Man Maths Rolex Purchase

[nikaiyo2]

Yep another one...


I am not looking to "invest" in a Rolex as such, more use it as a savings account, that I can enjoy in the process.

I have never been a Rolex person in the past, but really really really liked a used GMT Master they had in a local jewelers.

Now they tried to talk me into buying it but honestly I would get my bits cut off if I had gone home with 2 watches lol.

The GMT Master was available on 0% for £68 a month (ish) over 3 years i think, I was planning on upping my ISA contributions by about £75 a month in any case.

Am i deluding myself that this is in any way comparable?

What is the difference between a GMT Master and 11?

[DUMBO100]

If the 0% finance is subsidised in the way that that car finance is you maybe better off haggling for a discount instead

[geezerbutler]

I think the main difference is that the Master II has an independently adjustable hour hand for changing timezone. GMT Master's hour hand moves with the 24-hour hand so you have to use the bezel to monitor second timezone. Also later Master II will have applied markers on the dial with white gold surrounds and luminous paint rather than tritium.

See here for more details:

http://www.gmtmasterhistory.com/index.html

[Pip1968]

That is assuming he has the spare cash to buy it outright. I would possibly look at buying it on credit card and then doing a 0% balance transfer onto another card which would just be a 3.5% (ish) fixed fee. Obviously that needs to be offset against a discount on the retail price.

As for the Rolex as an appreciating asset verses an ISA at the moment I would err towards yes but interest rates are expected to climb 'soon' so who knows. It also means that ideally the watch should be kept in tip top condition. Also factor in the speed in which you can fully realize that asset as cash.

Pip

[nikaiyo2]

Thanks for the replies.


Its not so much about having the spare cash, I have in savings but that defeats the object. I am trying to put regular income into something with more inherent long term value than shoes, holidays, beer and stuff

I guess it is going to be fairly marginal in terms of cash return compared to an ISA, if anything the ISA is prob better, but the watch will give enjoyment for years...

Would the same theory work with a PAM00000 or 5? They appear to hardly depreciate at all, maybe £500 over 5 years, I am thinking this is a bit more of a "fashion" risk?

[audidoody]

The man maths only work if you buy a pre-owned S/S sports Rolex (like the GMT) and keep it for at least 10 years. And then factor in the £450 service cost.