New vs Used Luxury Watches

Now before everyone gets excited, let me clarify a few things about this post:

  1. This post excludes anything that goes up in value after you leave the store (i.e. limited edition, concept watches, Rolex, Patek, etc.). Let's assume we're talking about something that is popular and accessible.
  2. I am not touching on the merits or best practices of buying vintage watches. Resident experts like @Porthole and @Aurelian have covered that well. Let's assume we're talking about slightly used or vintage pieces.
  3. I am not debating the differences between gray market dealers and ADs. Let's assume regardless of what you're buying you are getting appropriate customer service and treatment.

So that said, here are my thoughts...

I am aiming to buy my first Omega this year. As such I have started "the hunt" and went to visit some shops yesterday. I oddly saw a few brands, not just Omega. I came across Junghans, Tudor and Hamilton as well. But in this quest what did not expect is to see some really good condition used pieces. This got me thinking: If buying a popular or iconic watch; does it make sense to buy it used or new?

Some of my current assumptions for going used:

  • More perceived bang for buck. - The title picture is a used Speedy which is about 60% the cost of a brand new one. I could get this and something else for the same amount of money as a new Speedy.
  • More nostalgia? - I don't know why, but when I tried on the used Speedy it felt better than a new one which I've also tried on in the past. Is this just my hipster brain playing tricks on me?!
  • More style choices - speedy aside, I also saw a lot of cool pieces like vintage Omega dress watches, a quartz SMP from the 90s, an older Longines scepter dial with small seconds. There just seem to be a lot more style choices when you're in the used market.

Some of my assumptions for going new:

  • Better warranty - when you buy new you have a better shot and fixing any issues that could come up as they are mostly covered. There are also usually longer warranty periods for a new watch vs used.
  • Longer life? - I mean I know a good watch should last multiple generations, but nonetheless if you buy something that is already used then that's extra mileage you won't get back.
  • Better tech - new watches tend to have improved movements and materials. Not always the case, but many times it is.

I know there is no right answer here, new and used watches alike are all wonderful and come with pros and cons. I'm more so curious to know how other folks made their decisions. I'm also cognizant of the fact new watches have gone up in price pretty drastically. The BB36 I tried on yesterday went up by $300 this year, which is over a 10% increase.

OK WC, let me have it, don't hold back.

Reply
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My BB36 and the Oris Sixty-Five is the closest to luxury I've been and I bought both of those used. The Oris in great condition for a smaller mark down and the Tudor in pretty rough cosmetic shape for a bigger mark down. Both felt like good decisions.

I have thought that I should support companies I like by buying new. But I also support them by buying used. There would be less people willing to pull the trigger if they knew they were pretty much stuck with the watch. That is my thinking anyways 😊

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Both good options. One will apply to one segment, one to another. 

I am going to be in the market for a Speedy (let's not talk about when though 😥), and while I want the whole AD experience, I might like the couple grand left in my pocket more. 

Did you see good condition used at AD's? Because if so, that might be the final bit that puts me on that side. 

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Most big brands offer 5 year manufacturer's warranties now.  Given that, if you want the latest tech, etc., it's not a bad idea to buy a recently used model.  It seems to be the case that you can often pick up a 1-year old example of the latest model GS or Omega or whatever, often for 30% or more off new prices.  Why not?  You would still have 4 years left on the warranty!

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I've only gone used on a few discontinued pieces.  Right or wrong, I prefer my watches be mine first.

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My experience with my Omega AD has being delightful in the sense that I get brand new piece at discounted price with 5 years warrant. See if you negotiate the price to your liking while getting the new and the warranty.

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I tend to buy maybe 70% used and 30% new.  

Part of that is an enjoyment of slightly off the run references which can be hard to find.  

Part of that is letting others have the new watch smell depreciation (acute particularly with microbrands and Seiko/Grand Seiko).  

Part of that is I can personally float any repairs that might need to come up outside of warranty, so I can take risks with used watches that others might not.  

My new watches tend to be ones where I have personal trouble with verification, the chance of a fake is high, or the AD is instrumental to getting the best price.

