Rolex’s Certified Pre-Owned Program – Two Years Later, How’s It Going?

Rolex launched its Certified Pre-Owned (CPO) program two years ago during the hottest pre-owned luxury watch market of all time. While CPO programs are standard in industries like automotive and tech, they’re not as common in the luxury watch industry, though they do exist. 

Given the exorbitant values of many pre-owned Rolex watches, often well above MSRP, the brand’s entry into CPO presented some unique challenges. Now, two years in, it’s time to look at how Rolex CPO is performing in the context of today’s market dynamics.

Elevated Prices and Frustrated Buyers

Rolex Daytona 116500 on Everest Curved End Rubber Strap

The pre-owned Rolex market remains a complex landscape. Even as prices correct from speculative highs of 2022, they are still up significantly compared to pre-pandemic levels. Many models continue to trade above their original MSRPs.

Unsurprisingly, the warranty that comes with CPO Rolex watches adds to these costs (more on this later). According to recent data from WatchCharts (Nov 30th, 2024) Rolex CPO watches in North America are priced, on average, 27% higher than non-certified pre-owned Rolexes. For models like the Milgauss, this delta grows to 42%, the largest gap of any model listed. The Sea-Dweller shows the smallest premium with CPO prices just 18% higher than grey market prices.

Image Source: WatchPro USA

Some of these figures are based on a limited number of listings (e.g. 64 Sea-Dweller listings and just nine Milgauss listings), but they provide valuable insight into the pricing dynamics of the CPO program. For many buyers, the significant premium on CPO watches feels egregious, particularly when grey market prices are already considered high.

Peace Of Mind Tax

Image Source: Hodinkee (Mark Kauzlarich)

In a market flooded with shockingly well-made “super clones”, Rolex’s Certified Pre-Owned program can be thought of as a peace of mind tax. Every CPO watch is thoroughly inspected and serviced to meet Rolex’s standards before being sold with a 2-year warranty. This process – the “certified” part of the equation – ensures the watches perform like new and gives buyers, particularly first-time and/or less-informed buyers, a lot of confidence.

However, this added assurance comes at a cost. The inspection, service, and resulting warranty add to already inflated secondary market prices, resulting in CPO prices that, in the case of a desirable model like the GMT-Master II, far exceed the cost of a brand-new equivalent (if you could buy one, that is). While some buyers see this premium as worthwhile, knowing that they’ll receive an authentic, mechanically sound watch, others struggle to reconcile these prices when buying pre-owned.

Why Rolex CPO Makes Sense (Just Maybe Not Right Now)

Rolex Explorer II 16570 on Everest Curved End Rubber Strap

Despite these challenges, I see Rolex’s CPO program as a smart move with significant long-term potential. Certified Pre-Owned programs are a proven model for addressing buyer concerns about authenticity and condition, especially in a market where counterfeits (or otherwise questionable examples) are a constant threat. The upside for Rolex should be pretty obvious; they're able to double dip, so to say, taking advantage of a booming pre-owned market by turning a profit on watches for a second time.

Additionally, Rolex is taking meaningful steps to address the supply/demand imbalance that's driven up prices. With new factories in the works, the brand is ramping up production to better meet global demand. Assuming these efforts succeed and the market avoids another speculative bubble, CPO prices (optimistically) could average at or slightly below retail in the long run, as would be expected for a pre-owned watch.

Final Thoughts

Two years into its Certified Pre-Owned program, Rolex is navigating a complex and evolving market. While elevated secondary market prices and CPO premiums have created challenges, giving uninformed shoppers a healthy dose of sticker shock, these are not a reflection of flaws in the program itself. Instead, they represent broader market conditions that are largely out of Rolex’s control. 

As the market stabilizes and supply increases, Rolex’s CPO program could become more appealing to buyers seeking quality and peace of mind. For those who already own Rolex watches, consider customizing with an Everest Curved-End (integrated) strap. Designed to fit your Rolex model perfectly and preserve its original bracelet, Everest straps are the ultimate upgrade (and make for a pretty great holiday gift).