Buying pre-owned luxury watches is, in fact, a better long-term investment than saving your money in an ISA, according to one new study.
Luxury pre-owned retailer Xupes valued 1,000 pre-owned luxury watches from its product catalogue and compared with growth data on ISAs from the Bank of England over a three-year time period (2014-2017). The findings will please anyone considering buying a luxury timepiece.
Pre-Owned Luxury Watches vs ISA
On average, ISA interest rates showed a significant drop, in contrast to certain luxury watch models, including the Rolex Daytona series which today can reach up to $25,000 at auction. If you want to make money on your purchase, there are three standout models. The Cartier Santos displayed a 57 percent rise in value over the three years, while the Tag Heuer Grand Carrera CAV511B.FC6231 increased in value by a third. The Rolex Datejust 16264 experienced a 54 percent average increase in the same three years (despite a dip in value in 2015).
Interestingly, the study found that there is more money to be made in pre-owned luxury watches, as opposed to brand new ones. The research proved that a new designer watch typically depreciates up to 70 percent as soon as it’s worn, whereas the right pre-owned luxury watch of the same value, depending on condition, provenance and age, has the potential to be worth considerably more than when first purchased.
Consumer Demand For Pre-Owned Luxury Watches Is Strong
Today, a great number of wonderful luxury watches are being produced and consumers around the world are more knowledgeable and interested in good watches than ever before.
If the watch industry has anything to be proud of, it is that good luxury watches still experience healthy consumer interest, and that the industry has been able to produce enough good products to amass a large number of fans around the world. Much of this is thanks to the Internet – which is a platform the watch industry has, in most regards, failed to utilize correctly.
Why Buy Pre-Owned Luxury Watches?
A tricky truth about pre-owned watches is that they are not actually pre-owned. In fact, a large number of “pre-owned” luxury watches online are actually brand new, but simply not labeled as clearly since retailers of these watches do not want to create antagonistic relationships with the watch brands whose products they are selling at steep discounts.
The biggest problem in the area of satisfying consumer demand for luxury watches is the “minefield” of online watch retail options available. Consumers are regularly confused about how or where to buy a watch, and at what price. The watch industry has created an extremely “dirty” marketplace where the same timepiece might be available at any given time online via a series of different retailers for vastly different prices. This causes severe erosion of consumer confidence, which leads to fewer sales, as well consumers who feel they need to be in a constant “holding pattern” prior to buying a watch they otherwise want – with the intent of waiting for the right price. Said in another way, consumers want luxury watches, but the watch industry has made it confusing and uncomfortable to know what to buy, where, when, and at what price.
Last but not least, it is worth checking with your insurance provider that valuables such as luxury watches are covered against theft or damage. Consider paying an additional premium for cover against loss or damage outside the home.
So in conclusion, now one have a great reason to invest in that Rolex, one of the luxury watches you’ve always wanted.