Trade in values tanked

This. ^^^ Thank you.

 

How much are you guys paying for 2023 pro with premium?

Does this sound right? I have a 21 Tacoma off-road premium valued around 40 Grand. I'm up on my lease and they say because the 2024s are coming out soon, that is lowering the value's of the older models? My residual value on my contract is 5k lower than the current value. The dealer is putting me way over and triple my monthly payment, if I were to lease a pro 23. Seems like they trying to take one over on me but I would think that I would have some wiggle room at about 5k and my lease payment wouldn't be much higher than I'm paying now.

 

So you think your ORP is worth 40k but the dealer is giving you 35?
The rest of the deal isn’t mentioned. What’s the selling price of the pro etc ?

 

Sorry I know I'm trying to be clear here it's a little late though and I'm tired. The residual value on my contract from 3 years ago shows 35k and current trade in value on Edmunds is around 40 Grand. Dealer cost for a '23 pro premium is 52,000. I'm sure I can negotiate and that's MSRP. Sales guy over the phone today quotes, 726 to 733 a month with 2k down.

I'm like thinking no way, especially on a lease. I look at my residual value tonight and think I have some negotiating room?

I have paid about 21k total at end of lease and not 12k.

 

Consoomers drive prices. Do better next time.

 

I'm not understanding this whole residual value versus it being worth more at the end of the lease.

 

Wasn't really responding to you specifically but sounds like you'll be paying a majority of that 52k payment just to have the latest and greatest. 12k probably barely covered depreciation. Don't forget interest rates are still high

 

Carvana thinks my double cab 4x4 trd is only worth $2k and some change

 

You have a very old vehicle with high miles, Carvana is basically telling you they don't want your vehicle. It would go straight to auction.

 

Funny it dropped $3K in a month. There is definitely some market timing in effect. I can’t see dramatic a reduction being due to a new model year. Your truck is too old to be effected by that. No one is cross shopping a new Tacoma versus a 19 year old one.

My guess is the value will magically increase again as we approach fall and people start looking for 4X4 “winter vehicles”.

I’ll also bet location has a lot to do with it. Change the location from KY to NH or MA and I’ll bet the value goes back up (especially if it is a southern vehicle with minimal rust to be sold in New England where everything that old up here is a rust bucket.)

 

You're talking a lease here, you don't own anything or have any equity. You have the option of buying the '21 for the residual value. If you choose not to, you are just starting a brand new lease. That $5k difference isn't yours unless you purchase the truck.

 

The residual value in the lease contract is what they anticipated the vehicle being worth now, at the time you signed the lease. Due to inflation (and other things), it seems like your truck is actually worth more than expected, which is the $40k you referenced.

You're not really asking for life advice, but if you plan to continue leasing the same vehicle again, why not buy?

It sounds like you have the option to pay $35k for a $40k truck, that you know all of the history on. Just something to consider.

 

If it’s truly worth $40k and the RV is $35k, then sell it back to the dealer and you get $5k. When you lease, you lease the depreciation on the vehicle; the RV is what it costs to buy it out at any given time; the $35k is the number at the end of the lease. That’s assuming the dealer even values it at $40k.

 

He also states $40,000 trade in isn't coming from a real source, Edmunds doesn't give you money for your truck if you're trading into a Toyota dealer. He needs to get a actual trade appraisal to see if there is lease equity. Also as others pointed out rates suck on traditional finance or lease rates, so of course a lease payment will be much higher. Add in the fact you're not getting a discount on a TRD Pro means the depreciation paid will be more.

 

He doesn't have to buy the car to get the equity. A trade in would work the same way. Assuming he can get the 40K on trade the 5K would be a credit towards the new car.

 

Thank you all and this is what I'm talking about! Yes exactly and I should have that as a credit towards the new lease of the pro.

 

What's going on with dealer mark ups in Ca? My son just picked up a 2023 TE with no mark up, are those going away?

 

They haven’t been a thing if you just shopped around. Especially on non pros

 

I just picked up an off road premium with the technology package and a camper shell for 42. 2,100 miles. In southern California's market, at a porshe dealer. So, yeah they are dropping for sure. I am stoked with it.