As Gen Z members enter professional life, details about their car buying habits begin to emerge. Some of the trends identified by a recent study are not surprising, but the youngest drivers view their car purchases differently than older generations.
Data provider CDK Global conducts research by surveying 1,100 people of all ages who bought a car from seller in 2021; There is no mention of whether it is new or used. An important point worth mentioning is that 56% of Gen Z respondents (that is, those born between 1997 and 2012) bought their first car. It is perhaps not surprising, then, that 81% of Gen Z buyers say they want to take the time when shopping for a car and understand all of their options. That number drops to 73%, 60%, and 45% for Millennials, Gen Z, and Baby Boomers, respectively. That’s why older customers have a much better understanding of the car buying process.
On a similar note, 16% of Gen Z buyers say they enjoy working with a knowledgeable representative, up from 12% for Millennials, 8% for Gen X buyers, and 4% for Baby Boomers. However, they expect sales staff to follow a certain etiquette. Generation Z drivers are less likely to recommend authorized dealer experience with a friend and 27% said they felt uncomfortable waiting for a salesperson.
The same study also found that the frustrations of top-rated dealers for Generation Z buyers are additional fees (52%), waiting for salespeople (45%) and waiting wait for financial resources and insurance (38%). Buying a car online is emerging as an alternative to walking into the dealership and spending the afternoon there, but it also may not be the ideal solution for younger drivers. Research shows that it is surprising that 22% of Gen Z buyers (those born after the Internet) find it difficult to buy a car online, compared to 5% of Millennials and 7% of Gen X buyers.
Dealing with the downsides of buying a car is just as frustrating for a 20-year-old as it is for a 72-year-old, although the pain points are different. At least the young drivers we share on the road guarantee they’ll get a decent reward at the end of the process: 39% of Gen Z buyers surveyed took home luxury carAccording to research, compared to 29% of Millennials, 27% of Gen Xers and 12% of Baby Boomers.
