New Study Suggests Gen Z is More Interested in Driving Than Gen Y

A new study conducted by Cox Automotive suggests that Generation Z car shoppers will be much different from the Millennial generation that came before them. Research by both outlets indicates that Generation Z will be more careful with their money and be more sensible even if they have ample funds.

According to Isabelle Helms, vice president of research and market intelligence for Cox Automotive, the parent company of AutoTrader and Kelley Blue Book, Generation Z accounts for 23 percent of the population today, and by 2020 they will “translate to $3.2 trillion in purchasing power, which is larger than the GDP of some small countries.” Even though they live in a world shaped by technology, major events such as the 2008 Market Crash means Generation Z will have a different outlook from Millennials when it comes to cars.

Some of the key highlights include the fact that Generation Z wants to own and drive cars, with 92 percent planning to own a vehicle and 97 percent wanting to get a driver’s license. The study also points out that unlike Millennials, members of the Generation Z population look forward to driving because it makes them feel free, responsible, and excited. Of those who took part in the survey, 29 percent said a car represents freedom and 21 percent said convenience, while 6 percent said it’s not a reflection of who they are. Additionally, Generation Z is also willing to give up more to drive including social media, new clothes, or their mobile phones.

According to the study, Generation Z isn’t particularly environmentally conscious, with 43 percent believing environmentally friendly vehicles are more about saving gas than saving the planet. The study also highlights the fact that Generation Z is more practical, placing a high importance on safety over infotainment systems. While they find self-driving vehicles appealing, 61 percent of those surveyed say they will lead to safer roads while 41 percent said that there would be less accidents. However, 65 percent said that they don’t have much trust in autonomous driving technology and another 41 percent stated that autonomous cars won’t drive as well as people, preferring minimal intervention from onboard systems.

Buying habits among member of Generation Z are also different in that they value face-to-face interaction more than Millennials. Only 26 percent of those surveyed said they would buy a car online while 68 percent stressed the importance of face-to-face interaction. Additionally, test drives are crucial for Generation Z buyers, with 52 percent saying they need to try a car two or more times before making a decision.

“What worked for Millennials will not work for Generation Z because some of the defining traits of Millennials don’t hold true for the next generation of car shoppers,” said Helms. “The best news from this research is that auto sales are not going to take a hit because of this generation. In fact, it may prove to be quite the opposite.  Their love for cars and driving is very much alive.”

The study goes on to point out that automakers and dealers should focus on appealing to the practical side of Generation Z buyers by “highlighting cost savings of environmentally friendly vehicles and touting safety features.” Additionally, an enjoyable shopping experience is also key due to Generation Z buyers placing high importance on face-to-face interactions. Helms suggest that preparing for the next generation of car buyers in advance and understanding what makes them unique will help bring success for automakers and dealers.

Source: Cox Enterprises

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