Trading 2020 for 2022

I've got a leased 2020 Taco TRD Sport Premium automatic long box cement grey with 33,000 kms. ( yes I'm in Canada) and I'm about to trade it in on a new 2022 Taco TRD Sport Premium Lunar Rock manual short box. An even trade with the dealer & my lease payments of $360 /month will stay exactly the same.
Am I missing something here??
Why does the dealer want my used Taco so much ?

 

So they can sell it

 

USED vehicles are market priced, so your 2020 will probably sell for the same or more than the new equivalent model.

Basically boils down to differences in consumer protection laws, MSRP is the maximum a new vehicle can sell for in Canada.

However any accessories and services can still be marked up.

That's why you'll see some new trucks on the lot with every possible warranty, tint, ppf, accessory, and a lift already installed to really jack up the price, but the base truck is still MSRP...

 

My wife's 4Runner depreciated $900 over a three year period. Does not make sense at all.

 

Buy a BMW and it starts making sense.

 

The dealer makes money not sense

 

Yes the used market is strong. You have to remember that your in Canada. I am as well. Your truck was built in the USA and can be exported. They sell for the same down South and the dealer will make good money on it because of the exchange rate. 2022 are made in Mexico and cannot be exported to the USA without a large tariff on them. So a nice clean low mileage truck is worth a lot.

 

These days new vehicles for the most part have to be ordered with a several month waiting period, while low mileage used vehicles are available right away, some with a warranty or extended warranty for more $. Want it Now? then pay extra and used vehicles have no 'suggested' price.

Also in the OP's case, the dealer has a M/T that no one wants, so they are happy to move it either off the lot or out of their allocation.

 

hmmm I would take a manual ant day of the week

 

If you finance the buy out for 3 years, what would your payment be? If that payment is lower, might it be worth just buying your 2020 outright?

 

I didn't realize how unpopular the M/T trucks are until after I bought mine in June 2019 and then found out it had been built in Sept. 2018 and had 200kms on the odometer. Being an Access Cab probably contributed to its lack of other buyer interest....I should have bargained harder.

 

I wonder if MT would be a problem when I go to trade it in a few years ?

 

Payment amount is the same. I get a new Taco and a 5 year lease. I usually flip them every 3 years never having to pay any down payment and always driving a new vehicle under warranty.

 

I've been wondering the same thing, on one hand there are fewer MT drivers all the time, but almost ZERO cars coming out with MT. The upcoming switch to EVs will only exacerbate, so I'm wondering if MTs might actually age better than autos just because the supply decreases faster than the demand will, especially for Tacos

 

For sure, rather than pay $50,000 up front Id rather lease and a reasonable rate and get the tax write off.

 

I’m also wondering whether the MT is a niche market and will be desirable in a few years time, just like the FJs

 

Maybe whatever comes after the Gen Zers will want MT as some sort of retro hipster thing, they'll probably bail the first time they roll backward into someone on a hill though

 

Interesting? What tax bracket are you in. 360x12=4320. Let’s pretend you’re in a 50% tax bracket for fun. Spent 4320 to save 2160. That’s math I don’t like. But hey that’s me. To each their own.

 

What's your buy out price? Basically your buyout price is MUCH lower than what the truck could be sold for today.

You probably have a lot of leverage here. Your lease agreement was made pre-shortage and the price inflation. Your set buyout price was given 3 years ago and the truck is probably worth much much more than that buyout price.

One consideration is buying the truck and selling it for profit. Compare the profit plus new lease agreement to what you are being offered now.

This exact thing happened when my wife's Honda. It had a set buyout price but the value at the time of the end of the lease was much higher. $5000+ more. When we said we wanted to buy the car instead of turning it in, they gave us a better deal on the lease.

 

My buyout is $22,320 cdn in Feb. 2025....as of today's date feb. 2022 there is only $29,000 owing.

the other thing here in Canada is, we pay a lot of tax on buying & selling vehicles.
I found over the last 10 years I like the idea of leasing & trading in the vehicle early for a new one & the tax savings that come with that dealer trade arrangement. They take care of all the licensing etc. You just swap keys over for the new vehicle, minimum hassle.
Of course you end up paying monthly fee but that is just the cost of driving a new vehicle under warranty.