This is fantastic. Definitelly going to try this locally to test out a few watches before I buy them. Leasing one for a month hopefully to see if there are any deal breakers there before purchase.
I really didnt understand the point of watch renting at first but I do see the benefit of being able to daily drive a watch for a few weeks before buying it. Especially if it's your first luxury watch.
This for me is probably the only valid reason for renting a watch. Personally I just do my research on a watch I like, then try it on at the AD before purchasing (even if I'm not purchasing from the AD). Although I understand that some watches may not be readily available to try on, or some people may not have easy access to ADs.
back in 2012, I rented out one of my watches to a good friend of mine for roughly 18 months, at aproximatly 1% of retail price/a month... this particular piece sadly was a "safe-queen" and hardly got any wrist-time from myself. I sold it last year for the same dollar amount I had bought it for, which adjusting for inflation, i probably broke even on.
@@JohnPWatches you're making me feel bad now... In my defense though, it wasn't my idea originally but his. It all started with him telling me "well if you are not wearing it, you should let me borrow it". Which wasn't going to happen for many reasons including the fact that it was the most expensive piece in my collection at the time, and was in (soft) precious metal. We both never thought he'd have it for that long, and it wasn't in the same condition when he returned it to me. Which is understandable. We always have payments going back and forth between him and I anyhow... he agreed on the terms and could afford it. On another related note, I lent my Tudor BB GMT to another friend of mine recently for 8 days, and he managed to scratch 4 links (only 1 removable) and the clasp. SMDH Lesson learnt!
There is a YT video on a company that currently rents. They are insured for damage, theft, etc. and I bet the premiums are through the roof given the risk of damage to the watches and loss due to the renter keeping the watch.
A lot of hate in the comments, but as an experienced collector It would be nice to be able to experience watches that I'd never wear/buy otherwise. Odd-ball brands or strange pieces. Great idea, but I can understand how many would view it as "renting status".
Did download a app the other day after seeing another TH-camr talk about the same thing . Not sure if I will use it but it's a cool option to maybe wear a watch I'd probably never be able to own .
The issue with these rental business models is cash flow. You have to pay the full cost for inventory; then, you try to recovery the cost over time. You don't actually make profit until over a year or more. I had to construct a financial model for a business equipment rental firm and it was quite complex.
Any low or no interest loan options to owning a watch. I’d only consider that if it was no interest and not one of my cards. I’d do 300 a month over three years for a hulk or something.
Could be the end of waiting lists and double retail prices, I think it’s a really good idea. There are some Rolex and Patek models I can’t afford or can’t get hold of so I can use and enjoy the watch over a few months. Might be away of enjoying watches and not worrying about keeping them at the bank 👍 makes the hobby less expensive
Hiya and as someone else has just commented on there has just been a NYC company doing this.No one mentioned a holding deposit as you would expect with car or truck rental? I suspect that could be a big player and hoping you get it back based on a scratch or dink being put through insurance? The customers deposit is the excess paid per claim. Scary territory. Also huge possibilities for the company to get taken for a ride? Cheers.
There must some cast iron damage clause. I can’t see non-watch enthusiasts being that careful. Who remembers getting rental VHS and DVD’s. They were beaten to death.....don’t get me started on rental cars.
True. I'd expect all of the watches to have similar wear and tear to car rental fleets from enterprise etc. Small things wont be fixed but of course a busted window will.
I did download the app after watching producer M video, it didn’t make sense for me to subscribe for 2 main reason, 1 they re doing a credit check like you are buying the watch, why can’t I just give my credit card as collateral like for a rental car? 2. Choices are very limited and the pricing of almost 15k to rent a 30k watches is just not working for me. The smaller monthly fees are for even less interesting for the value vs cost. Bottom line just good for a test drive of a week. Continue the good job!
Thanks! My best guess is if someone cancels a credit card, little protection- also to gauge risk and on an individualized basis. When renting apartments I believe credit is also checked.
I think it works for stuff like those car clubs you can join to borrow from a selection of new to old sports car for the weekend, because cars are high maintenance items, so not having to worry about maintenance or parking spaces is a benefit to renting. But watches, as far as mechanical items go aren't that high maintenance (you can still wear a not working watch, but you probably don't want to drive an unmaintained sports cars on a track), so renting then seems kinda pointless imo.
The margins are not large enough to cover for the depreciation and inability for the watch to be liquidated at a low risk value. With Rolex, certain AP, and certain Patek, the value stays flat or grows and has low risk of liquidation value decreasing in the asset. With low demand models, very low demand- such as Cartier Roadster, so many available that they are around very cheap, but the Cartier prestige can still perhaps fetch decent monthly payments.
...on one hand it's unseemly renting such a personal item as a watch...on another hand watches are appliances and little different than a toaster-washer...some of them are particularly beautiful and beautifully engineered toaster-washers, which can be enjoyed for their aesthetic and machine qualities by those that value the art...but that continue to perform their monotonous, repetitive work of toaster-washing regardless...spread your cost and profit out and make a watch available at entry, mid and bling levels...the profit is in volume...
