SHORT VERSION: Here is a link to my saved search on eBay that shows cheap Rolexes that are probably worth buying. Read on to see why.
A month ago or so I wrote a post called, No One Cares if you Buy a Rolex. If you didn't read it and don't feel like doing any link-clicking, the gist of it was that when I was younger I bought a Rolex, assuming that people would be really impressed, but in the end no one noticed or cared. You can't buy your way into being interesting.
Ironically, in writing that post, I remembered how much I loved my Rolex, despite the fact that no one else cared about it. At the same time, I had stopped really using the advanced features of the Suunto GPS watch that I had, and was thinking about getting some different watch.
Maybe I ought to get a Rolex, I thought...
Getting something as a status symbol is really lame. Although Rolexes are seen as status symbols (again... that's mostly in theory because no one ever notices them), they're also really excellent watches. I don't think most people understand just how good a Rolex really is.
A Rolex (with the exception of a now discontinued line called the Oysterquartz) is a mechanical watch. That means that it doesn't have batteries and doesn't have a quartz crystal. It has a spring that is wound up either by twisting the crown, or by harnessing the energy generated through wrist movement using a rotor. The spring powers one hundred and fifty moving parts to deliver really accurate time (gaining or losing only a few seconds a day).
To be clear, a $9 quartz watch is probably more accurate than a Rolex. But then again, a photograph is more accurate than a Monet. There's something to the art of it-- the fact that these one hundred and fifty moving parts continue to work for years on end, powered only by flicks of the wrist, through conditions as varied as scuba diving hundreds of feet deep in the ocean to climbing mount Everest.
Rolex isn't the only mechanical watch to be able to do this (Omega and Tag Heuer are similar, and I'm sure there are others I don't know about), but they are real pioneers in the field and, in terms of balancing accuracy and reliability, there is no better.
The point of all this is that a Rolex isn't a jewelry watch like a Gucci watch would be. A gucci watch would most likely be a quartz watched stamped with a bunch of logos. If they do have a mechanical watch, it would have been developed by someone else, made in China, and then stamped with logos.
I personally love the idea of a manual watch. To me it's a triumph of humanity that these things exist. I love the idea that such a rugged and precise machine can be built, and that it can fit in my watch, hidden in a tiny case.
The next most interesting thing about a Rolex is that although the price tag is quite high, it could be argued that the cost of owning one is negative. That's because Rolexes tend to appreciate over time, mainly because the style hasn't changed drastically since inception, making a 40 year old watch look roughly new.
I bought my first Rolex in 2001 for $1400. Today it would sell for $1900 if I hadn't lost it. That's not an incredible return, but it's very low risk (insure the watch from theft/loss for $30/year if you want to really make it low risk), and you get to have a cool watch for many years.
Even more interesting is that right now there are insane deals to be had on Rolexes. I actually have three of them right now because I didn't realize how plentiful good deals are, and I kept jumping on deals I thought were 'once-in-a-lifetime' deals. Some examples:
1. I bought a 1991 Air-King for $1250. I thought I was going to keep it, but one week and two Rolexes later, it's going up on eBay. I estimate that it's worth around $1700-2000.
2. I bought a 1980 DateJust for $1700. I should be able to sell this one for $1900-2000, maybe more.
3. I bought and will keep a 1999 DateJust with a diamond dial for $2100. If I wanted to sell it today, I could get around $3000.
If you combine a really good deal with years of modest appreciation, you're looking at buying a really excellent watch and earning 5-10% per year average on the "investment". On the other hand, any cheap watch you buy will tend to lose value over time. I loved my Suunto and got some really good use out of it, but I sold it for about half what I paid for it after a couple years.
Anyway, I'm not trying to convince you to buy a Rolex. I'm just trying to explain what makes them worth having, and will share some tricks to getting them really cheap. My guide to buying a Rolex will focus on the DateJust, which is the classic dress watch (that can still be worn scuba-diving), but most of the tips will work for any model.
The key dates to know for a DateJust are as follows. In 1978 Rolex introduced a "quickset" feature, which makes it much faster to switch the date at the end of a 28-30 day month. My first Rolex was a 1974 and not having quickset wasn't that big of a deal, but it's a nice feature and 1978 is a good starting point.
In the late 80s, Rolex switched the crystal from acrylic to sapphire crystal. Opinion is divided on this, with most collectors and enthusiasts favoring the acrylic crystal. Acrylic definitely looks better and doesn't hold fingerprints as much, but it is easier to scratch. Buffing out scratches with a polishing cloth is pretty easy. Sapphire, on the other hand, is pretty much impossible to scratch. I prefer Sapphire because I tend to do things that risk scratching the watch, but it's a personal choice.
