How to raise money using your watches without having to sell them
Everyone feels as though they could do with some extra money sometimes, whether it is to cover everyday expenses, replace big ticket items that no longer work or even pursue a dream such as setting up a business.
An obvious thing to think about is selling valuables such as designer watches to raise these funds. However, unless you no longer wanted those particular pieces, it may be better to think about taking out a secured loan against them instead.
This presents an ideal opportunity to free up the worth of luxury timepieces without having to permanently sell them, something that could be particularly distressing if they are family heirlooms or collectors’ items.
A secured loan? What’s that?
When you take out a secured loan, you as the borrower pledge your designer watch or other asset as collateral in exchange for the money. This then becomes a secured debt to the creditor, who retains the asset until the loan is repaid.
It can present an ideal alternative to traditional finance routes if you need money quickly because there’s no need to wait for form-filling at the bank, plus interest rates are typically more attractive as the conditions are calculated from the assets rather than being based on your financial history.
How will I know if my watch is suitable?
It’s best to select only your best watches when submitting applications for secured loans, as this is the easiest way of ensuring you get a decent sum of money.
To help you further, use our checklist:
If you have a designer watch, it should be worth much more than a fashion piece. For example, you may love your old 1990s Casio, but it’s likely that your retro Rolex will raise much more in terms of value. Other top names include Omega, Tag Heuer, Cartier, Ebel, Breitling and Patek Phillipe.
It goes without saying that better quality watches will be worth more when you take out a loan against them. Valuation professionals will be looking out for good workmanship, a substantial weight and high-quality materials.
Chronograph styles, Swiss watches and precious metals such as platinum and gold should command a high price upon valuation, while watches with leather straps and less functionality will be worth less.
Watches that are in demand from collectors automatically have their value pushed up, so see if you have any styles that were endorsed by enduring celebrities, came out as limited editions or are already vintage, as these will get you more money.
Will my watches be safe?
As long as you use online pawnbrokers that are professionally accredited and have a good reputation, you will not have to worry about security. Good loan providers will arrange to have your watches collected and taken for storage once your loan quote has been accepted, then will do the same in reverse when it is time to get them back to you.
There should also be CCTV and additional security measures such as steel cages, individual barcodes and security guards, so look out for these when choosing a loan provider.
How does it work?
To use your valuables to secure a short-term loan, you just need to choose your providers and make an application, whereupon you will be offered an expert appraisal and a quote from each one. Good companies will use qualified professionals and should offer around 70 per cent of the resale value for each watch. Compare the quotes and select the one that is best for you, then accept your loan contract.
Your watches or other items will be collected and placed in secure storage and you will get your money the same day. You can then start repaying the loan as agreed – ensure there are no fees for early repayment before accepting your quote.
Once the money has been repaid, your assets will be returned to you – it’s that simple.
Why not take a look at your watch collection and see if you could raise some money through secured loans today?