Pawnbrokers loans are more common and seen as less stigmatised now than in previous generations. There are a number of well-regulated pawnshops offering loans at transparent rates, and providing better customer service and value for money than the stereotype suggests. You can take a loan against your Rolex, use the funds for your project or to pay a pressing bill, and pay the loan back when it suits you, with interest and fees clearly stated and set out at the start of the loan. When you loan against watches, the pieces are stored safely in secure storage locations and are handled by professionals with years of experience in the watch and luxury asset trade.
Rolexes can be very hard to come by, especially if buying a new and desirable model first-hand from a jeweller or watch retailer. You can be on a waiting list for years before being offered the one you want, and once you have purchased it, the price can immediately go up. A lot of the time there are models which sell at a far higher price point on the secondary market. If you have waited a good amount of time to buy your desired Rolex first-hand, you probably won’t want to part with it any time soon! Selling the watch with a plan to buy the same model back can be much more costly, both in terms of time and money. If you pawn Rolex watches, you get the benefit of continued ownership, and you do not have to repurchase the watch.
Over the past two years, our lifestyles have changed and many people sought to ‘cash in’ on their investment watches which they felt less need to wear and own them during lockdown. Unfortunately, as prices for watches continued to rise, and the UK came out of lockdown, some who previously owned Rolexes have found that the watches are now out of their price range to buy back. Whilst many people did try to sell their watch at the start of lockdown, we also saw many more looking to loan against watches. One client of ours who recently repaid their loan to retrieve their Rolex has said to us, ‘I am so pleased that I made the decision to not sell my Rolex. I was nervous to pawn my watch at the start of lockdown and needed the cash to pay bills whilst I didn’t have any funds coming in, but the price for this Daytona has risen so much over the past year, if I were buying one now, I would have no chance. It has been a smooth and easy process, and my much-loved watch has been kept safe over the past year, waiting for me to get it back.’
Selling the watch would have given them a needed cash boost during a tough time, but would have left them without their asset, and no chance of buying a replacement model. Pawning, however, would have given them the option to buy their watch back at the same price it was valued at a year ago – a smart move when holding a valuable increasing asset in an uncertain world.