The Paradox of ROLEX Pricing: Unraveling Why Used ROLEX Watches Command a Higher Price Tag than New Ones | chronos_man
Visiting the Rolex site might leave you in awe, some watches reach deep into the tens of thousands of dollars, while others are simply listed as “price upon request.”
And to a lot, it’s probably confusing to see every single reputable second-hand website selling certain Rolex watches at prices that are significantly higher than their brand-new, retail counterparts.
There are a lot of factors that play into the price of a pre-owned timepiece, so lets get some insight by understanding what determines the price of a used Rolex watch.
Bear in mind, not all used Rolex watches are more expensive than than new models.
If a used Rolex is selling for more than its retail price, it is probably vintage, rare, or highly desirable.
Vintage Rolex Watches
There are no real regulations around what qualifies as vintage, but within the watch world, we typically consider a watch as “vintage” when it’s at least 25 to 30 years old.
These watches tend to hold greater value because as they reach a certain age, there are just fewer of them still in existence (let alone in collector-worthy condition).
On top of that, the vintage models that are typically worth the most – sometimes three, four, and five times more than retail – are exceptional because of their excellent condition despite their age.
They have desirable features like patina and production variations, and if you’re really lucky, a paper trail of its purchase and ownership.
Of course, there are also rare and discontinued features on certain vintage pieces that make them worth more.
Some vintage attributes that can make a watch worth more are the coveted ‘Red Sub’ text on Submariner 1680 watches, an exclamation point dial, meters first dial, or a case with pointed crown guards (just to name a few).
Some might just consider these outdated features, but first and foremost they’re rare and vintage – and if you have them on your Rolex, it just might be worth a whole lot more because of them.
Rare Models
When it comes to Rolex watches, rare and vintage can go hand in hand – but not always.
There are Rolex watches that aren’t vintage yet but are still hard to find – for example, maybe their reference number didn’t last in production for very long.
One watch that serves as a perfect example is the reference 16610LV Submariner (nicknamed the “Kermit”) – which was released back in 2003 for the 50th Anniversary of the Submariner but was discontinued by 2010.
A couple of things make this watch rare, the first being that iconic, green aluminum bezel. Not only was it the first Submariner to feature this color, but after they discontinued the Kermit, Rolex began making ceramic bezels.
The other thing that makes this watch rare is the sheer fact that there aren’t a ton of them around since it had a production run of fewer than ten years (compared to more than two decades for the all-black version of the Submariner 16610).
So, how does the Kermit’s rarity play into its price tag? Today, the most recent stainless steel Submariner with a date complication and green bezel goes for $9,550 retail.
Comparatively, prices for the older Kermit, with its black dial and green bezel are on average 50% more than the retail price of a brand-new Rolex Submariner (assuming that you can even find one available for sale at all), simply because of its rarity.
This post was sponsored by WISE
Desirability
Some Rolex models simply hold their value better than others. Think of buying a luxury watch like buying a car – the minute you take it out of the store, it depreciates in value.
However, just like cars, some luxury watches (in particular, Rolex) might actually be worth more after buying due to the market demand.
For example, the Submariner is one of the best-selling watches in the Rolex lineup, and even the most run-of-the-mill used Rolex Submariner is going to hold its value incredibly well.
You can even find some excellent condition models that are several years old that are worth more than their original retail price.
Additionally, with the Rolex Submariner being entirely unavailable at a retail level, there are countless buyers willing to pay top dollar to ensure that they can add one to their collections without the wait.
Availability
One of the biggest factors responsible for used Rolex watches costing more than their brand-new counterparts is the simple fact that most of Rolex’s top models are entirely sold out at retailers.
It might sound crazy, but you can’t simply walk into a Rolex store and buy the watch you want. The waiting list for many models is several years in length and even with your name on the waiting list, there is no guarantee that you will receive a watch before the model gets discontinued.
While some are happy to take their chances and wait, many other people are willing to pay well above retail to skip the waiting list and add the Rolex watch they want to their collection today. Since demand for Rolex watches significantly exceeds their supply, the secondary market is the only place to buy the model you want without the wait, and this drives up the open market price for these highly desirable models.
That also begs the question, why can’t Rolex just produce more watches? It’s important to remember that each Rolex takes about a year to make, from start to finish.
Their dedication to quality and precision is unparalleled.
If you consider the fact that their movements are assembled by hand and that Rolex uses precious materials forged entirely in-house, it’s actually extraordinary that they manage to produce nearly 1 million watches annually.
Conclusion
To sum it all up, there are many reasons why a Rolex watch costs as much as it does, whether it be because of availability, the rarity of the watch, or the fact that it’s vintage.
While it can initially seem like a lot of money, once you look below the surface and take into account the quality of the materials, the timelessness of the designs, the more than a century of heritage, and the fact they hold their value so well, the price of Rolex watches are extremely reasonable.
Additionally, the simple fact that countless individuals all over the world are willing to pay well-above retail prices for pre-owned Rolex watches lets you know that regardless of what Rolex is charging at a retail level for its watches, the true value of them is even greater.
To get the best deals on pre-owned luxury watches, make sure to purchase from an authenticated luxury watch exchange.
Additionally, the fact that many industry experts expect Rolex prices to continue to appreciate despite a volatile market as of late means that the amount you pay today might end up being worth a whole lot more several years down the line.
The product of the biggest and most successful watchmaker in the world, there’s nothing quite like a Rolex.
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About this blog
You can tell that Chronos_Man is a 24/7 watch lover. Every night my dreams keep ticking to 7:00 AM like clockwork.
If someone asked me why I love watches so much, I couldn't give a straight answer.
It would be like asking a rich man why he spent $50 Million on a Yacht, or the one who has 5 Bugatti's. To some it will look silly to spend so much money on something, to few that is "chumpchange".
It doesn't matter where you stand, someone else will always have a different opinion from yours.
But when it comes to watches, these small while meaningfull accessories ooze intelect, style and sophistication.
Unlike expensive cars that give a loud statement, watches are quiet and intellingent way of sharing a part of your personality with the rest of the world.
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