For travelers passing through airports around the world, duty-free shopping has a clear appeal. Many airport shopping options include a luxury watch retailer, such as an official Rolex dealer, and it is understandable that with such high-priced purchases, buyers looking for the best price on a Rolex become tempted by the promise of a duty-free Rolex.
However, with any luxury watch purchase, it is sensible to exercise caution and consider the possible disadvantages too. In this blog post, we explore some of the drawbacks associated with buying a Rolex at the airport.
1. Rolex Sells for Higher Prices at the Airport
First, it is important to understand that the target demographic for watch dealers operating in airports is wealthy travelers, who have enough money to consider an impulse purchase of several thousand dollars. With this in mind, you have to be realistic about the fact that substantial discounts on watches are unlikely and it is not at all uncommon for their prices to be higher than equivalent retailers away from the airport.
That is not to say that discounts cannot be found at all. On the contrary, it is only fair to point out that some airport dealers will sell Rolex watches at a better price than you might find in most other places.
2. Currency Rate Exchanges Can Make Your Rolex More Expensive Than You Planned
Depending on which airport you purchase your Rolex, you may also have to contend with currency exchange rates. This is not necessarily a major issue if you are familiar with the two currencies and the rate of exchange, but it can sometimes cause confusion and make it harder to know whether you are getting a good deal.
3. Buying a Rolex at the Airport Might Be “Duty Free” but is it Tax Free?
Many people making a purchase at an airport assume that because it is ‘duty free’, it is exempt from all tax. In reality, it means that the purchase is exempt from certain duties and local taxes in the place of purchase. Nevertheless, customs duty will be imposed on goods brought into the United States from another country.
A watch bought abroad must be declared if you are bringing it back to the United States and failure to do so is classed as smuggling. When returning to the US, you have tax freedom on purchases of up to $800. Yet, most luxury watch purchases will be subject to a 6.5 percent duty charge, as they will cost thousands of dollars.
In many cases, retailers will provide the documentation necessary to claim a VAT refund. However, some buyers find that they are unable to actually claim this, as not everyone receives a customs receipt and number.
There is also the potential problem of state sales taxes being imposed. Often, upon returning home, US customs will report that you paid a duty charge, and an additional sales tax charge will then be added. This catches many buyers by surprise and by the time this has been added, a purchase which seemed like a significant discount can actually end up more expensive than it would have been to buy at home.
4. Airport Dealers Probably Have Limited Rolex Selection
Another potential disadvantage of buying from an airport dealer is the limited rage of options that will be available. It is true that airport stock tends to shift quickly, which can result in a greater range of options than you might expect – but ultimately, your choice will be limited to what is in stock.
Generally, if you are buying from an Authorized Dealer, you can expect the most popular models to be in stock. However, you are unlikely to be able to buy waiting list models, or limited edition timepieces.
Authorized Dealers operating in airports will also be unable to stock some of the older, discontinued models, meaning you will be restricted to the current generation of Rolex timepieces. Unlike with grey market dealers, a Rolex dealer will also only sell Rolex watches, so you will not be able to browse Omega, Panerai, Hublot, etc.
Avoiding the Disadvantages of Buying a Rolex at the Airport – Buy Online Instead
Ultimately, the decision of whether to purchase a luxury Rolex or other timepiece at the airport rests with you, but it is crucial to know the pros and cons before you commit to a purchase. One alternative is to buy your Rolex watch from a reputable online grey market dealer instead, such as Jaztime.com.
Check out our Rolex collection right now:
This will provide you with the best possible range of options, as you will be able to buy brand new and pre-owned timepieces, along with waiting list and limited edition models. If you purchase your Rolex from Jaztime.com, significant discounts are available, while no sales tax will be charged on any order shipped anywhere outside of California.
