'We'll call that debt a stupid tax': Florida woman told Dave Ramsey of husband's 'horrible' choice to buy an EV for $72K — and falling gas prices mean charging it might cost more than fuel

Dave Ramsey couldn’t believe how expensive the car was.

“$72,000 for a Kia?!” he gasped.

The purchase has left the couple tens of thousands of dollars in debt.

And, according to a recent study from the Michigan-based consulting firm Anderson Econimic Group, the financial hole might be even bigger than first anticipated for the couple.

With the price of gasoline dropping, some gas-powered vehicles could be more economical than an EV. As the study showed, entry-level gas-powered cars like the Honda Civic had an average fueling cost of $9.46 per 100 miles.

Compare that to the $12.55 per 100 miles it cost to load up an equivalent EV like the Nissan Leaf, the study noted, citing data from the U.S. Energy Information Administration.

“With electricity prices steady and gas prices slightly down, we continued to see most traditional gas-powered vehicles as more economical to fuel than their EV counterparts," said Patrick Anderson, CEO and study author.

So what does this mean for Ashley and her husband?

'He's not good at this'

Despite having already paid off his car, Ashley revealed that her husband then decided to upgrade to an SUV for $32,000. However, the dealership convinced him to trade in that new set of wheels for an electric vehicle he wanted — a Kia EV6.

“We’re not in a financial place to be able to afford that car,” she said. “He’s currently the only one working.”

Ashley also said they still owed $62,000 on the auto loan and the dealership only offered $40,000 to buy the car back. In other words, the car has negative equity.

Meanwhile, the couple’s monthly car payments are $1,200, which is nearly as much as their rent of $1,500.

Auto loans and sinking car values are prominent trends. American consumers have raked up $1.61 trillion in auto loan debt as of the fourth quarter of 2023, according to the Federal Reserve Bank of New York.

Meanwhile, electric vehicles have lost value faster than traditional used cars, according to analysis from iSeeCars.com. Used EVs lost 33.7% of their value, on average, between October 2022 and October 2023.

These trends imply that Ashely’s husband faces a real challenge. However, Ramsey believes other bad decisions have exacerbated the issue.

“He’s not good at this,” Ramsey said. “I think your husband called the same dealer that screwed him the first time and asked them what they can give him for it and they thought, ‘Oh, we're going to get this guy again.’”