Buying a car shouldn’t feel like financial quicksand – but for Ashley from Jacksonville, Florida, that’s exactly what happened when her husband’s $72,000 impulse buy turned their financial picture upside down.
On a recent episode of The Ramsey Show, Ashley laid out her case to financial guru Dave Ramsey, who didn’t hold back. “$72,000 for a Kia?” he exclaimed, his disbelief echoing the sentiments of anyone who’s ever tried to make a budget work with a champagne-priced car in the garage.
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Ashley’s husband had already paid off a reliable car. Then, he decided to upgrade to a $32,000 SUV. It was not the best financial move but not catastrophic. But then the dealership dangled the shiny bait of a Kia EV6 – a car he didn’t need and couldn’t afford. A year later, they owe $65,000 on the EV. Ashley says he can’t sell the car because the highest amount he’s “getting” for the car is $40,000. That’s $25,000 underwater, with a monthly car payment of $1,200 – not including insurance.
“Oh and our rent is $1,500,” Ashley added. “We’re not in a financial place to afford this car.”
Naturally, Ramsey wanted to know where the $40,000 valuation came from. “Who said?” he asked. Ashley explained that her husband had checked with a few dealerships.
Ramsey immediately fired back. “Yeah, he’s not good at this,” he said, cutting her off. “You’re telling me it dropped $32,000 in just one year?”
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Ramsey cut right to the point: “Your husband called the same dealer that screwed him the first time and asked what they can give him for it. And they thought, ‘Oh, we’re going to get this guy again.'”
Ashley’s husband isn’t alone in feeling the sting of buying a new EV. Electric vehicles are depreciating faster than gas-powered cars. A study from iSeeCars.com, reported by Spectrum News 1, shows used EV prices dropped 31.8% over the past year compared to just 3.6% for traditional cars. It’s a harsh reality for anyone expecting EVs to hold their value like a Tesla stock tip.
In Ashley’s case, the depreciation was a gut punch: a $32,000 drop in just one year. Ramsey called this financial fallout a “stupid tax.” As he explained, it’s the price you pay when a bad decision hits your wallet harder than expected.
So, what now? Ramsey suggested selling the car privately, estimating they might get $50,000 – a far cry from what they owe but better than dealership trade-in offers. That would leave the couple with $12,000 in negative equity.
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Ramsey’s solution? Take a personal loan to cover the gap, then buy a reliable, cheaper car. With Ashley’s husband earning $90,000 a year and minimal credit card debt, there’s enough wiggle room to make this work.
“We’ll call that debt a ‘stupid tax,'” Ramsey said, keeping it real. “Which is what I have to pay when I do something stupid, [too].”
Ashley’s story cautions against the risks of impulsive financial decisions, especially with big-ticket items like cars. The rapid depreciation of EVs adds an extra layer of complexity, making it crucial for buyers to think long-term.
The moral of the story? Before you sign on the dotted line, do the math, sleep on it and maybe – just maybe – skip the $72,000 electric Kia. Or as Ramsey might put it: “Don’t let stupid cost you everything.”
And if you’re feeling overwhelmed by financial decisions – or cleaning up the mess from one – it’s worth consulting a financial advisor. They can help you create a plan, prioritize your goals and avoid falling into the same traps again. After all, it’s easier to move forward when someone’s helping you steer.
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This article ‘$72,000 For A Kia?’ – Dave Ramsey Tells Florida Woman ‘We’ll Call That Debt A Stupid Tax’ After Husband Buys EV Now Worth Only Half That originally appeared on Benzinga.com
Patricia Allen is a writer who loves to travel and explore new places. She's also passionate about fashion and style, so she often writes about cars and fashion on her blog.
She earned her degree in English Literature from Stanford University, where she studied under some of the most renowned writers of our time. After graduating, she moved to New York City to pursue her career as a writer. She has since written for several publications on topics ranging from arts to automotive news.
