- Appealing to Generation Z buyers is becoming increasingly important for auto manufacturers and dealerships alike, as half the generation can now drive.
- Surveying thousands of car buyers in 2021, a recent study found that Gen Z buyers are a unique subset with many similarities to their generational counterparts.
- Wait times, hidden fees, and redundancy ranked high on the list of young buyers' frustrations, though most Gen Z buyers prefer to shop for cars in person.
Over a decade's worth of Generation Z members can now legally drive, starting with those born in 2006. The roads are increasingly populated with drivers born in the 2000s and, as the
children of Generation Z become adults, they are starting to buy cars. Growing up in the 21st century has afforded certain advancements in online shopping, meaning Gen Z customers aren't the same sort of car buyers as from previous generations. Or at least that's what analysts, dealerships, and manufacturers have thought.
Data collected from CDK Global, an automotive analytics and consulting company, tells a different story about the Gen Z buyer. Surveying over a thousand verified consumers and dealerships about their 2021 buying and selling experience, CDK found that Gen Z buyers share many of the same purchasing desires as millennials, Generation X, and boomers. Nonetheless, certain frustrations about the car buying process were exacerbated for Gen Z shoppers—frustrations that the dealership network would be smart to fix.
Contrary to popular belief, online shopping isn’t the preferred method for Gen Z car buyers.
Namely, 87% of these teenage and 20-year-old buyers actually complete their purchase in person at a dealership. This disrupts a trend of online-only automotive retailers like Carvana or Vroom, despite the fact that these services were originally marketed to young buyers. In fact, 22% of Gen Z buyers stated that it was difficult to buy a car fully online.
Though they're internet savvy, car buying is an all-new experience for most of Generation Z, 56% of them to be exact. As a result, many of them are wary of the process, requiring thorough explanations of all processes and parties involved. This sense of preparedness was one of the biggest factors for Gen Z buyers, with over 80% of them saying the most important element was the ability to take their time and understand their options. Meanwhile, older shoppers generally want to make a purchase in a timely manner, having experienced the buying process before.
"We assume that the Gen Z shopper wants to move fast, that they're just there to click and buy," said Brendan Dougherty, director of product marketing at CDK. "Don't assume speed—assume a complete experience and a pleasant experience that helps educate and inform the shopper as they're going through this car buying process."
Beyond wanting authentic help in the purchasing process, Gen Z buyers reported frustrations that parallel those of any buyer. Things like wait times, hidden fees, and negotiations are bound to create tension for anyone in the car buying process, though some of these feelings are intensified for younger buyers. Additional fees topped the list of frustrations with 52% of buyers surveyed. Even so, CDK reported that Gen Z buyers aren't against paying certain fees or even waiting for the right unit, but that frustrations arise when these issues aren't disclosed upfront. Setting expectations is an essential part of any transaction, for Gen Z or older shoppers.
Redundancy was another common issue reported by Gen Z buyers. Thanks to a host of internet tools, prospective car buyers can find inventory, fill out credit applications, and even calculate interest rates before stepping foot in the dealership. And many of these buyers do just that, with statistics showing that Gen Z buyers typically spend 17 hours shopping online before finalizing the transaction at the dealership. Unfortunately, these well-researched buyers were often asked to complete the same tasks in person, nullifying the work done beforehand.
Buyers across the generational divide are focused on getting the car they want at a fair price, and there are layers of skepticism for both the old and young. As manufacturers and dealerships work to include this new generation of buyers, their focus should turn toward transparency and timeliness above all else.
Are you a young person shopping for your first car? Please share your experience below in the comments section.
Emmet White
Associate Editor
A New York transplant hailing from the Pacific Northwest, Emmet White has a passion for anything that goes: cars, bicycles, planes, and motorcycles. After learning to ride at 17, Emmet worked in the motorcycle industry before joining Autoweek in 2022. The woes of alternate side parking have kept his fleet moderate, with a 2014 Volkswagen Jetta GLI and a 2003 Honda Nighthawk 750 street parked in his South Brooklyn community.
