Offering a warranty on used watches

For a buyer, a used watch from someone they've never met is a leap of faith. A dealer warranty shrinks that leap: it tells the buyer you'll stand behind the watch if something goes wrong. That's a real selling point, and a real liability. Every warranty is a cost you might have to pay later, so it needs to be priced, bounded, and written clearly.

Why dealers offer warranties

• It reassures buyers who would otherwise stick to marketplaces with buyer protection or buy new.
• It signals confidence. A dealer who has had a watch checked and serviced can afford to promise it runs.
• It sets you apart from private sellers, who rarely offer anything.
• It can support your price. Buyers comparing similar watches often pay more for the one with a warranty.

The cost is the repairs you'll pay for under it, plus the time and shipping involved, and the obligation to honor it even when it's inconvenient.

What a dealer warranty usually covers

Most used-watch warranties from dealers are narrow by design. They tend to cover the mechanical function of the movement: that the watch runs, winds, and keeps reasonable time, with repair by a watchmaker of the dealer's choosing if it doesn't. Whatever you promise, spell out:

• What's covered, in plain terms.
• How long it lasts, from the date of sale or delivery.
• What you'll do if there's a fault: repair, replace, or refund, and who chooses.
• How to make a claim, including who pays shipping.

What to exclude

• Accidental damage, such as knocks, drops, and cracked crystals.
• Water damage, especially on vintage watches or any watch you haven't pressure tested. Say clearly whether you make any water resistance claim.
• Wear items such as straps, bracelets, and crystals.
• Batteries on quartz watches.
• Work by others. A watch opened or repaired by someone else after sale is usually excluded.
• Cosmetic condition, which the buyer saw before buying.

What federal law says about written warranties

The federal law on consumer product warranties, the Magnuson-Moss Warranty Act, is summarized in the FTC's guide for businesses. A few points matter most to a dealer:

• No written warranty is required. The law doesn't make any business offer one; it governs warranties businesses choose to give.^[1]
• Written warranties must be labeled. On products costing more than $10, a written warranty has to be designated either "full" or "limited", and a full warranty carries specific obligations. Most dealer warranties are limited.^[1]
• Disclosure rules apply. For products costing more than $15, the warranty terms have to be set out clearly in a single document and made available to buyers before the sale.^[1]
• Implied warranties stay. If you give a written warranty, you can't disclaim implied warranties on that sale.^[1]

The guide is the place to read the detail, and a lawyer is the right person to review your wording.

Selling as is

The alternative is to sell without a warranty. Under state law, a sale can come with implied warranties, such as that a used product can be used as expected for its type and price. The FTC's guide notes that in most states a seller can disclaim those, generally in writing and in a way the buyer can't miss. Some states go further and rule out selling consumer goods as is at all.^[1]

Selling as is suits watches you're pricing for another dealer or a buyer who plans to have it serviced anyway. It suits retail sales to cautious buyers less well.

Pricing the promise

A warranty you'll pay out on is a cost of the sale. Service the watch before you sell it, so the warranty covers a watch you know is sound. The service article covers that decision. Then think about what honoring a claim would cost on this watch, and make sure the price leaves room for it. The max buy calculator lets you include that allowance in your prep cost.

Put it in writing, the same way every time

State the warranty, or its absence, in the listing and on the invoice or bill of sale, in identical terms. A warranty that's described differently in a message, a listing, and a receipt invites an argument about which one applies.