Financing a Rolex: Is it a Smart Decision and How It Works

For many, owning a Rolex or another luxury watch like a Cartier, Patek Philippe, Audemars Piguet, Hublot, Breitling or IWC is a dream and once realized becomes a lifelong passion. Luxury watches are a symbol of success, true craftmanship, heritage and prestige. The prices or shall we better say the value of luxury watches ranges from around CHF 1,000 for a mechanical Tissot up to 6 figures for timepieces from Richard Mille or Patek Philippe. Today most luxury watches are paid for outright, meaning from your savings account or with the financial support of parents or partner. However, looking at the (luxury) car market most cars are actually paid for monthly with a financing or leasing. This allows you to better align the purchase (or investment) with your regular income. You are basically applying a forward savings approach by locking in todays purchase price and paying it off over up to 60 months. This also protects the buyer from any future watch price inflation that was seen to occur over the past two decades at higher rates than the basic inflation rate.

In this blog article, we'll explore the costs associated with buying a Rolex or another luxury brand, the value of luxury watches, and how to finance them through Yourasset.

Understanding the Value of a Luxury Watch

A luxury watch derives its value from two key factors:

1. Intrinsic Value – The cost of materials, production, labor, and logistics.

2. Intangible Value – Brand perception, demand, and scarcity.

The secondary market for luxury watches has seen significant appreciation over the years. For example, the Patek Philippe Nautilus ref. 3700 has appreciated over 4000% since its release in 1976, while gold has appreciated by nearly 2000%.

Beyond monetary value, luxury watches hold strong emotional significance. Many buyers appreciate them for their aesthetics, craftsmanship, and as timeless heirlooms. Today, conversations around the investment potential of luxury watches are becoming more common, reinforcing their appeal as a sustainable asset.

How to Buy a Rolex

Purchasing a Rolex isn’t as straightforward as buying a regular wristwatch. Due to high demand, new Rolex models often require placement on a waiting list at authorized dealers. Alternatively, many buyers turn to the certified pre-owned market, where Rolex watches undergo authentication and come with warranty coverage.

When buying a Rolex, you should consider the following:

• Buy from a verified merchant or through an established marketplace to protect yourself from possible counterfeiting or simply from fraud.
• Watches that come with the original box and papers are often a safer purchase than those without. However, this also depends on the age of the watch. The older the watch, the less often it is offered in a full set with box and papers.
• In addition to buying from an authorized dealer, you can also buy a Rolex on the pre-owned market. Without the otherwise long and uncertain waiting times. As mentioned earlier, luxury brands regularly raise their selling prices. When you receive the call after a long wait, it is likely that the selling price is higher than it is today.

Financing a Rolex: Is It a Good Idea?

It depends on your financial situation, but generally, the answer is yes. The ability to finance a luxury watch presents a flexible payment option that aligns with regular monthly income. If people finance cars, why not watches? In fact, a car typically depreciates faster and has higher maintenance costs, whereas a luxury watch retains value better over time.

With Yourasset’s financing solution, customers can now pay for their next Rolex in fixed monthly installments through a fully regulated approach.

How Rolex Financing Works with Yourasset

Yourasset acts as a payment enabler, allowing customers to securely provide their information and track their purchase from start to delivery. Customers make fixed monthly payments to our trusted bank partner. In Switzerland, interest costs on financing are deductible from personal income taxes, and early repayment is possible.

The financing process is simple:

1. Find your next Rolex and choose the financing option.

2. Submit your personal and financial information securely via the Yourasset platform.

3. Yourasset and our bank partner review the application.

4. Once approved, you receive a financing contract.

5. Sign and return the contract to our bank partner.

6. The merchant receives only your basic personal information.

7. Congratulations! Pick up your new Rolex from the merchant.

8. Your information is securely saved for future transactions.

For any product-related inquiries, customers can contact our merchant partners directly. For any financing-related questions, our team is available to assist.

Pros and Cons of Financing a Rolex

While financing a Rolex can make ownership more accessible, it’s essential to weigh the advantages and disadvantages.

Pros:

Immediate ownership – You can wear your Rolex or luxury watch today and pay for it with your income over a period of up to 60 months.
Protection against price inflation – By fixing the purchase price and monthly payments today, you are protected against future price increases.
Maintain liquidity – You retain the flexibility to use your liquidity elsewhere.
Improve your credit rating – Your credit rating will improve if you make all payments on time.
Tax advantages – You can deduct the interest costs from your taxable income.
Early repayment – You have the flexibility to repay the financing amount early.

Cons:

Interest costs – You pay interest costs for the flexibility, which are transparently communicated.
Financial obligation – Similar to a fixed savings plan, you must make the monthly payments to pay off the loan. At the same time, your assets increase because the watch is 100% yours.

Key Considerations Before Financing

Before you decide to finance your next luxury watch, you should consider the following:

• Your financial budget: The monthly rate must fit well into your monthly budget (your net income less your fix expenses)
• Total cost of financing: The interest cost (less the part that is tax deductible) is paid on top of the purchase price.
• Insure your asset: You might want to insure your Rolex to protect against theft or damage.
• Do you like it: Purchasing a watch is a longer-term investment. Make sure you like the watch, even though you can sell it later on.

Final Thoughts

Owning a Rolex or other luxury watch is a symbol of success, a sustainable asset that tells your story, can be passed down through generations and offers you the opportunity to become part of a great community – if you so choose.

With the Yourasset financing option, customers can pay for their next Rolex in up to 60 months, via a transparent and regulated approach. The emotional component and luxury experience remain in the foreground for the customer and the retailer.

If you have any questions, we welcome you to reach out to us an write us an e-mail to contact@yourasset.com.

Photo: Petite Genève