Luxury watches can be incredibly expensive. And although they look great and work fantastically, are they actually worth purchasing?
Luxury watches are worth it. Compared to cheaper and mass-produced alternatives, luxury watches are more precise, made from better materials, have more complications, and hold their value. Luxury watches are an asset, while cheap watches are consumer goods
Of course, whether a luxury watch is worth it or not depends on you as a person. But there are a few things to keep in mind, which we’ll cover in this article!
Is A Luxury Watch Worth It
Luxury watches are items of status and prestige. These watches are of incredible quality, look amazing, and are priced in such a way that they can’t be affordable by everyone.
In fact, some luxury watches are priced so high that you might start to wonder if they’re even worth it anymore. A few hundred thousand dollars for a watch might seem ridiculous to you, but for some, it’s yet another addition to their collection.
But when you start to look closely, you might find that a luxury watch might not be so ridiculous after all. Don’t get me wrong, it’s still a lot of money, and if you don’t think a watch is worth that, there’s nothing wrong with that, but there are some factors that justify the high price tags of luxury watches.
Quite often, you’ll find that someone purchases a luxury watch for the prestigious feeling. After all, it’s quite an accomplishment to purchase such a luxury timepiece. Watches from brands such as Rolex or Patek Philippe have even become symbols of financial success in life.
With the purchase of such a luxurious timepiece, you don’t only purchase the watch itself. You also purchase a certain lifestyle, and this lifestyle makes the price more than justified for many.
Aside from the feeling of luxury and success, a luxury watch is also hand-made by only the best watchmakers, done with extremely high-quality, exotic, and luxurious materials. And the attention to detail in these luxury watches is unrivaled.
You could imagine that making a watch out of yellow gold or titanium will be more expensive than making a watch out of stainless steel. This difference will be reflected in the price, but also in the quality.
When you pair the quality craftsmanship with the quality materials, done by the best watchmakers in the world, you get a true luxury product that could easily justify the price.
Of course, the price of a luxury watch is not something we all can afford. That’s why it’s a luxury watch.
So in short, a luxury watch is of higher quality and carries a feeling with it. This makes it worth it for a lot of people, but not for everyone. The most important question you can ask yourself is if a luxury watch is worth it to you.
Comparing A Luxury Watch To A Cheaper Watch
The best way to look at this is to compare luxury watches to the more affordable watches. Let’s take a Seiko Presage, a Daniel Wellington Iconic Link, and a Rolex Day Date, for example.
The Daniel Wellington Iconic Link is the most affordable of the three, but still a great looking watch. This watch comes in a silver or rose gold look, all made with good quality materials. The same goes for the Seiko Presage watches, which are made with steel or other more affordable, but good quality materials.
The rose gold look of the Daniel Wellington watch isn’t actual gold either. Instead, the top is coated with a mixture of gold and copper, painted over a yellow-colored base material.
Aside from the case and strap, a Daniel Wellington watch also uses hardened mineral glass for the face. And the same goes for a Seiko Presage watch, which also uses mineral glass. This is yet again a fine option, but when it comes to true quality and luxury, these aren’t the optimal choices.
When you look at the Rolex Day Date, however, you’ll see the materials used are much more expensive and exotic. Rolex uses actual gold for their watches, as well as the more expensive sapphire crystal for the face.
These materials are not only more expensive but also more durable. It’s often said that a watch is something that will last a lifetime, and with these high-end luxury watches, that’s definitely the case!
How Much Should You Spend On A Luxury Watch
How much money you should spend on a luxury watch really comes down to how much money you have. You should never work yourself into debt or a bad financial situation purely because you want a luxury watch.
You should always use your money wisely, but you should also be able to live a little. As a general rule of thumb, you should always save a good portion of your money for emergencies and retirement. Ideally, you would also invest a good portion of your money. What’s left could be spent on whatever you want.
You should spend around 20-30% of your monthly income on wants. Wants include luxury watches, so what luxury watch you’re able to afford will be depending on how much you make and how long you save for the watch.
For some, this will mean a beautiful Rolex Oyster Perpetual, an entry-level Rolex. For others, this can mean a $100.000+ Richard Mille.
It’s important to not compare yourself with others too much. The grass will always be greener on the other side, but that doesn’t mean your grass isn’t beautiful as well.
The median household in the United States is $43.585 a year. If we take 30% off of that, we’re left with $13.075,50. This is what you COULD spend on a luxury watch if you really wanted. Of course, you can always go a little higher or lower as well.
$13.075,50 is enough to get yourself a beautiful entry-level watch, but at the cost of your whole ‘wants’ budget. And chances are, you might not even be able to save 30% of your income for ‘wants’.
