The Breitling Watch Source Forums

Sasho, very interesting point you made.

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Past: BlackBird, Navi World, SA, Rolex DJII, IWC Yacht Club
Present: CE, DSSD
Future: Changes daily

Credit industry is a raw nerve for me. I do not even carry a credit card - who needs one now that debit cards are accepted everywhere the same as credit cards?

More importantly, I have witnessed a fundemental shift over my life in banking and other credit providers. Take banks - most in the U.S. now hire branch managers from places like stores in malls. Gone is the requirement for a finance, economics, accounting, or general business degree. If you have a friend who is a bank branch manager ask him, "What is 90% of your job and what do your bosses judge you by?" Its' sales baby, sales!! Relentlessly hawking financial products - mostly high interest unsecured credit - to customers. folks who work in banks aren't bankers anymore - they are salesmen.

I do not in any way criticize banking or sales, rather the mingling of the two in actual bank locations. And there is much more I can say, but will turn this thread over to the topic - the willingness to finance a luxury item springs from the same mindset that has us in the credit and economy bind we are in today. Irresponible consumers are to blame, but so even more so the crack dealers supplying them. Shame, shame, shame.

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SHARKMAN

Yeah, I started life in banking many years ago and it was a different industry then for sure.

The idea of leveraging money (borrowing to invest for better returns) is a solid principle, and certainly not one that I am against in certain circumstances, but not sure that I would consider that borrowing to buy a watch because cash could be used to generate better returns is one of those circumstances. The problem that I have is that the watch is a rapidly depreciating asset so in and of itself it isn't an investment, and I can't help thinking that I can get a better price with cash than with financing.

I will use a credit card if I can't get the cash discount equivalent to credit card fees (generally around 2.5%) for the points and the free credit period - I pay off in full, but only on the due date.

Perfectly agree but I pay on the due date.

That's why I changed "clubs" and joined FlyingBlue (Air France/Delta etc.) a few years back which I privilege over Miles & More which became a rip-off since Lufthansa took over Swissair's Qualiflyer program.

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- This is Ghost Rider requesting a fly-by. - Negative Ghost Rider. The pattern is full.

IMO, the majority of the guys (and gals) here don't buy watches as an investment but simply because the appreciate beautiful things. At least I didn't...

Now if the price of gold keeps going up, it surely adds to the fun

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- This is Ghost Rider requesting a fly-by. - Negative Ghost Rider. The pattern is full.

I usually use my credit card unless I can get a good discount for not using it. I like the points, but I pay it off in full every month.

As a voice of difference here I will admit to having used 0% finance through AD's in the past. My reasoning at the time was that I either save up the cash and buy it later, or I use 0% finance, have the watch immediately and pay the finance with the money I would've been saving for it anyway. I just used it as a tool to get round a timing/impatience issue!

However in recent years I have only ever bought them with cash out-right. These are luxury goods, pure and simple, so they sure as hell ain't worth getting into debt over!

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Driver8

Site Moderator

I only use the AMEX just for the points as it was mentioned above, then obviously pay in full since AMEX's are CHARGE Cards and not credit cards.

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Past: BlackBird, Navi World, SA, Rolex DJII, IWC Yacht Club
Present: CE, DSSD
Future: Changes daily

I hear ya, since I've moved to Calgary I travel a fair bit and my trips to Europe got much longer with sometimes two transfers. They convinced me to join Aeroplan since I fly Air Canada a fair bit and now I am totally obsessed with collecting reward points and what not...crazy. Next week I am off to Bulgaria again and I made sure to book my flights with Star Alliance partners. Got to collect those points and then use 'em to fly 1st class

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Alex
Breitling - Navitimer
Breitling - SuperOcean
Breitling - Chrono SuperOcean

If you can get a 0% finance deal and a discount off the retail, you would be silly NOT to take advantage of it.

Why dump out the cash for something that immediately loses it's value when you can invest that lump sum and make some money?

Let's say the watch is $5k after tax. You finance it for 0% for 24months. That's $209 per month.

Take the $5K you were going to put down on the watch and invest where you can get 8% return.

In two years you would have $5,872. So after two years you would own the watch free and clear and have $872.00 to help hedge the depreciation of the watch.

Or you can buy the watch cash because you don't believe in debt and have just the depricated watch.

The deal works when it's 0% interest, which is very common these days.

The tools are out there folks. Just a little discipline and an open mind and you'll come out ahead...

Well of course - assuming an identical discount which is a big assumption in my experience. A relatively small difference in the discount will put you upside down quickly, especially after income or capital gains taxes.

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SHARKMAN

Exactly, and let's be clear - someone is paying for that 0% interest - I've never yet taken a 0% finance deal because to me it's an invitation for a better discount - if they can afford to finance the watch for me then they can afford to shave some more percentage points.

And that's before we get into the risk premium that you have to factor in to plan for 8% on just $5k.

It's easy. I've done it, just last year.

25% off on a Super Avenger with 0% for 24months.

I will say that I am a good repeat customer, so don't expect this everywhere.

Invested the money at 8% and came out ahead.

It can be done.

Yeah, I'll take my cash deal over that every day of the week.

So you get 40% off your new Breitlings on a cash deal?....maybe you do....maybe you don't...It's good if you can.

I, however, bought my Airwolf at 40% off and still got zero percent for 24months. I'm doing even better with that money right now...

You would NEVER get 40% off a SA where I live. NEVER. So, I'm cool with my dealio...It doesn't snow here..

Plus the money I invested is still compunding. The watches are still depreciating....