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 purchase turned their financial picture upside down.
On a recent episode of The Ramsey Show, Ashley took 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 has ever tried to budget for a champagne-priced car in the garage.
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Ashley’s husband had already paid off a reliable car. He then decided to upgrade to a $32,000 SUV. It wasn’t the best financial move, but not catastrophic. But then the dealer 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 most he “gets” 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 are not in a financial position 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 dealers.
Ramsey immediately fired back. “Yeah, he’s not good at this,” he said, interrupting her. “Are you telling me the price dropped by $32,000 in just one year?”
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Ramsey got straight to the point: “Your guy called the same dealer who screwed him the first time and asked what they could give him for it. And they were like, ‘Oh, we’re going to get this guy again.'”
Ashley’s husband isn’t the only one feeling the pain of buying a new electric car. Electric cars depreciate faster than gas cars. An iSeeCars.com survey reported by Spectrum News 1 found that used EV prices have fallen 31.8% in the past year, compared to just 3.6% for traditional cars. It’s a harsh reality for anyone who expects EVs to retain their value as a Tesla stock tip.
In Ashley’s case, the depreciation was a blow: a drop of $32,000 in just one year. Ramsey called these financial consequences 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 could get $50,000 – a far cry from what they owe, but better than the dealer’s trade-in offers. That would leave the couple with negative equity of $12,000.
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Ramsey’s solution? Take out a personal loan to fill the gap and then buy a reliable, cheaper car. Now that Ashley’s husband makes $90,000 a year and has minimal credit card debt, there’s plenty of wiggle room to make this work.
“We’ll call that debt a ‘dumb tax,’” Ramsey said, keeping it real. “That’s what I have to pay when I do something stupid, [too].”
Ashley’s story warns of the risks of impulsive financial decisions, especially when it comes to expensive things like cars. The rapid depreciation of electric vehicles adds another layer of complexity, making it critical 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 stupidity cost you everything.”
And if you’re feeling overwhelmed by financial decisions – or need to clear out the clutter – it’s worth consulting a financial advisor. They can help you create a plan, prioritize your goals, and avoid falling into the same pitfalls again. After all, it is easier to move forward if someone helps you steer.
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This article ‘$72,000 for a Kia?’ – Dave Ramsey Tells Florida Wife: ‘We’ll Call That Debt a Stupid Tax’ After Husband Buys an Electric Car That’s Now Only Worth Half That Originally appeared on Benzinga.com