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I buy preowned when I can.  It is interesting this topic came up yesterday at my AD.  He bought a new Speedy for himself, but had been on the fence about buying a used one for a while.  Ultimately, he took the new one because of the tech- CoAxial.

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UnholiestJedi

Both good options. One will apply to one segment, one to another. 

I am going to be in the market for a Speedy (let's not talk about when though 😥), and while I want the whole AD experience, I might like the couple grand left in my pocket more. 

Did you see good condition used at AD's? Because if so, that might be the final bit that puts me on that side. 

No, the speedy I saw was a boutique selling mostly used and it came with no box and no papers. Hence the price...

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Mr.Dee.Bater

Most big brands offer 5 year manufacturer's warranties now.  Given that, if you want the latest tech, etc., it's not a bad idea to buy a recently used model.  It seems to be the case that you can often pick up a 1-year old example of the latest model GS or Omega or whatever, often for 30% or more off new prices.  Why not?  You would still have 4 years left on the warranty!

This is my line of thinking as well. Just need to put in the effort to find the slightly used piece.

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Half_Life

My experience with my Omega AD has being delightful in the sense that I get brand new piece at discounted price with 5 years warrant. See if you negotiate the price to your liking while getting the new and the warranty.

How do you normally start your negotiation? By pitting them against competition or is your relationship more so the main motivator?

I get good deals with my Seiko AD. But have not developed any significant relationship with Omega ADs.

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tonmed

This is my line of thinking as well. Just need to put in the effort to find the slightly used piece.

Which Omega are you thinking of getting? I think I can put you in touch with a dealer who can probably source one for you that is relatively new. Let me know!

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tonmed

How do you normally start your negotiation? By pitting them against competition or is your relationship more so the main motivator?

I get good deals with my Seiko AD. But have not developed any significant relationship with Omega ADs.

You have to absolutely sure about the omega you want to buy and the AD having that piece. I usually have a number in mind that I am willing to pay based on market price research. I lower my buying price and let AD know and my interest of buying it at that price. If it works for them they usually are ok to sell it or will come up with a price that works. Once you establish that relationship all your subsequent exchanges will be similar. 

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I think you need to decide EXACTLY what you’re looking for. Do you actually want a new watch? If you don’t necessaril, or if it doesn’t phase you either way, find a good used one (that’s been recently service) and save your money. 
 

That said, if we’re talking about the new Speedy, there are significant changes to the new one. New movement, new bracelet, dot over 90 (if you’re a lunatic fan like me), sapphire OR hesalite. So …. Do you want those things? 

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Mr.Dee.Bater

Which Omega are you thinking of getting? I think I can put you in touch with a dealer who can probably source one for you that is relatively new. Let me know!

I'm looking for an SMP white dial. Will DM you separately if that's ok. Thanks for the offer!

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LBrown

I think you need to decide EXACTLY what you’re looking for. Do you actually want a new watch? If you don’t necessaril, or if it doesn’t phase you either way, find a good used one (that’s been recently service) and save your money. 
 

That said, if we’re talking about the new Speedy, there are significant changes to the new one. New movement, new bracelet, dot over 90 (if you’re a lunatic fan like me), sapphire OR hesalite. So …. Do you want those things? 

I am precisely looking for a SMP white dial. The speedy is nice, but not for my first Omega.

That said, I am always open minded, especially when it comes to deals. Say I happened to find a new Speedy that was somehow the same price as an SMP, I may get that instead. But I'm not hanging my hat on these fantasies. The one thing I've been planning for and looking forward to is the SMP.

I'm in no rush though. The best deal is more important to me than the timeline. Ideally within 2023.

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The main advantage to buying new is being assured of buying an authentic product with full warranty, that comes with absolutely no scratches. In reality, even when buying a "new" watch that has been on display, there is the possibility (perhaps even probability)  that it has been tried on and handled by several others, and may have even picked up a very minor scratch in the process. The main disadvantage to buying new is the extra cost.

