Generation Z

Generation Z: High purchasing power, which retailers are not able to attract enough

By Tomaž Kavčič


Do you know Generation Z? Even if not, you’ve probably heard of it many times. The generation born in the years 1997-2012 is the subject of numerous researches and studies. It also represents the generation of future consumers and those who are just entering the consumer market.

According to experts, a member of Generation Z is defined as a person who needs instant gratification, a flawless online shopping experience through social media and, above all, immediate communication through these networks.

But a recent study by CDK Global, which looked at Generation Z primarily through car purchases, found that the assumptions about this generation, which are stated above, are not necessarily true.

CDK asked more than 1,100 buyers of all ages who had recently purchased a vehicle about their car buying experience. It turned out that respondents from Generation Z spent the most time weighing decisions. Even more important is the fact that the experience of buying a car is more frustrating for the “Z” group than for any other group, and that they are the least likely to recommend the dealer from whom they bought the vehicle to others.

At this point, many car dealers might say, “why bother with Gen Z?” The answer is quite easy. The purchasing power of Generation Z is increasing year by year. According to a recent Bloomberg report, young students and professionals in this group have $360 billion in disposable income. Research also shows that they are more than 10% more interested in purchasing prestigious brands than any other generation.

This is precisely why it is wise for any vehicle dealer to figure out how to approach this generation. This is especially important today, when you are selling your entire inventory to retailers and consumer loyalty is pushed aside. But we all know that this period will end sooner or later and that thinking “they will come and buy a car themselves” will soon no longer be enough.

A seller who can establish a relationship with Generation Z consumers, nurture a one-on-one relationship with them through social networks and offer them exactly what they are looking for, is almost guaranteed with long-term success.

In the following, we offer you some solutions with which you will draw the attention of buyers from Generation Z to you.

Take your time and answer each of their questions

81% of Gen Z respondents said they want to consider various aspects of a car and other options before actually buying one.

Although answering their questions online may take a lot of your time, it is wise to take the time for them and answer anything they are interested in. It is also very important that you answer them as soon as you can. Generation Z spends their entire lives on social networks, they practically grew up with them and know them better than any other generation. If they wait too long for your answer, they will seek answers from another merchant who will quickly take the time to answer them.

Will they be able to find you?

Precisely because Generation Z mainly stays on social networks and searches for everything online, it is important that you are there too. Check if Generation Z can even find you. A prerequisite for this is a website and profiles on various social networks. For Generation Z, even Facebook is no longer enough, as they are on TikTok and Instagram. We are also very dedicated to this in our digital marketing project DigiBrief, with which we take care of building the digital infrastructure of dealers on social networks and setting up websites. If you are interested to learn more of this, you can find information here.

The presentation of your vehicles is also very important. Will Generation Z get the information they need on your website and social media? Are your photos attractive? Do you offer videos that show the vehicle inside and out? Are you advertising online? These are just the initial questions you should ask yourself to get their attention. If you want an offer that already contains all of this, you can receive it by clicking on this link.

Simplify their processes

Because of everything digital that surrounds us, it is difficult for young people today to understand that something lasts a long time. The complexity of the process always surprises them, and it is not uncommon for them to withdraw from the purchase. So try to make things easier for them and surprise them in this way. Offer them a test drive that they can book with one click, or describe in advance the process required to buy a car. It is even better if you publish it transparently on the website.

Above all, do not hide their costs until the moment just before the purchase. The research above shows that it is not as big a problem for members of Generation Z as it was for their parents, and the additional costs that they did not know about can scare them away.

Finally, just the thought that you won’t win Gen Z’s loyalty by trying to force them to play by the old rules. The game has changed, and Generation Z is aware of it. That is why they can get excited about a purchase just as quickly as they can withdraw from it.

But all research shows that the effort with representatives of this generation is very worthwhile for the trader, both in the short and long term. We also offer help on how to achieve this through the campaign below.

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