Generation Z, loosely defined as people born between 1996 and 2012, view driving differently than those before them. For one thing, they’re in no rush to get behind the wheel.

In 1997, 43% of 16-year-olds held a driver’s license. By 2020, that number had fallen to just 25%. The decline continued among 17-year-olds, from 62% in 1997 to 45% in 2020. Even those ages 20 to 25 fell from 90% in 1997 to 80% in 2020.

Does Gen Z not see cars as “freedom” like previous generations did? This is an open question because Generation Z is still young — the oldest are in their 20s — so they’re still entering the workforce and developing their finances.

Many plan to buy a car, and their buying habits are still being studied at dealerships all over the country. Credit Acceptance, for example, has a network of thousands of dealers, which helps us develop information, insights, tools, and solutions to grow your business. Learn more about enrolling in our dealer network.

Whatever the outcome, selling to Generation Z requires knowing your audience. Unlike Boomers, Gen X and Millennials, Gen Z grew up with app-based access to transportation. Ridesharing, bike-sharing, and electric scooters mean Gen Z doesn’t need to own a car. When they do shop for a vehicle, they tend to be thoughtful and budget-minded, focusing on environmental impact.

Here are some factors to consider when selling to Generation Z:

Gen Z values education

According toa survey of over 1,000 people of all ages, 81% of Gen Z shoppers want to take their time and consider all their options. Only 19% said they want to wrap up a deal quickly after they choose their vehicle.

This is different from older generations. For example, 40% of Generation X shoppers and 55% of Baby Boomers prefer a quick deal. Gen Z can be more deliberate, taking time to weigh decisions.

Gen Z is more receptive to help

While only 16% said they value guidance from experts when buying a car, members of Generation Z are far more receptive to help than older generations. For example, only 12% of Millennials value expert guidance. For Generation X, it was 8%; for Baby Boomers, it was just 4%.

Because Gen Z considers car shopping “difficult” compared to previous generations, sales reps should ensure they explain the buying process clearly and be prepared to answer a greater number of questions from Gen Z buyers.

Gen Z buyers visit dealerships

Generation Z is undoubtedly more comfortable with technology than older generations. Importantly, they are not averse to visiting a dealership. 87% said they would buy at a dealership or start online and finish at a dealership.

When asked about their top frustrations at a dealership, additional fees rated number one at 52%. But keeping them waiting on a salesperson was a close second — 45% rated it their top frustration. While reducing the pain around fees may not be easy to solve, reducing the time spent waiting on a sales rep is addressable.

Gen Z doesn’t just buy cheaper vehicles

Cost is important to Generation Z. However, they don’t always shy away from luxury brands. More than any other age group, 39% of Gen Z purchased luxury cars. One shouldn’t assume that a younger buyer isn’t willing or able to complete a deal on a luxury vehicle.

Gen Z doesn’t have to be your blind spot

For continuing support in understanding today’s buyers, sign up to be part of Credit Acceptance’s dealer network. Every enrolled dealer is assigned a Market Area Manager as a long-term business consultant, providing training, tools, and best practices.