Gen Z Service Customers Are Shaping Up To Be the Most Loyal Generation

Generation Z, born between 1997 and 2012, is growing into a powerful customer base for dealerships. Despite many of them being relatively early in their ownership journey, they're already forming strong habits around dealership service. In a market where consumer loyalty is harder than ever to secure, this generation is emerging as the most dependable returning customers dealerships have seen in years. 

CDK's latest Service Shopper 5.0 study provides a clear picture of how Gen Z approaches vehicle care, and the results point to a major opportunity for dealers ready to engage them. 

Loyalty Starts Early if You Earn It

Traditionally, loyalty develops over time. Customers purchase a car, visit the dealership a few times, and eventually form a habit of either returning or drifting away. Gen Z isn't waiting. In CDK's survey, nearly all Gen Z customers (94%) said they've returned to the dealership where they purchased their vehicle for service, and 81% say they expect to continue servicing their car there going forward. 

However, early loyalty doesn't mean it's guaranteed. Of course, it's great that Gen Z's loyalty doesn't require years to build, but now first impressions matter more than ever. If their first few service experiences don't meet their expectations, they'll explore alternatives. This generation doesn't need to be convinced that dealerships are the right place for service. They just need proof that this choice demonstrates value from day one. 

Recalls Present Trust-Building Opportunities

A persistent challenge in Service departments is recall conversions. Notices go out, customers procrastinate and appointments slip away. But Gen Z behaves differently. Nearly half addressed a recall in the last six months, more than any other generation. Additionally, 40% said they had additional service performed while they were there for a recall. 

This makes Gen Z your most receptive recall audience. Dealerships that’ve built strong Gen Z relationships use recall visits as trust-building opportunities, like introducing them to the Technician doing their repair and educating them about the process. This will leave them feeling like you're invested in their vehicle, not just their invoice. 

High Investments, Higher Anxiety

Despite still establishing their income, Gen Z actually spends more on service than other generations. In fact, CDK found that they spend nearly $700 more annually than baby boomers. They're also the most likely generation to budget, with 47% of Gen Z respondents reporting they expect to spend over $1,000 on repairs in 2025. This shows they understand the value of professional care and are motivated to keep their vehicles reliable. However, even though they're willing to spend, Gen Z also expresses significant cost anxiety. Sixty percent of the Gen Zers who ignored recalls said they did so out of fear of additional unexpected costs. 

Education and transparency drive this generation’s service spending decisions. Technicians who take the time to explain why a repair matters, what happens if they skip it, and how it protects their investment will win Gen Z over. Explaining repairs through a maintenance timeline of what's needed today, what they should do in the next six months, and what can wait until next year helps them feel more in control of their budget and time. They're not opposed to spending on maintenance, but they need to trust you're not inflating the bill or pushing unnecessary work. 

Additionally, this generation is the most tech-forward. They're likely utilizing the OEM app for their vehicle and getting push notifications and maintenance reminders. Stick with the OEM schedule or explain why their car needs maintenance outside of the schedule so they’ll keep you in mind. 

Loyalty Programs Work Best When Simple

Gen Z actively seeks out loyalty programs more than any other generation, with nine out of 10 Gen Z shoppers expressing interest. They prefer simple, straightforward incentives that acknowledge their repeat business, particularly around scheduled maintenance and tire rotations. 

Points systems with complex tiers and rules will lose them. They prefer programs like "buy three oil changes, get one free" or "$50 off your next service." Additionally, Gen Z notices when dealerships personalize offers based on their service history. Take the time to send targeted discounts based on what their vehicle is due so they understand it’s a worthwhile investment.

What Gen Z Expects From Dealership Service

Gen Z is remarkably satisfied with service turnaround. Only 1% said that service took longer than expected, the lowest complaint rate of all generations. Even more impressive, 51% said service was faster than they anticipated, again, more than any other generation by far. 

They also don’t have unrealistic expectations about service times, and they prefer Technicians who are honest. Accurate time estimates set clear expectations, and clear expectations build trust. Overpromising is far riskier than complete transparency. If a repair needs to wait for parts and will take two days, they'd rather know upfront so they can plan accordingly than feel misled. 

Today’s Service Shapes Tomorrow’s Sales

The most powerful insight from the study may be this: Gen Z overwhelmingly expects to purchase their next vehicle from the same dealership. Ninety-two percent say they're likely to return when the time comes. Every quality Service interaction today lays the groundwork for long-term purchase decisions. 

You don't have to convince Gen Z to trust you. They already do. In return, they expect transparency, reliability and respect for their time. The dealerships that excel at these fundamentals will earn Gen Z's loyalty for years to come.