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What does a watch really cost?
The sticker price is the start. Servicing every few years, insurance every year and whatever the market does to the resale value all add up. Here is the honest total.
Depreciation bands are broad historical patterns, not predictions. The watch market fell sharply between 2022 and 2024, and nothing here is investment advice.
Depreciation is almost always the biggest line
People budget for the purchase and forget that the real cost is the gap between what you paid and what you can sell it for. On most watches that gap dwarfs everything else combined, and it is invisible until the day you try to sell.
The spread between brands is enormous. A steel sports Rolex bought at retail has historically held or exceeded its price, meaning the depreciation line can be negative and the watch effectively costs you only servicing and insurance. A fashion brand watch loses most of its value the moment it leaves the shop, and no amount of careful ownership changes that.
Where you buy matters as much as what. Buying at grey market premium means you absorb the premium yourself, since the next buyer will price against market rather than against what you paid. Buying pre-owned at market price skips the steepest part of the curve entirely.
Servicing is the cost people underestimate
A full service on a Rolex runs into several hundred pounds or more, and on a complicated chronograph or a perpetual calendar it can reach several thousand. Over a decade with a seven year interval that is one service, but over thirty years it is four or five, and on an expensive movement that can approach the price of the watch.
This is the argument for buying a watch you will actually wear rather than one you will store. Servicing cost is roughly the same whether the watch was worn daily or sat in a safe, so a watch that never leaves the box carries all the cost and delivers none of the use.
Independent watchmakers typically charge substantially less than brand service centres for the same work. The trade-off is that brand service is documented, which matters for resale on higher end pieces where a full service history from the manufacturer supports the price.
Insurance, and whether you need it
Many home contents policies cover watches only up to a low single item limit, often far below the value of anything mechanical and Swiss. Specified item cover typically runs around one to two percent of value per year, and cover away from the home is what you are actually buying.
Below a few thousand, most people self insure and accept the risk. Above that the annual premium starts to look small against the possibility of losing the watch entirely, particularly since watches are stolen from wrists rather than from houses.
Whatever you decide, keep photographs, the serial number and the original documents somewhere separate from the watch. Without them a claim is difficult and recovering a stolen watch is close to impossible.
Common questions
What is the real cost of owning a luxury watch?
Purchase price minus resale value, plus servicing and insurance over the years you keep it. On a watch that holds value well, servicing and insurance dominate and the total can be modest. On a watch that depreciates heavily, the loss on resale is usually larger than every other cost combined.
How much does watch servicing cost?
Roughly a few hundred for a simple three hand mechanical at an independent, and considerably more at a brand service centre. Chronographs cost more because there are more parts, and complications such as perpetual calendars can run into the thousands.
Should I insure my watch?
Above a few thousand in value it is usually worth it, since standard home contents policies often cap single items well below that and may not cover loss away from home. Specified cover typically costs about one to two percent of the value annually.
Do watches lose value?
Most do, and heavily. A small set of models, mainly steel sports Rolex, Patek Philippe and Audemars Piguet bought at retail, have historically held or gained. Everything else should be assumed to lose money, and the market fell sharply between 2022 and 2024.
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