With the rise of online shopping and the influence of web and social
media on the car-buying process, it’s easy to think that younger,
tech-savvy generations are more inclined to shop for and even purchase
their vehicles online. While that assumption isn’t far-fetched, a
recent study from Urban Science suggests otherwise.
Visiting the Car Dealership
After surveying 2,000 car shoppers and 200 dealers in February of
last year, Urban Science found that Generation Z (people born between
1997 and 2012) and younger millennials (adults in their mid- to late
twenties) visited the highest number of brick-and-mortar dealerships
compared to older millennials, Generation X and baby boomers. The
study did a breakdown of the average number of brick-and-mortar
dealership visits for each generation:
3.8 stores for Gen Z and younger millennials
2.6 for older millennials
2.4 for Generation X
2.1 for baby boomers
Characteristics of Gen Z Car Buyers
Since Gen Z grew up on the Internet, they’re more comfortable
researching and making decisions on their own based on what they
discover. So when it comes to making purchase decisions, Gen Z is far
more independent than previous generations were at the same age.
According to Automotive News, Gen Z is more educated
about the market than young car buyers 10 to 15 years ago. Even while
Gen Z car buyers are at your dealership looking at a vehicle they’re
interested in, they are on their phones, researching other vehicles
(and other dealerships), according to 9Clouds.com. Below are a few
other key characteristics that car dealers should note when working
with Gen Z car buyers:
They’re hungry for information.
As we mentioned earlier, Gen Z is very Internet and
research-savvy, which means they are always looking for
information. The more helpful content you produce on your website
and/or blog that guides Gen Z car buyers along their car-buying
journey, the more likely you are to attract them to your
dealership to make a car purchase.
They’re more practical with their money.
After years of witnessing their older siblings and parents
swimming in debt, Gen Z is hesitant to buy new vehicles and take
on more debt, according to 9Clouds.com. In fact, LendingTree reported in
December 2018 that only 36 percent of Gen Z-ers had an auto loan.
Since Gen Z car buyers look for more practical used vehicles that
get good gas mileage and have modern technology features
(according to Automotive News), car dealers may
want to focus on building their used inventory.
They’re not tied to a particular brand.
According to Spectrum Reach, Gen Z car buyers care more about
having a positive customer experience than brand loyalty. This
gives car dealers the opportunity to be a resource in the Gen Z
consumer’s journey and think about how you can make their
car-buying experience an exceptional one.
Another important thing to note about Gen Z car buyers is that many
of them don’t have credit history established, since they are just
graduating from college and entering the workforce. By enrolling in
the Credit Acceptance auto finance program, your dealership will have
the ability to approve every customer, regardless of credit history.
Simply fill out the form on our website to learn more about becoming
an enrolled car dealer in our program!