Which Watch
Luxury Watch: What brands are considered to be a luxury?
There are many watch brands that you should consider when purchasing. Some of Edinburgh Asset Finance favourites include Rolex, Patek Philippe and Tag Heuer. Most luxury watch brands hold their value very well even after they have been used for many years.
Watch vs other luxury items
Luxury items are notorious for nose-diving in value as soon as they have been worn or used. Take cars as an example. It is unbelievably uncommon to buy even a sought after sports car and not suffer 25%+ depreciation in the first year alone – and they tend to keep going down in value as time goes on. Jewellery has similar pitfalls. Anybody who has ever bought a diamond ring or pair of earrings from a jeweller and then subsequently tried to sell them will tell you that the going rate might be as little as 25% of the price paid.
Watch Value Example
Not everything works in this way though – there are a few luxury watches out there that can be a reasonable long term investment. Take my own Rolex GMT Master II watch. It was given to me as a present over 12 years ago. At that time it was bought for around £3100 and I have worn it almost every day since and it is still the only watch that I own. I recently spoke to a dealer who had said that it might be worth as much as £4000 at the moment.
Watch value Growth
Whilst I recognize that 30% growth in 11 years is not huge, for a luxury item which was bought brand new it seems pretty good – especially given the wear I have had from it. Many of the Rolex sports watches continue to appreciate and even now it is possible to buy a new Rolex and enjoy some depreciation free wear. A good example of this would be the current model of the Daytona – which has a list price of just under £8000 (if you can get one) and a second-hand value of £12k+.
Why Edinburgh Asset Finance likes Patek Philippe Watches
Patek Philippe is another brand who enjoy similar appreciation. This is largely due to their desirability which is cultivated through a huge attention to detail in the manufacture and a very limited supply. Patek famously uses the slogan “You never really own a Patek Philippe, you merely look after it for the next generation,” which beautifully sums up their philosophy.
Of course, not all luxury watch brands enjoy such appreciation, but if you pick the right one then it can prove a very enjoyable investment. If you would like more information about loans against watches, check out our recent blog post on loans against watches here.