Rolex depreciation

[rfc]

Whilst some like to beleive you never lose money on a rolex others in the real world know the opposite is true.
My wife and I have owned both a 116234 and 179313 DJs.  Keeping them between 4 and 5 years before upgrading we have lost around 25% on resale which to me seems reasonable with the length of time owned and the general daily wear condition they were sold in.
I know the answers is of course subjective however generally speaking what have others experienced - is this good, normal or excessive?

[Lurch]

unless u're talking about some very limited edition or rare pieces i believe most watches are subj to depreciation not only limiting to Rolex.

[dpkong]

If you bought new at standard discounts, then you lose more. If you bought used at fairly good price, you lose less. Either way, you still lose.

From the OP's post, 25% is about right for the Datejust range when bought new.

Strange thing is that when you're in the market to buy, it's always going to be more expensive than if you were in the market to sell the same watch.

[rfc]

OK, I feel better now.  Both were bought new from the AD at standard 15% discounts so the 25% depreciation is off the actual purchase price. 
I guess buying preowned is the way to go, better still buy a SS Sports and you will lose less and maybe, just maybe break even.
I enjoyed the DJs and am happy with that level of loss on such a term of ownership but it's good to hear the same from other forum members

[dpkong]

OK, I feel better now.  Both were bought new from the AD at standard 15% discounts so the 25% depreciation is off the actual purchase price. 
I guess buying preowned is the way to go, better still buy a SS Sports and you will lose less and maybe, just maybe break even.
I enjoyed the DJs and am happy with that level of loss on such a term of ownership but it's good to hear the same from other forum members

Doubt you would break even with SS sport models either.

[Godzillaz]

The same depreciation could be said on PP ...

[Joashes]

The thing with Rolex and now Panerai's in Malaysia is that you will probably lose the least. If you're lucky, the watch might even maintain the price you paid for them in the first place. However, the depreciation would be much higher if you're thinking of selling it 2-5 years down the road. Personally, i have a PAM000 which has in fact appreciated. However, i bought that pre-owned and not ever thinking of selling it.

[horomas]

I used to buy exclusively brand new mainly rolex sports models but have take massive hits on depreciationso I take the preowned route now.I lose less but at least I get to enjoy new pieces more frequently without breaking the bank

[herng0326]

The best is still go for pre-own unit

[johnthe692006]

I too was told by my boss that should invest in watch. Then I told him buying a new watch was nvr a good investment as the resale value will always lower than the purchase value. Then I told him to buy 2nd watch in which the value retention is better than buying new watch. Am i right?Cause based few round of buying a new watch then resale again I found that 2nd watch value retention is much better unless the new watch is some sort limited edition than story might be different.

[jason_recliner]

It's extremely rare for a new watch to appreciate in real terms in the short to medium term. And if you're considering it as an investment, you need to consider the opportunity cost of the purchase. Basically, they are lousy investments for the most part. Buy them because you like them. Buying used generally reduces your loss, and you might even make a little back on the flip.

[David_cheong]

Buying Rolexes as an investment is a bad idea. Worst is if you are buying certain models in their premium listing.
The only gain in your personal level is that you gets to wear and enjoy these watches. Unless then, if you are keeping these (sport models) for the next 10 years or so down the road.

Buying new from an AD is a sense of satisfaction over to buying from grey dealers for a little less rm1-2k on the price differences.
You will be surprised most of the Rolex (sports) model are available if you dropped by these AD, that is after a cooling period.

Only few and the rare ones appreciated in terms of value within a short period.

My 2 cents.

dc

[spirinellio]

my opinion is that one should never buy a watch as an investment. one should buy a watch that the person can associate with (sports, dress, diving, aviator, racing, casual beater etc) and the sentiment it provides when worn on the wrist.

the misconception of watches appreciating within a short span is a myth. like a car, you lose 20-25% once you drive it out of a showroom - similarly, it happens to watches once you walk out the AD. hence, many choose the pre-owned route where one can buy, use, then sell while minimizing difference.

there are many investment tools and facilities out there if you want to make your money grow. positive returns on investments in watches seldom happen around new/modern watches.