Auto

Studies show that Gen Z doesn’t like buying cars

Young drivers are reportedly experiencing it in dealership experience, and Gen Z is even more deprived of rights than Millennials. It’s hard to imagine that people who visited the showroom within the last 12 months have shown other reactions. Incentives are down, The price is rising, And there is a good chance that you won’t have a lot of anything you want to buy anyway. Those who say they have had an exemplary dealer experience are becoming as common as those who claim to enjoy going to the DMV.

However, CDK Global Inc. chose to conduct the survey in the hope of determining how tolerant young shoppers are tolerant compared to the older generation. Takeaway probably won’t shock you, even if the huge amount of first-time buyers who don’t care about dealers may be.

the study, Released on Thursday Then shared by Automotive NewsSurveyed 1,100 recent car buyers in December 2021 and analyzed their preferences and difficulties during the car buying process. The results were categorized by age. CDK categorizes Gen Z as car buyers aged 18-25, Millennials aged 25-40, Generation X aged 40-55, and Baby Boomers aged 56 and over.

from AN:

According to CDK, 81% of Gen Z members take the time to buy a car, compared to 73% for Millennials, 60% for X, and 45% for Baby Boomers. It was to consider all the options. Studies show that Gen Z members find it harder to buy a car online than older generations.

Brendan Dougherty, CDK’s product marketing director, attributed this trend to 56% of Gen Z respondents saying they were buying their first car at CDK.

“For most of these consumers, this is their first major purchase, and due to the complexity of car trading, some that they can do more online than they can actually do. Has the assumption of “Dougherty” Automotive News..

According to the survey, luxury cars are also popular among Gen Z, with 39% of buyers buying luxury cars, compared to 27% of Gen X buyers and 12% of baby boomers.

This is pretty interesting, as we know that millennials today hold almost 7% of the country’s wealth. In contrast, Boomers held 22 percent of national wealth at the same age, based on data provided by the Federal Reserve. Given that this trend is estimated to grow over time, Gen Z is likely to be in a worse financial position. Needless to say, you will have less time to finance on the planet. However, it is a well-known fact that many people buy cars far beyond the price range.

Your author would argue that most of today’s luxury cars don’t really offer the proverbial value of the past, but marketing still cuts them down over mainstream peers. And loan terms have expanded to some extent It’s not uncommon to see People who pay off their cars for at least 70 months..Another possible explanation is Currently, the majority of young adults (ages 18-29) live at home with their parents., Even if they were hired competently. By avoiding rent and mortgage payments, a subset of Gen Z may simply have more disposable income and chose to invest that money in the premium mark.

Anyway, the big point from this study is that Gen Z doesn’t seem to really like the process needed to get into a new car, and it’s possible to own a car, whether fancy or humble. Was much lower. Almost half (45%) of Gen Z respondents are dissatisfied with CDKs having to wait for a salesperson to go to a store and are least likely to recommend a store to friends and family. He said he was in the age group. The group also wanted a comprehensive understanding of the options for older people and spent more time in the week before making the final decision.

“”[Gen Z] They said they wanted someone to help and take the time, but they still valued speed, “Dougherty explained.

CDKs basically exist to find ways to make money in the automotive sector and often work directly with dealers. Therefore, there is reason to think that the investigation is not another attempt to undermine the dealer model and allow automakers to start selling directly. Joe Tuutges, Chief Operating Officer of CDK Global, allows dealers to benefit from streamlining the purchasing process while spending additional time working directly with customers to understand features while meeting specific needs. Suggested that there is sex. However, the company is also working with manufacturers that appear to be selling directly, so take all of the above with a grain of salt.

There are many factors to consider here. The younger generation does not suffer the wealth that their parents did at the same stage of their lives, so large purchases have more impact on them. This is already seen as the housing market has been exorbitantly high since 2006. The number of lessors living in the United States continued to grow while home ownership was relatively stagnant.

Similarly, vehicles have consumed significantly more cash over the last two years, forcing some people to spend more on affordable vehicles rather than what they really wanted. With this alone, Gen Z is less tolerant of visiting dealers and can spend more time browsing the car. This problem can be exacerbated by the current situation, where options are relatively limited and quarrels are almost gone. window.

Ultimately, these types of studies feel very familiar to the studies we’ve seen over the years, citing millennials buying fewer cars than their parents. I am. We are now more advanced, and the average American has less financial freedom than before. The obvious solution is to put more money in the pockets of the general public to provide a healthier and more stable car market. It tells me that the days when something can overcharge my customers are nearing the end. But historically, it was much easier to talk about fixing a broken market than to actually get the job done.

[Image: Gretchen Gunda Enger/Shutterstock]

Become a TTAC insider.The latest news, features, TTAC takes, and everything else to get to the truth about the car first Subscribe to the newsletter..



Studies show that Gen Z doesn't like buying cars

Source link Studies show that Gen Z doesn't like buying cars

Back to top button