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According to LendingTree.com, there are five basic forms for Rolex financing.
These deals are found in various forms in the United States and United Kingdom.
Each of them have their pros and cons, and as we’ll see later on, real-world Rolex financing firms often offer a blend of these methods.
The 5 main ways of financing a Rolex watch purchase
- Layaway Programs: In these, you put down a deposit and make regular payments on the Rolex until it’s paid off.
This is about as basic as a Rolex financing deal gets.
This type of financing program is obviously extremely common and most layaway programs tend to last a few months.
You can easily layaway a Rolex for more than a year.
On the one hand, these programs typically don’t charge interest.
On the other hand, they often tack on additional charges instead, and if you cancel early you’ll be hit with a cancellation fee.
If you prefer to pay in cash and are fine paying for the watch over an extended period of time, this may be a decent option to consider.
- Progressive Leasing: This basically involves leasing a watch online. Instead of paying interest, you’ll be forced to pay leasing costs.
Some programs have early buyout options.
As with layaway programs, these types of Rolex financing do not require a credit check or good credit to obtain.
- Specialized Loans: LendingTree provides the example of Affirm, a financing company in San Francisco that specializes in point-of-sale financing options for certain vendors, including some Rolex retailers.
Other examples include Watches of Switzerland and Banks Lyon in the United Kingdom.
On the one hand, specialized point-of-sale watch loans such as these can be convenient for those with good credit history, as they and similar services often offer competitive rates, a lack of compound interest, flexible timescales, and other good repayment options.
On the other hand, they do require a credit check and may turn away applicants with bad credit.
- Credit Card: Obviously, this kind of borrowing depends on you having a good enough credit history to have a valid card.
Some cards come at a fixed rate, while others offer variable rates that can change as the market changes.
Interest from credit card purchases can compound over time, meaning that the longer you wait to pay off your Rolex, the more costly it can become.
That said, for those with strong credit scores, this remains one of the easiest ways to finance a Rolex, as good credit should put you in line for low APR offers, which in turn will make it easier to pay off the watch
- Personal Loan: These are obviously the most individualized of the lending lot.
Any personal loan you take out for a Rolex will be tailored to your personal finances.
These types of loans are often unsecured, meaning you shouldn’t have to offer up collateral,
but the amount you can borrow and how much you may have to pay in interest can fluctuate wildly, with the latter ranging anywhere from 6% to 36% in some cases.
Your credit history is also likely to come into question.
While you may still be able to receive a personal loan from a bank for a Rolex, you will likely need a co-signer and may have to pay higher interest rates.
In addition to these five basic forms for Rolex financing, there are also five essential items you, as an investor,
should keep in mind when considering any of the dealers below as well as any Rolex dealers offering financing options.
The five key factors for evaluating each of these five main Rolex financing types are:
- The length of the financing deal
- How much interest you’ll pay
- Size of the initial deposit
- Eligibility requirements
- How it handles good/bad credit
What If You Have Bad Credit?
Speaking of which, while bad credit can feel like having a permanent financial Sword of Damocles dangling above your head,
it doesn’t have to be that way when financing a Rolex – if you choose the right options.
Even if you have bad credit, you can still take advantage of the no-credit-needed nature of layaway programs to pay for the Rolex that way.
Even better, these programs are not considered extensions of your credit history, will not affect your credit score in the event you fall behind, and so do typically not report transactions to credit bureaus.
Progressive leasing can work this way, too, but keep in mind that if you don’t buy out the watch early, the fees built into these programs can become much costlier than if you’d simply financed via layaway.
On the other hand, layaway programs may insist on the watch being kept in a neutral site or you otherwise not wearing or taking it home before it’s fully paid off, whereas progressive leasing is sometimes more lenient about that.
While credit cards aren’t the ideal manner of financing Rolexes if you have bad credit, there are credit cards for bad credit jewellery financing available.
These are best if you can afford short-term financing that you can pay off in a month or two max.
Given your bad credit, you’ll likely have to apply for either a secured or subprime unsecured card.
The former tend to cost less but require a greater upfront deposit, while the latter have higher interest rates and fees.
Mastercard’s Surge, Indigo Platinum, and PayPal Prepaid options offer the best overall coverage for those looking to finance their Rolex via a credit card despite bad credit.
Top Retailers for Rolex Financing
With that in mind, let’s take a look at six of the most popular Rolex financing options online and see how they stack up overall as well as with New versus Pre-Owned Rolexes.
A mainstay of the UK watch and jewellery industry since 1778, Goldsmiths requires a minimum of a 10% deposit on the watch you are considering, with a maximum loan value of £25,000.
They offer monthly terms from as low as 0% APR.
Their Interest Free Credit program allows you to spread out payments over anywhere from 6 to 48 months (the timescale being somewhat dependent on the value of the Rolex,
and the maximum repayment time for discounted or on sale products being 24 months).
They also offer special deals on pre-owned watches, including a two-year warranty.
- Bob’s Watches
This site allows you to finance your Rolex by simply choosing from the inventory listed on the site (Bob’s Watches only sells pre-owned watches),
choosing the “Monthly Payments” option, and then proceeding with the instructions that follow.
Bob’s Watches offers 0% interest for the first four months, though they require a minimum monthly payment, and these offers exclude any taxes or shipping fees.
You will be required to submit to a credit check, and these and other offers (including the 0% interest) can change at any time, especially if you do not have good credit.
As an aggregate online sales site, though WatchShop is the most-visited online watch shop in the United Kingdom, it does not offer special Rolex financing deals itself.
Instead, it outsources that and allows you to choose from different monthly Rolex financing options, if you so choose, with OpenPay and Klarna, an Australian and Swedish financing firm, respectively.
Pay attention to the rates charged at checkout, as either OpenPay or Klarna may have the better deal from purchase to purchase depending on the watch brand and whether the model is new or used.
- The Watch Hut
Another UK online watch sales site, The Watch Hut also offers financing via OpenPay and Klarna, as well as Deko, a UK firm.
With Klarna, you can spread out purchases over three equal interest-free payments on all purchases over £30.
With OpenPay, you can spread out the cost over three to seven monthly instalments, interest-free, on purchases ranging from £30 and £500.
With Deko, you can spread out transactions even further for orders £277.78.
- Watches of Switzerland
A leading UK brand with a growing US market share among buyers of Swiss watches, Watches of Switzerland is a truly international watch seller with financing options to match.
Their US outlet offers financing options via Affirm, allowing you to spread out the cost over three, six, or twelve monthly installments with an APR ranging from 0% to 30% depending on your credit situation.
You will be required to submit to an eligibility check that will include a review of your credit history.
They also offer in-store financing options as well as their own credit card, the latter of which is ideally suited for those interested in recurring purchases and membership deals.
This New York-based firm offers great options for pre-owned watches.
In terms of overall financing, they offer 0% interest, and payment options of six and twelve months.
You can review their inventory and see which financing options on new versus pre-owned watches best suit your tastes and budget.
While Rolexes are expensive and they may seem out of your reach financially, by heeding this advice and shopping at the right place at the right time,
you can reach out and grab a great deal on a Rolex that will appreciate in value over time.