Can You Finance A Watch? If Yes Then How?

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Financing a watch was never mainstream, people always used to buy a watch by paying the full amount upfront. However, not everyone is so well-to-do that they can afford to buy a luxury watch like Rolex, or Patek Phillip by paying their hefty amounts all at once. At times people wish they could finance a watch just like a car but is it even possible? Can you finance a watch? If yes then how to finance a luxury watch? Let’s find answers to these questions.

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Can You Finance A Watch?

Yes, you can finance a watch depending on your credit score and the dealer from which you are buying the watch. You can make use of your credit card to buy your dream watch in installments. Moreover, some dealers have tie-ups with banks that offer good finance options which make it easier for the consumer to finance a luxury watch.

However, the options discussed above need you to have a good credit score. But don’t worry, even if you have a poor credit score, there are other ways through which you can finance your next luxury watch which we are going to discuss below.

How To Finance A Watch?

how to finance a watch

If you are willing to finance a Rolex watch or any other luxury watch from German or Swiss brands then you have the following options.

1. Make Use Of The Layaway Program

A Layaway program is not something everyone knows about but you should because it is a perfect financing option for people with a bad credit score. In this program, you have to make the payments in installments but unlike other finance options, where you can keep the watch and pay later. Here you have to make the full payment in advance and once the payment is complete then only you can become the owner of the luxury watch.

In simple words, the dealer holds the item for you until you make the full payment for it. The best part about this program is that you don’t have to go through credit checks. So even if you have a bad credit score you can still finance your watch using the layaway program.

2. Put Your Credit Card To Work

This one is very straightforward, you can use your credit card to purchase a watch and convert the payment into easy installments. However, if your credit limit is not enough to purchase the watch then you can’t pay through it. Moreover, buying a luxury expensive watch using your credit card may come with big interest rates. This means in the long term you are paying way more than what the watch is actually worth.

However, if you have a very good credit score you may qualify for a low APR offer which will save you some money on interest charges. Also with credit cards, you should try to repay the loan in fewer installments, or else your credit score may decline.

3. Personal Loan Isn’t A Bad Option

A personal loan is also a good option if you have a good credit score but looking for a longer repayment duration. The repayment term can be as low as 1 year and can go up to 5 years or more. You don’t get such a long repayment duration if you have opted for a credit card to finance your watch. You can get a personal loan from a low amount of $1000 to all the way up to $50000 which is more than enough to buy a good luxury watch.

If you have a good credit score then the bank may not take any collateral for the loan. However, if you opt for a secured loan then you may have to deposit collateral like your property, car, etc. Also, just like a credit card if you have a good credit score then you may have to pay less interest overall on your personal loan.

4. Start Saving For Your Dreams

If you are not in hurry and can wait for some time maybe a few years before you can purchase a luxury watch of your choice then you should rather open a savings account in your bank. You can deposit a set amount every month to this account until your savings are enough to purchase you a luxury watch. Also, the bank will give you some interest on your deposits which will further help you buy your dream watch.

Also, you can start investing in SIPs which will provide you with a better return than a savings account in the long term. However, SIP is a long-term game and you should only invest in it if you can wait for more than 10 years or so.

Advantages & Disadvantages Of Financing A Watch?

Like everything, there are pros as well as cons to financing a watch which I am going to discuss below:

Advantages Of Financing A Watch

  • The first big advantage of financing a watch is that you can stretch your budget by a good margin as you do not have to make the payment upfront. By financing a watch you can go for a more premium watch that you can’t afford otherwise.
  • Your credit score will also increase. Financing a watch means you are taking a loan from the bank for buying the watch. If you pay the installments in time then your credit score will see a positive boost.
  • The cost is spread out so you won’t feel a burden on your monthly expenses.

Disadvantage Of Financing A Watch

  • You have to pay the interest. In the long run, you have to pay a lot more than the watch’s actual worth.
  • If you fail to make the payment on time then your credit score may go down.

Is It Worth Buying A Luxury Watch On Finance?

Financing a watch is a great option for people who can’t afford their favorite luxury watch. However, for financing a watch you should have a good credit score. Even, if you don’t have a good credit score you can go for the layaway program. But, if you could wait for some time then the best thing you can do is start saving for your watch and buy it later once you have saved enough.

Recommended Rolex Guides for You:


Can You Get Finance On Rolex?

Yes, you can buy a Rolex watch on finance.

How Much Deposit Required To Buy Rolex On Finance?

You should at least deposit 10% of the watch's price as a down payment to get it on installments.

Does Amazon Do Finance?

Yes, financing is available on Amazon through the Amazon Secured Card, Amazon Rewards Visa Card, Amazon Store Card, and the Amazon Prime Rewards Signature Visa.

Tom Nielson

Tom's love for watches started when his grandfather gifted him his Rolex watch when he turned 18! Being a teenager it was a big deal for him. Later when he got his first job he bought Fossil Palm Pilot back in 2003 which was a smartwatch. Since then smartwatches have come a long way and so is Tom's love for them. His experience with watches inspired him to start Wearholic and share his knowledge of wearables including watches, smartwatches, smart glasses, & smart clothing.

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