In the mid nineties, the case was switched to a holeless case. This is a very minor difference-- the pins that hold the bracelet onto the watch are hidden. Since then there have been no notable improvements. The quickset movement is called a 3035 and the next evolution, introduced in 199x is called the 3135. Both of them have their strong points and their supporters-- the point is that very little has changed over the years, so you can buy an old Rolex and it's essentially the same as a new Rolex. The 1980 DateJust and the 1999 DateJust I currently have are the exact same color schemes and both keep time with the same level of accuracy. Other than the different crystal, the holeless case of the newer one, and the less worn band of the newer one, they are indistinguishable.
Because you're working with around 20 years of available Rolexes (I've never seen great deals on the newest ones), you will have a LOT of watches to choose from. This means that you can take the approach of lowballing everybody until someone accepts your deal. Given the current economy, pretty much everyone takes your offer. I've really been amazed at how cheaply people are willing to let go of these watches.
The two major places to look are Craigslist and eBay. On Craigslist, just search for Rolex with an upper price of $2500. I wouldn't ever pay more than that. A late 70s watch should go for closer to $1600. Whenever you see a watch, offer a really low price that's $100 more than most people will offer. In other words, offer $2100 instead of $2000, $1600 instead of $1500. I almost got a watch for $1300 just because everyone else was offering $1200, but someone paid his full asking price at the last minute.
Don't get attached to any given watch. in this economy a lot of people are selling their Rolexes, so another one will come up. If you overpay, or fail to get a really good deal, you're largely negating the good-deal benefit of buying a Rolex.
On Craigslist the biggest advantage you can have over other sellers is to be really easy to deal with. Most people on Craigslist are not. My initial email might look something like this:
"Hey, I'm interested in the Rolex you're selling on Craigslist. I don't mean to insult you, but I think the watch is worth about $1600. I know you're asking for more, but if you're interested in that price, I can meet you at your convenience with cash in hand."
The last watch I bought was from a really nice guy who I sent a similar email to. When I bought the watch he thanked me for being so easy to work with and kept saying how glad he was to be done with selling it. Selling on Craigslist is annoying. We both know he could have gotten a bit more money if he held out, but he would have had to meet with a bunch of unreliable people who wouldn't show up with cash, or would try to renegotiate after agreeing on a price. Convenience is worth something.
If you're buying on eBay, you again want to email offers in. Most buy it now prices aren't that great, and auctioned Rolexes, by definiton, go for market price. The ideal watch to offer on is one that's been on eBay for a few days with no bids. At that point the seller might start to wonder if it's going to get bid up or just get sold for his opening price. The Air-King I bought had a starting price of $1000 and no bids. I offered $1250 and he took it. My guess is that if he left it on eBay it would have sold for $1700 or more.
Many sellers will also list buy it now prices that are unrealistic. Email them and offer them much less. I haven't actually bought one this way but I've gotten some really solid counter-offers back.
With eBay sellers you don't really need to worry about fakes. Just look for good feedback, and if it does turn out to be fake, eBay buyer protection will cover you. In person if you don't know what to look for, you might be better off meeting at a watch store, where they can verify that it's real. It's pretty easy if you know what to look for, so they probably won't charge you for the service. If they do, it would be $10-20.
There are two color schemes for the DateJust, stainless steel and 18k gold / stainless two-tone. They are the same price right now because the stainless steel is more in style. However, because the two tone one has a real gold crown and bezel, and also real gold center links in the bracelet, it probably has a higher intrinsic value. If you like that look, I bet it will appreciate more than the stainless one over time. I prefer the stainless look, though, so I've bought only stainless ones other than my first one many years ago.
There are also two ways to make the watch significantly cheaper after buying it. If you're lucky enough to get one that comes with the Rolex boxes, you can sell those for $100-200 on eBay. Resale value isn't really impacted by not having the box (DO keep the certificate if it comes with it, though), so you may as well sell them and take the cash. I got boxes with my 1999 watch, and they're on ebay right now.
You could also consider selling the bracelet of the watch and buying an aftermarket one. An aftermarket bracelet costs $25-75 and is probably better than the one that came with the watch, since the one with the watch will be stretched out a bit from use. The original bracelets go for $300 or so on eBay, which is sort of crazy. The resale value of your watch WILL decrease if it comes with an aftermarket one, but probably not by as much as you gain by selling it.
