Dave Ramsey has built an influential platform in the personal finance space, with contributors like George Kamel echoing his staunch anti-debt philosophies. Kamel’s recent article on car leasing, published on Ramsey Solutions, reflects the core beliefs of Ramsey’s approach: avoid all debt at any cost. While their commitment to financial freedom is admirable, their blanket condemnation of leasing lacks nuance and fails to consider situations where leasing can actually be a smarter financial choice.
A Detailed Rebuttal to Dave Ramsey and George Kamel’s Take on Car Leasing
Let’s break down the key points of their argument and offer a more balanced perspective.
Has Either George Kamel or Dave Ramsey Actually Ever Leased a Car?
Most of us who lease have also purchased vehicles, and we understand the real-life pros and cons of both options. It’s interesting how some perceived experts confidently give advice on leasing without any firsthand experience.
George Kamel and Dave Ramsey frequently warn against leasing without acknowledging that many lessees have a clear financial strategy. It’s a bit like a child behavior expert who has never had children—while theory has its place, experience is often the best teacher. Those of us who have both leased and purchased vehicles can provide a more well-rounded perspective on what actually makes financial sense.
1. George Kamel’s Perspective: Leasing Is a Rip-Off
Kamel calls leasing a glorified rental car and labels it as the most expensive way to drive a car. While leasing may not be ideal for everyone, it’s not inherently a rip-off.
- Lower Monthly Payments: Leases typically have lower monthly payments compared to financing a car purchase, making a lease more affordable in the short term. Evaluate a lease deal with this tool.
- Depreciation Protection: With a lease, the risk of depreciation falls on the leasing company, not the consumer. This is especially beneficial in today’s unpredictable car market.
- No Long-Term Commitment: For those who enjoy driving newer cars with modern features, leasing offers flexibility without the long-term financial burden of ownership.
2. “Owning a Car Is Debt-Free”
While Ramsey and Kamel promote buying a car outright to live debt-free, this perspective ignores the reality of ongoing financial liabilities that come with car ownership. The notion that once you own a car, you’re free from financial worry is misleading.
- Repair and Maintenance Costs: Once a car is out of warranty, repairs can become expensive. A single major repair can easily match several months’ worth of lease payments.
- Depreciation Risk: Car values drop quickly, and as an owner, you bear that loss.
- Unexpected Liabilities: EV owners face particularly high replacement costs for batteries, which can run into the tens of thousands of dollars. Would you rather lease that risk away? Learn why EVs lease so well here.
When you lease, you make payments for a fixed period without worrying about unexpected repairs or the car’s diminishing value. Your only concern is your effective tax payment — not repair costs, resale values, or battery degradation.
3. Enjoying the Freedom of Leasing
Leasing not only offers financial advantages, but it also provides something money can’t buy: peace of mind.
- Road Trip Reliability: Newer cars are far less likely to experience breakdowns. According to a recent study by Consumer Reports, vehicles less than three years old are up to 70% more reliable than those over five years old.
- No Worry About Repairs: Most leased vehicles remain under a comprehensive warranty, covering repairs and unexpected mechanical issues.
- Travel Without Stress: America is full of beautiful destinations, from the Rocky Mountains to the coastal highways. Leasing gives you the freedom to tour and explore without the looming anxiety of a breakdown. Do you really want to navigate a cross-country road trip in a car with 150,000 miles on the odometer?
Choosing to lease means enjoying the journey without the constant worry of repair costs or mechanical failures.
4. “Depreciation Makes You Lose Money”
While it’s true that cars depreciate quickly, leasing allows consumers to pay only for the portion of the car’s value they use during the lease term. This makes depreciation a non-issue for lessees. When the lease is up, you walk away without worrying about selling or trading in a depreciating asset. Use our lease vs. buy calculator to see how leasing compares.
5. “Hidden Fees and Interest Rates”
Ramsey and Kamel emphasize fees like acquisition fees, disposition fees, and excessive wear-and-tear charges. While these are legitimate concerns, they are predictable and manageable with careful planning. In contrast, financing a car often comes with higher interest rates and hidden add-ons.
Plus, the infamous Effective Tax Credit Scam is a common tactic used to trick buyers into thinking they’re getting a great deal when they’re not. Leasing eliminates this risk since your tax responsibility is clear and fixed. Learn more about how dealerships manipulate the effective tax credit here.
Final Thoughts
While Ramsey and Kamel’s advice works well for those aiming to live completely debt-free, it’s not a one-size-fits-all solution. Leasing has its place in the financial landscape, especially for those who understand and strategically manage their finances.
Before deciding whether to lease or buy, consider your driving habits, financial goals, and long-term plans. Request a detailed purchase agreement, analyze the total cost of both options, and choose what makes the most sense for your situation. If you’re still unsure, take a look at common car leasing myths to clear up misconceptions.
Personal finance is never black and white, and that’s why it’s essential to evaluate all options—not just the ones Ramsey and Kamel deem acceptable. After all, financial freedom is about making informed decisions that align with your goals, not someone else’s beliefs.
Leasing and the Joy of Life
In the bigger scheme of things, this isn’t just about leasing versus buying cars. I understand that Dave Ramsey is fundamentally against driving new cars, insisting they’re unnecessary. But his stance goes beyond practical advice — it often veers into demonizing things people genuinely enjoy. While I appreciate his mission to help people get out of debt, I can’t help but question — what good is financial freedom if you can’t enjoy the things that bring you happiness?
Some people find joy in concerts, sporting events, dining at fine restaurants, or traveling to exotic destinations. Others simply love the experience of driving a new car. Yet, car leasing seems to face harsher criticism than almost any other lifestyle choice. And figures like Dave Ramsey and George Kamel are leading that charge.
Mr. Ramsey has undoubtedly earned his success by helping people achieve financial independence, and that’s commendable. But the notion that he — or anyone else — should dictate how people choose to enjoy their lives is where I take issue. If the purpose of achieving financial freedom is to enhance our quality of life, discouraging people from spending on what genuinely brings them joy feels contradictory.
Life is temporary, and we can’t take our money or possessions with us. In many ways, choosing to lease rather than own reflects a more balanced, thoughtful perspective on enjoying life’s fleeting moments. It’s not about carelessness — it’s about recognizing that financial freedom includes the freedom to savor what we love. And for some of us, that means the pleasure of driving a brand-new car.