What's a Fleece?

A listener asks why Dave refers to a leased car as a “fleece.”

QUESTION: A listener asks why Dave refers to a leased car as a “fleece.”

ANSWER: “Fleecing” means you’ve been ripped off and a leased car is a very “baaaad” idea.  It’s the most expensive way to finance a car and the worst way you can purchase a car. 

A car dealer makes much more on the sale of the leased vehicle contract than on the vehicle itself.  On the other hand, a car dealer is not thrilled when you buy a car with cash because they’re not going to make much money on that.  They make their profit in the shop and in the finance office. 

Always pay cash for your car.