In the mean time I think I am going to buy an Omega Ploprof.

 

Well, I bought the Omega Ploprof and I am making arrangements to take a few Rolex watches in to the AD for them to give me a trade value against the new Rolex models I am hoping for. I have also informed the AD that I am now only interested in the Yachtmaster 42mm Titanium as a first choice and the Deepsea Cameron model as a second choice. I am really hoping to get one of the new Yachtmasters. I decided against the new GMT model although I think it looks good, I just like the others more. I also still have a request in for the ladies Datejust for my wife.

I plan on trading in her older model Datejust and My GMT BLRO as well as a friends Submariner Date model. I might even trade in my Grand Seiko 200M spring Drive Diver, but probably not.

 

Well, I bought the Omega Ploprof and I am making arrangements to take a few Rolex watches in to the AD for them to give me a trade value against the new Rolex models I am hoping for. I have also informed the AD that I am now only interested in the Yachtmaster 42mm Titanium as a first choice and the Deepsea Cameron model as a second choice. I am really hoping to get one of the new Yachtmasters. I decided against the new GMT model although I think it looks good, I just like the others more. I also still have a request in for the ladies Datejust for my wife.

I plan on trading in her older model Datejust and My GMT BLRO as well as a friends Submariner Date model. I might even trade in my Grand Seiko 200M spring Drive Diver, but probably not.

I am still struggling to understand how Rolex ADs work in the US and certain parts of the world based on what I read here. I already understood that high end watches ADs also sell jewelry (you can't find that in Europe, the Middle East, or most countries with a big appetite for luxury goods, they have dedicated stores), and you certainly won't find used watches at ADs, Rolex new pre-owned program is a first in the watch industry, but we still need to see how it will implemented in those countries, and if the ADs will feel comfortable dealing with used watches and all the hassle that comes with them.

So, my question is: let's say you take to your Rolex AD a used watch that you bought (let's say from him) a couple of years ago (let's say a BLNR for +/- $10K), you give him the watch that shows some obvious signs of wear (let's say some micro scratchs on the bracelet), the AD is supposed to look for the "street" value of the watch (let's say $15K), take the watch from you, hand you a $14K brand new just released Rolex in exchange (let's say a YM Ti), and put your used BLNR in his safe next to the brand new BLNRs waiting to be sold at MSRP ($10Kish). Did I get it right, Is that how it works?

 

@PF Havent seen a CPO at a Rolex AD yet, but an AD near me in the UK has a preowned section (they also sell Tudor and Rolex from the same store) but its at the front of the store almost tucked away in a corner and isn't really signposted as this is the used section. my guess is what you said is correct. I have worked in the automotive world most of my career and for a long time, mainly in luxury and my take would be that it would act the same. As in, customer buys original car (or watch), and they go to purchase a new car a few years later. The original car gets appraised for a trade in value and that value is reduced from the value of the invoice of the new car. customer drives away in a shiny new one, and the original car is put in a separate used car section of the showroom to be sold at a mark up of the repurchase price at whatever the market rate for a used is. Gets a bit funny when the original car is valued more than the new one, as essentially the AD will let you walk out with the new one and wire you some cash for the original car as part of the sale. I am assuming thats the case, and I could be totally wrong but logically it would work this way.

 

It makes a lot of sense... to a certain extent. Imagine if you had a Ferrari dealership and one of your salespeople came into your office and told you this

Him: boss, I just sold an 812 gts to a client and took in his old Ferrari as a trade in, the contract is signed, what do I do about the money transfer, what account do I use?

You: how much does he owe us?

Him: the client? nothing, we owe him $49,620,000, I took in a 250 GTO... so, what account do I use for the transfer?

 

Ti YMs are rare and aren't coming out in large numbers. The Boutique I use said one for the year. They claim to be the largest boutique in the US. On the other hand, the DSSD Cameron should be available as well as the DJ. I was somewhat lucky on my wife's DJ as they had what I wanted when I went in looking for her birthday. I've been waiting for the Ti YM since its release.

 

It makes a lot of sense... to a certain extent. Imagine if you had a Ferrari dealership and one of your salespeople came into your office and told you this

Him: boss, I just sold an 812 gts to a client and took in his old Ferrari as a trade in, the contract is signed, what do I do about the money transfer, what account do I use?

You: how much does he owe us?

Him: the client? nothing, we owe him $49,620,000, I took in a 250 GTO... so, what account do I use for the transfer?

Exactly that... im sure the as long as they value of the trade in gives them enough room for some decent margin when the sell the used watch the ADs are happy. its why PCP finance plans became so popular in automotive and why loyalty bonuses are offered.

AD makes initial margin on the sale for the original car, and sell a warranty with it for 3 years that requires annual services at your AD only.
you then make more money on the car at annual services, but it also gives you a touchpoint to talk to the customer annually.
at some point its worth valuing their car against the current model line up to see if they would be interest in trading in. (this is work finance works with the guaranteed value at the end)
at this point you could theoritcally trade their car in, and sell them a new car
you then make margin on the new car, the sale of the used car once sold.
this means from the original sale you have made 2 new car margins, a used car margin plus profit from the services, from effectively selling one car or unit.

theres an argument that this could work with a Rolex AD with CPO.
They could sell less desired watch on the basis that they will get a customer a pepsi in 3 years for example. however they are told they can trade in the less desired watch at the time
customer says yes and buys two tone explorer for example, AD makes margin at this point.
3 years go by (assuming they can get the pepsi!), and they take a trade in for explorer and offer a price slightlylower than current market value, and put that against the purchase of the pepsi.
they then make margin again on the pepsi.
they can then also sell the explorer at maybe a little premium than market value due to the fact its part of the CPO programme and not a grey retailer. at this point they have made 2 new watch profits and the used profit form the explorer.

customer gets the pepsi they wanted
used customer gets an explorer they want
retailer takes 3 lots of profit.

