The trade in price is market driven.
Dealer must make money. A dealer won't trade in a car for 4000 CAD and can RESELL it for 3000!!
The trade in price depends on USED car value,
That is also reflected in LEASING (buy back after lease complete) and financing.
In the end, it is "buyers" who decide the price.
I respect others decision to buy their own car, it is their decision, and their money.