Financing solutions for luxury watches

Customers provide their information securely via the Yourasset platform and create their own account to track the full transaction from the start to the delivery of their new watch.

Yourasset acts as payment enabler, while customers pay fixed monthly installments to our bank partner. In Switzerland interest costs are deductible from personal income taxes and thus reduce the effective interest costs. Customer can repay the financing amount early.

The individual steps are:

1. Find your next watch and select a payment option
2. Submit your personal and financial information
3. The information is reviewed by us and our bank partner
4. Once approved, you receive the contract
5. Sign it and return it to our bank partner
6. The merchant receives only your basic personal information
7. Congratulations! Collect your new watch from the merchant
8. Your information is saved for your next transaction

For any questions related to the product you can contact our partners directly too.
For any questions related to the financing process, please contact us.

Over 70% of consumers purchase their car with Leasing or Financing. It is the preferred payment method to purchase a car and enables the consumer to pay monthly. Yourasset introduces this payment method to purchase a luxury product like a watch.

Luxury watches embody many characteristics of an asset. They are a sustainable and circular product that can preserve its value over time. Compared with a car a luxury product also has lower maintenance costs and tends to depreciate less in value or even appreciate over time.

In short, while a car loses value over time, most luxury watches gain value over time. Financing an asset that retains its value seems smarter than financing an asset that loses value.

Read more about this topic in our Yourasset Blog section

Did you know that you can deduct the interest costs from your taxable income when you finance your watch?
Every customer in Switzerland benefits from this tax deduction. The higher your marginal tax rate is, the more you benefit.
For example, an interest rate of 6.9% is reduced to 4.7% if your marginal tax rate is 33%. You only pay interest on the outstanding financing amount.

For a luxury watch worth CHF 10'000, as shown in the chart on the right or below, the total interest costs over four years are around CHF 955 – that is CHF 239 per year or CHF 20 per month in this example.

Yourasset offers regulated and transparent financing solutions that provide real benefits to customers.

When comparing leasing and financing, most people only look at the interest rate. Lower interest rates seem better, while higher interest rates seem like a bad deal. Today, we would like to show you why a higher financing interest rate can sometimes lead to similar or even lower total costs compared to leasing. We illustrate this with an example. The 4.9% lease of a Porsche Macan and the 8.9% financing of a Rolex Day-Date. Both are pre-owned and at market price.

The familiar choice: Leasing a Porsche Macan
After 5 years, your total payments will be CHF 58'026 at a 4.9% leasing rate. This total includes CHF 43'026 in monthly payments over the 5 years, plus the CHF 15'000 residual value payment at the end if you decide to keep the car. Of this total, CHF 8'026 are interest costs.

The luxury icon: Financing a Rolex Day-Date
At first glance, the 8.9% financing interest rate looks much higher than the car’s 4.9%. But in reality, the total costs are very similar. Over 5 years, your total payments will be CHF 58'142. This total includes CHF 50'000 to pay off the watch itself, plus CHF 11'631 in interest costs. However, the interest is tax deductible for private customers. With a 30% marginal tax rate, this reduces your net interest cost to CHF 8'142.

Why are the interest cost almost the same?

1. Interest Costs are tax deductible. As mentioned, in Switzerland only financing interest costs are tax-deductible for private customers.
   In this example, we used a marginal income tax rate of 30%.The higher a customer's marginal tax rate, the greater the tax benefit and the lower the actual net interest costs.
2. Faster repayment, no big final payment. With financing, you repay the full value of the asset through higher monthly payments. Because you pay down the amount faster, the amount on which interest is charged is lower (this is the "Average financing amount" shown in the table)

Read the full information in our Blog section

As with car financing, the customer pays interest. As the customer purchases the watch today the price is locked-in and the customers is protected from (retail) price increases which occurred 1-2 times annually over the past. In the end, based on the choices made, it could even be possible that price increases are higher than the effective interest cost.

The chart allows us to compare price inflation with the payments for a CHF 10,000 watch financed over 48 months. The blue bar shows the (retail) price of the watch and the price development with a 5% inflation rate. The dark green bar shows the total amount paid for the watch each year, including interest costs. The light green bar shows the total amount with financing, after deducting interest costs from income tax.

Read more about this topic in our Yourasset Blog section

Who do I ask for question about the watch?

• You can ask the merchant directly. Contact the merchant using the contact details listed in the Merchant Tab
• You can also always contact us via the Chat button and our e-mail

Where can I read more about Yourasset?

• Read more in the about us section of the website and follow us on Instagram and Linkedin
• Yourasset is a Swiss company incorporated in Zurich and was among the top 10 Swiss Fintech Startups in 2023
• Our team has years long experience in finance, technology and the luxury market
• Read about our service in the watch magazine EuropaStar or on Medium

What interest rates do you charge?

• Read all financing details by clicking on the (i) next the monthly terms
• The interest rate is between 5.9% and 10.95% p.a.
• Interest costs can be deducted from your taxable income

Why don’t you offer 0% financing?

• We currently have no plans to offer 0% financing. We focus on regulated financing
• 0% financing bears a high cost for the merchant (the merchant must compensate the interest cost for the entire period)
• Read more detailed information about 0% financing on our website and in our blog article

It certainly depends on the customers situation but in general we say Yes, it is.

The option to finance a luxury watch or luxury product presents an additional payment method that is not widely available today.
Financing your watch allows the customer to align the purchase with their regular monthly income. If a car can be financed, why not a watch too?

Overall, a car most likely depreciates more in value over time and has higher maintenance costs. A luxury watch is a more sustainable and circular asset. Therefore, we support and enable this additional payment option with a fully regulated approach. Customers now have the choice to pay their next watch monthly.