts

91 months

Saturday 25th February 2017
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ClaphamGT3 said:
You have a wife and young child, you can't afford to buy a home but you'll drop £4k on a watch?

The world's gone mad.....
I have a girlfriend and a child yes.

I can't get a mortgage with my income even tho I have the money for a deposit, the girlfriend only works part time, so unless I buy a small house in a terrible area I cannot afford to buy.

Should things change and I need the money I will put that before a few luxury watches, fk I'd downgrade my car too.

You could say save money for a bigger deposit so I can buy a house with the mortgage I'm eligible for. Problem is I've got say 9 grand, and can borrow maybe 80 or 90, round here it gets me nothing but a place I'd rather not live. I would need an extra 20 grand minimum deposit to start looking at houses in semi decent areas. While renting it's gonna take me best part of a decade to save even 20 grand. By that time how much will I need? Probably even more, I will also be nearly 40 years old.

Oh and I'm not a first time buyer so there's no government scheme to help me. Until I earn more money I'm stuck.

So right now I'm happy where I live and my girlfriend, her kids and our baby area in a nice secure home in a nice area with all their family living close by.

I even work 5 minutes away.

Life isn't so bad.

Edited by benjijames28 on Saturday 25th February 19:40

UnclePat

508 posts

86 months

Saturday 25th February 2017
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I had a similar thought process.

Bought a Rolex Submariner new last year for £5,000, a few weeks before the price rise to £5,450 (the first in the UK in four years).

It would not remotely surprise me if Rolex again increased UK prices in the near-ish future, as they are still less than virtually anywhere else in the World, and there is a shortage of Subs in the UK at present, as overseas buyers raid them.

Rolex prices consistently outstrip inflation & Subs are always in demand.

I have no doubt I can wear the watch for 10 years, spend £700/£800 on a first Rolex service and get a refurbished & effectively brand-new looking watch back with two-years warranty, and easily sell it for more than I paid (if I so wish).

To be clear, it's not a money-making investment, but it's a damn sight more fun wearing that £5k everyday as a beautiful, finely-crafted tool, than just staring at some numbers on a screen, and it wouldn't be that tough to shift - it's effectively almost as liquid as that cash in the bank (and won't degrade from inflation in the same way).

Rolex watches are quality, made to last, tend to be looked-after, and don't change much in appearance over the years. Also, they will perform almost as mechanically well in 40 years as they do now. It doesn't hurt that Rolex work hard to keep their image rock-solid as well.

Any wonder they remain so desirable on the second-hand market.

If I sell the watch in 10 years, I'd be surprised if the overall cost, including servicing, doesn't mean I recoup all costs, and that it was effectively free to own. (Of course, don't try this with a two-tone, precious metal or less-desirable model).

traffman

2,263 posts

208 months

Saturday 25th February 2017
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I own three Rolex , not had any serviced at the moment. I know a major service is from 550 to 750 pounds.

I own a Breitling Aerospace , had that since 2001. Had numerous battery changes , i allways take it to the AD where i we purchased it. The batt changes are 170 to 220.00 I know it's dear , but i trust them and the watch comes back as good as new.

Infact its away at Mappin and Webb's in Glasgow at the moment and they are taking there time with it.

LaurasOtherHalf

21,429 posts

195 months

Saturday 25th February 2017
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traffman said:
I own three Rolex , not had any serviced at the moment. I know a major service is from 550 to 750 pounds.
Compare with my real life prices above.

funinhounslow

1,600 posts

141 months

Saturday 25th February 2017
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UnclePat said:
To be clear, it's not a money-making investment, but it's a damn sight more fun wearing that £5k everyday as a beautiful, finely-crafted tool, than just staring at some numbers on a screen, and it wouldn't be that tough to shift - it's effectively almost as liquid as that cash in the bank (and won't degrade from inflation in the same way).
Congratulations on getting a Sub pre price rise - nice result!

Last year's 10% price hike was widely expected and I had the exact same thought process as above. With ISA rates around 1% why not buy something I can enjoy all day every day for decades and is unlikely to lose much in real value. That price rise pushed me into making a decision I had been dancing round for some months.

I bought a 39mm OP and love it.

