IWC value

All,

Why do IWC watches drop in value so bad? I am trying to sell my yacht club and its almost impossible to even receive 8,000k for it. I wanted to trade for a 5001 but this is not going to happen as I feel the watch should sell for at least 10k. Kinda of a huge depreciation. I also looked at their other watches and they also take a huge hit from msrp. Panerai and Rolex do not do that.

I see watches not as an investment.
My rule is to buy "2nd hand" watches at a price of 50% of the list price, independent of the brand. (there are very few exceptions)

regards

Ralph

I also do not view them as an investment but a 14k price tag that literally depreciates 50% on second hand market is pretty bad. It's hard not to notice that. I like to wear a watch for a little and trade for another of equal value but with IWC it's impossible to do. I still like the yacht club so I will just keep it for good as I can't justify the second hand price.

I am not sure which currency you are referring to. I suspect if you are looking to trade a 12 month old Yacht Club for a same metal 12 month old 5001, the price differential would be not that great.

The reasons why the new IWC watches devalue so much seems to be 500 pound gorilla in the room, everybody knows it's there, but no one really wants to talk about it.
I believe the main reason is the "dilution" of the brand. But that is me. Others will differ, as is their constitutional right.
I agree fully with Ralph, and like him, with very few exceptions, I only collect vintage IWCs, some of which have actually increased in value.

Right. I went with a very niche model as most people either pick the traditional Portuguese or the 7 day 5001. What is considered their vintage pieces? even the big pilot can be had for 8k especially of you know where to look. What has become diluted with the brand?

It will be worse if you buy from boutique directly, maybe that is the reason why your depreciation is so great.

IMHO the dilution started when IWC started selling "illusions" instead of watches.

...why so cautious? what you mean with "illusions instead of watches"? Are you talking about a concrete collection?
Best,
-Christian

Unfortunately resale value is not a strong point of IWC. Reasons can be many fold such as lack of brand recognition among the buying public and lack of demand. But so are many other watch brands also in the same situation save a few like AP, Rolex and PP. Try selling JLC or Hublot as preown, they tank spectacularly up to 60% or more from Msrp. The discount is also another factor that contributes to low resale value. That is why it is important to do your research and buy at the right price to minimise taking a huge hit. Buying preown goes a long way to minimise that.

Maybe I shouldn't be answering for Tony, but I think he means that IWC has been selling "lifestyle" and "image" instead of its old core of utilitarian watches. This is certainly my take, as I have delved more and more into the brand. And as the company spends its money selling image, the watches stray more and more from their roots; they get bigger and gaudier; and they get much more expensive. And without the numbers of collectors to prop up the secondary prices, as have Rolex and PP, resale value plummets.
I am not saying this about all of the present collection-there are some very great watches being made by IWC. But there are some (very) unnecessary pieces that are very pricey and they bring up the prices of the rest of the line-up (again with some exceptions).

Actually I should have said "dreams".Please see this youtube clip.

Wow. So GK says openhearted that IWC is building up image and not the product...and the product is one third of the value and the image two - thats what his fingers are showing. I know now what you mean with "dreams".
But it´s right. There is all about emotions. When I saw the CF3 the first time I knew I want that thing absolutely.
A few mounths ago I saw a documentary about a fruity computer company. scientists found out that the feelings for their products are generated in the same part of the brain like feelings for friends or family do. And thats the secret of success ... so we all are addicted ;-)

It's not been called a virus without good reason. Buy a car, trailer it home, store for two years and then sell it and see money pour away. Very few watches are investments in real terms. Specific models of some brands yes but over years and in the whole equation best not to allow for inflation as very few watches are investments when inflation is included. Watch manufacturers make watches and the whole ethos is to attract buyers by one means or another, be it Formula 1, ecology and environment interests or because we hanker to be a pilot. No one will sell a watch because the characterless CEO of some minor company wears a particular brand of watch.

It is not the first time this issue is discussed in this forum. click here for the previous discussion

If you think IWC doesn't care about engineering and watchmaking, I respectfully disagree. But rather than debate this, please wait until SIHH 2015 (and, no, there's no hint and I won't say more).