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An acceptable amount of depreciation?
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Author:  1952 [ Thu Nov 19, 2009 3:39 am ]
Post subject:  An acceptable amount of depreciation?
Maybe this is best asked on an Omega forum, but I can't be bothered joining one just for this purpose:

In July this year I bought an Omega Speedmaster Solar Impulse (w/bracelet), new for £4450 (gbp) from a well known UK jeweller. At the time, this was the average price. Now it seems to have dropped to around £3500 - £4000 from Internet sellers.

I enquired to the same jeweller about part exchanging the Omega for a Panerai which was £3950.

They "tentatively" offered £3250! :shock: A drop of £1250 in 5 months for an immaculate, hardly worn watch!!

I think this is a very heavy drop in value, much more than I was expecting.
Do you think this sounds right? Given the current values, and that the same watch will probably re-emerge on sale (with minimal or no need for sale preparation) for around £4000?
Author:  Sharkmouth [ Thu Nov 19, 2009 6:34 am ]
Post subject:  Re: An acceptable amount of depreciation?
My rule of thumb for Breitling is -40% off list the moment you walk out of the shop. I would guess Omega would be around the same.

£4450-40%=£2700 so I don't think their offer is ridiculously low.

For example, I picked up a 5 month old LE Aerospace in September at 50% of the price when new.

Since you're trading in, you might be able to squeeze a bit more out of them.

Best of luck!
Author:  1952 [ Thu Nov 19, 2009 6:59 am ]
Post subject:  Re: An acceptable amount of depreciation?
I just find it incredible that something so new, would lose so much, so soon.
Knowing that it will be back on sale without any expense. :(

The Solar Impulse having a good Omega automatic mechanical movt, having such complications as date, chrono and GMT. Numbered Edition aswell. Its not exactly a common SMP. I was hoping it'd hold its value better.

I think I'll try selling privately, and thanks, I'll need the luck!
Author:  Drtymrtini [ Thu Nov 19, 2009 8:25 am ]
Post subject:  Re: An acceptable amount of depreciation?
The fact of the matter is, certain watch brands and certain watches aren't really that hard to get. I've said this before, but as much as I love my Breitling and I really like Omega, they are not hard watches to get and most ADs discount their suggested retail price. Point being, your AD needs to make money on the used watch and needs to disclose that it is used. There are very few luxury watch brands that gain value over time and that particular Omega won't.

It sucks, but such is life. Just be glad you didn't wait another 6 months when you'd probably get even less for it.
Author:  Driver8 [ Thu Nov 19, 2009 8:50 am ]
Post subject:  Re: An acceptable amount of depreciation?
Depreciation is indeed a killer. That's why you are only best to buy new if you intend to keep it. Obviously I realise we sometimes buy things that we go off and decide to trade, but as a rule Sharky is quite correct when he speaks about a 40% depreciation as soon as you own it.
Author:  Roffensian [ Thu Nov 19, 2009 8:54 am ]
Post subject:  Re: An acceptable amount of depreciation?
This is the flip side of the discounting debate. It helps increase depreciation.

As one Canadian AD said to me....

"How much can a customer expect me to buy his used watch for when I can buy a new one from the distributor for 55% of list?"
Author:  Otto [ Thu Nov 19, 2009 2:40 pm ]
Post subject:  Re: An acceptable amount of depreciation?
The other responses are on the mark. I have noticed that on some forums, Omega is often given as an example of a brand which suffers fairly heavy depreciation immediately after purchase. Sharkmouth's figure of 40% sounds about right to me because I know I (and seemingly most other people, but perhaps not so much in the UK) can get 30% off a brand new one from an AD - or even more if you buy a lot of watches from that dealer.
Author:  1952 [ Thu Nov 19, 2009 11:34 pm ]
Post subject:  Re: An acceptable amount of depreciation?
Well if a watch can be bought New for 30% off list, and still make a profit, that shows how over-inflated the prices really are by the time they reach the stores. :roll:
Author:  dhalem [ Thu Nov 19, 2009 11:58 pm ]
Post subject:  Re: An acceptable amount of depreciation?
I look at it this way. When you are selling a watch(or anything else), what you paid for it has absolutely nothing to do with it's value. All that matters is what someone else is willing to pay for it.

If you think watches are bad, try computers. A four year old computer is probably worth about 20% of it's original price if you're lucky.
Author:  RJRJRJ [ Fri Nov 20, 2009 1:45 pm ]
Post subject:  Re: An acceptable amount of depreciation?
My rule of thumb is that a used, late model is worth about 50% of retail.
Author:  MarkJnk [ Sat Nov 21, 2009 12:06 pm ]
Post subject:  Re: An acceptable amount of depreciation?
Roffensian wrote:
This is the flip side of the discounting debate. It helps increase depreciation.

As one Canadian AD said to me....

"How much can a customer expect me to buy his used watch for when I can buy a new one from the distributor for 55% of list?"



There's your answer. :D
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