So you’ve been looking at all the amazing luxury watches out there and you want to find out what it takes to fund your dream watch?
In this article on how to fund your dream watch you will learn a few ways that are beneficial to your financial situation.
Financing Through Credit Loan
Yep, this is not the best way but if you have the monthly income to back up a loan then you can buy the watch of your dreams for very low interest that makes sense to you.
**The trick is to get a credit card provider who is prepared to loan you money on the condition of a low APR (Annual Percentage Rate or, known as low-interest rates)
Borrow money with low interest = Pay back the money with low interest without skyrocketing fees and interest repayments.
I will list some low APR credit card companies below
Finding a low APR loan can be tricky if your credit score is not above 700. With a bad credit score its certain that It’s going to be difficult to get a low-interest credit line which means, the banks will want to exchange a guarantee on collateral assets like, cars, property and etc.
Not having a high enough credit score means you are high risk to the creditors, and they will slap on more fees, high interests, and undesirable payable terms that you want to avoid.
Before you apply for credit cards, you need to get your credit score here
Once you know your credit score, and you have good credit, then you need to find a bank who is prepared to loan you the money at a winning interest rate.
Here is a list of recommended creditors
As the title suggests, you’ve worked hard, saved, sacrificed and managed to pool the money together to buy the watch of your dreams.
If you’ve done this, well done.
Go to the next point ➡️
Don’t Buy A Watch, Invest In A Watch
The watch market is a million dollar industry that encompasses brands and models that go up in resale value on the second-hand market and is a good exit strategy when you need funds.
Why bother? If you get into a tight spot, financially speaking, and you invested in some serious money buying a watch then you will have a better time selling it, whie making your money back, with the potential to profit!
If you want a watch that can also double as a financial investment that can be liquidated into quick cash for the same money you paid for it, or better make a profit, then its best you pick a watch that will give you that ability.
For example, Rolex watches and Patek Phillipe hold their value and in most cases go up in value.
Other watch brands you will be running the risk of losing money.
Buying A Luxury Watch Second Hand
This comes to my next point, buying retail is a guaranteed loss of your money. You see, as you take your spanking new watch out of the shop the depreciation hits with devastating losses.
The best way to counter depreciation and not lose money on your luxury watch purchase is to buy second hand from a dealer or a private seller.
That said, it is important that you know exactly what deals you are looking at, be sure to always get the box and papers as well as get the watch inspected before the deal is made, ideally get it inspected by a recognized dealer if its a private sale.
The last thing you want to buy something that is unoriginal or even worse, a fake.
Best Place To Buy Pre-Owned Watches
Websites like Chrono24 are a good place to start and get an idea of price, however, I would highly recommend finding a private seller within your grasp or a dealer within your nearest city.
If you are not confident about evaluating private sellers, then I would recommend going through a dealer and paying that little bit extra for safety and security with your money.
Is $3000 to $5000 A Good Starting Budget?
Yes, depending on what currency you use, $3000USD+ is a good starting point for a second-hand luxury watch.
Buying a luxury watch is quite a large financial commitment that can take a chunk of savings or finance to make your dream watch come true. The key take away with any luxury items is to live within your means and dont sign up to any financing they can potentially hurt you in the future.
If you can pay with money you’ve saved up you are going to be in better standing financially, than borrowing money from the bank.