Overview
Collateral loans are secured by valuable personal property, such as luxury assets. Classic examples include gold coins, diamond jewelry, fine art, and luxury wristwatches. In the final category – luxury wristwatches – Rolex brand wristwatches are surely at the top of the list!
Rolex – A Name of Renown
The Swiss luxury watch brand Rolex has a proud history dating back to the early years of the 20th century, but it was during the middle of that century when it really hit its stride. Known for their robust engineering and proud sporting feats in the areas of racing, yachting, and mountain climbing, Rolex watches have also graced the wrists of some of the world’s best known celebrities, such as actor Paul Newman and director James Cameron. Advertising campaigns have placed Rolex watches front and center in the minds of consumers as embodying quality, luxury, and performance, their timeless styling instantly recognizable.
The fame of the Rolex watch is a great driver of the esteem watch collectors feel for the brand and helps cultivate a robust secondary marketplace where previously owned Rolex watches are bought and sold well above the Manufacturers Recommended Sales Price (MRSP). For many people, Rolex is the luxury timepiece, and they are willing to pay a premium to own the watch they consider the best.
A Robust Secondary Market
Driven by demand that far outstrips the number of Rolex watches crafted each year, the secondary market for Rolex watches is extremely active. This consumer excitement means that Rolex watches are quite commodified and their selling prices trackable. The vast trade in secondhand timepieces allows valuations experts to easily determine an appropriate collateral loan amount for any Rolex brand watch, based on the current market conditions.
Timeless Style, Timeless Demand
Consumer demand for Rolex is exceptionally strong and exceptionally stable! This means that appraisers have confidence that the Rolex watch prices of the present will not differ significantly from the Rolex watch prices of months in the future. This stability allows valuations experts to confidently assign the highest collateral loan values for these watches. Rolex’s comparatively conservative approach to design changes and fashion innovations reinforces this stability, as the steady stream of watches onto the secondary market are consistent in their design features over many years.
Condition is Key
With so many Rolexes bought and sold in the resale arena every year, factors such as condition and completeness are key to securing the highest collateral loan valuation. When comparing one pre-owned Rolex watch to others of the same model, the quality of the finish and lack of damage is very important to help set the watch apart from its competitors. Likewise, completeness – the inclusion of the original boxes, warranty card, extra links, booklets, etc. – is a crucial factor when comparing like watches. The more complete the package, the higher the price a seller can achieve. This translates to the collateral loan value, as well.
Summary
Rolex wristwatches are among the most recognizable and desirable in the world. Consumer appetite for this brand vastly outstrips its annual production, so the secondary market is exceptionally strong. The stability of this market allows collateral lenders to loan big against these timeless timepieces, taking into account both condition and completeness. A Rolex watch is an incredible choice of luxury asset to secure a collateral loan.
