Why I Stopped Buying New and Started Buying Pre-Owned (Even Though I Can Afford New)
The $1,500 mistake that taught two watch buyers everything about depreciation curves
Two friends. Same promotion. Same bonus check. Both wanted to celebrate with their first luxury watch.
The first walked into an Omega boutique and bought a new Speedmaster Professional for $7,100. Full five-year warranty. Factory-sealed. The complete authorized dealer experience. He left with the watch on his wrist and papers in his briefcase.
The second called me.
We sourced a 2021 Speedmaster Professional—identical reference, excellent condition, full box and papers—for $5,400. Two years old. Authenticated by our in-house watchmaker. On his wrist six days later.
Fast forward eighteen months.
Both needed liquidity for a business investment. Both sold their watches.
The first friend—who bought new—got $5,600 from a dealer offer. He lost $1,500 over eighteen months of wearing the watch. His depreciation? 21%.
The second friend—who bought pre-owned—sold for $5,500. He gained $100 over eighteen months. His appreciation? Essentially break-even after daily wear.
Same watch. Same functionality. $1,600 difference in outcome.
And that's when they both understood something that changes how you think about luxury watch purchases: The question isn't "can I afford new?" The question is "where am I entering the value curve?"
The depreciation reality most buyers discover too late
Here's the uncomfortable truth about buying most new luxury watches: You lose 15-25% of your money the moment you take possession.
Not because the watch isn't worth the retail price. Not because authorized dealers are overcharging. But because of a fundamental principle in luxury goods economics: The market distinguishes between "new from AD" and "worn once"—even though the watch performs identically.
According to 2025 market data, secondary market prices for most luxury watches trade 20-40% below authorized dealer retail, with brands like Omega and IWC averaging 40% below retail, and Cartier at 31% below retail for in-production models
Omega Speedmaster Professional: 20-25% depreciation in first year (buy at $7,100, sell for $5,600)
IWC Pilot's Watch: 25-30% depreciation in first year (buy at $6,400, sell for $4,700)
Cartier Santos: 20-30% depreciation in first year (buy at $7,600, sell for $5,800)
Breitling Navitimer: 20-25% depreciation in first year (buy at $8,600, sell for $6,700)
Panerai Luminor: 25-30% depreciation in first year (buy at $9,200, sell for $6,900)
This isn't a flaw in these brands. This is how luxury goods markets function for 90% of watches.
Meanwhile, a watch that's already 2-3 years old? Someone else absorbed that 20-25% depreciation hit. The curve has flattened. You're buying near the bottom, which means significantly better value retention over your ownership period.
Let me show you the math that my two friends learned:
New Omega Buyer:
Purchase price: $7,100
Resale after 18 months: $5,600
Total loss: $1,500 (21% depreciation)
Cost per month of ownership: $83
Pre-Owned Omega Buyer:
Purchase price: $5,400
Resale after 18 months: $5,500
Total gain: $100 (essentially zero cost)
Cost per month of ownership: $0
That's $1,600 in value retention difference for wearing the exact same watch.
The Rolex exception (and why it still doesn't change the strategy)
Now let me address the most common objection: "But what about Rolex?"
Certain Rolex sports models—Submariner, GMT-Master II, Daytona—don't follow normal depreciation patterns. According to recent market data, popular Rolex references trade 20-35% above authorized dealer retail on the secondary market.
Buy a Submariner Date at AD retail for $10,400, and you can immediately sell it for $13,500-$14,000. That's not depreciation—that's instant $3,000+ equity.
So why doesn't everyone just buy new Rolexes from ADs?
Because you can't. The average wait time for a Submariner has improved from 18-24 months (2021-2022 peak) to 60-120 days in 2025—but you still need purchase history, relationship building, and luck.
And if you try to skip the line by buying "new" or "unworn" on the gray market? You're paying $14,500-$15,500—which puts you at the top of the market curve with limited upside and significant downside risk.
Here's what actually happens with the Rolex "gray market trap":
Gray Market "New" Buyer:
Purchase price: $15,000 (for 2025 unworn Submariner)
Market softens over 18 months
Resale price: $13,500
Total loss: $1,500 (10% depreciation)
Smart Pre-Owned Buyer:
Purchase price: $13,200 (for authenticated 2020 Submariner in excellent condition)
Market stays stable
Resale price: $13,600
Total gain: $400 (3% appreciation)
Same reference. $1,800 entry price difference. $1,900 outcome difference.
The gray market buyer paid a premium for "unworn" status and immediate availability. The pre-owned buyer entered at market rate after someone else paid the AD-to-gray-market premium.
Why buying pre-owned is strategic positioning, not compromise
Let me be absolutely clear: I'm not arguing that new watches are "bad purchases."
If you can access Rolex sports models at authorized dealer retail ($10,400 for a Submariner)—that's probably the best value proposition in luxury watches. You're buying below market rate with instant equity.
