Rolex price increase 2020 – All you need to know
Whilst not yet confirmed by Rolex our understanding at GWS is that the Rolex price increase 2020 will come into effect as from the 1st January 2020. Although the previous Rolex price increase in 2018 was applied only within the UK, this increase will be also be across Eurozone countries and possibly worldwide. It is the policy of the brand not to make any official announcements of a Rolex price increase, but the information we have from several Authorised Rolex Dealers is that prices will rise on average between 6.8 – 7.4% on the Rolex Classic collections and approximately 10% on the Rolex Professional collections, also commonly known as ‘sports models’. The level of the increase is reported to be broadly the same across several European countries including France, Spain, Portugal, Germany and Italy, with Poland having already been subject to an on average 8% increase in November 2019.
Rolex as an Investment – the effect of a Rolex Price Increase
Part of the allure of Rolex ownership is the prospect of the steady increase in value of a Rolex watch over a number of years, therefore giving weight to the argument of the value of Rolex watches as an investment. A Rolex price increase is the single most important event when it comes to increasing the value of your investment in a Rolex, with the value of preowned watches in the marketplace generally tracking the value of new watches. Therefore, an increase of 10% against a new Rolex Submariner for example, will likely see a similar increase for the Rolex Submariner that you may already own. The same theory applies across all Rolex collections. Whilst the previous UK only Rolex Price Increase in October 2018 having little effect on the preowned market, a worldwide Rolex price increase is sure to see preowned prices rise. If you don’t currently own a Rolex buy you are looking to purchase one in the near future, the timing of this increase may not be ideal, but the Rolex price increase strategy implemented by the brand is likely to mean that when you do purchase, your investment in a Rolex will be a prosperous one over the longer term.
What does the Rolex Price Increase 2020 mean for me?
Generally, Rolex prices increases are welcomed as good news by the market, as this increases the value of current collections. This isn’t a view held by everyone, so here’s our analysis of the Rolex owner community to show what the Rolex Price increase 2020 will mean for you.
I Already own a Rolex…
The Rolex price increase is great news for you! The market value of your current watch is likely to increase in line with the Rolex price increase. For a more in depth look at Rolex prices and the Rolex investment lifecycle read our full article here.
I’m looking to purchase a Rolex that is generally available from an Authorised Dealer…
You’ve chosen a new Rolex watch and it’s available now at your Authorised Dealer. Now is the time to act! Generally this is only going to apply to watches outside of the Rolex Professional collection of the much sought after Sportsmodels, so buying before the increase is implemented means you can save yourself around 7% on 2020 prices. You’ll then benefit from as the value of your new watch is likely to increase within days of your initial purchase. If you’re lucky enough to get the call to say your Rolex Professional model has arrived, then the same principle applies. Great news all round!
I’m on a waiting list to purchase a Rolex from an Authorised Dealer…
Unfortunately, if you’re on the waiting list already, but won’t receive your watch before the 1st January, then the Rolex Price Increase will directly affect your purchase price. Whilst Rolex Authorised Dealers may place you on their list and give you an idea of how long your wait for your new Rolex will be, the price will not be fixed and as such it will be subject to increase inline with the new price increase. With waiting lists running to several years on the most popular models it is likely that this will not be the only price increase you’ll be subjected to before being able to purchase your dream watch. There’s also the prospect that by the time you take delivery you may end up paying more than the original price you could have sourced the watch for at a secondary market dealer, without having to wait! On the flip side, the market value of your purchase is also likely to increase meaning that when you do eventually take delivery, your new Rolex watch will already be worth more than the price you have paid for it.
I’m looking to purchase a Rolex from a secondary dealer...
Whereas Authorised Rolex Dealers are required to sell at the retail price set by Rolex, there is no such restriction on secondary market dealers. Therefore, the price offered by secondary market dealers is influenced much more by the free market value of Rolex watches. Currently, stainless steel professional models, market values carry significant premiums above the retail prices. It remains to be seen whether the market value will jump by 10% in line with the Rolex Price Increase, or whether the market will keep the valuation the same. Our view at GWS is that we’ll see a rise in market valuation, but we do not expect to see this rise by the full 10%, therefore reducing the premium paid on the professional range slightly.
I’m looking to sell my Rolex…
Again, a Rolex Price Increase can only be good news for those already in Rolex ownership. Whilst it is likely to take time to filter through, the vast majority of preowned Rolex watches will see an increase in line with market valuations. For an outright sale it is likely that you’ll benefit from holding until market prices are established after the increase, whereas for a part exchange, or a sale & new purchase of your next watch the a marginal benefit is likely to be had ahead of the increase. To get a valuation to sell your current watch please click here.
The Rolex Price Increase and the UK Luxury Watch Marketplace
Overall a Rolex Price Increase is beneficial to the market, and the continued pricing strategy of Rolex underpins the reason many consumers trust Rolex as the brand of choice when buying a luxury watch. 2020 promises to see the political situation in the UK provide more certainty over the economy, which in turn should provide the building blocks for a more buoyant market. Whilst it remains to be seen if Rolex will increase production numbers, the amount of buyers in the market are likely to increase helping to underpin the new pricing point dictated by Rolex.
Your View on the Rolex Price Increase 2020
Whether you currently own a Rolex, you’re thinking about buying a Rolex, or are looking to sell the Rolex Price Increase 2020 will have an impact on you. We’d love to hear your view on the changes, just drop your thoughts in the comments section below.