 

I have done trades with my AD before and this is how it worked. I had a Seadweller 116600 and I wanted the GMT Pepsi. I told them that I wanted to make the trade. I have been dealing with them for many years so I trusted them and sent my Seadweller to them. A month or so later the had the new Pepsi in and sent it to me as well as a generous amount of cash. They can sell the SD for a lot more and that is fine with me. I had already bought the Sedweller 43mm and liked it better so it was a keeper.
In their store they have a section of new Rolex watches, (mostly for display only) and a section of used models that are going for more than the new ones. Because of the demand that is the way it works.
I expect it will probably work that way again, Except for my wife's older model Datejust trade in, which I expect to get maybe more than I paid for it in the late 1980's , but certainly not more than a new model. Probably the same with the Submariner, but the Pepsi GMT will probably get as much as the DS or YM.

 

Good luck. I've been on the hunt since last year and 2 of the AD's pretty much told me openly that it's a 2 year wait for a sub date UNLESS I buy other crap from them.

Signed up at a 3rd AD last month and working with a female rep who sees more nicer (already gave me 2 Rolex hardcover magazines and a Tudor magazine). She also texted me directly out of nowhere yesterday so I'm reading this as a positive sign. Fingers crossed. In my areas, it's still a shyte-show with most SS models with 2-3 year wait times.

 

The Ti YM will go to whale clients...
They will be very limited as stated already.

 

The Ti YM will go to whale clients...
They will be very limited as stated already.

I am not sure how a whale client is defined but I have bought at least a dozen Rolex, GO, Grand Seiko and other watches plus a fair amount of jewelry including custom made pieces from this AD. I am sure there are other buyers that have bought more than that but I feel like I am a valued and liked customer. I have also had their jewelers and watch repair people do a fair amount of work for me. Also, I will not be disappointed if I can get the Cameron Deepsea instead. They have been very good and have gotten me the last two Rolex models that I asked for in a matter of a month or two. They were the 43mm Seadweller and the GMT BLRO, so I am hoping for the best.

I also think with the trades that I am using the AD will be able to make decent profit on them and that may give me an edge on getting a watch that I want.

 

I'm considering a similar transaction. Looking to possibly trade a Sub Date and pay the difference on a Yachtmaster Ti. My AD has an estate section for used watches so I'm hoping to get decent value considering the margin they stand to make. No YMs have come in locally though. I'm not a whale but I think I'm in a good spot for one.

OP, looking forward to hearing how your deal goes.

 

I'm considering a similar transaction. Looking to possibly trade a Sub Date and pay the difference on a Yachtmaster Ti. My AD has an estate section for used watches so I'm hoping to get decent value considering the margin they stand to make. No YMs have come in locally though. I'm not a whale but I think I'm in a good spot for one.

OP, looking forward to hearing how your deal goes.

Agree!

 

My AD has CPO watches and they are priced ridiculously high. Above street value.

 

Exactly that... im sure the as long as they value of the trade in gives them enough room for some decent margin when the sell the used watch the ADs are happy. its why PCP finance plans became so popular in automotive and why loyalty bonuses are offered.

AD makes initial margin on the sale for the original car, and sell a warranty with it for 3 years that requires annual services at your AD only.
you then make more money on the car at annual services, but it also gives you a touchpoint to talk to the customer annually.
at some point its worth valuing their car against the current model line up to see if they would be interest in trading in. (this is work finance works with the guaranteed value at the end)
at this point you could theoritcally trade their car in, and sell them a new car
you then make margin on the new car, the sale of the used car once sold.
this means from the original sale you have made 2 new car margins, a used car margin plus profit from the services, from effectively selling one car or unit.

theres an argument that this could work with a Rolex AD with CPO.
They could sell less desired watch on the basis that they will get a customer a pepsi in 3 years for example. however they are told they can trade in the less desired watch at the time
customer says yes and buys two tone explorer for example, AD makes margin at this point.
3 years go by (assuming they can get the pepsi!), and they take a trade in for explorer and offer a price slightlylower than current market value, and put that against the purchase of the pepsi.
they then make margin again on the pepsi.
they can then also sell the explorer at maybe a little premium than market value due to the fact its part of the CPO programme and not a grey retailer. at this point they have made 2 new watch profits and the used profit form the explorer.

customer gets the pepsi they wanted
used customer gets an explorer they want
retailer takes 3 lots of profit.

Great point

 

Different places operates differently, and time will tell how stores manage the new CPO business. Generally speaking, used watches are often displayed in their "estate collection", which is entirely separate from the display cases where new watches are sold.

in reality, the price the AD would offer to buy used Rolex is so low, they can likely sell it to another dealer specialized in used watches and make a buck without much effort. So the watch you sell the AD, may never even sit in their own case.

Certainly a good point