The elegant Rolex watches have been ruling over the collectors’ watch market for decades. They have been the choice of the most influential people all over the world. Although they might not be the best high-end watches out there, they surely are the most famous ones. While an average Rolex costs around $10,000, there has always been a debate on whether it justifies its price point or not.

All in all, Rolex does justify its high price due to its premium handcrafted designs, mechanical intricacies, and long-lasting quality. If taken care of properly, Rolex can last a whole lifetime and can even be passed on to the next generations. The intricate craftsmanship that goes behind this Swiss watch, and the respect it garners for its holder, makes it worth every penny.

Why are Rolex so expensive?

The perception and value Rolex has created in the market for itself has, at one point or another, created a desire in all of us to actually get one for ourselves. But not all of us have been able to afford one. In fact, we haven’t even understood why it costs so much.

The most significant reason for Rolex being so expensive is that the kind of steel it uses costs a lot to mould and is really difficult to machine. The manufacturing process is really complex and normally, it takes a whole year to manufacture a single article.

Other than that, every single mechanical piece is assembled by hand and the designs are greatly handcrafted. Another reason Rolex costs so much is that the kind of durability it offers is exemplary. If taken care of properly, an average Rolex can easily last you a lifetime.

Before getting into the details of it, let’s see how Rolex started and how much is an average Rolex priced at. This will help justify its price even better.

Historical Background of Rolex

Rolex was founded by Hans Wilsdorf back in 1905 as the biggest Swiss luxury watchmaking company. Back then it was called “W&D” but got its name “Rolex” by the end of 1908. Currently, the company produces almost 700,000 watches every year and generates 5 to 8 billion dollars in sales revenue annually.

How much does a Rolex cost?

Let’s explore some of the most common models of Rolex, ranging from the cheapest ones to the most expensive ones, so that the newcomers in the watch collecting game get a good idea of ‘How much does a Rolex cost”.

·         Rolex Oyster Perpetual

The Rolex Oyster Perpetual is priced at $5,400 currently and offers its owners some unique and Rolex-specific features, including the Twin-lock System, the Sapphire Crystal and the official Swiss Chronometer Certification.

·         Rolex Yacht-Master

This is one of the most modern of Rolex designs sitting at around $16,000. It is a high-priced Rolex created for the well-heeled nautical set. Famous fans of this one include Brad Pitt, Bruce Wills, and Mark Wahlberg. You may find the latest price of the watch in this link here.

·         Rolex GMT

The newer versions of the GMT can cost you as high as $41,000 if you get them directly from the company, although the earlier ones, especially the Pepsi color bezel, can be a little cheaper at around $17,000.

The Manufacturing & Design of Rolex

The stunning designs Rolex produces sure cost a lot, but what makes them cost this much is the craftsmanship and the material that goes behind them. Rolex is extremely obsessive about quality control and goes to every extent possible to ensure the quality of the watches. Everything from the research, manufacture, assembly, and testing is done in-house, and as a result, the costs automatically skyrocket.

The 904L grade steel that makes up this watch is extremely expensive and costs a lot to mould and machine. Other than its machining cost, the labour working on this kind of steel needs to be highly skilled and equipped with special tools. No wonder, Rolex is the only Swiss watchmaker using 904L steel for its watches.

The assembly and testing of Rolex are done all by hand. Each part is carefully put together and tested, again and again for over 2 weeks, and at 3 different temperatures. This makes sure that every watch that leaves the factory is absolutely perfect. This is also the main reason behind the fact that it takes as long as one whole year for a single piece to be made sale-ready.

What’s so special about a Rolex?

Rolex is not in the business of selling “just” watches. They combine form and function into one irresistible package. What makes Rolex so special is not its accurate timepieces, but the attitude, persona, respect, and elegance that comes with it.

Over its 100 years of success, it has gradually built its value to a point where the level of appreciation even an average Rolex piece can garner from the people around it is extraordinary. This makes its holders stand out from the lot, and feel superior.

Premium watches such as Rolex are not simply meant to be worn. They are usually carried along generations. Some people even buy Rolex for the sole purpose of passing it on to their heirs as something to be remembered from. Hence, if you are looking for a piece of Swiss engineering that will last you through the whole course of your life, and might even become a family heirloom, Rolex is definitely the watch for you.

