People may not consider cost of capital when buying expensive goods but they're wrong to do so. But this discussion started as a result of saying that cost of ownership of a 10k Rolex would be cheaper than that of a 300 quid San Martin and it isn't, it's far more expensive. However, if you assume that the 9,700 quid you save up front on the San Martin would then have been spuffed on other goods that lose money I guess you can convince yourself that buying Rolex is a financially savvy choice!