Did you know that Rolex has entered the secondary market? We have always thought they were in the secondary market. After all, when I walk around the Jonathan’s Watch Buyer showroom, I can see all the pre-owned Rolex watches we have in stock. Are they certified? We certify that our Pre-Owned Rolex’s are all real with all real parts and that they are in working condition. But does that make them a certified pre-owned Rolex watch?
Certified Pre-Owned
First, let’s talk about certified pre-owned and what that means. Generally, this is a term that is only seen in the car industry. We know that if we buy a used car that is a certified pre-owned, that the dealer guarantees that the used vehicle is in top condition by the manufacturer, and the dealer will stand behind it with a factory warranty.
What is a certified pre-owned Rolex Watch?
A certified pre-owned Rolex watch means that the buyers will receive a two-year warranty card and Certified Pre-Owned guarantee card, and a CPO seal. These all serve as an official thumbs-up from Rolex. Additionally, the watch must be three years or older, purchased from a certified Rolex dealer, and Rolex must grant the certification on the watch.
This is a new program that Rolex recently implemented to try to keep resellers from hiking up prices on newer models, as well as to weed out the fake Rolex watches out there. Their aim is to bring added value to the existing supply of pre-owned watches.
What Does This Mean?
- Those stores that still don’t have any Rolex watches in their display cabinets can now sell pre-owned that are certified.
- It’s a value-added service for retailers that are certified Rolex dealers.
- Rolex will easily be able to track serial numbers on watches for more than service and initial sales to retailers.
- Rolex is validating the pre-owned watch market.
- It protects the brand in many ways.
- This shows commitment to the customer who wants the quality and authenticity.
- Allows buyers to have confidence buying used watches from authorized dealers.
- Puts a sales strategy in place for authorized Rolex dealers to offer watches that don’t compete with current production watches.
- Incentivizes first time buyers to buy a CPO.
- It creates more competition in the secondhand market.
What a Certified Pre-Owned Rolex Watch Doesn’t Mean
- It doesn’t mean that all the pre-owned luxury watch dealers don’t have authentic Rolex watches. If you trust your showroom, then you should be able to trust that they are selling authentic.
- It doesn’t mean the pricing will change. The bottom line is that based on the current market, that sets the current value of a pre-owned Rolex. Of course, you must take into consideration the style, the complications, the year, the condition, and some other things, but because the retailers will be setting their own prices, expect them to be higher.
- You won’t be able to find ANY CPO Rolex watches in the US until around 2023, so don’t go looking for them just yet!
- Even when Rolex does bring this program to the US, the dealer must find the watches, buy them, send them to Rolex for service, wait, then resell them with more of a retail margin – in other words, don’t expect better pricing than you will get from a pre-owned watch dealer. It’s also important to note that a CPO can only be sold online via the dealer’s website, and cannot be placed on any third party websites.
- It doesn’t really affect vintage and rare collectible watches because they fall outside the consumer grade watches.
Some Pre-Owned Pricing Facts by Collection
When you breakdown the nitty gritty pricing of a Certified Pre-Owned Rolex Watch vs a non-certified Rolex, here is what you get by collection.
- Datejust – CPO is 13% more expensive
- Submariner – CPO is 20% more expensive
- GMT Master – CPO is 23% more expensive
- Day-Date – CPO is 11% more expensive
- Yacht Master – CPO is 50% more expensive
- Sky Dweller – CPO is 20% more expensive
- Oyster – CPO is 14% more expensive
In Conclusion
Jonathan’s Watch Buyer is still buying Rolex watches and we are still selling Rolex watches. Yes, the market has softened, but it’s still as strong as it was before the pandemic. The only Certified Pre-Owned Rolex Watch that we will carry is if we happen to purchase one from one of you! Do we believe in the program? Sure we do, but we can always get you the best prices on new Rolex watches and pre-owned Rolex watches without being an authorized dealer because of our contacts, connections, reputation, and selection.
If you would like to purchase a Rolex, every image we show is in our showroom, unless we have already sold it, which could be possible, but just give us a call and ask for Sergio! If you would like to visit our showroom for the best selection of pre-owned Rolex watches in Houston, please contact us. And, if you have a Rolex you would like to sell, just reach out via this form, and we will get back to you ASAP!
