You might think owning a luxury watch is all about picking the perfect piece, slipping it onto your wrist, and showing it off with pride. But collecting watches – especially high-end ones – comes with hidden expenses that can quickly add up. If you’re not prepared, the true cost of your collection might surprise you.
Watch collecting isn’t just a financial investment – it’s a lifestyle. Between care, security, and the finer details of ownership, many collectors find themselves spending far more than the original price tag. So, what exactly should you budget for?
Whether you’re a seasoned collector or just starting out, it’s vital to know where your money’s really going. This article will help you to avoid the traps and stay ahead of the unexpected costs that come with this passion.
Maintenance and Servicing – The Silent Wallet Drainer
Regular Servicing Isn’t Optional
Luxury watches are precision instruments. Like a high-performance car, they need regular servicing to keep working at their best. Most brands recommend a service every 3 to 5 years, and that’s not cheap.
- Basic servicing can start at £300 to £500 for brands like Omega or Panerai.
- For more complex timepieces, expect to pay £800 to £1,500, especially for Patek Philippe or Audemars Piguet.
- Watches with complications (like moon phases or perpetual calendars) can cost even more.
Skipping a service doesn’t just affect accuracy—it can lead to mechanical damage. Internal wear and tear build up over time, often going unnoticed until it’s too late.
Water Resistance Testing
Even if your watch is rated as water-resistant, that doesn’t mean it’ll stay that way forever. Gaskets and seals degrade over time.
- Annual water resistance testing typically costs around £50 to £100.
- Skipping it can result in moisture damage—something that could easily run into four figures to fix.
Moisture inside a watch can damage the dial, rust the movement, and lower its resale value dramatically.
Insurance – Peace of Mind with a Price Tag
High-Value = High Premiums
If your collection includes timepieces worth several thousand pounds, standard home insurance usually won’t cut it. You’ll need specialist cover tailored for luxury watches.
- Expect to pay 1% to 2% of the watch’s value per year.
- A collection worth £50,000 could cost £500 to £1,000 annually to insure.
- If your watch is worn daily, insurers may charge more due to increased risk.
Insurance doesn’t just protect against theft—it can also cover accidental damage, loss while travelling, and natural disasters.
Proper Valuation Is a Must
To get accurate insurance, you’ll need an up-to-date valuation—preferably from a trusted expert. Outdated or inaccurate valuations could delay or reduce payout in case of loss.
Storage and Security – Protecting What You Own
A Safe Investment (Literally)
You can’t just toss a Rolex or a Richard Mille into a drawer. For high-value collections, you’ll need secure storage.
- A good-quality home safe suitable for watches can cost £500 to £2,000.
- Some insurers insist on a Eurograde safe—these start around £1,500.
- Home alarm systems and CCTV may also be a requirement.
A secure safe protects not only your watches, but also your insurance policy.
Safety Deposit Boxes
If you don’t want the responsibility at home, renting a safety deposit box is an option.
- Costs range from £150 to £500 per year, depending on size and location.
- London safety deposit boxes are typically at the higher end of that scale.
Straps, Accessories and Display – The Extras Add Up
Replacement Straps and Bracelets
Switching straps is a great way to refresh your watch’s look. But high-end brands don’t come cheap.
- Original leather straps from Cartier or Omega can cost £200 to £400.
- Metal bracelets are even more—some Rolex bracelets go over £1,000.
Cheaper alternatives exist, but they can hurt the watch’s resale value if not stored or used carefully.
Display Cases and Winders
Watch winders keep automatic watches ticking when not worn, and display cases keep them dust-free.
- A quality watch winder for one watch starts at £100.
- Display cases for 6–12 watches can cost £200 to £600.
If you own more than a handful, those figures climb fast.
Buying and Selling – Hidden Fees You Might Miss
Transaction Fees and Taxes
When buying from abroad or through grey market dealers, you could face:
- Import duties and VAT – anything imported from outside the UK could attract 20% VAT on top.
- Shipping and insurance costs, which can run into the hundreds.
Selling? Be Aware of Deductions
If you decide to part with a watch:
- Auction houses and platforms often take 10% to 20% commission.
- Online marketplaces may charge listing fees or payment processing charges.
At The Watch Exchange, however, sellers receive same-day payments, and all inspections are handled by seasoned professionals—helping you avoid middleman deductions.
Depreciation – Not Every Watch Gains Value
The Myth of Constant Appreciation
It’s easy to assume luxury watches always go up in value. Some do—especially models from Rolex, Patek Philippe, or Audemars Piguet—but many don’t.
- Limited editions or discontinued models often increase in value.
- But fashion-focused pieces or oversized designs can lose 20% to 40% of their value within a few years.
Knowing what holds its value and what doesn’t is key if you plan to sell later.
Expert Checks Before You Buy
Authentication and Condition Reports
Pre-owned watches can come with their own risks. Is it genuine? Has it been modified?
- Authentication services cost around £150 to £300, depending on the brand.
- A full condition report is also worth getting before parting with your cash.
Buying without a proper inspection is risky business—and sometimes what looks like a bargain turns out to be a bad investment.
The True Cost of the Passion
Watch collecting is more than a hobby—it’s a commitment. From servicing and insurance to storage, selling costs, and depreciation, the hidden expenses are real and sometimes steep. But with careful planning and smart choices, you can protect your collection and your wallet.
Before you add to your collection, know the true costs, and don’t let hidden expenses catch you off guard.
