Is Generation Z more interested in cars than previous generations? According to recent survey findings, the newest generation of consumers seems to be very much so.
76% of Gen Z respondents from a survey of 4,000 American adults, evenly split by generation, said they purchased their first car before turning 21. This contrasts significantly with the 56% of millennial respondents who did the same.
When it comes to choosing a new car, 54% of Gen Zers claimed that price is their top consideration. Other important factors in their car search include fuel efficiency (42%), longevity and reliability (36%), safety rating (29%), and comfort (28%).
In comparison to previous generations (Gen X: 53% and baby boomers: 37%), two-thirds of Gen Z respondents stated they feel more confident in their knowledge of how cars are priced.
The survey, conducted by Cars.com, found that 62% of respondents either pre-ordered or purchased their current car from a dealer. Additionally, 81% stated that it is important to physically interact with and test drive a car before making a purchase.
When it comes to car shopping, Gen Zers differ from tech-focused millennials who favor online shopping (16%). Four out of five Gen Zers express their preference for in-person car buying over online (9%).
“What we’re especially interested in is how Gen Z will influence the vehicle purchasing landscape,” says Jenni Newman, editor-in-chief of Cars.com.
OnePoll’s findings revealed that Gen Z consumers are delaying their purchases, with 64% conducting research before making a decision. It was also noted that 55% of Gen Z buyers bought used cars, whereas 55% of millennial buyers bought new cars.
Respondents highlighted the importance of car-shopping solutions that offer history reports (52%), complete cost transparency (47%), and vehicle pricing history (44%) to facilitate their decision-making process.
There were also financial differences noticed between Gen Z and other generations when car shopping. Like 60% of Gen Xers, over half of Gen Z (57%) expressed comfort with $400 monthly auto payments. However, millennials (48%) were the least at ease with these amounts.
Even though Gen Z is confident in their spending capacity, they identified some major pain points when purchasing a car, such as not getting a fair price (22%) and the financing and approval process (16%).
Furthermore, the majority of Gen Zers consult friends and family (60%) as well as car dealer websites and salespeople (55%) when buying a car. They also place equal emphasis on the importance of online expert review articles, websites, or apps (36%), unlike their millennial counterparts who prioritize visiting vehicle dealer websites and speaking with salespeople (63%) and friends and family (51%).
“For years, we joked about younger generations prioritizing their personal satisfaction over practicality,” adds Newman. “Now, we’re seeing a blend of both — Gen Z wants to afford a vehicle that’s not going to leave them feeling desperate with their budget, but is willing to do the work to make sure it fits their lifestyle.”
Price – 54%
Fuel efficiency – 42%
Longevity and reliability – 36%
Safety rating – 29%
Comfort – 28%
The brand/manufacturer – 19%
Family/friend recommendations – 15%
The color – 13%
Apple CarPlay/Android Auto – 10%
The dealership/platform I bought the vehicle from – 9%
Cargo space – 9%
Ease of access getting in and out – 7%
Blind spot monitoring – 7%