Reply With QuoteIn depth but as is common in these comparisons, I didn't note an attempt to baseline the used currency (US$) against the Swiss Franc.
The change in value of the dollar vs Swiss Franc should illustrate why this is important ...
Paul
There's quite an in depth look at Rolex price rises over time to be found here:
http://www.ablogtowatch.com/rolex-pr...urce=pulsenews
Let the arguing begin!
For those who made it to the end of the piece, looking at average earnings as a measure of affordability misses one very important point. Which is that high end watch companies have little interest in anyone on an 'average' wage. They are only interested in a small but significant segment of an increasingly polarised society. So the amount of time it takes their target market to save up for a watch may not have changed much over the years. You could also use the author's interesting new 'Rolex per year' scale of course, as a measure of spending power. I wonder if it will catch on in the city?
In depth but as is common in these comparisons, I didn't note an attempt to baseline the used currency (US$) against the Swiss Franc.
The change in value of the dollar vs Swiss Franc should illustrate why this is important ...
Paul
Last edited by Tokyo Tokei; 23rd July 2014 at 02:17.
All sounds very nice but every major high street jewellers offers 0% interest on watches over 3 years which means anyone who can afford to drop a deposit down and pay £100 -£200 a month can pick up most Rolex, Omega etc watches. The days of them being a watch for the rich only are long gone.
Probably also need to consider a half decent car these days starts at around £10 -£15k so if your average Joe public can afford the payments on that they can certainly afford a £5K watch.
Very interesting article, thank you.
I find the psychology of the whole thing very interesting but it's been done to death so won't repeat it here.
I was wondering about the fluctuations in exchange rates having an impact over the period of time the article considers and the graph above illustrates that perfectly that the author needed to have taken that into account to ensure a thorough analysis. The availability of interest free credit deals to entice potential owners into a purchase will also push demand up I would have thought, certainly an attraction for me as someone pondering the purchase of a Rolex to mark a significant milestone.
Very good and interesting article, thanks for sharing and refreshing ablogtowatch I almost stopped visting Ariels blog
Buying luxury baubles on credit certainly explains a few things about the UK's personal debt crisis, and even some of its social conditions. Also, cheap credit is based on low interest rates which will not be around forever, so the days may be limited.Originally Posted by robert75
Just because they are of the same order of magnitude in cost? Is someone in the market for a Ford Fiesta likely to buy a brand-new luxury watch? Or a solid-gold, five-thousand-pound pen (which is basically the same sort of thing)?Probably also need to consider a half decent car these days starts at around £10 -£15k so if your average Joe public can afford the payments on that they can certainly afford a £5K watch.
...but what do I know; I don't even like watches!
Hmm.
I came to the opposite conclusion; I found it amateurish, trite and lacking in knowledge of the subject, as is typical of that site. Still — though badly done — at least it was a change from their usual shill content.
It doesn't really matter if they are going to buy a watch or a pen the point is they can. If anyone thinks the only people who can afford a rolex work in the city they are deluding themselves.
Perhaps that upsets a few people but Rolex, Omega and all the others are there to make money and don't really care if it upsets a few egos on the way.
I don't think it upsets anyone, because it's an opinion. There's also a vast range of people, tastes, incomes and spending patterns between people trying hard to make ends meet, and city boys (the invisible, silent, hard-pressed middle classes, basically!)
Sure, it's possible for anyone with a decent credit rating to go into a shop and buy a five-grand jewellery piece on credit. However, £100/month for the next four years is not an inconsiderable liability to more people than you might think.
...but what do I know; I don't even like watches!
Please shoot me if you ever catch me buying a luxury item on credit.
I've heard of cases where the AD offers a discount for interest-free credit, but none for cash. The reason being, they have a deal with the credit company.
So it might be advantageous to buy on the never-never, even if you have the cash (which I agree is a good idea; mortgage payments will be soon be on the rise).
I found this to be true.
You buy your essentials on credit?
So in the example Andrew gives you would prefer to pay more or be shot?
Yes, if you call a house essential.
You paid cash for your car?
Yes, in that case I would, as long as I could easily afford to pay cash for the item anyway.
More money than sense?
Yes, I payed cash for my cars. I have 2 new ones outside.
And a new watch you could have got cheaper in the same shop.
Salesman saw you coming a mile off.
Agree, me neither but each to their own.
I don't understand this statement, your saying you have heard of cases where the AD offers discount if you take up interest free credit? That's daft, they've lost out twice, the credit normally isn't free it's just at a low rate, the AD pays the interest for you.
True but there aren't that many people that want a £5k watch, let alone a four year term paying for it. The members of this site are the most likely to consider it because it's their interest or hobby, people with other hobbies will put their cash into other things.
I disagree. A lot of colleagues in work I see wearing a Rolex or an Omega or Tag. Either they have bought it for themselves or a parter has bought it for them.