Personally I think a watch rental service might be good, especially if there are options to own the watch after a certain number of payments. It might be interesting to allow some flexibility unseen in regular instalment plans, for example, if I rent a patek for 5 months and have paid 5k, maybe let me turn 3.5k of that into an omega if I eventually decide to quit using the patek. At that point it's a decent value proposition and allows me to change my mind whenever without basically losing the full amount.
Outside of the one off rentals for weddings, special occasions, etc. I would not recommend anyone do this. The business model is roughly 2.5-3% per month rental fee for the watch and that just seems wasteful. If you are spending $500 a month to wear $20,000 watches that seems just wrong, especially if its over long periods of time. I am curious if they charge that percentage of their list price or their market value. For a 5711 that could double or triple the price. Imagine paying $1500 a month to wear/rent a 5711, I would lose respect for anyone I know who would do that. Just feels dirty.
Interesting concept but the devil is in the details. The guy ProducerMichael interviewed said he was an intermediary for any watch owner to rent out their watches to others (like Turo for card or airB&B for houses). This is when Mike said “not my watches”. I wonder how many grey market shops will use this “match making” service to harvest cash on watches in inventory that haven’t sold. You may have noticed the large number of Rolex steel sports in the grey market. That’s a lot of static capital that could be “put to work” as long as the middleman offers adequate safeguards that the watches won’t be pirated for parts. Would Del Rey go down that path as a lessor of watches if the economy slows? At least Franz would be able to spot any monkey business being done to your watches.
Most people go into nice watches for the sense of ownership of something special. Rental takes that out of the equation and just doesn’t work in this space.
This is fantastic. Definitelly going to try this locally to test out a few watches before I buy them. Leasing one for a month hopefully to see if there are any deal breakers there before purchase.
I really didnt understand the point of watch renting at first but I do see the benefit of being able to daily drive a watch for a few weeks before buying it. Especially if it's your first luxury watch.
Interesting!
This is definitely something for me to do, don't want to spend thousands on a watch that has something I dislike.
This for me is probably the only valid reason for renting a watch. Personally I just do my research on a watch I like, then try it on at the AD before purchasing (even if I'm not purchasing from the AD). Although I understand that some watches may not be readily available to try on, or some people may not have easy access to ADs.
back in 2012, I rented out one of my watches to a good friend of mine for roughly 18 months, at aproximatly 1% of retail price/a month... this particular piece sadly was a "safe-queen" and hardly got any wrist-time from myself. I sold it last year for the same dollar amount I had bought it for, which adjusting for inflation, i probably broke even on.
Must not have been that good of a friend, if you charged him :)
He said friend not brother
@@JohnPWatches you're making me feel bad now...
In my defense though, it wasn't my idea originally but his. It all started with him telling me "well if you are not wearing it, you should let me borrow it". Which wasn't going to happen for many reasons including the fact that it was the most expensive piece in my collection at the time, and was in (soft) precious metal.
We both never thought he'd have it for that long, and it wasn't in the same condition when he returned it to me. Which is understandable.
We always have payments going back and forth between him and I anyhow... he agreed on the terms and could afford it.
On another related note, I lent my Tudor BB GMT to another friend of mine recently for 8 days, and he managed to scratch 4 links (only 1 removable) and the clasp. SMDH
Lesson learnt!
@@horizonfan exactly! LOL
There is a YT video on a company that currently rents. They are insured for damage, theft, etc. and I bet the premiums are through the roof given the risk of damage to the watches and loss due to the renter keeping the watch.
A lot of hate in the comments, but as an experienced collector It would be nice to be able to experience watches that I'd never wear/buy otherwise. Odd-ball brands or strange pieces. Great idea, but I can understand how many would view it as "renting status".
Did download a app the other day after seeing another TH-camr talk about the same thing . Not sure if I will use it but it's a cool option to maybe wear a watch I'd probably never be able to own .
Thanks for info!
Where does A. Lange & Söhne fall in these categories? Would love to try out an 1815 chrono in the future before actually committing to one.
📈
@austin rosin This is a good idea. Just don't scratch the 1815 until you own it.
The issue with these rental business models is cash flow. You have to pay the full cost for inventory; then, you try to recovery the cost over time. You don't actually make profit until over a year or more. I had to construct a financial model for a business equipment rental firm and it was quite complex.
Any low or no interest loan options to owning a watch. I’d only consider that if it was no interest and not one of my cards. I’d do 300 a month over three years for a hulk or something.
That's 10.8 k , a bank can't make money at 0% forever...
Exactly... but. A store may want to unload watches though. Move inventory.
Could be the end of waiting lists and double retail prices, I think it’s a really good idea. There are some Rolex and Patek models I can’t afford or can’t get hold of so I can use and enjoy the watch over a few months.
Might be away of enjoying watches and not worrying about keeping them at the bank 👍 makes the hobby less expensive
Hiya and as someone else has just commented on there has just been a NYC company doing this.No one mentioned a holding deposit as you would expect with car or truck rental? I suspect that could be a big player and hoping you get it back based on a scratch or dink being put through insurance? The customers deposit is the excess paid per claim. Scary territory. Also huge possibilities for the company to get taken for a ride? Cheers.
