Financing your luxury watch purchase is not recommended. If you like to enjoy watches and you are a watch collector who wants to experience various watches during the year, this might be a viable option for you.
Just imagine that you purchase your dream watch, without really paying for it, wear it for your vacation, business meetings or a diving drip. After five months you decide to sell the watch and pay off the balance on the credit card.
How can you leverage credit to buy luxury watches without losing money?
Here is the challenge to make all this work. You will need to use the right credit companies and buy the watch at the right price. When you decide to sell it, here are three scenarios.
- Make Money
- Lose Money
Just imagine you are wearing a watch which is worth $10,000 for the sake of simple numbers. You are wearing the watch for four months before you decide to sell it. Before you bought the watch, you look up the article on how to find the market value your watch.
You knew that you are not able to purchase another watch for less than you bought it for which means, you can list it online for sale at the same price or event for more.
Let’s say you sold the watch for $9,500 but were able to enjoy it for five months. The “rental” fee would be only $100 per month to enjoy a luxury watch. That’s not a bad deal. Now you wonder, where can I get the credit to purchase the watch?
How to get Credit Cards with 0% interest to purchase watches
- Get a new Credit Card
- Use Paypal Credit
- Get a new credit card
There are many options when it comes to getting a new credit card with promotional terms. The key is to get the card with the most extended 0% term possible. It can be 15 months when you do not have to pay interest but the minimum payment applies.
You have to do your own research to see which one makes sense for you. Personally, I look at the cards, with the most benefits as well as the lower APR when the interest starts.
If your credit is around 720, you should not have an issue to qualify for them. If you do not know your credit score, you can check Credit Karma which is free and gives you a general idea what your score is. In my personal experience, the Credit Score on the site is always lower than the one I got from the bank.
List of Credit Card companies
When picking the Credit cars to purchase your luxury watches, make sure, you got enough cash to keep on paying off the balance when you decide to keep the watch longer than the promotional period.
Using credit is risky if not used responsibly. However, when using right, you will be able to enjoy the luxury asset. It’s like buying a car, you are using credit as well with the difference of losing more money on the depreciating unless you have learned how to hack exotic cars.
Paypal Credit is a great way to leverage your credit. Because PayPal is used by many watch sellers, you can purchase the watch directly from reputable sellers.
The biggest advantage of PayPal credit is the revolving credit amount. If you spend more than $99 and pay id full in 6 months you do not pay any interest, only the minimum payments are required.
The downside of the Paypal Credit is, you got 6 months to pay it back if you do not pay it back, the interest which is above 20% will be charged to your account.
If your credit limit is not high enough, you can call PayPal Credit to increase it, or you can pay above your credit limit. When you get approved for the transaction, your revolving credit limit increases.
Here is the direct link to Paypal credit of you would like to learn more.
Buying luxury watches on credit is possible, and I know many people who do that, including me. Even some companies who sell brand new watches offer financing to help you get the timepiece you want.
You just need to be smart about the way you use your credit. It can help you enjoy luxury watches without paying for them when you learn how to do it.
On the other hand, the risk is that you can find out yourself in financial hardship if you are not responsible. Always make sure you think about both scenarios, you do not want to be the guy who wears expensive watches, but has a hard time to pay off his credit cards.
If you want to learn how to make money by using various watch trading strategies, check out this watch trading academy.
The blog post was written by Honza Hroch, the founder of Value Your Watch
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