What is the difference between factory-set watches and ...

When it comes to buying a luxury watch, buyers have a choice. They can join the waitlists and queues associated with new release watches, or they can browse the luxury second-hand market, seeking deals and great investments from past collections and opting for those pieces which command high coveted status. 

But they’re not the only choices. There’s a third option available which considers those items which fall into the aftermarket category – made up of altered products and those watches which have been customised away from their original make-up in any number of ways  

In this article, we’re considering the difference between factory set watches (both brand new and second-hand) and those found on the aftermarket and sharing our thoughts on which is a better investment for luxury buyers. 

What is a factory-set watch?

A factory-set watch does not have to be brand new, but it does have to retain the exact specifications and finishes that it held since its creation. Any watch which has not been altered by any buyer or owner, regardless of whether it has been used or is brand new, can be considered factory set if it holds all the original features that it had when it was first released. 

What is an aftermarket watch?

An aftermarket watch is one which has been altered in some way after purchase, thus changing it from its original look or function as determined by its design, make, and model with all manner of details. 

These details could be aesthetic, or they could relate to the functionality and usability of the watch. What matters in this instance is that they have been altered with third-party intervention and therefore differ from the way the watch was initially manufactured and made. A popular example of an aftermarket watch is one which has been studded and inlaid with diamonds after purchase, commonly known as a buss down.

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Advantages of aftermarket watches

Aftermarket watches are often regarded as more accessible luxury watches, due to the fact that they can be purchased at a cheaper rate than their untampered-with counterparts. 

Buyers of aftermarket watches will often find more affordable models of the watches they covet, such as an affordable Rolex, and make customised changes to elevate the status of their pieces. In many cases, such changes will optimise the aesthetic look and presentation of the piece, transforming it into a unique, statement model.  Aftermarket watches can also be created by resellers to create more desirable models from basic models, such as changing the dial colour or strap, these watches are also known as Franken watches in watch circles. 

Advantages of factory set watches

When you consider brands such as Rolex and Audemars Piguet, you will see that those which sell for the highest prices at auction and on the second-hand market are those which look perfect, unused, and in top-notch condition. This immediately tells us that one of the biggest advantages of a factory set watch is the way it retains its value, meaning that when you go to sell it on or cash in your investment, the value is likely to remain unchanged (if not higher than when you purchased it).

Another advantage of factory-set watches is that they retain and hold their warranty, whereas once the watch has been studded with diamonds or altered in any way its warranty is void.

Can aftermarket watches be a worthwhile investment?

In terms of popularity and demand, aftermarket luxury watches which have been inlaid with diamonds and other details are highly sought after. They take a standard market watch and give it extra bling and added financial status – but what does it do to their value and investment potential?

Well, because these watches are highly coveted, they do sell well. There’s a specific modern culture which taps into and complements the addition of bling in such luxury watches, however, such detailing detracts from the investment value and renders the original design and warranty null and void. 

What this means is that if anything goes wrong in the future and once your watch has been tampered with by aftermarket design additions, it is no longer considered a branded watch and so the original brand and manufacturer will not support you with aftercare or support. Not to mention, the quality of the features added to an aftermarket watch is not guaranteed, and you may not be able to assure or ascertain the exact quality of those features, or how well they were fitted. 

In short, an aftermarket watch cannot be sold or auctioned in the future as an original – rather it takes on the status of a custom-finished watch which boasts extravagant finishes and tailored features but is not on par with an original luxury watch on the market. 

Should I invest in factory-set watches instead?

This depends on what you are looking for, however, in most cases a factory set watch affords the warranty and direct link back to the original designer and maker which renders it a surefire win as an investment piece. Rolex and Audemars Piguet watches garner huge interest in the second-hand as well as the brand new market, but any that have been altered or tampered with outside of the manufacturer’s workshop will lose their authenticity and the assurance that comes with their warranty.