I think we get a little blinkered around here as to what the average man or woman like and can afford. A chap I spoke to a while ago said he was getting a Rolex as he wanted a nice watch he could one day hand down to his son. The fact he was only going to pay £100 a month rather than a straight 5k was a bonus because it meant it made no dent in his outgoings. As we discussed, your average car payments are over £200 a month so £100 is nothing.
I think we all meet and see "average" people on a daily basis, neighbours, friends, work colleagues, FWIW I see myself as average too.
I'm not going to argue about whether it's responsible spending to finance all and sundry but let's face it £100 here £200 there all adds up. My point isn't about the financing (that's too emotive) it's about whether people want and will spend £5k on a watch. In that respect I think we (the collective WIS) plus a few others who want a luxury goods will go for it but the "average" Joe will not.
I received substantial discounts for purchasing my cars with cash. He who has the gold makes the rules.
Last edited by GrandS; 24th July 2014 at 23:52.
Then you work somewhere where there are relatively wealthy people - I'm not disputing that. (It was also pretty obvious!)
I agree. WealthyWIS think that everyone can afford a very expensive watch... or at least, ought to appreciate them.I think we get a little blinkered around here as to what the average man or woman like and can afford.
It's certainly nothing if you have lots more bundles of £100s to spend on monthly outgoings for the next four years.As we discussed, your average car payments are over £200 a month so £100 is nothing.
...but what do I know; I don't even like watches!
The "£100 a month is nothing" school of thought is widespread. It is part of the reason why a significant percentage of individuals with good incomes are cash poor and only able to pay their bills for a short time should their source of income dry up for some reason, for example redundancy. Some people would actually be in trouble if they did not receive their next paycheck or two, believe it or not...
If you subscribe to the idea that someone will always bale you out, no matter what happens, then £100 a month is indeed nothing.
Based upon that logic nobody would own a house.
Just how many people do you know pay cash for a property?
Remember that retail is the art of selling you stuff you don't need, with money you don't have, to impress people you don't like.
I agree that it's fundamentally lame to buy a luxury watch on credit. If you can get zero interest, you can also get a discount for paying the full amount up front.
The housing comparison doesn't seem very relevant to me; despite some manufacturer's efforts, wristwatches have yet to contain enough void space to be suitable for habitation.
Precisely, agree 100%
You can rent a property and avoid a mortgage. Credit is credit.
You would provably get a better discount if you purchased on credit and then cancelled within the first month,
I purchased my SubC on interest free. £130 a month for two years after an initial deposit.
It feels that I owned the for watch for no really outlay. If I didn't have the monthly commitment I'm sure the money would have gone somewhere else.
There are always a lot of comments made in these threads where people look down on credit but the reality is that everyone is different and have different values and ideals.
You only live once, if it floats your boat to own a Rolex and the only way is buy on credit, why not, if you can afford the payments.
Personally, owning an expensive watch makes me feel great and gives me extra confidence in life. Can't see there's anything wrong in that.
Most pretentious post of the year. Reminds me of Harry Enfield's Loadsamoney character.
Edit - I've just read all your other posts in this thread. You appear to have loads of cash but no self awareness otherwise you would know you're coming across very badly.
Last edited by TaketheCannoli; 24th July 2014 at 22:22.
Spot on.
I thought more of the brummy "I am considerably richer than thou"
I don't think £100 a month is nothing. I don't have loads of cash either. I just have a sense of responsibility, to be able to provide for myself and my family, even if I did happen to lose my job and be unemployed for a while. That is why I only buy luxury items when I have the extra cash to pay for them. If I can't afford to buy it and have to put myself in thrall for some amount per month for a long period, then I just don't do it because I feel it would be irresponsible. If that comes across badly to you, then perhaps you should examine your own perspective.
Anyone mentioned about the words of "brand image" Rolex is a mostly recognized word for anyone on the street.
Good article. Thanks for sharing.
Serdal
If you'd said this it would have come across very differently. If you read your other posts again I'm sure you'll see why they've been taken as they have. And I do agree with your perspective.David
It is a bit pompous though
Mea Culpa
It's not pompous at all, I felt that it was a well put response, easy to read and without emotion. It's a sentiment that I strongly agree with.
I didn't take it that way at all. I think it's common sense that you should be quite careful about loading yourself up with monthly payments long into the future, when none of us can be certain what the future holds. If you have £X disposable cash every month, better to stick it in the bank and save up for the thing you want. Then should circumstances change, you can use that money for something else if you need to. If you've bought something on credit, that's not an option.
I'm saving up for a Sub right now, and it's not only a matter of fiscal prudence, but also a seriousness filter. If I can put aside the requisite wad of dough every month for some considerable number of months, and I still want the thing at the end of that time, I'll know I really want it and it's not just one of those passing infatuations which we all suffer in the pursuit of true WIS love.
What " please shoot me if I ever buy a luxury item on credit". Very well thought out, easy to read and without emotion!
Last edited by awright101; 25th July 2014 at 11:59.
I bought a car on interest free despite having the cash for it.
It was earning interest for me courtesy of the finance co.
Easy decision.
"Bite my shiny metal ass."
- Bender Bending Rodríguez
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