Is buying a Rolex a good investment?

Watches can be great investments in some cases but like other stronger investment assets i.e., cars, real estate, etc., they might not be able to hold their value that good.

Compared to other luxury watch brands, Rolex could be a better investment. This is because they will retain their value, if not gain a lot, over the years. Another factor contributing to this might be that the watches are highly regarded all over the world and are valued by people. Thus, the more the people value them, the better they retain their price.

One exceptional quality of Rolex is that it never goes out of trend, and generations go on using it just as it was designed decades ago. The pre-owned Rolex market is a big thing in the 21st century. One simply cannot go wrong with a pre-owned Rolex. This gives Rolex a solid resale value, regardless of the time it has been used for, or the change in market trends.

If you are interested in a watch that will hold its value for long, there is nothing better than Rolex. But if as an investor you are looking for your investment to appreciate steadily in value, then you will be far better off finding some good long-term growth shares with healthy returns. Rolex is not an appreciating asset unless you are purchasing a rare antique piece.

Is Rolex Worth Buying?

So far you must have gotten a good idea of the efforts and costs that go behind completing a single article of Rolex. Although the manufacturing costs somehow justify its price point, there has always been an argument if Rolex is really worth buying or not. 

The answer to this question is quite simple. Even if the watch itself might not be not worth what it is selling for, its real worth is way beyond anything materialistic. When it comes to luxury watches, it is only a little about the actual money. High-end watches such as Rolex are not simply worn but are carried on and on through generations. The value they hold is much more than what can be counted in numbers due to the honour and admiration they bring to their holder.

Rolex has been in the Swiss watch market for almost a century and has evolved over the years. Throughout the whole century, it has been the choice of a lot of influential people, including celebrities, artists, and politicians, who have left their mark on its evolution. Thus, when you’re purchasing a Rolex, you’re not just purchasing a beautifully designed timepiece. You’re paying for a share in its 100 years of elegance, class, and grace. 

In short, evaluating the price of Rolex against its cost alone is not enough. When you’re purchasing a Rolex, it is all about the intangibles that come with its green box. And that is what makes it worth the money.

Is Rolex overrated?

The discussion of Rolex being overrated or not has sparked a lot of debate among watch experts. This topic has been one of the most discussed ones and has raised countless questions. There have been a lot of conflicting views on this one but the majority agrees at a point.

Although some experts agree that Rolex are a bit overpriced, they are not that overrated as some people make them out to be. There might be other considerably cheaper brands selling almost the same looks and mechanical technologies as Rolex, but then again, what really builds the value Rolex has is nothing near materialistic.

Rolex is simply not for everyone. Since its inception, it has tried to develop its brand for a highly-specific group of watch enthusiasts. It targets only a certain part of the market which includes noblemen and women. Owning a Rolex means you are becoming a part of that elite culture and identify among those few who own these Swiss timepieces.

This factor has made its fanbase so string that even if they keep rinsing and repeating their selected few designs, their fans would still go gaga over them. Not to mean that they don’t care about it, but the brand name of Rolex has even triumphed the changing trends and mechanical engineering needs of the modern era.

Does Rolex have a payment plan?

After a lot of research over the internet and long discussions with fellow watch enthusiasts, once you’ve selected the Rolex you want to purchase, the next step is to plan its financing. 

Paying for a watch, as expensive as Rolex, upfront might be possible for some, but most people are not able to pay for them right away. This is where payment plans and easy financing options come in. A number of payment plans are offered by various trusted entities which can help you finance a pre-owned Rolex. These include both watches on instalments and advance loans.

The instalment plans are offered mostly by pre-owned Rolex dealers themselves. They offer monthly and quarterly instalments with a certain level of mark-up. The instalments can last for a couple of years depending upon the type of plan you choose. In most cases, a down payment, which is a percentage of the original price of the watch, is required to avail such plans. The percentage again depends upon the type of plan you choose and the amount of credit you’re availing.

The second type of payment plan most people use is an advance loan. Some banks and other private financial institutions lend out loans for purchasing luxury items. Watches, especially Rolex, do fall under this category, and hence this plan can also be availed for buying your dream watch.