Sadly it has not scratched my watch buying itch and I now find myself browsing the JLC website irked

mark832

2 posts

102 months

Sunday 26th February 2017
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Benji,

Full disclosure - I have the exact watch you are buying for sale in the classifieds.... Not the point of my post, as I see you have a new one sourced already.
The new Explorer is a beautiful, I've owned a deep-sea, sd4k and the explorer. The explorer for me is the most comfy watch I've owned, flies under the radar but wears perfect in any situation - both dress and sporty. I thought I may struggle without a date function, and did miss it initially but got used to it pretty quick. The dial is a lot better balanced without the date function IMO!

andy tims

5,574 posts

245 months

Sunday 26th February 2017
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Buy well and a Pre-owned S/S sports Rolex is very cheap to own as long as you're not borrowing money to buy it. Depreciation minimal or non existent, so just the servicing every few years really.

ds666

2,605 posts

178 months

Sunday 26th February 2017
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There is always a margin between what you buy for and what you'd sell for but with Rolex , especially sports watches , that tends to be quite slim . Buy well and you may lose 10% if you sell soon , if not will probably be pretty safe money .
Perhaps buy vintage ? I bought a 5513 sub in 2012 and it has doubled in value ( oh and it is a beautiful watch to wear )

Good luck , whatever you buy .

don logan

3,511 posts

221 months

Sunday 26th February 2017
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Know a lot about Breitling then do you?

Koln-RS

3,849 posts

211 months

Sunday 26th February 2017
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Rolex watches have achieved a very strong market niche.

Although they are considered less 'exclusive' these days, global demand remains strong, particularly for the 'vintage' and 'sports' models. So long as Rolex don't devalue their reputation with over-supply, or too many placards at F1 races, then their strong brand profile will protect residuals.

That doesn't mean I would recommend the OP buys a Rolex, that's his personal decision, but bought wisely it should be a safe bet, and should at least provide the pleasure of ownership, everytime you wear it or look at it.

lockhart flawse

2,040 posts

234 months

Sunday 26th February 2017
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I am wearing my father's Rolex Date today. It's at least 28 years old, keeps pretty good time and has never had a service. Could do with a bit of a clean but I am not sure how important a service really is?

One other v small point - I don't wear it that often so it always needs the date and time setting. I actually enjoy changing the date and time and so I wouldn't want to pay Rolex £300 or whatever to service it so that I might have to adjust the time less often.

benjijames28

Original Poster:

1,702 posts

91 months

Monday 27th February 2017
quotequote all
lockhart flawse said:
I am wearing my father's Rolex Date today. It's at least 28 years old, keeps pretty good time and has never had a service. Could do with a bit of a clean but I am not sure how important a service really is?

One other v small point - I don't wear it that often so it always needs the date and time setting. I actually enjoy changing the date and time and so I wouldn't want to pay Rolex £300 or whatever to service it so that I might have to adjust the time less often.
Service is very important, your slowly breaking the watch, and it will cost a lot more then service cost to fix when it goes break.

It's like your running an engine without oil.


LaurasOtherHalf

21,429 posts

195 months

Monday 27th February 2017
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benjijames28 said:
Service is very important, your slowly breaking the watch, and it will cost a lot more then service cost to fix when it goes break.

It's like your running an engine without oil.
So have I been unbelievably lucky with my example above?

sad61t

1,100 posts

209 months

Monday 27th February 2017
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Would you also have to register it as a specific value item on your house insurance?
If so, there would be that additional premium to be considered as a 'running cost' too.

Koln-RS

3,849 posts

211 months

Monday 27th February 2017
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I understand Rolexes now come with a 5 year warranty and 10 year recommended service intervals.

I guess it depends how much use the watch gets - everyday in harsh conditions, or occasional wear in refined conditions. But, at 28 years, may be it should be treated to a Service - an independent would be cheaper, but an Official Rolex service should bring it back 'as new' with a 2 year guarantee and some paperwork to add value.

don logan

3,511 posts

221 months

Monday 27th February 2017
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LaurasOtherHalf said:
benjijames28 said:
Service is very important, your slowly breaking the watch, and it will cost a lot more then service cost to fix when it goes break.

It's like your running an engine without oil.
So have I been unbelievably lucky with my example above?
I have one that was last serviced in 85!

lowdrag

12,869 posts

212 months

Monday 27th February 2017
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I have a doggy old Seiko 5, one I've had for nearly 30 years, and which I dug out of the drawer and have been wearing while the Spitfire Chrono was at IWC. My fault, I've worn it day and night for 10 years and water got in because the crown came unscrewed. The old Seiko has kept almost perfect time, one minute a fortnight, and has never ever been serviced. As an analogy, Mobil ran a BMW engine for 600,000 miles on Mobil 1 without any wear on the engine, and the oil was put in a tractor afterwards. Servicing watches, automatic winders and so on seem to be a lovely wheeze for the manufacturers nowadays, but I had my first Seiko in 1964 and kept it until it was stolen with never a thought of servicing. If the objective of a watch is to tell the time, and no more than that, then Rolex and indeed my IWC are nothing more than the king's new clothes. So please don't justify buying a Rolex as an "investment", since the immediate loss would buy you a Prospex, a watch for life. Just man up and admit it is purely because you want one, or else buy a mere watch and treat the family to a damned good holiday.