Photo credit: Rolex
It’s been 10 months since Rolex rolled out its Certified Pre-Owned program in Europe through Bucherer.
While the program has gained momentum, especially in the U.S., sales still represent a small portion of the pre-owned inventory sold online, according to a report just out by WatchCharts and Morgan Stanley.
As of Oct. 1st, 2023, U.S.-based Tourneau totaled 1,400 Rolex watches listed online while Bucherer just over 200. This figure will likely go up as new Rolex retailers in Europe join the CPO fray: Watches of Switzerland group, for example, will soon be selling certified pre-owned Rolex watches in the U.K.
The fact Rolex’s current CPO inventory is primarily made up of references produced between 1990 and 2010 begs the question: Is there a growing demand for 13- to 30-year-old models, most of them equipped with a smaller and thinner case?
One theory is watch fashion has changed. Another theory suggests modern pieces are still more popular. But owners would rather keep their watches than accept an offer from an authorized dealer. Meanwhile, the modern pieces that are part of the CPO program tend to be snapped up at a higher rate, creating a disproportionate amount of neo-vintage Rolexes left in inventory.
Still, we continue to see a premium well over 20% when a piece is being listed through the CPO program, and that premium seems to have increased, at least in Europe, topping 30%. All that according to the report, which compares the price of each Rolex CPO listing to typical prices for the same watch sold by a non-Rolex certified dealer in the same region.
When compared to the previous quarter, Rolex CPO premiums have increased several points, from 20%-25% to 28%-30%, above non-CPO pricing, the latest sign Rolex authorized dealers involved in the program have felt little pressure from the traditional grey market.