Using all these tricks, you can easily get a nice Rolex for $1000-1500 that will sell for almost twice as much. There are so many good deals out there that if I wasn't so busy, I would probably start a side business reselling them. Here's an ebay link with the search I use to find Rolexes.
Hey. IT's funny, how the masses have no clue about appreciation/depreciation.
I'll definitely get one. I love nice watches, they are just awesome machinery. I really like omegas, and breitlings too.
In my mind, I get paid to wear an awesome watch!
If your smart, you can get paid to use nearly anything that can be sold back (Good cars, houses among others), and live for free(or close).
I hate to pay for things.
If you like it, you can even make your money like that.
Google "NATO strap" to learn how you can look like Mr. Bond. These straps have the additional benefit (important when your timepiece costs more than some cars) of holding your watch on even if you bang it against something hard and one of the two pins pops out.
Even with my NATO strap, I sleep happier knowing that I will not be de-handed for my Timex.
Damn, I should have really waited until after I sold my two extras to post this. You people keep lowballing me!
Start writing your reply here.Good article Tynan ! I at one time could share your opinion, However after repairing exclusively Rolex for over 45 years I have been compelled to view the Rolex watch and it's maker in somewhat of a different light ! You have done well to learn the monetary and mechanical values of the Rolex watch. Now and only if you want to learn all you can about the R. Company ! And remember a movement is only as good as the case surrounding it ! And a watch or any other product is only as good as the Company that produces it Including spare parts and good service to the repair industry. Think about it , Can you tell me why somebody like you and I cannot pick up the phone and order a spare say a 6mm crown or a winding stem Crown cost 70 bucks a stem 12 bucks I, am sorry but you will have to go straight to the internet and pay 4 to 10 times as much ! I could go on and on about the R Company. Pay no mind to me I am only a bitter non certified non authorized watchmaker Jollier. Sincerely 2411 Geneva . P.S. Think About it!
While my dad collect pocket watches, his favorite to show off is a fake Rolex bought from a NYC street sale he bought knowing it was fake.
My Casio Stainless "World Time" watch was purchased for $45 five years ago. It hasn't lost a second and has only depreciated in value by 25%. BOOM
A relative recently gave me his 1977 Seiko quartz, and sure, it keeps perfect time, has never needed service, and runs for years on each battery. Decades of perfect time for under $100. So yeah, boom. I guess.
But the point of the post was to celebrate mechanical beauty, at zero net cost of ownership, or less. And it's an excellent point.
Incidentally, the relative gave me this "perfect" Seiko because he got a good deal on an exquisite, yet modest-looking, all-mechanical Patek Philippe. He must reset his watch occasionally to mine, but it's clear which is the masterpiece. Because he could sell it at a profit, his cost of ownership on the Patek is even lower than on my free Seiko.
Both good values, but for different reasons. It's not a contest between the two.
That;s the best written piece on "how to buy yourself a Rolex" I've ever read... I have a Quart Omega, but actually really crave a good old fashioned manual watch - that will last the rest of my life. Thanks for the info! Off to EBay and Craigslist!
No one would notice an air king; it's the worst Rolex ever made! My two tone submariner(116613LB) is a 'show stopper!' Ppl stare; they know.
I inherited a broken Rolex and, guessing from the story behind it, it was probably from the 60's. There's no band, the glass is missing, and one of the hands is bent. I'm not sure if I should sell it as-is or get repairs. I know you'd need more details to give me a good answer, but if you have any recommendations in this department I'd appreciate it.
Love it! I've been looking for a way to make some money on the side, and this is exactly the guide I needed to read. Thanks Tynan!
I've long considered myself a fantastic buyer. Notice I don't say shopper - that alludes to a hobby or form of entertainment. To me, buying is serious business.
Even before I had any serious degree of financial success, many people assumed I was rich because of my material posessions. I guess most people could pull that off by maxing credit cards, but I was actually socking money away for later.
How do I do it? Read on...
The most important thing to remember is value. Sounds obvious, but nearly everyone ignores value on a daily basis. Value means that you're getting the most for your money - not that you're saving the most money necessarily. A Rolex at $1000 might be an incredible value, but a Timex could be a rip off at $150.
If you've ever hired (and had to fire) anyone, you probably realize it's painfully obvious that a person's resume has just about nothing to do with how good a candidate that person will be for any given job.
That's why I've found a better way, for which I, along with the co-author Dwight Dunton, have applied for a patent.
