Six years ago, I wrote a commentary titled “Sorry Dave Ramsey — You Blew This One” after Dave gave advice on 0% financing that simply did not hold up in the real world of automobile retailing. At the time, I said Dave should come on my show or invite me on his, and I meant it. I respect what he has done for a lot of people trying to get out of debt, but when he wanders into car advice, he often drives right past the facts. No turn signal, no brake lights, just straight into the ditch. His bad car advice can lead people astray, and as I’ve said so many times, when you make a mistake getting a car, it’s expensive.
Well, Dave is back talking about cars, and this time his target is leasing. In a recent video, Dave said, “Car leasing is now 78 percent of the new cars that leave the lot.” He also said that when you “back out the numbers,” the average cost of capital in a lease is 14.2%, and he again referred to leasing as “fleecing.” You can see for yourself:
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Dave, come on. Where in the hell are you getting these numbers? Did you pull them out of the air?
Let’s start with the 78% claim. It is not close. It is not in the same ZIP code. It is not even in the same county.
According to Experian’s State of the Automotive Finance Market report for the fourth quarter of 2025, new-vehicle leasing was 24.37%, down slightly from 24.87% a year earlier. Cox Automotive’s 2026 outlook projected overall leasing at 21%, down three percentage points from 2025. So, depending on the source and time period, the real number is roughly one out of four new vehicles, or perhaps closer to one out of five, not nearly eight out of ten.
That is not a rounding error. That is a whopper of epic proportions.
If Dave meant some narrow slice of the market, he should say so. If he meant certain electric vehicles, certain brands, or certain programs, then say that. But when you tell people that 78% of new vehicles leaving dealerships are leased, you are telling them something that isn’t even close to the truth. When you have Dave Ramsey’s audience and influence, numbers matter.
Now let’s talk about his 14.2% “cost of capital” claim. That “cost of capital” phrase is sloppy at best. Leasing uses a money factor, not a traditional auto-loan APR. A money factor can be converted into a rough APR equivalent by multiplying it by 2,400, and yes, consumers should understand that number before signing a lease and I’ve covered that many times. I have said for years that shoppers need to know the selling price, residual value, money factor, fees, mileage allowance, and total out-of-pocket cost before they lease anything.
But Dave throws out 14.2% as an average, and that should make anyone who understands leasing hit the brakes. Experian reported that the average new-vehicle loan rate in the fourth quarter of 2025 was 6.37%, while the average used-vehicle loan rate was 11.26%. Customers who lease new vehicles also tend to have strong credit; according to NerdWallet, citing Experian’s Q1 2026 data, the average credit score for a new-vehicle lease customer was 749. So, Dave is asking people to believe the average lease customer, with very good credit, is paying an effective rate higher than the average used-car borrower. That may happen on a bad lease, with bad credit, or with a marked-up money factor, but as a blanket “average” statement, Dave needs to show his work. I often see manufacturer-supported leases with a money factor as low as 0.00001, which is virtually no interest at all.
There is a legitimate consumer issue here: Federal rules do not require lessors to disclose a lease rate or show the rent charge as a percentage rate. The Federal Reserve says there is no federal requirement to disclose a lease rate, and that lease agreements disclose the rent charge in dollars instead. That means consumers absolutely should ask for the money factor and learn how to convert it. But that is not the same thing as saying leasing is automatically a rip-off, and it is certainly not proof that every lease customer is being “screwed,” as Dave put it. He talks about paying a lump sum at the end of the lease or turning the car in. While that part is true, he doesn’t mention that many people have equity in their lease that they put in their pocket or they use it as a down payment for the next lease or purchase.
This is where Dave’s advice falls apart. He treats leasing as a moral failure instead of a math problem. Leasing is not right for everyone. If you drive 25,000 miles a year, beat up your vehicles, keep cars for 10 or 12 years, or cannot stay within the contract terms, leasing is not for you. If you are broke, buried in debt, and trying to get control of your financial life, Dave’s general “buy cheap and pay cash” advice may be exactly what you need, except for the very high cost of used cars right now and the extreme cost of car repairs.
But that does not make leasing “fleecing.” If there is any fleecing going on here, it is scaring people away from doing the math.
For many people, leasing can be a very smart option. It can give you a lower monthly payment, a shorter commitment, warranty coverage during the entire term, and protection from unexpected resale-value drops like we’ve seen with electric vehicles. In the first quarter of 2026, the average new-vehicle loan payment was $770, while the average new-vehicle lease payment was $619, according to LendingTree’s analysis of Experian data. The average new-vehicle loan term was 69.5 months, compared with 36.7 months for leases. That difference matters to real people trying to manage real household budgets.
Leasing is also often where the manufacturers hide incentives. They can raise residual values, lower money factors, or add lease cash to move vehicles without putting a giant rebate sign on the hood. A consumer who only listens to Dave and refuses to even look at a lease may walk right past the best deal on the lot. That is not financial wisdom. That is fear-based advice and that’s how you get your mug on the Internet to promote yourself.
The truth is simple: a bad lease is bad, a bad loan is bad, and paying cash for the wrong car at the wrong price is also bad. The method of payment does not magically make a deal good or bad. The numbers do.
So, Dave, here is my invitation again: come on my nationally syndicated Car Pro Show and defend this. Bring your 78% number. Bring your 14.2% average cost-of-capital number. Bring the math. I will bring 40-plus years in the car business, thousands of listeners, and actual retail experience from the showroom floor. I’ve got the receipts.
No shouting. No slogans. No “fleecing” scare tactics. Just facts.
If leasing is wrong for a caller, I will say so. I have done it many times. But if leasing is the smartest option for that person, I will say that too, because my job is not to sell fear. My job is to help people make the right decision.
Dave, you are very good at what you are good at. But on this one, you are wrong again. Learn something I learned many years ago: If you don’t know something, if you aren’t sure, SAY SO or don’t say anything.
Dude, stop the car advice. Leave that part to me.
Graphic: ChatGPT Plus/CarPro.