Rolex CPO: Two Years Later and Still Struggling!
Rolex Enters the Second-Hand Market
Rolex has always been known for its scarcity; getting your hands on a new model can be quite challenging. This scarcity has led many buyers to the second-hand market to find their desired timepieces. According to Bloomberg’s Subdial Watch Index, Rolex watches dominate the second-hand market, occupying 45 out of the top 50 spots in transaction volume.
Recognizing the potential in the second-hand market, Rolex launched its Certified Pre-Owned program in December 2022. This program allows sellers to submit their Rolex watches, which are at least three years old, for official certification. Once Rolex verifies the authenticity and condition of the watch, they will make an offer to buy it, refurbish it, and then resell it with a two-year warranty.
Currently, 69 authorized dealers participate in the Rolex CPO program, primarily located in Europe and North America. In Hong Kong, Oriental Watch Holdings Limited is a key retailer for the Rolex CPO initiative.
The High Price of Rolex CPO
Despite its advantages, the Rolex CPO program has received mixed reviews since its launch. The primary criticism revolves around its pricing. According to our watch price statistics in Oct 2024. Rolex CPO watches are priced significantly higher than their counterparts in the gray market. According to data from WatchCharts, Rolex CPO prices in Europe are about 31% higher than the typical second-hand market prices, while in North America, the markup is approximately 27%.
Let’s take a closer look at some popular Rolex models and their price comparisons:
| REF. | Bucherer CPO (HKD) | C24 (HKD) | gray market (HKD) | CPO Price Increase |
|---|---|---|---|---|
Daytona 116506-0001 | 932,000 | 840,000 | 640,000 | 45.6% |
GMT BATMAN 116710BLNR-0002 | 161,000 | 120,000 | 108,000 | 49% |
Daytona 116500LN-0001 | 280,000 | 230,000 | 210,000 | 33% |
Datejust
126333-0020 | 126,240 | 123,000 | 95,000 | 32% |
Submariner 116610LV-0002 | 139,800 | 158,000 | 139,000 | 0.05% |
For instance, the Daytona 116506 is priced at HKD 932,000 under the Bucherer CPO program, compared to HKD 640,000 in the gray market, representing a staggering 45.6% markup. The GMT Batman shows an even higher difference, CPO priced about 49% more than the gray market.
CPO Prices in Hong Kong
| ref. | Bucherer CPO (HKD) | Oriental Watch CPO (HKD) | Gray Market (HKD) | Price Increase |
|---|---|---|---|---|
Daytona 116500LN-0001 | 280,000 | 228,000 | 210,000 | 8.5% |
Submariner 116610LV-0002 | 139,800 | 160,000 | 139,000 | 15% |
In Hong Kong, the pricing for Rolex CPO watches is also notably high. For example, the Daytona 116500LN is listed at HKD 228,000 at Oriental Watch Holdings Limited , which is 8.5% more than the gray market price of HKD 210,000. The Submariner 116610LV is priced at HKD 160,000, which is 15% higher than its gray market counterpart.
While it’s understandable that the CPO program includes costs for refurbishment and certification, many buyers feel that the premiums are excessive. This has led to a slower sales pace for Rolex CPO watches. Recent statistics indicate that it takes approximately 178 days from listing to sale for Rolex CPO products.
Pros and Cons of Rolex Certified Pre-owned
Advantages:
1. Authenticity Guaranteed:
One of the biggest benefits of purchasing a Rolex CPO watch is the guarantee of authenticity. Buyers can rest assured that they won’t end up with counterfeit
or subpar watches.
2. Warranty and Support:
All Rolex CPO watches come with a two-year warranty, providing buyers with peace of mind and confidence in their purchase.
3. Access to Rare Models:
Rolex CPO program may offer opportunities to acquire rare or discontinued models in excellent condition.
4. Minimal Risk:
For sellers, the riskof selling through the CPO program is lower, as Rolex handles the authentication and refurbishment process.
Disadvantages
1. High Prices:
The most significant drawback is the high pricing of CPO watches, which can deter potential buyers who are looking for more budget-friendly options.
2. Limited Market Reach:
Sellers must send their watches to authorized dealers for evaluation, which adds time and complexity compared to selling directly in the open market.
3. Limited Selection:
The variety of models available through Rolex CPO can be quite limited, as each authorized
dealer may only have a small selection.
4. Less Negotiation Flexibility:
When selling to Rolex, sellers might find that they have less room for negotiation compared to private sales or transactions through second-hand dealers.
Conclusion
The Rolex Certified Pre-Owned program offers a structured and trustworthy method for buying and selling Rolex watches. However, its high prices and limited selection make it less appealing to some buyers and sellers. If you’re considering entering the second-hand Rolex market, it’s essential to weigh your options carefully. Many reputable second-hand dealers offer competitive prices and a wider selection of models, making them a viable alternative to the Rolex CPO program.
If you’re looking to buy or sell a second-hand watch, companies like Aristo Watch provide reliable services with fair pricing. Whether you choose to go through the CPO program or explore other avenues, informed decisions will help you get the best value for your investment.