It all starts with CraigsList (www.CraigsList.org), an absolutely phenomenal site that has a bulletin board for job postings in just about every city nationwide. CraigsList is one of those sites that is life changing. CraigsList enables people to connect in ways that no other site does. Your life will truly become transformed once you know about CraigsList, whether you just have to get rid of an old sofa, sell or buy a house or car, or hire someone for a job (or find one yourself).
I call this hiring method "self selection". Instead of you spending time looking through resumes, instead you are having job hires self-select themselves. Think of it as Darwinism in the job market.
So the first thing you do is put a job posting on CraigsList. For example, let's say I was looking for a web designer. The job posting would look something like this:
If you've ever hired (and had to fire) anyone, you probably realize it's painfully obvious that a person's resume has just about nothing to do with how good a candidate that person will be for any given job. That's why I've found a better way, for which I, along with the co-author Dwight Dunton, have applied for a patent. It all starts with CraigsList (www.CraigsList.org), an absolutely phenomenal site that has a bulletin board for job postings in just about every city nationwide. CraigsList is one of those sites that is life changing. CraigsList enables people to connect in ways that no other site does. Your life will truly become transformed once you know about CraigsList, whether you just have to get rid of an old sofa, sell or buy a house or car, or hire someone for a job (or find one yourself). I call this hiring method "self selection". Instead of you spending time looking through resumes, instead you are having job hires self-select themselves. Think of it as Darwinism in the job market. So the first thing you do is put a job posting on CraigsList. For example, let's say I was looking for a web designer. The job posting would look something like this: SEEKING: The best web designer around. We are looking for a talented web designer for a project. You must know Flash and some PHP. We are a growing firm (etc, etc). Please send some samples of sites you've designed, along with a paragraph describing what makes you unique (especially as compared to everyone else who applies). Note: Please do NOT just send your resume with a blank email. It will be discarded. Now, from that CraigsList posting I may get 100 responses. And what you might usually do is sort through those 100 responses to find a good candidate - a process that's terribly inefficient. But instead of doing that, the moment a response comes in, I sent back a form letter email with a series of questions. In this case that email might look something like this: Dear XXXXXX, Thanks for your interest in the job. Can you please tell me: a) Have you ever worked with Flash? Please provide some of your sites that show examples of Flash. b) Have you ever worked with PHP? Please provide some of your sites that show examples of PHP. c) What are your salary requirements? d) Please do a quick project for me. My current site is www.DROdio.com. Please tell me how you would redesign the site (or if you're especially motivated, do a quick Photoshop redesign). Take as much or as little time as you wish. Thanks, DROdio Point "D" is especially important here. This is where the self-selection begins. About 60% to 80% of the initial people won't be motivated enough to do this homework assignment. And that's fine by me! I don't want to hire those people anyway. So out of 100 initial responses, i might be left with 20 to 40 people, and now the 2nd main part of this process kicks in: I get to see what kind of work people will do BEFORE I hire them. It sounds so obvious, but if you've ever hired anyone, you've probably had that experience where they start their job and you realize they are lacking some key skill for the job!!! I.e., a receptionist who doesn't know how to type, etc. By having the candidate do the job before they're hired, you're eliminating this element. Out of the responses, it'll become very obvious who the top 10 candidates are. And this is where the 3rd key element of the process comes in: the interview. Instead of a normal interview, I take the top 10 responses and give them an even bigger project. So for our web designer, that email might look like this: Dear XXXXXX, I really liked your work from your last email, and I'd like to invite you in for an interview. But instead of a standard interview, ours is a bit different. I have a more involved project I'd like you to tackle. And I'll pay you a token amount for doing the work - $30. When you come in for your interview, I want you to showcase your work to me. So here's the project: Please design a simple one-page site for a new condo development. Again, you may spend as much or as little time on this assignment as you wish. If you have questions please let me know. Regards, DROdio So now, I'm asking them to basically do their job before they're hired. And if I interview 10 people and pay them $30 each, i'm out $300. But that's far, far less than the cost of hiring the wrong person. And there's our hiring process. If you're hiring a marketing person, you'd tweak the "jobs" the candidates do for that job, etc. It works phenomenally well and it's low-cost to you, the employer, while allowing the best candidates to rise to the top. Side Note: There's an opportunity to turn this process into a piece of software or better yet a web service, where all the responses are filtered using a special email address that makes everyone filterable and trackable through the web service. I know I'd pay for that, so you'd have at least one customer if you wanted to take this project on!