If you want the full authorized dealer experience for other brands—the boutique presentation, being the first owner, the complete warranty—that has emotional value. For some buyers, that's worth the depreciation premium.
What I'm arguing is that for most buyers and most watches, pre-owned represents better financial strategy.
Think of it like real estate investing. Would you rather:
Buy at peak market prices hoping for continued appreciation?
Buy after a 20% correction when the market has stabilized?
The answer depends on your timeline, risk tolerance, and exit strategy.
Luxury watches work the same way—with one critical advantage over cars or real estate:
A properly maintained mechanical watch doesn't degrade. A three-year-old Omega Speedmaster performs identically to a new one. Modern movements are recommended for service every 5-10 years depending on the brand. The case doesn't lose structural integrity. The bracelet doesn't wear out.
You're getting functionally identical performance while entering at a 20-25% discount on the value curve.
For the vast majority of luxury watches, that's not a compromise. That's smart asset allocation.
The three objections (and the real answers)
Objection 1: "I want the warranty."
Fair. Rolex offers five years. Omega offers five years. Patek Philippe offers five years (extended in May 2024).
But here's what buyers don't realize: Fewer than 5% of luxury watch owners ever make a warranty claim.
Modern mechanical movements from reputable manufacturers are exceptionally reliable. Rolex movements are now recommended for service every 10 years. Omega's Co-Axial movements can go 5-8 years between services.
And when something does go wrong? Warranty coverage is limited to manufacturing defects only. Drop your watch? Not covered. Water damage from improper use? Not covered. Magnetization? Not covered.
Meanwhile, when you buy pre-owned from a dealer with in-house authentication:
Full mechanical inspection before purchase
100% authenticity guarantee (counterfeit protection that even ADs can't provide for pre-owned)
Return window (14 days at Royalty Timepieces)
Known service history in many cases
Ability to negotiate if service is due soon
For many buyers, that's better protection than a warranty they'll never use.
Objection 2: "I don't want someone else's watch."
According to 2025 watch market data, approximately 35-45% of pre-owned listings fall into the "like-new" or "excellent" categories. These aren't heavily worn watches. These are pieces that were purchased, worn occasionally, and moved on from.
And here's the reality: After you wear your "new" watch for a few months, it becomes a pre-owned watch.
You're paying 20-25% more for a few months of "first owner" psychological satisfaction. For some buyers, that's worth it. For others, it's not.
Objection 3: "How do I know it's authentic?"
This is the only objection that matters. Counterfeit risk is real.
Which is why authentication is non-negotiable. At Royalty Timepieces, every pre-owned watch goes through:
Movement verification (case opened, examined under magnification)
Component originality assessment
Serial number cross-referencing
Documentation review
100% money-back authenticity guarantee
When authentication is done by a professionally trained watchmaker, pre-owned watches are just as trustworthy as new—sometimes more so, because someone's already verified the watch was built correctly.
Bottom line
The Omega buyer who paid $7,100 new lost $1,500 over 18 months.
The pre-owned buyer who paid $5,400 broke even.
The Rolex gray market buyer who paid $15,000 lost $1,500 over 18 months.
The authenticated pre-owned buyer who paid $13,200 gained $400.
Same watches. Different entry points. Dramatically different outcomes.
The collectors who've figured this out aren't buying pre-owned because they can't afford new. They're buying pre-owned because they understand:
Depreciation curves and where value stabilizes
Entry points that offer better risk-adjusted returns
Opportunity cost of paying for "new" status
Authentication as the only real risk factor that matters
For the vast majority of luxury watches, paying the "new premium" means funding someone else's depreciation loss.
Smart money enters after that loss has already occurred.
Authenticated Pre-Owned. Better Value. Zero Compromise.
At Royalty Timepieces, we specialize in authenticated pre-owned luxury watches from the world's finest manufacturers. Every timepiece in our collection has been inspected and verified by our in-house watchmaker—movement verification, component originality, serial authentication, complete documentation review.
Why pre-owned makes financial sense:
Better value curve positioning - Enter after depreciation, not before
In-house authentication - Every watch opened, inspected, 100% guaranteed authentic
Immediate availability - No waitlists for most references
14-day return window - Complete confidence in your purchase
Functionally identical - Properly maintained mechanicals perform like new
Browse our authenticated collection: royaltytimepieces.com/shop
Looking for a specific reference? Call 201-701-3421 or submit a sourcing request. We'll locate it through our private network.
The smartest buyers stopped asking "new or pre-owned?" They started asking "where should I enter the value curve?"
Answer: After the depreciation. Before the appreciation.
Royalty Timepieces | The Royal Standard in Horology
201-701-3421 | info@royaltytimepieces.com | royaltytimepieces.com
Royalty Timepieces is an independent watch dealer and is not sponsored by, associated with, or affiliated with Rolex S.A., Omega S.A., or any watch brand manufacturer. All trademarks are property of their respective owners.