Why Exchange Rates Matter When Buying Luxury Watches Abroad?
Luxury watch brands often make it difficult for buyers to get an allocation of their dream watch. This is due to the limited availability of certain models. Hence, watch enthusiasts often have to steer towards the secondary market, and that too from different countries. In the search of the exact watch they are looking for, enthusiasts have to travel to different countries to get hold of the piece. But this is where the exchange rates can make or break the deal for them. Here’s why.
Financial Processing of Buying an Expensive Watch
While the exchange rate can play a vital role in the deal, it is not just that. The total price of what you are paying for the watch can highly depend on various other factors as well. To start with, a watch can be priced differently in one country from another due to the demand and supply. Even if the price is the same, the taxes, exchange rates and other hidden charges can drive the price up or down. So, we are here to discuss all these factors that are supposed to be considered before buying a watch from another country.
Price Differences Across Markets
As mentioned above, the demand for a certain piece can differ from country to country. When it comes to gold watches, AP watch prices in the UAE can be cheaper as people here prefer wearing steel watches instead. But similarly, a Steel Submariner might be slightly cheaper in Switzerland or in the United States. However, the actual cost you pay in your home currency will depend on the exchange rate at the time of purchase.
Exchange Rate Fluctuations
Once you have found something cheaper than your home country abroad, the next thing to consider is the exchange rate. While normally people do tend to just go to Google and look at the exchange rate there, that is not the exact rate you will be getting. Hence, the rate you get there can be misleading towards your purchase decision. You should always look at websites like GCCExchange.com, where you can check the live rates.
Just make sure to not make an expensive purchase decision while something is happening on a geo-political level as that can fluctuate the price a lot.
Taxes, Duties, Other Hidden Charges
Many countries impose value-added tax or VAT on luxury items, including watches. However, some of these countries do offer a tax refund for tourists. So, if you are just traveling to purchase the watch, you should be able to get a refund on the tax saving you some money over there. This is something you have to calculate in advance to prepare your finances for the big purchase.
Not only VAT, but there are often custom duties and other hidden charges involved. These hidden charges can even include bank charges or credit card charges. Before you go ahead and make the purchase, just contact the seller and gather as much information as you can.
Should You Buy Watches From Other Countries?
Absolutely, you should. If you are into watches or getting into watch collection, there are going to be times when you will be tempted to purchase a limited edition model. There could even be times when you could just find a better deal on a watch else where due to the low demand in that country. As long as you do your due diligence on deals like these, it is always possible to get good prices on watches or other luxury products purchased from outside your home country.