If I discover a current production watch that I would like to add to my collection, I will ideally try to find a very gently used pre-owned example with the bulk of the remaining warranty, as the savings can be significant. My most recent purchase was an IWC Pilots Chrono 41, with full kit, with a warranty start date of March 2022. I paid $7,500 CAD in October, including insured shipping to my door. Based on a list price of $10,900 CAD, and accounting for the sales tax where I am, that works out to $12,208 if purchased new without discount. That's a saving of $4,708, (approximately 38%), for the loss of 7 months of warranty coverage. That still leaves me with 17 months of basic warranty, plus the additional 6 year warranty extension for registering the watch. I'm sure I would have been able to negotiate a discount from the AD if I had purchased new, but suspect it wouldn't be anywhere close to the deal I ended up with. The watch I received was in almost perfect condition, the only visible sign of wear being a tiny scratch on the clasp. There is no way that I'd be willing to pay over $4K just for the privilege of buying new and being the first owner.

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tonmed

How do you normally start your negotiation? By pitting them against competition or is your relationship more so the main motivator?

I get good deals with my Seiko AD. But have not developed any significant relationship with Omega ADs.

Do not mention about prices else where as it will make you look like cheap, they will be fully aware of them also.

Visit the AD on a weekday so less customers

Make it clear you are into watches and are a watch nerd

Only barter on a watch you really want and only negotiate if you are willing to purchase

Simply just ask, state you usually get a discount on new purchases and can they do anything with the price.

15% is a good number to ask for and 10% is the min discount. They want your business and if there is a potential for more sales they will want to look after you (how it should be)

Most people are not even aware they can get a discount so its not a biggy for an AD to discount to move a piece.

I have received hefty discounts on all my recent purchases outside of one that was a waitlisted watch. 

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Maybe it’s my OCD but I have to buy new. Even shopping for clothes I always ask for a fresh one out of the back rather than take from the shop floor. Cereal boxes? I’ll take the one 3 back from the display. etc. 

I know it sounds weird and it probably is. But that’s that. 

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I usually go the used route for my watches. The ones that I buy new are usually sub 1k models that I can get a discount on. Anything that is wait listed I just prefer on the used market as I don't feel like buying different watches to get the one I really want. 

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If i'd have enough dough to throw around and i could afford gifting other people luxury watches, i'd always go with a new. It just feels more appropriate and i won't drop such money on a present for someone i don't care about, so i want them to have a warranty and a nice box and papers and whole unboxing experience.

But for me, used all day, every day, 24/7, period. When i was young and pretty much bankrupt living off microwaved potatoes i was a loyal thrift shop customer. This feeling when you spent some time to find something really cool in a whole haystack of bs - unforgettable. For me it's just more rewarding at the end, when i've spent some time and effort to research the market, research the piece itself, get through different listings to find THE watch. Add a smaller price tag and a possible conversation with a likeminded passionate person, and you have yourself a whole other experience. Everyone could go to the store and buy a Speedy. With some saving and wise financial strategies almost everyone could afford a Speedy. And it's just another speedy from the store, it's still a magnificent watch, but it is sterile, factory clean.

I'm also into music production and luxury boutique guitar pedals and guitars (yeah if the watch collecting isn't enough of a black hole to suck the money out your pocket) and man, the networking i got while trading guitars and pedals with other musicians is outstanding. I got to know a lot of music professionals, big pedals aficionados, sound engineers, some hobbyists with a crazy collections, sonic explorers while conducting a trades in a back alley of my studio. As it is bizarre to stand near the trash cans with the dude that played a 5k venue yesterday it is also mind-blowing. You can actually learn a LOT from it. And i've had a conversations with a passionate musicians and collectors on a marketplaces, facebook groups, got to know some local builders, luthiers, etc. I've even got myself a custom made guitar which is worth 3k$ if made by Fender for a 1/10th of a price, just because i got to know the people that are capable of getting me this deal.

I believe that the luxury experience you have with an AD is also a worthwhile endeavour and some might say this is the part of owning a luxury watch, but as you've said, hipster minds are tend to play tricks, so this is the trick i like)