How To Finance Your First Luxury Watch?

...

Time is money. No one would argue. But for a luxury watch enthusiast or an investment wizard, the money aspect of time goes to another level. Either way, a genuine luxury timepiece often comes with a hefty price tag. So, whether you are eyeing a classic Rolex or a limited-edition Patek Philippe, understanding the different ways to finance your luxury watch can help you enjoy this investment without straining your finances.

This guide will walk you through various financing options from budgeting to owning - to help you plan your first luxury watch purchase wisely.

Set a budget for your luxury watch

The first step in financing your luxury watch is setting a realistic budget. Luxury watches can range from INR 1 lakh to several crores, depending on the brand, model, and rarity. Assess how much you are comfortable spending without jeopardising your other financial goals.

Research prices, consider taxes and insurance, and think about whether the watch might increase in value.

Consider a personal loan

A personal loan can be a viable option if you want to buy a luxury watch without waiting to save the entire amount. Here’s how a personal loan can help:

Fixed EMIs: A personal loan allows you to break down the cost of the watch into manageable monthly instalments (EMIs), making it easier to fit into your budget.
Competitive interest rates: Depending on your credit score, you can secure a loan at a favourable interest rate.
No collateral required: Most personal loans do not require any collateral, meaning you won’t have to put any assets at risk to secure the loan.

Leverage buy now, pay later options

Some luxury watch retailers offer buy now, pay later (BNPL) options, allowing you to split the cost into multiple payments over a few months. Here’s how BNPL works:

Instalments: You can break the total cost of the watch into equal monthly instalments.
Interest-free period: Many BNPL providers offer an interest-free period, which can range from 3 to 12 months.
Easy approval: BNPL options are generally easier to get approved for than traditional personal loans.

Buy pre-owned luxury watches

Another budget-friendly way to own a luxury timepiece is to consider buying a pre-owned or vintage watch. Many certified retailers sell pre-owned luxury watches at a fraction of their original price. Here’s why this option can be beneficial:

Lower price: Pre-owned watches are generally more affordable than brand-new models, making them easier to finance.
Appreciating value: Some pre-owned watches, especially vintage ones, appreciate over time, adding value to your purchase.
Certified authenticity: Many pre-owned luxury watch sellers provide certification of authenticity, ensuring you’re buying a genuine piece.

Plan for future maintenance costs

Owning a luxury watch comes with responsibilities, including regular maintenance and servicing to ensure it remains in top condition. Servicing a luxury watch can cost between INR 10,000 to INR 50,000, depending on the brand and the extent of the service required. It’s essential to account for these recurring costs when budgeting for your watch purchase.

FAQs

1. Is remote learning effective?

Yes, luxury watches can be financed through various options, including personal loans, buy now, pay later plans, and savings. Many banks offer personal loans for high-value purchases, while retailers may offer instalment plans.

2. What is the difference between eLearning and remote learning?

Investing in a luxury watch can be a wise decision, especially if you choose a brand or model that appreciates in value over time. Limited-edition and vintage watches often gain value, making them attractive investment pieces.

3. Which bank account works best for financing a luxury watch?

A zero-balance savings account, like the one by Kotak811, is perfect for saving for a luxury watch. It's flexible, has no minimum balance, and lets you track your progress easily.

Popular Searches on Kotak811

This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.