why watches lose value???

Thread: why watches lose value???

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  1. #1
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    why watches lose value???

    Recently I've been spending lots of time in the used watch sections in different watch forums like WUS and Timezone...

    I'm sort of confused how watches from brands like Zenith, Blancpain, Girard Perregaux and many others lose value so fast..

    Why does a $12000 2 year old watch that is supposed to be perfect for decades sell for $4000.

    Are these watches worse than the companies that keep their value... rolex, panerai, etc

    Thank You

  2. #2
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    Re: why watches lose value???

    It is just like luxury car (models).
    If a watch has a fashion status, like Rolex and Panerai, (or a Porsche) they tend to keep the value a bit better.

    Edit: The high second hand value for a Panerai is a joke I think. All is about the perceived value, I know, but apart from the unique design a Pam is not higher quality that the other watches you mentioned.

    I own a wide selection, cheap to expensive, of different watches, so I can easily compare them.
    Panerai is well made, just like Omega et al.
    Not as nice as an JLC. And the movement is def. not as nice.
    Last edited by Janne; April 13th, 2010 at 04:54.

  3. #3
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    Re: why watches lose value???

    the brands OP wrote does not have marketing power to compete with bigger brands so the less people wants to own these brands.
    KOBOLD x 4, ROLEX , Corum, concord im

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  5. #4
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    Re: why watches lose value???

    No, true. Rolex is the granddaddy of marketing.
    But I think that the watches the OP is mentioning are more for conesoirs.
    In fact, I do not think they want to appeal to the "Masses"

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    Re: why watches lose value???

    Quote Originally Posted by Janne View Post
    No, true. Rolex is the granddaddy of marketing.
    But I think that the watches the OP is mentioning are more for conesoirs.
    In fact, I do not think they want to appeal to the "Masses"
    thats the problem, less demand , more beating it takes on used market.
    KOBOLD x 4, ROLEX , Corum, concord im

  7. #6
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    Re: why watches lose value???

    Quote Originally Posted by Gold007 View Post
    Recently I've been spending lots of time in the used watch sections in different watch forums like WUS and Timezone...

    I'm sort of confused how watches from brands like Zenith, Blancpain, Girard Perregaux and many others lose value so fast..

    Why does a $12000 2 year old watch that is supposed to be perfect for decades sell for $4000.

    Are these watches worse than the companies that keep their value... rolex, panerai, etc

    Thank You
    Don't think in terms of dollar loss, but percentage. The percentage depreciation is quite similar across brands. Watches, like cars, boats and other goods lose value simply because they are no longer new and have some level of wear.

  8. #7
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    Re: why watches lose value???

    The (more) 'niche' brands you've mentioned, simply have less demand than say a Rolex. The percentage does differ between brands.
    It's also a vicious circle, a brand has a low resale value, ergo people will only buy it cheap. So you have to sell low or not sell at all. Which completes the circle.

    Also for certain brands (very high end) the people that are in the market to buy them are generally very wealthy, so they need more of an incentive to buy second hand (since they are able to demand perfection, why buy second hand if you only save a few k and lack the benefits of a fully new watch).

  9. #8
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    Re: why watches lose value???

    janne made a great point about the resale value. the demand is what drives the prices. the afore mentioned brands are niche brands, not "big boys".

    as for the $12,000 prices selling for $4000 used is because you can buy them new at nearly 40% off. GP has a reputation of being highly discounted when you deal for them.

    so a $10,000 GP is really about $7000 or $6000, thus being $4000 used.

    make sense?

  10. #9
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    Re: why watches lose value???

    Quote Originally Posted by SchweizZeit View Post
    as for the $12,000 prices selling for $4000 used is because you can buy them new at nearly 40% off. GP has a reputation of being highly discounted when you deal for them.

    so a $10,000 GP is really about $7000 or $6000, thus being $4000 used.
    Agreed, don't compare the used price to the full retail price, compare the used price to the average street price. Some brands sell new for full retail or very close to it, while other brands can easily be gotten for 40% or 50% or more off of retail price. Then the used prices wouldn't seem that far out of line.
    Last edited by HilltopMichael; April 15th, 2010 at 02:03.

  11. #10
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    Re: why watches lose value???

    http://www.bernardwatch.com/Girard-Perregaux

    Check out the two gp that are, "never worn" almost half the retail.

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