Trading 2020 for 2022

No early termination penalty turning in a lease 2 years early? Any lease over 3 years isnt a good idea in general because after 3 years your putting money into a vehicle you dont own and that doesnt have a warranty left after that point.

 

As far as trading in a M/T, dealers will beat you up because they know it will sit on their lot for a while due to the smaller market.
Selling a M/T privately may take longer to find a buyer, but that buyer will have been looking for a while and will pay up for the M/T and not try to low ball.

 

Can you explain the lease tax write off better which is what I think you’re alluding to? I’ve heard about it but never really heard the full explanation as I have never leased.

 

not sure how Canada works which is where the op is. But In the US you can only write off a lease if used for business and then only the portion used for business if you also drive for pleasure. Personally I don’t write off the mileage thru business I take the 54 cents a mile reimbursement which I can pay myself tax free. It’s a numbers game really. I also never lease vehicles personally. I pay cash and never by new.

 

If you owe 29k and your getting a 6MT on a 5 year lease @360 a month they put a value on your 2020 at about 43k and rolling the equity into the new lease to get that payment. This is if it’s tax included. If not they are giving you less.

 

The answer is yes.

 

The financing for used vehicles is higher than a brand new one. 2% -5% on a new truck vs 5- 15% on used truck is why they they are so eager to get you into a new contract for 5 years instead of 3. Plus, look at the mileage requirements...

My 07 was 10 years old and only lost 8k$. The truck was stolen and insurance paid 21k for a truck I paid 29k for.

They get more interest on financing a used car/truck than a new car/truck

there are a lot of people looking for MT's

 

I’m in Canada too. You’re right about tax but if you really sharpen your pencil you’ll see that leasing is always more expensive than purchasing. The inflated market now creates the illusion that it’s not but at the end of the day they win. Leasing makes it convenient to continually drive new vehicles but especially with something that doesn’t depreciate rapidly, you’re paying for that convenience.

 

When I drove for work and was reimbursed by my company, I did the same. Just claimed whatever the mileage rate was that year, which was more than my reimbursement, so it wound up covering even my personal use expenses most of the time.

Almost the same. I have bought 3 new vehicles out of 50ish. One I sold at 6 weeks due to an emergency medical bill issue. Of the other two, one was kept over 10 years and the other over 15 years, so depreciation wasn't really an issue. Since they were both cash purchases, the TCO worked out ok.

 

Not to turn this into ANOTHER lease vs. buy thread, but if you play your cards right as far as negotiating a good deal you can eventually drive a new taco for the price of a beater. Owning a Tacoma is like having a forced savings account.
After three tacos, never putting anything down, and only making minimum payments on 72 month loans my 40k 2020 cost me 10k. I just roll the equity from the previous one into the new one. The first of those three tacos, my ‘06, I did NOT play my cards right to the tune of about $6000 which is what taught me this lesson. So in reality, that equity was built over 9 years and 2 tacos. The next one will cost me the same as a beater. I tell anyone I know that if you have a midsize truck and don’t own a Tacoma you’re throwing money away.

 

Maybe the 2022's suck. I wouldn't trade my 2020 for any new tacoma right now after hearing all the whining these trucks can have.

 

I'm not sure how it works with leases but in most jurisdictions in Canada, with trade in and purchase your only pay tax on the amount of difference paid. So, if the dealer gives you 29k on a trade-in and charges you 39k for the new truck, than you pay taxes on the 10k difference. Or sell the vehicle privately and get more than 29k, but then you pay tax on the full 39k for the new truck.

No there are not a lot of people looking for M/Ts when compared to A/Ts. For mid sized trucks only Jeep and Toyota make 'em and with Toyota it is select models only that offer M/T. My 2019 sat on a dealer's lot for 9 months prior to me buying it.