Rolex investment – is it worth the cost?
If a Rolex watch has been catching your eye lately, you may be thinking about investing in one. Before taking the leap on a new accessory with a hefty price tag, consider if a brand-new Rolex or a pre-owned Rolex is a better option for your wallet.
Investing in a Rolex
As a smart consumer, you may think of your purchases as needing to be a smart investment that you can later make money on should you decide to sell. While Rolex’s are a nice watch – they do come with a hefty price tag so it’s important to do your research to see if this investment will yield a return.
Just as with any purchase, items lose their value over time. A Rolex will do the same. While you may pay a hefty $10,000 for a new one, you might only sell it for a whopping $5k or less.
When considering this, you may find purchasing a pre-owned Rolex is a better investment because you’ll pay a cheaper ticket price and then be able to make a little when you resell, but you won’t lose out on all the depreciation.
Let’s do the math. If you purchase new for 10K and you sell for 5K, you have a 50% depreciation value. Whereas, if you purchase a pre-owned Rolex for $5k and you sell it for $1,500 you have a 30% depreciation value. In this instance, it’s a better investment to go pre-owned.
Where to Buy
Once you’ve determined the investment value and depreciation value (should you sell), you may be curious where you can purchase a Rolex from. Start with a jewelry store to see if they carry these valuable pieces and then discuss new vs pre-owned with the salesman.