Reply With QuoteIf you like the watch, buy it. If not, don’t. This should be a hobby, not an investment decision.
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Tudor GMT, 0% Interest, Inflation at X%... but should I cancel..
Morning all,
I've been looking at the Tudor BB GMT (Pepsi) for quite a while. I have the money to buy it out right but couldn't get any discounts when I looked in ADs. Anyway, Beaverbrooks are doing 0% over 4 years, with no deposit. So I decided to order it based on the fact that:
1. Inflation will lower the 'purchasing value' of the £66 a month, so by year 3 and 4 the payment might be 'worth' like 12% less in real terms
2. The watch will potentially store value more than the cash anyway with high inflation (and presumably Tudor putting prices up to compensate inflation).
So... Sounds like win win. But am I being an idiot and am just trying to convince myself. Can normally find find a new one on ebay for c.£2.7-2.8k.
Thanks for reading!
If you like the watch, buy it. If not, don’t. This should be a hobby, not an investment decision.
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I wouldn't like to be collared for four years on a watch I could buy outright. What happens after say six months if you realise you don't really love it?
It's a 2k plus Tudor watch so any hold, loss or gain won't be terrible or brilliant over the period. I wouldn't enjoy still paying for it after 4 years though IMO. For me I would buy it and enjoy it.
Although Tudor might put up prices, your watch will be second hand and therefore is not a direct comparison to a new watch.
Indeed, 0% is subsidised by the retailer so they are effectively discounting the watch to fund the 0% interest.
As post above states, if you want it and can afford it, buy it. It isn't an investment, nor is it a particularly good hedge against inflation (in my opinion).
There are watches that are better hedges against inflation, most likely those that are not brand new (unless you are talking Rolex)
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Sorry, it's not an investment decision. I'm just trying to make the best use of my money. As in pay cash now, or pay later without a discount but with 0% vs. inflation.Originally Posted by jukeboxs
Another vote on this sentiment from me.
Last edited by tango; 5th May 2022 at 09:21. Reason: Sorry OP you posted #6 at exactly same time as this post.
I kind of think the same although I think the OP is trying to use the maths to justify his purchase method rather than considering this as an outright investment.
My take would be this...if you like the watch, buy it knowing that second-hand values are probably currently around £2200. Buy new and consider it an immediate £1000 spend. If you are talking about paying 0% over 4-years, you sound like you are confident you aren't going to flip it. The amounts we are talking about gaining or losing over 4-years is pretty inconsequential.
All comes down to the individual though...I know I'm a massive flipper so I tend to try and find the lowest immediate purchase price I can. I generally prefer to buy new but would probably buy a Tudor GMT secondhand if I was looking for one based on the relatively good availability and price on the secondhand market.
I'm not against 0%...I tend to use a 0% credit card to justify some watch purchases but always end up paying it off sooner than I need to just to clear the balance.
What you need is some 'man-maths'...
If you buy it with credit, you still have the cash in your pocket. This means you're in a better position to negotiate a discount on another watch. It's basically buy one, get one free.
*the value of this comment may go up as well as down and should not be viewed as investment advice.
Last edited by gunner; 5th May 2022 at 10:19.
Ask around with some friends to see if they have a work portal which gives giftcards at a discount.
Beaverbrooks and Ernest Jones usually do about 7-8.5%.
It’s a case of opportunity cost; if you have something better to do with the cash or can earn interest on it, go interest free. If not, just buy the watch outright.
What does the small print say in case you don’t like the watch at some point within that 4 year period and sell it? Can you repay the loan without any penalties ?
On the face of it it makes sense to use the zero % loan, but it will have an impact on your credit score if you ever need to take out a bigger loan/mortgage in future.
I bet you could get at least 15% off the price if you’re buying it outright, up front.
Am sure I got 18% on my BB Chrono from Goldsmiths the other year.
You’ will pay full whack for the 0% deal.
If it is your absolute must-have watch, a keeper, and you’d prefer to have a bit of dough in the bank - then go 0%
Any other reason seems daft.
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At 10-15% you are saving all of £300-400 so hardly worth losing sleep over that over new, I’d save the discounts for a larger purchase. As noted they are very common and plenty appear on SC that need recycling so maybe hold your nerve. I wouldn’t bother putting a WTB up as every chancer will reply asking for top end cash expecting you to be desperate and seeking to monopolise rather than stick to decent forum morals
RIAC
What you need is some 'man-maths'...
If you buy it with credit, you still have the cash in your pocket. This means you're in a better position to negotiate a discount on another watch. It's basically buy one, get one free.
*the value of this comment may go up as well as down and should not be viewed as investment advice.
Ha ha ha from this point on in my life "man-maths' is the only kind I will ever use.
Always check Topcashback. Sometimes 10% with Goldsmiths.
Someone can correct me if they have seen different, but I'd be surprised to see any interest free loan have any early repayment penalty...just wouldn't make sense. Id also be surprised if you couldn't sell the watch on prior to it being paid off as retail loans don't work like car hire purchase agreements. Also, a credit history can positively impact your credit score depending on your situation.
With this and the work scheme discounts, just watch out for the exclusions - pretty standard that Rolex, Omega and Tudor are excluded from a lot of discounts. I always use a TCB/Quidco link but don't factor it in as a saving unless it snuck through...and I have a 100% record of denial so far with both EJ and Goldsmiths! Anyone got lucky on this?
Last edited by Christian; 5th May 2022 at 10:48.
Buy used and learn to love the wabi. With a big polished block like that, it’ll look pretty scuffed after a few months anyway and you will have saved yourself a few hundred.
With inflation, the money you save on a second hand purchase today will be worth more in 4 years too.
The money you save as a result of inflation on a 0% purchase is imaginary as the difference in price is what the money is no longer worth.
I’m not sure if that makes any sense
If you can go that route - make sure it’s with manufacturers guarantee though.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
That’s right Christian, the loan is a credit agreement in the same way as a personal loan from a bank would be.
The item being purchased could be sold tomorrow without any issues but the buyer will still remain liable for the repayments until they are finished.
I've had topcashback on an Omega Railmaster I bought in the sale, also used vouchers from work (Ernest Jones), so that really was as good as it could be!
OP, depends entirely on whether you want a new one. I bought a Pelagos on 0% a few years back (when it was ETA-powered) and thought it would be a keeper, so was happy to have a brand new one. I kept it for a good few years and then sold it on, so it didn't really make much difference in the scheme of things.
Agree. Pre loved example all the way for me. Friend bought his for £2k so a healthy £800 saved or equivalent to £200 per year interest over the four years if you are creative with your man math argument.
Marmite watch for me, am on my second as instantly regretted flipping my first. This 2019 example just returned by Rolex after date issue fix, so onto the sienna deployant I rarely wear it on, moody light, and I do get it.
It’s the one I keep thinking ‘time to go’, but I love it when it works
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