Depreciation
A buying, selling or valuation term used in the watch market: Depreciation.
Definition
A buying, selling or valuation term used in the watch market: Depreciation. Depreciation is a fall in a watch's value over time relative to a chosen starting price, commonly original retail or purchase price. Percentage depreciation depends on the baseline and ignores ownership enjoyment, servicing and transaction costs unless explicitly included.
Why it matters
Depreciation is meaningful only when the valuation date, benchmark, condition and selling channel are clear; otherwise apparently precise percentage comparisons can be misleading.