4 Min ReadJuly 7, 2022

Gen Z Shoppers Should Not Be Stereotyped

Gen Z Shoppers Should Not Be Stereotyped

Gen Z Buyers Approach Car Buying Differently Than Expected

Born between 1997 and 2012, Gen Z is the latest generation of Americans to enter the workforce. And they will need to look to the new and used car market to get to work. Even today, 76% of commuters use their own vehicle to get to work.

Despite the stereotypes of impulsive decision making and constant scrolling, Gen Z refuses to be pigeonholed when it comes to car buying.

In our Friction Point survey, we asked more than 1,100 people of all ages, including Gen Z shoppers, about their car buying experience. While there were many universal truths found, we uncovered some unique traits of the Gen Z shopper and decided to dig deeper into the data with a new report.

Thoughtful and Careful

These new results show that Gen Z adults are more thoughtful and spend more time weighing decisions before diving into a major purchase such as a vehicle compared to previous generations.

Unlike buying a smartphone that has only a few choices for options, a new car purchase consists of multiple decisions. It's not just the make and model either. Everything from the powertrain, trim level and standalone options can send a buyer into mental overload.

Even deciding the right amount for a down payment can be overwhelming. The myriad of choices available to the new buyer points to why 81% of Gen Zers said they wanted to take their time to understand all their options before signing on the dotted line.

81% want to take their time

The relationship between customer and dealer becomes even more important to this group.

 

Dealers who are deeply knowledgeable about the vehicles on their lot will prove to be invaluable to the Gen Z buyer. Dealership websites focusing on consumer education with comparison options and different selections will cultivate younger buyers as part of their customer base.

Gathering Info From Everywhere

More than any other generation, Gen Zers prefer an omnichannel shopping experience.

Unlike their predecessors, Gen Zers explore shopping websites (51%), social media (47%), friends and relatives (45%), and physical stores (44%) when looking for purchasing inspiration, according to a study by Survey Monkey.

To make an impact on Gen Z, dealers and OEMs should provide information through multiple touchpoints – such as social media, website and personal contact — along their journey.

Frustration Mounts

More than any other age group, this generation finds the car-buying process more difficult. Regardless of the channel, online or in-store, Gen Z shoppers are challenged by it all.

While they may be digital natives, they had far more issues buying online than their older connected cohorts: millennials and Gen Xers. 45% of them listed waiting on a salesperson as the most frustrating part of buying a car. Additional fees came in at a close second.

45% said waiting on salesperson most frustrating

For these new shoppers, 56% of whom are buying their very first car, education is key. This is where a trusted and reliable salesperson, ready to educate and inform, becomes vital.

 

While Gen Z will spend time researching early in the buying process to understand all of their options, they’re much more frustrated by being bounced around and having to complete redundant tasks than boomers. Sales process enhancements using artificial intelligence (AI) and machine learning (ML) that auto-populate information throughout all departments will ease this sort of unnecessary frustration.

There’s Difficulty in Building Loyalty With Gen Z

Even with all of that hard work in building trust and retention, Gen Zers are least likely to recommend their dealership experience. Dealers will have to up their game if they’re going to earn the word-of-mouth seal of approval from this group.

Gen Z least likely to recommend their experience

Given that Gen Z can be more critical of their on-site experience, representatives must pack their patience and be ready for these shoppers to ask more questions than other customers. Thoroughly explaining the car-buying experience and employing consumer-focused, efficient technology will help strengthen that opportunity to build loyalty.

 

Gen Z tends to be more skeptical of the dealership experience and may need more time to understand their options. By addressing this group’s need for a knowledgeable expert, we can better respond and further reduce friction points such as numerous options and additional fees.

Guiding Towards a Great Experience

As our study shows, Gen Z may be brand-educated, but they’re not car purchasing experts — yet. By connecting them with knowledgeable representatives, providing detailed vehicle information through multichannel marketing, and minimizing inefficiencies, you can turn these young buyers into long-term customers.

Share This

CDK Global
By CDK Global
Staff

Recent Insights

How Generations Like to Buy Electric Vehicles. Online versus In Person.

How Generations Like To Buy EVs: Online vs. In Person

Today, the automotive retail landscape is evolving at an unprecedented pace, with vehicle technology, consumer preference and politics playing crucial...
3 Min ReadJul 17CDK Global
Dealerships Should Always Approach Electric Vehicle Sales Differently.

Dealerships Should Always Approach EV Sales Differently

Today, there may be an elevated interest in electric vehicles as incentives are set to expire on Oct. 1. But...
4 Min ReadJul 14CDK Global
The Race Is On for Used electric vehicles.

The Race Is On for Used EVs

New federal tax guidelines in the One Big Beautiful Bill Act eliminate both the new and used electric vehicle tax...
3 Min ReadJul 10CDK Global
Car Shoppers’ Aversion to Sharing Their Info Online.

Car Shoppers’ Aversion to Sharing Their Info Online

While it’s no surprise car buyers want to test-drive a vehicle in person, it’s surprising how few are willing to...
3 Min ReadJul 8CDK Global
C D K Foundations Suite. The Core of a Connected Dealership.

CDK Foundations Suite: The Core of a Connected Dealership

In This ArticleWhat’s the CDK Foundations Suite?Core CapabilitiesWho’s the Right Fit for the Foundations Suite? What’s New in the Foundations Suite?How...
4 Min ReadJul 2CDK Global
Dig Deeper Into Your Fixed Ops Digital Toolbox.

Dig Deeper Into Your Fixed Ops Digital Toolbox

Vehicle technology has evolved from mechanical systems to software-driven machines. Today’s vehicles run on sensors, diagnostics and over-the-air updates. Maintenance...
3 Min ReadJul 1Lindsey D. Bona
Car Buyer Satisfaction Tanks in June

Car Buyer Satisfaction Tanks in June

CDK’s three years of tracking car shoppers’ opinions on the purchase process has never seen a monthly drop as large...
3 Min ReadJun 26David Thomas
How Car Dealership Photography Can Maximize Vehicle Sales.

How Car Dealership Photography Can Maximize Vehicle Sales

Gone are the days of grainy newspaper classifieds. CDK data shows that nearly 90% of shoppers are enticed to start...
3 Min ReadJun 18CDK Global
Road Tripping and Overcoming EV Range Anxiety.

Road Tripping and Overcoming EV Range Anxiety

With electric vehicles inching closer and closer to price parity with gas-powered and hybrid vehicles, interest in EVs has skyrocketed....
4 Min ReadJun 13CDK Global
Don’t Flub the Dealership Test Drive.

Why Dealerships Can't Afford To Flub the Test Drive

Nearly everyone who buys a car takes it for a test drive before they close the deal, 91% of all car...
2 Min ReadJun 11CDK Global