There must some cast iron damage clause. I can’t see non-watch enthusiasts being that careful. Who remembers getting rental VHS and DVD’s. They were beaten to death.....don’t get me started on rental cars.
True. I'd expect all of the watches to have similar wear and tear to car rental fleets from enterprise etc. Small things wont be fixed but of course a busted window will.
@@JohnPWatches I wonder how they make sure they aren't being brought back watches with swapped dials, movements, straps, or the entire watch.
@@DrZbo this would be more of an issue with collectible vintage-watches. For newer ones it is easy to check
I did download the app after watching producer M video, it didn’t make sense for me to subscribe for 2 main reason, 1 they re doing a credit check like you are buying the watch, why can’t I just give my credit card as collateral like for a rental car? 2. Choices are very limited and the pricing of almost 15k to rent a 30k watches is just not working for me. The smaller monthly fees are for even less interesting for the value vs cost. Bottom line just good for a test drive of a week. Continue the good job!
Thanks! My best guess is if someone cancels a credit card, little protection- also to gauge risk and on an individualized basis. When renting apartments I believe credit is also checked.
I think it works for stuff like those car clubs you can join to borrow from a selection of new to old sports car for the weekend, because cars are high maintenance items, so not having to worry about maintenance or parking spaces is a benefit to renting. But watches, as far as mechanical items go aren't that high maintenance (you can still wear a not working watch, but you probably don't want to drive an unmaintained sports cars on a track), so renting then seems kinda pointless imo.
I think it is a high-risk kind of business to rent luxury watches. Scratches, damages, who knows what else.
Their terms allow them to basically bill people for all of those damages.
Most places have about an 80% of the price deposit so if it were to be damaged or stolen they really wouldn't lose any money.
I don't understand how it was unprofitable to lease out a segment of the watch industry. I am not sure why this doesn't work out.
The margins are not large enough to cover for the depreciation and inability for the watch to be liquidated at a low risk value. With Rolex, certain AP, and certain Patek, the value stays flat or grows and has low risk of liquidation value decreasing in the asset. With low demand models, very low demand- such as Cartier Roadster, so many available that they are around very cheap, but the Cartier prestige can still perhaps fetch decent monthly payments.
...on one hand it's unseemly renting such a personal item as a watch...on another hand watches are appliances and little different than a toaster-washer...some of them are particularly beautiful and beautifully engineered toaster-washers, which can be enjoyed for their aesthetic and machine qualities by those that value the art...but that continue to perform their monotonous, repetitive work of toaster-washing regardless...spread your cost and profit out and make a watch available at entry, mid and bling levels...the profit is in volume...
Not for me, my watches are very personal items. I’m watch geek
Personally I think a watch rental service might be good, especially if there are options to own the watch after a certain number of payments.
It might be interesting to allow some flexibility unseen in regular instalment plans, for example, if I rent a patek for 5 months and have paid 5k, maybe let me turn 3.5k of that into an omega if I eventually decide to quit using the patek. At that point it's a decent value proposition and allows me to change my mind whenever without basically losing the full amount.
Interesting idea, not sure the dealer would have enough upside to also cover their risk/loss/damages, but perhaps :)
PeacePoor omegas are shit 😂 Rolex beats them every time
Outside of the one off rentals for weddings, special occasions, etc. I would not recommend anyone do this. The business model is roughly 2.5-3% per month rental fee for the watch and that just seems wasteful. If you are spending $500 a month to wear $20,000 watches that seems just wrong, especially if its over long periods of time. I am curious if they charge that percentage of their list price or their market value. For a 5711 that could double or triple the price. Imagine paying $1500 a month to wear/rent a 5711, I would lose respect for anyone I know who would do that. Just feels dirty.
Interesting concept but the devil is in the details. The guy ProducerMichael interviewed said he was an intermediary for any watch owner to rent out their watches to others (like Turo for card or airB&B for houses). This is when Mike said “not my watches”. I wonder how many grey market shops will use this “match making” service to harvest cash on watches in inventory that haven’t sold. You may have noticed the large number of Rolex steel sports in the grey market. That’s a lot of static capital that could be “put to work” as long as the middleman offers adequate safeguards that the watches won’t be pirated for parts. Would Del Rey go down that path as a lessor of watches if the economy slows? At least Franz would be able to spot any monkey business being done to your watches.
I’d rather not rent our watches out, but I never say never.
Most people go into nice watches for the sense of ownership of something special. Rental takes that out of the equation and just doesn’t work in this space.
Producer Michael did a video about this.
Thanks
@@JohnPWatches 🤣
That guy he interviewed was a gangster. 👎⌚
Yes, there was something off about him. It looked as if Michael had the same feeling.
Renting watch seems very strange. If somebody wants to pretend they can buy 600 usd Rolex fake.
Interesting concept and application. I can see this business being interesting to the watch group. I' ll pass....
renting watches... umm... that isn't going to work.
Watch renting is distasteful in my opinion.
better to rent it for a few hundred dollars to see if you like it than spending thousands and hating the watch.
No no no just no !
if you're that sad, just get a good quality fake
zero information just blabla