3 Min ReadMarch 18, 2024

What Does Gen Z Want in F&I Products?

What Does Gen Z Want in F and I products?

Generation Z is coming of age and beginning to slide into the driver’s seat. While this generation follows those that precede them in prioritizing price as the biggest motivator for what car to buy, they follow their own path when it comes to protecting this very large purchase. And that difference can influence how F&I Managers provide value to these young buyers.

In a recent survey, CDK asked over 1,200 car buyers how many and what F&I products they purchased. Gen Z collectively bought one to two products, but they didn’t buy what you may expect.

For example, few bought scheduled maintenance, a product that makes sense for young vehicle owners who may not have cash on hand and can instead wrap the cost of future service bills into a financing package.

Instead, Gen Z collectively purchased products to guard against crime. Nearly four out of 10, 37%, bought a security system, while 34% purchased theft protection. These selections outpaced most of their generational counterparts from Millennials to Boomers.

Warranty post-sale products purchased by age.

Gen Z, often considered to be born in the late 1990s and early 2000s, was in line to inherit a strong economy with record-low employment. Then COVID-19 hit. Instead of looking ahead to a world of opportunities, Gen Z now peers into an uncertain future marked by stubborn inflation, multiple wars and an increase in crime rates tied to the pandemic.

Despite the fact that many crime rates are returning to pre-pandemic levels, a new study from the Council on Criminal Justice reports motor vehicle thefts increased 29% in 2023, and have increased by 105% since before the pandemic. Much of that increase is likely driven by thefts of Kias and Hyundais, which were targeted after viral videos pointed out security flaws that made certain models easy to start without a key fob.

The same study reported a decrease in carjackings by 5% from 2022 to 2023, but that rate is still much higher than before the pandemic. Experts point out that they don’t have a lot of data on carjackings as historically those haven’t been tracked as a stand-alone crime. But due to high visibility in the media, there may be a perception that this crime is out of control across the nation.

Some cities have a real and significant problem with vehicle crimes but Gen Z, who spend more time using social media overall than any other generation, may see and read more about these crimes and perceive more danger. At the same time, Gen Z is flocking to the five largest U.S. cities, which have more crime, and vehicle theft overall, likely influencing their decision to buy theft protection products.

Update Your F&I Selling Techniques for Gen Z

With average car prices still historically high and elevated interest rates pushing them even higher, Gen Z buyers are smart to want to protect this large investment from theft. F&I Managers eager to address the concerns of younger buyers would do well to highlight anti-theft and security products early in their F&I presentations.

However, be wary of overwhelming buyers with too many products in an effort to pump up profits and performance metrics. CDK found that when buyers are presented with one to two products by the F&I Manager, nearly half, 49%, of buyers purchased those products. That number dropped steeply as more products were introduced, bottoming out at only 1% purchasing more than six products when that number was presented.

The sweet spot for Gen Z was one to two products, so it makes sense to highlight security and theft protection first to appeal to what younger buyers value and want today.

Share This

Jason Swiech
By Jason Swiech
Product Marketing Manager

Jason is the F&I Product Marketing Manager for CDK Global’s Modern Retail portfolio, orchestrating the launch of multiple solutions to help dealers meet the needs of customers in this ever changing market.  This includes the signing experience as well as the processes to move the F&I office into a fully digital workflow. He is responsible for the coordination between CDK customers and our product teams to improve the F&I experience for both dealers and car shoppers.

Recent Insights

Three Ways Dealers Use Automotive Inventory Management Software.

3 Ways Dealers Use Automotive Inventory Management Software

Not too long ago, CDK conducted an informal survey of dealerships to see what inventory concerns plague them most. Some...
4 Min ReadJul 30CDK Global
How COVID 19 Strategies Can Help Dealers Pivot in 2025.

How COVID-19 Strategies Can Help Dealers Pivot in 2025

If the word of the year in 2020 was unprecedented, the word of 2025 may very well be tariff. Tariffs...
3 Min ReadJul 28CDK Global
The Evolving Role of the E V Salesperson in 2025.

The Evolving Role of the EV Salesperson in 2025

According to CDK data, vehicle satisfaction declined as electric vehicle buyers shifted from innovators and early adopters to the early...
4 Min ReadJul 23CDK Global
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