Watches on credit : Yay or Nay ?

Saving is always better. However, if you know you can pay off the bill in a few months and the deal is good it can make sense to buy with a credit card.

borrowing some money for something tertiary like watches is a bad idea imo

Always bear in mind with these questions, what people say and what people do are often very different.

If you have to take a credit, maybe you shouldn't buy a watch right now...

If you have to take a loan for a watch, don’t buy the watch. I always buy with a credit card for extra protection and points, but it gets paid before interest kicks in. Watches are not investments, so throwing the insult of interest on top is fiscally silly.

There will be those that pipe in with the “if I can borrow for free I will.” There are some ADs that will lend at 0% for six months. Sure, assuming you have the money to fully pay it off and you are making that money work for you elsewhere (proper investing), that is not a bad approach. Though, (in the US) you are opening a credit inquiry and line of credit, which is likely a 20 point ding credit wise which could really hurt later on when you need a loan for something actually important (home, car, etc). The individual has to decide how important that credit rating swing is. To me it is not worth the hassle.

The reality is most people (almost all of them) do not make the money work for them and just go from one fiscally irresponsible decision to another. Also, if you need $10k to work for you to help finances, again, probably shouldn’t be spending it on a watch.

TLDR; Do not buy a watch on credit.

Cash in full, or I cannot afford it.

Could not shave said it better myself.

Long term borrowing for something as frivolous as a watch is insanity.

If you can 100% pay the watch off before the interest hits, say 6 months no interest, AND the watch purchase is substantial enough for you to make significant interest by keeping those funds in a higher interest account, then yes. But for most of us, we aren't spending $100K on a watch where that amount is sitting in a money market savings pulling 5% interest at $500/month.

A better method is to use intro credit card cash back. I opened a new card when I bought my Sinn 556 I.B. Got $200 cash back for spending over $1K in the first three months as well as 2% cash back. No interest for purchases in the first three months. Applied the cash back to the balance and paid off the card the first month before interest hit. Saved me $237.

I’ve used PayPal interest free payment at joma a few times.

I usually use credit when shopping online as the fraud protection/ buyer protection is a lot better than a bank draft.

A watch is 100% a want, not need, and borrowing money to buy one is a terrible idea.

If I don't have the money, I don't buy.

Did it once. Bad idea.

If it is at 0% finance.. yes.. otherwise bad idea

This thread is proof people don’t actually read anything properly.

The OP said it was 0% finance.

Are you certifiably insane?

I did it once because the watch I had my eye on was $520 on sale for $415. I wanted to buy it before the sale was over and paid the credit card off one month later. The amount I saved on the sale was far more than the interest I paid on the card.

17 yrs ago I learned the hard way of what buying luxury items on credit can do. Not worth the headache. I couldn’t afford to pay outright, but thought I can swing it on a 0% card and pay X amount every month and pay it off before the end of the promotion period. But you then start buying other things, next thing you know, the debt piles up. Next thing I knew, I was in debt and out of a job. Took me 3yrs to get out of the hole I put myself in.

I’ve since learned and have purchased luxury items only if I’m able to pay the balance in full at the end of the month. If I can’t, then it’s not meant to be.

I buy from a few different ads depending on the brand that I am looking to add. Last December, I wanted to gift Cartier Tank XL watches on bracelets to our two daughters went to the ad that offers no courtesy discounts on Cartier so I put the purchase on a 10 month zero interest payment plan. I was obligated to pay 10% deposit for them to order in a second watch so the balance was divided evenly over the next 10 months could have been as many as 20 months but that is too long a period, bit of a hassle. I read a great deal about not buying something as trivial as watches on credit but critics are not privy to my finances, I have accessed the plan on numerous occasions in the past and generally pay off the total several months ahead of schedule depending on other financial commitments. If there are no large bills to pay, I will pay off the balance. My wife who works in finance and one of the most cautious individuals that I know agrees that the funds that I would use to buy the watches can earn some interest, not a rich amount but also not nothing. Life cannot be simply about paying the bills, there needs to be some joy for the individual and his loved ones.

I used credit when I see a limited edition or something that is too good to pass up.

I have the money but who says I want to part with it? Especially if I can get 12-24 month zero interest financing, why not? During that time I’ll be collecting interest on the money I would have spent.

Buying anything on credit that you can’t afford is a bad idea. Using 0% finance vs paying cash up front is a no brainer for any product or service if you’re sensible and disciplined.

If you have to borrow money to buy a watch, you can't afford it. Watches are a luxury item and having to borrow money to purchase luxuries is not smart money management.

I am from India and Luxury watch starting price for us is $200 so yes I brought my watches on 0% interest because saving money is something which I can't do when you want to provide everything to your family. Whenever I did saving I somehow spend that amount at the end of the month so ya. Maybe most of the members don't agree on my reasons but that's Life

I always pay with a credit card. But only for the points. The entire balance is paid off at the end of the month, before any interest charges happen. Double win.

And if I can't pay it off immediately, I don't buy.

I too have the money,but why not use somebody else's money and hang on to mine ,at 0% interest it's a no brainer.

Then I just pay as I go .

No big sums coming out the bank. Result.

For me, it depends entirely on the interest. If it’s 0%, I would argue it’s a better deal than buying it all in one go (as long as you have the money for it). But if you are paying interest, I’m not sure it’s a wise decision, although there are instances of a watch appreciating further than the interest cost

You are right, which is why I mentioned luxury items early on. Home and transportation are necessities. And we do not know each person's financial situation. There are lots of folks here where $500 is a stretch. In this case, we are talking a Breitling, so let's say $6000-$7000. So some that is nothing, but for someone else that monthly payment could exceed a monthly utility, especially if they fall on hard times.

Oh, I get it Andy, but if someone has to finance it because they cannot afford it, why risk it? Just about everyone drives more than they need, otherwise, we’d all be driving Subaru Crosstreks, or GTIs. :-)

In the US, we have a credit rating system, if you take out new loans, especially on luxury goods, it could have a 20 point plus swing on a credit rating. Let say, 6 months later one needs a new car, and now has to borrow at 12% instead of 6% because that swing downgraded them; was 0% loan worth it? That a real scenario many face.

Absolutely, but sadly, as we know, many are as fiscally responsible.

Some ADs in the uk will let you finance 0% upto 4 years. Not a bad deal. Obviously you should be responsible and in control of your finances so I would prefer saving.