Rolex unveiled its certified pre-owned watch programme last week with Bucherer showrooms in Europe chosen to pilot the project before a broader roll out next year.
Every watch sold through Bucherer has to be at least three years old.
They all pass through Rolex’s service department to be authenticated, refurbished and serviced to pretty much mint condition.
They are tested for accuracy and reliability before being professionally photographed and put back on sale either online or in store with Bucherer, or other authorised dealers in the future.
They even get fresh tags and new packaging provided by Rolex.
The question now is, how much would customers be prepared to pay for the peace of mind, impeccable refinishing, authorised dealer experience, and potential upside from an investment point of view?
Chrono24’s CEO Tim Stracke is pondering the same question.
“We expect a 15-25% price premium [for Rolex CPO watches] versus a comparable Chrono24 offer. Would you be willing to pay that?” he asked on the day Rolex made the announcement?
WATCHPRO decided to get an answer by creating an online poll on LinkedIn, and the early signs are that customers are sensitive to prices and unlikely to pay a significant premium for the Rolex CPO service.
With 193 votes in, 42% of respondents say they would pay no more than market prices on platforms like Chrono24 while 45% would pay a 10% premium.
Only 14% would pay 20% or more over market prices.
It isn’t straightforward to directly compare prices for identical watches on Bucherer.com and Chrono24 because Bucherer does not say what year its listed CPO watches were made or sold.
But a high volume watch like a 40mm Rolex Hulk Submariner with date (ref. 116610) Bucherer, with ceramic bezel (the model before the 41mm pieces were introduced) is on sale at Bucherer.com for £23,500.
A new and unworn version of the same watch, made in 2010 and sold with a full set of box and papers is listed on Chrono24 for £19,074, including delivery.
That is roughly a 25% premium.
Some of the better known third party sellers of Rolex watches do a great job of documenting every move made once a Rolex is in their possession including servicing, replacement parts etc. and they all warrant their watches for at least one year. If the market is currently $10,000 for DateJust then I am not going to pay an extra $1000 to get a Rolex box and tags. If these certified Rolex watches are shown to increase in value over time because of the certification program I might rethink my position, but not at percentages above 10%.
I wouldn’t pay a single penny more for this joke that Rolex are doing. It is arrogant of them to expect it, but it is also good for the grey market. Bucherer have also way over priced their second hand watches, so nothing new for them there.
Hi I’m a tad confused here I own a Rolex but with the manufacturer now offering a service that basically brings my watch back to its original condition I’m stuck between selling it or sitting on it with the new certification I’ve dealt with a company today that has stated it’s price range up to 6500 pounds do I send it back to Rolex for an overhaul and ask for more for it? certainly a “grey” area pardon the pun.
Bucherer gets foot traffic, being located in attractive down-town areas all over the world
So they will walk in and if they want a GMT on the spot, they can get one from the CPO
Grey market dealers do not have prime locations in cities all over the world – only some do, and those that are on Bond Street or 5th Avenue, will offer similar prices to Bucherer
So AD’s will do well with this program – they had been begging Rolex for this as they watched Grey dealers booming around them, minting money
When you spend 10K plus on a watch, peace of mind and a good buying experience means a lot – authentic article guarantee means a lot
I’m confused too. I’m fully aware that pre-owned Rolex are sold at a premium, ie. greater than the list price for a brand new watch, because its almost impossible now to buy new. But are we saying that Rolex itself, is now, via a dealer, selling pre-owned at a greater cost than brand new?
Very interesting question. It is my understanding that only watches sent to Rolex by authorised dealers will get this treatment. These ADs are certain to offer prices to customers that will allow them to be resold at a decent profit after paying for the Rolex service. Most likely, it will be customers looking to trade-in their Rolex watches for something else (giving an AD two opportunities to make a profit), that will get the best price offers. You can, I believe, still get your watch certified by Rolex as a paid service and there are great restorers such as The Watch Atelier, that can bring your watch back to mint condition, all for a price, or course.
Rolex authorised dealers will be selling used watches at higher prices than new, although prices on the secondary market have been falling so fast this year, the majority of references will be cheaper second hand before long.
As this is only for Rolex watches more than 3 years old, newer watches that are still on long waiting lists will increase prices on grey market
Same watch- one new & one preowned sitting besides each other in an AD shop window, but the pre-owned is more expensive than the new. Why would Rolex think this is a good idea? Are you not cannibalizing your own brand by allowing a CPO to trade higher than a new watch. Something is doesn’t smell right.
I saw a Deep Sea 116660 for sale at Bucherer for £16100, these watches go for around £11000 at Chrono24, that’s actually more than 45% more!
Always think about a five year horizon when it comes to Rolex.
How much would an 18ct gold day date be worth mint condition box papers 2006 president bracelet no scratches, any idea please?
HI THERE I HAVE A 1960 Rolex watch I would like to sell it has been in my safe for 37years I have the box and paper and photos its excellent condition got it for my 21st birthday I’m now 76 new year it could you advise please…jon