This may seem a naive topic, but I’ve never really seen it brought up.
As I’m relatively new to the watch collecting community, I’ve wondered for some time; how do people finance their watches? Often watches costing upwards of 3000$ I can’t imagine that everyone is able to just dump all that money on the table at once, but you never hear about people making payments on a watch.
As I’ve never bought from an AD, and I’m in the research phases of buying my first true luxury watch it’s crossed my mind quite a bit. Do people save for some time and just pay it all at once, or is there a decent portion of folks who make monthly payments on an expensive watch?
Tons of people used to buy rolex with 0% interest finance. Idk about other brands. I only pay with cash, debit or trade in.
Pay with Amex, pay in full before interest starts.
I will usually pay with my credit card and pay it off before interest hits. I wouldn't finance a watch personally but I have had promos on my card that let me spread out the payments over a few months with zero interest.
I don't believe in consumer credit.
I see the option advertised all the time. Typically zero interest car loans or other items just have the price jacked (even more) to account for it and sucker people into believing it's a good deal. I avoid interest.
There different class of buyers of premium/luxury watch brands.
Those who can afford by income
Those who can pay but not afford....but buy anyway
Those pay by loan
1. The human mind is usual setted with the own experience, the own environment, where and how he growed up and the standards he used to. But even if the most people (depending on the country) are used to have certain income and only changes by few bucks from job to job, there is also a world were people have more income. Let's say a Truck driver somewhere in Oclahoma has no idea what an investment Banker in NY does earn and the other way around. It also depends how people handle their income. You can't believe how much people could save up in their monthly/annual outcomes. But there are many people who earn enough money to afford such watches. Managers, Lawyers, Doctors, Engineers, Entrepeniuers etc.
2. Only to have 3 , 5 , or 10 K on the Account doesn't mean that this person can afford a watch for this price. As long there is not enough saved up in a high ammount this wouldn't make any sense. But unfortunately there are many who do so. They will regret when becomming pensioner and looking down to their scratched used watch. That's the reason why you can get so many luxury watches in pawn shops or in auctions. But solled for much less, because he never had the money to gave it for service so they will be in bad conditions. The rule is: "if you can't buy twice, you can't afford once". And you will come across with many posts here,where people ask in which watch they should put their money in... several thousands dollars/euros...their only saved money so far. No back up. No retirement fund. No other savings. No education.
3. There are several ways to buy a watch without paying with your own money, but I will not promote it here. It's stupid to buy something with money you don't own. And consuming debts are the worst and senseless debts.
That's why we should handle Youtube or Social Media carefully. We should be happy for those who can afford, but we should never envy or start to comparing an feeling bad obout our own Casio/Seiko-Collections. The good thins about watch enthusiasm and this hobby is....it can be so cheap.
Hookers and Blow (even exchange)
Kidney or kidneys
1st child (usually, they don’t take the 2nd, 3rd or 4th and 5th… I tried)
Usually, people will save and save up their money to get a watch like that. Or, they max out their credit cards. Me? I do not have a watch on my wish list that costs $3000 or more so I'm good lol!
If you're considering installment payments that will include interest I would definitely think again. I would imagine that having the financial burden hanging over you would be a serious drag on the enjoyment of the watch. I view it a little like gambling: don't spend more than you're prepared to lose. Let's say you want that $3k+ watch but that's serious money for you. Save up. Keep checking in with the desire: is it real or is it waning? Let's say you need to save 2 years to get that watch - if at the end of 24 months of little or no expendable income you still really want that watch? Fair enough. Otherwise? You're cash to the good and no harm done.
If I can’t pay for the watch in full then I don’t pull the trigger until I can. This keeps me disciplined and slows me down so I can really consider my choices and options. Also , I never pay retail - always used as I have found more and more mint condition preowned watches than I ever have so it’s been really nice time for my collection journey
Buy what you can afford and not go into debt. Watch collecting, like any hobby, should be fun and not a burden (financially or mentally). If you have your eye on a grail piece, save for it, but remember to journey you took to purchase it and how much it would hurt to break or lose it.
I only have two proper luxury watches, and I got them through 0% interest monthly payments. All of my other watches are sub £800 and I was able to pay outright for them.
Even though you may think yout question is naïve, I've been secretly wondering the same thing, so thanks for this!
I’ve paid all up front for 3 watches and used 0% finance once. I ended up clearing the balance early as I went on a financial cleanse - paid off every debt and loan I had until I owe the world £0. Felt good I won’t lie.
I don’t think there’s anything wrong with using 0% credit even tho it seems to be talked down a lot here. As long as you can afford it, it’s no different to your monthly spend on other activities you enjoy.
Watches are cash-only, not to be financed.
I buy a watch based on do I have the money to pay the watch in full. There's many finance options like PayPal and affirm offer 4 payments interest free. PayPal Credit might have a 6 months before interest kick in. Personally I love the split the cost of the watch in 4 payments on autopay. Most people I know use CC to pay for everything to get mile points. I think if you have your personal life some what straight. Savings, 401k contribution for the future, health insurance. Then how you pay for your watch it does not matter.