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If you’re going to spend thousands or upwards on a watch or luxury accessory, knowing the reason for buying and what you are looking for is key. Those buying for an investment and with the intention of reselling the piece at a later date are best going for a factory set watch, whereas those seeking a specific look or statement who want to keep and wear the watch may find exactly what they want on the aftermarket. 

Here at Love Luxury, we stock watches from both markets and can offer advice as well as support in pairing you with the luxury watch to suit your lifestyle and your preferences – as well as your budget. 

Many people believe that adding diamonds or gemstones to a watch will invariably increase its value. In some cases, this is correct since the intrinsic value of the added materials will augment the value of the watch itself. However in other instances, the watch in its unaltered, all-original condition is worth far more than the material value of the added diamonds, and customizing the watch in any way actually becomes detrimental to its overall value and desirability.

Adding Diamonds: Yay or Nay?

When it comes to luxury watches, there is a big difference between factory diamonds and custom-set diamonds. Factory diamonds are placed in watches by their respective manufacturers during the production process, while custom-set diamonds are installed by a third party at a later point in time, once the watch has already left the factory.

Many luxury timepiece manufactures have their own in-house jewelers and gemologists to ensure that the precious stones used in their most premium watches are of the utmost brilliance and quality. These manufacturers produce a relatively small number of gem-set watches each year; however the watches that they do produce are near perfect in execution and only set with the finest gemstones available.

Quality vs Quantity

A huge range in quality and execution exists among watches with custom-set diamonds, since the gemstones could have been added by virtually any entity after the watch was initially manufactured. A world-renowned luxury watch manufacturer is not likely to use sub-par gems in their own top-of-the-line timepiece; however a local jeweler might very well use economy-class diamonds to meet the needs of a customer with a tight budget.

Wrong Watch

Beyond the quality of the actual gemstones themselves, there is still the issue of originality and factory-intended condition that can affect the prices of diamond-set watches. In the same way that a serious collector would rather have an entirely original, completely unpolished, a vintage Rolex Submariner than one that had been fully restored, a diamond-set Rolex is only of additional value to the purist collector if it was Rolex who supplied and set the diamonds.

In some extreme cases, custom-set diamonds can actually detract from the overall value of a watch. If someone were to alter the original dial and bezel of a vintage Rolex Daytona by setting it with a slew of poor quality, low-carat diamonds, the end result would be a timepiece that was worth significantly less than what it was before the modifications had ever taken place.

Additionally, customizing or modifying a new Rolex watch will void its factory warranty, and in certain cases, make it ineligible for future factory services to be performed – unless the watch is also restored to its original, manufacturer-intended condition. While this is completely irrelevant to some Rolex owners, it can be of significant importance to others, especially if their watch was recently purchased and still has multiple years left on its warranty period.

Lastly, one additional matter regarding diamonds on a luxury watch that should be addressed is when a component with genuine, factory-set stones is installed on a luxury watch from the same manufacturer that was originally never intended to have that component. For some watches, this might be virtually impossible to tell whether or not the genuine diamond-set component was a later addition; however for other watches like Rolex, a quick check of the reference number will reveal that the watch was never intended to have that gem-set part.

For example, if someone has a genuine Rolex diamond bezel installed on their two-tone Datejust ref. 126233, the watch may still consist of 100% genuine Rolex components; however it will still be immediately obvious that the diamond bezel was not originally fitted to that watch. The first ‘3’ in the ‘126233’ reference number corresponds to a fluted bezel. If the same two-tone Datejust was manufactured with a diamond bezel, that first ‘3’ would instead be an ‘8’ in its reference number. Rolex Service Centers are known for taking issue with modifications/additions to their watches, and often require owners to restore their watches to the original factory-intended configuration (at the owners expense) as part of the terms and conditions of service.

Diamonds in a luxury watch are a great way to elevate an already premium product to an entirely new level of opulence and exclusivity. However not all diamonds are created equal, and in certain instances, improving your luxury watch can actually decrease the overall value and desirability of the timepiece.