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Tag Heuer is a Swiss company that produces entry-level luxury watches. Tag Heuer is very well known within the watch community and also amongst the general public.
The reason for this is that Tag Heuer spends a lot of money on advertising compared to other luxury brands. It is most obviously advertised in sporting domains such as tennis, soccer, and motorsport. This isn’t necessarily a bad thing but demonstrates how their business model works.
There is no doubt that Tag Heuer is a quality brand. In general, it is very difficult to find a Swiss watchmaker who does not produce well-finished wristwatches. The company Tag Heuer was created in 1985, although Heuer had been trading for a lot longer and dates back to the 1860s in which they made in-house chronographs for the wealthy members of Swiss society.
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Tag Heuer As An Entry Level Luxury Watch
Many watch snobs scorn at Tag Heuer and believe that their chosen brands are above it. Tag Heuer is not in the same price range, complexity, or made of rare materials. It cannot really be compared with the likes of Rolex, Vacheron, or Audemars Piguet. Whilst you may find a limited edition piece that is more expensive than a submariner, overall Tag Heuer watches are a lot cheaper than the aforementioned brands.
If we are to compare Tag Heuer to any luxury watch manufacturer then it really is a lose-lose situation. High-end luxury watches occasionally will be made from stainless steel, but this is where the similarities with Tag end. Inside a Tag Heuer entry-level watch, you will likely find a standard Swiss quartz movement. In comparison to something like a Rolex Submariner, you would find a classic caliber 3135.
If we were to completely throw away the watches and sell the movements alone. The Rolex movement would sell for nearing $2000 whereas the standard Swiss quartz would be under $100.
Who Makes Tag Heuers Movements?
One of the main reasons Tag Heuer gets criticism is that people believe it has gone downhill throughout the last decade. This is because less and less of Tag Heuer’s parts and movements are being made in-house. Whilst they are all assembled in Switzerland, some of the parts come from different factories and workshops.
Depending on which watch you’re going to buy, it could have a variety of different movements. Tag Heuer movements come from in-house, ETA, Ronda, Sellita, Zenith & Dubois Depraz. None of these names should be scoffed at, as all make very high-quality movements. Perhaps the weakest name on the list is Ronda which is often found in some of the quartz models such as the Formula 1. Ronda is still a very legitimate Swiss watch movement manufacturer but is considered as very low-end for luxury.
Does Tag Heuer Hold Its Value?
Like almost all luxury watches, Tag Heuer will lose value the moment you take it home from the store. As Tag Heuer is not particularly expensive or special compared to other luxury brands, you will probably be looking at around 30% depreciation if you were to try and sell it right away.
With that being said, 30% depreciation on a $2500 watch is a lot less than 10% depreciation on a $15000 watch.
If you are buying a Tag Heuer watch online then you will likely save some money upfront compared to a physical store. This saving can be offset against any depreciation that the watch would normally endure.
Another last point to note is that if you are buying a Tag Heuer brand new from a brick-and-mortar store, there is often room to negotiate at least 10% from the asking price. If the model is a limited edition or particularly rare piece, then there will be no room for haggling.
Are Tag Heuer Watches Overpriced?
Tag Heuer is a business and needs to make money. If it does not make money, then it will not be able to make watches. Given that Tag Heuer has been in business longer than we have all been alive, this would suggest that its watches are not overpriced.
Some people may scorn that a watch with a similar movement is 5 times cheaper. This may be true, but it does not take into account the branding alongside the research and development that has gone into the design of the watch. Putting an ETA movement inside a watch does not make it equal to a Tag Heuer.
Tags are known for their iconic racing design, which has pretty much revolutionized modern-day sports watches. This is the premium you will pay when buying a Tag Heuer. Whether you think this is overpriced or not is up to you.
The Most Iconic Tag Heuer Watches
Monaco
Popularised after being worn by Steve McQueen in the 1971 movie Le Mans. The Monaco has now had several iterations but has always stayed with its classic square shape. This was extremely unusual at the time, especially when coupled with a striking blue dial.
It is also definitely worth mentioning that the Monaco was the world’s first automatic chronograph. Automatic watches had already been popular for a long time, as had chronographs. However, until the Monaco was released, nobody had been able to combine both facets.
Carrera
The Carrera gets its name from a Mexican car race in which participants would race from the US border all the way to the southern tip of Mexico meeting Guatemala. This is the main reason behind the original Carrera having a chronograph feature. Drivers would be able to wear the watch and measure times and speeds at will.
First made in the 1960s, by the time the quartz crisis had hit Switzerland, the Carrera was out of favor and eventually discontinued. Bought back to life in 1996, the Carrera has been one of Tag Heuer’s most popular designs ever since and continues to be developed to this day.
Aquaracer
The Aquaracer was developed and launched in the 1980s. Perhaps best described as Tag Heuer’s answer to the Rolex Submariner. Before the Aquaracer was launched, Tag Heuer had a long-standing history of producing quality diving watches. If we are to compare these watches to modern-day styles, they look nothing like the Aquaracer and more like a Seiko or Citizen forefather.
With a much more striking and modern look, the aquaracer is pretty much a divers watch combined with the original racing style design that made Tag Heuer so famous.
Buying A Second Hand (Preowned) Tag Heuer
This is where you will get your real value for money. Much like a used sports car, the original owner has done you the favor of taking the depreciation hit for you. If they’ve kept the watch in good condition too, there is really not much difference when comparing with brand new.
Although the watch dealer, you will buy from needs to make money. This really is typically only around 20% more than the value he paid for it. All things considered alongside authenticity guarantees and servicing, this is really not a bad deal at all.
The second-hand market for Tag Heuer is really the best place to find good value watches. It’s not going to be for everyone, but personally, I’ve never had a problem with buying a used watch. If you want a classic or vintage timepiece then you will have no other choice than to buy used.
Overall Thoughts
Tag Heuer is almost always worth the money you spend. There are lots of snobby arguments about Tag Heuer not producing in-house movements and garish designs. However, many other entry-level luxury brands use ETA movements alongside Tag Heuer such as Raymond Weil, Breitling, and Panerai.
Badmouthing Tag Heuer is pretty common for the pseudo-watch expert who will claim that brands such as Rolex as far superior in quality. This is pretty obvious since the price is 5x higher.
Overall Tag Heuer is certainly not bad value for money, especially if you can get a discount from retail in the first place. If you’re buying a $4000 watch, paying $3600 already means you’ve saved 10%. If you ever get bored, you will be getting more of your money back and won’t feel so bad when trading in your Tag.
