Is right now the best time to secure a loan against watches? Like many other luxury sectors, watches go through seasonal fluctuations that can greatly impact pre-owned market prices and, as a result, how much funding you can secure. We can help you maximize your returns and find the most favorable loan window for your financial needs. That’s why we’ve put together this step-by-step guide, which covers how lenders adjust offers based on market fluctuations and other practical lending strategies. Time your seasonal watch loan with Qollateral, the nation’s premier asset-backed lender.
The Influence of Seasonality on Watch Values and Loan Offers
For most, buying a luxury watch is a big deal. One that requires a serious investment and often marks a special occasion, like a holiday, graduation, retirement, or birthday. As such, the market ebbs and flows. Certain times of the year are busier than others, which has a direct effect on how much lenders are willing to offer for luxury watches as collateral.
If a lender believes the watch will be worth more in the unlikely event they need to sell it, they are more likely to provide more for the borrower, including higher loan-to-value ratios and more flexible terms. Timing your seasonal loans with market fluctuations can mean the difference between a conservative and a more generous loan offer.
High Value Seasons for Watch Loans
November–December (Holiday Season)
Gift giving is at an all-time high during the Holiday season, particularly with brands like Rolex, Audemars Piguet, Omega, and Patek Philippe. Low inventory means jumping through hoops or joining endless waitlists just to buy at retail, a luxury that many buyers simply don’t have during the holidays.
As a result, they turn to the pre-owned market, which ultimately means quicker resale windows for lenders and higher loan valuations for borrowers.
April–May (Post-Tax Season Liquidity)
Tax refunds mean an instant influx of cash. As many Americans splurge on luxury watches, sellers are actively looking to refresh their stock. That bodes well for lenders interested in liquidating collateral, which can lead to higher loan offers for borrowers during this time.
June–August (Luxury Auction Season)
Another excellent strategy is to keep an eye on the major auction houses (Christie’s, Sotheby’s, Phillips), especially if you’re interested in loaning against rare watches with smaller target audiences. Borrowing before important auctions can mean potentially higher offers.
September–October (Pre-Q4 Planning and Investment)
Q4 holds a lot of potential for borrowers as investors sell assets or search for tangible, high-value assets to add to their portfolio during year-end. Increased fluidity of pre-owned watches means better loaning opportunities for borrowers.
Understanding The Auction Calendar and Watch Market Cycles
Auction activity can reveal strong collector interest if you know what to look for. It’s an important factor lenders consider when coming up with loan offers. If the watch you’re interested in using as collateral is featured in a major upcoming auction, the lender might be more apt to finance more for the loan.
Recurring Watch Auctions:
- The Geneva Watch Auction
- Sotheby’s Important Watches
- Phillips’ New York Watch Auction
How to Strategically Plan Your Watch Loan
When it comes to watch loans, timing is everything. Think you’ll need cash in December during the holiday season? Plan on starting the loan process in October or November. To time your loan with spring auctions, begin the process in January or February.
Your planning should factor in:
- Time for appraisals and authentication
- Current popularity of your watch model
- Lender-specific processing times
Qollateral provides confidential, industry-expert guidance to help you strategically plan your loan to coincide with peak market demands.
What About Renewals or Redemptions?
Timing doesn’t just apply to new loans. Borrowers can also align renewals or redemptions with specific timelines to best suit their financial needs. For example, if you redeem your watch around the beginning of summer, it can be listed in an auction later in the season to help recoup your initial investment.
Additionally, if you plan on renewing your loan, it might be advantageous to time it around a high-value season to increase your watch’s equity.
Our team is always available to help you time your collateral loan to match the rhythm of the watch market.
Real-Life Timing Scenarios
- December/Holiday Peak: A customer in need of capital for year-end business expenses leveraged a Rolex Daytona 116500 for a high-value loan in November. This timing helped them benefit from the higher seasonal demand.
- Auction Advantage: A customer inherited a rare vintage Patek Philippe watch. They pledged it as security for a loan ahead of the June auction season, helping them secure a much higher offer without having to sell their sentimental family heirloom.
- Tax-Time Liquidity: An entrepreneur interested in starting a business used an Audemars Piguet watch as collateral for a short-term loan in April, allowing them to capitalize on increased watch sales during the post-tax season.
The Right Time Can Lead to the Best Terms
Understanding market seasonality is the key to unlocking the maximum value of luxury watch loaning. Even if you need fast, same-day cash or long-term asset management, timing your watch loan with the market can mean better offers and even more favorable terms.
Our team is ready to help you tailor your loan strategy to meet your financial needs, discreetly and safely.
Book an appointment to get started today.
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