It will probably take you 2, maybe 3 years, or more, to save up for a luxury watch. And even then, is a $13.000 watch a responsible choice if you have to save up for multiple years?
Now you’ll probably understand why these are luxury watches and why people buy them as a sign of financial success.
Can A Luxury Watch Be Too Expensive
When you see some of the prices of luxury watches, you wonder if they’ve ever even been sold. Some of the watches can go well into the multiple hundreds of thousand dollars, and there are even watches costing more than a million dollars!
A Rolex Day Date will cost you around $40.000 and Audemars Piguet around $50.000. Believe it or not, but these are actually modest numbers in the world of luxury watches.
The average Richard Mille will cost you $140.000 per watch, and a Jacob & Co. watch can be around $500.000 per watch! Who even buys these?
These really are watches only bought by multi-millionaires or even billionaires. A watch that costs half a million is almost as much money as the average American makes in 11 years. These are simply not affordable for the vast majority of the population.
But even a watch that you can afford can be too expensive. It all comes down to your financial situation. If you don’t have a savings account, any luxury watch is too expensive. If you make $30.000 a year, a watch with a $20.000 price tag is probably too much.
You don’t want to bring yourself into a financially unstable situation purely because of a luxury watch. This might seem like common sense to you, but you’d be surprised how many people buy these watches but can’t actually afford them (there’s a big difference between being able to buy something and actually being able to afford something!).
How To Determine The Right Type Of Luxury Watch For You
The most important factor in finding a luxury watch that suits you is the aesthetics. You really want to fall in love with a luxury watch, otherwise, you should probably look at more options.
1. Set A Budget
Before you go looking for your favorite watch, you should probably set yourself a budget. This way you won’t get disappointed your favorite watch is way too expensive. Set yourself a reasonable limit. As I said, it’s not worth going into debt over.
A reasonable limit should fall under that 30% of the money allocated to wants. Now, of course, you don’t want to only be able to purchase a watch that year, so you should probably just take a portion of that 30% and use that for your luxury watch.
Also, now that you have your budget, keep in mind that you don’t have to spend all of that money. If you find a watch you love that costs you half of your budget, then why would you look for a more expensive one.
2. Find Your Luxury Watch Brand
Once you’ve set your budget, it’s time to start browsing the internet. Are you interested in one particular brand or are your options open to any one of them?
Luckily, there is an absurd number of luxury watch brands, all with different collections, different looks, different complications, etc. There’s more than enough to choose from.
Depending on your budget, you might want to look at some entry-level luxury watch brands, such as Omega, Tissot, Rolex (they have a few watch collections under $10.000), IWC, Breitling, or TAG Heuer.
If your budget is on the higher end, you can look at brands like Rolex, Audemars Piguet, Patek Philippe, Jaeger-LeCoultre, or A.Lange & Söhne. And if by the off chance, you are a multi-millionaire, you can also look at brands like Richard Mille or Jacob & Co. as well.
3. Find Your Luxury Watch
When it comes to luxury watches, the options are endless. You can choose between watches with a steel/silver look, a gold look, a rose gold look or watches with a leather strap instead of the metal bracelet.
There are also many more colored variations as well. Think of the Rolex Hulk, a watch with green accents, or the newly released Rolex Oyster Perpetual collection with bright yellow, blue, and red faces. Or maybe you want a watch with a bracelet that intertwines gold and silver.
And are you looking for something clean and simple or something loud and extravagant? Some luxury watch brands offer highly unique-looking watches, and others offer more toned-down, but equally stunning watches.
Once you’ve found a watch you absolutely love, it’s time to purchase it. Maybe you can’t purchase it yet and you’ve got something to look out for, or maybe save the purchase of this luxury watch for a certain milestone in your life! The choice is yours!
Do Luxury Watches Hold Their Value
Now that you’ve paid a hefty price for a quality luxury watch, you might wonder if it will lose its value over time.
Luxury watches hold their value relatively well. With newer models, you can expect to see the value drop initially, but in the long term, the value will start to increase again. Older models almost always increase over time
Now, this doesn’t go for every watch, of course, but in the general sense, it does. Some watches will simply lose some of their value over time, while others could be worth more.
In the end, though, this isn’t really the main reason why you purchase a luxury watch, so if the watch does or does not hold its value shouldn’t matter too much.
The only times that it would matter is if you have to sell your watch because you’re out of money, but that shouldn’t happen if you set a responsible budget, or if you’re purely looking for a luxury watch as an investment.
And if that’s the case, you should do your research into what watches increase in value and which watches don’t.
But for the general consumer, the increase or decrease in value matters very little. The only thing that matters is that you’re happy with your new timepiece!