Insight of the Day: Gen-Z buyers are spending five times more on their first car
- InsightTrendsWorld
- Feb 13
- 4 min read
Why it is Trending: Gen Z represents the future of car buying, and understanding their preferences and priorities is crucial for automakers and dealerships. This article provides data-driven insights into this key demographic.
Overview: The article, based on Auto Trader research, reveals that Gen Z car buyers are spending significantly more on their first cars than previous generations, prioritizing technology and connectivity over aesthetics, and showing increasing interest in electric vehicles (EVs).
Detailed Findings:
Gen Z spends five times more on their first car (£4,143) compared to 30 years ago (£826).
63% prioritize technology features over looks.
TikTok influences car-buying decisions (11% use it to find their first car).
Parking sensors/cameras, built-in navigation, and heated seats are important tech features.
Popular modifications include LED lights, car fresheners, and phone charger mounts.
28% express interest in buying an EV as their next car.
Chinese EV brands are gaining traction with younger consumers.
Key Takeaway: Gen Z car buyers are tech-focused, influenced by social media, and increasingly open to electric vehicles, representing a significant shift in priorities compared to previous generations.
Main Trend: Technology and connectivity prioritization in car purchasing decisions among Gen Z.
Description of Trend: Younger car buyers are spending more money to get technology integrated into their vehicles.
Consumer Motivation: Desire for seamless integration with their digital lives, convenience, safety features (parking sensors), comfort (heated seats), and a modern driving experience.
Driving Trend: The ubiquity of smartphones and technology in everyday life, the increasing availability of advanced tech features in cars, and the influence of social media on consumer choices.
Motivation Beyond the Trend: A broader desire for convenience, efficiency, and staying connected in all aspects of life, including driving.
Description of Consumers:
Age: 17-25 year olds (Gen Z).
Gender: Not specified, likely applicable to all genders.
Income: Varied, but spending significantly more on their first car than previous generations.
Lifestyle: Digitally native, active on social media (especially TikTok), tech-savvy, value convenience and connectivity.
Conclusions: Gen Z's car-buying preferences represent a significant shift from previous generations, prioritizing technology, connectivity, and increasingly, electric vehicles. This has major implications for the automotive industry.
Implications for Brands:
Automakers need to prioritize technology and connectivity features in their vehicles, even in entry-level models.
Marketing strategies should leverage social media platforms like TikTok.
The growing interest in EVs presents a significant opportunity.
Consideration should be given to the appeal of Chinese EV brands to this demographic.
Implication for Society: May accelerate the adoption of electric vehicles and the integration of technology into transportation.
Implications for Consumers: Greater access to technologically advanced vehicles, potentially at higher price points.
Implication for Future: The automotive industry will continue to evolve to meet the demands of tech-savvy younger generations, with a focus on connectivity, electrification, and digital integration.
Consumer Trend (Name, Detailed Description): Tech-Centric Car Culture: Gen Z prioritizes in-car technology and connectivity features above traditional considerations like aesthetics or engine performance.
Consumer Sub Trend (Name, Detailed Description): TikTok-Driven Auto Decisions: Social media platforms, particularly TikTok, are playing an increasingly significant role in influencing car-buying choices among young consumers.
Big Social Trend (Name, Detailed Description): Digital Integration in All Aspects of Life: The expectation that technology will seamlessly integrate into every aspect of daily life, including transportation.
Worldwide Social Trend (Name, Detailed Description): The Rise of Electric Vehicles: The growing global adoption of electric vehicles, driven by environmental concerns, cost savings, and technological advancements.
Social Drive (Name, Detailed Description): Convenience & Connectivity: A desire for seamless integration between personal technology and the driving experience, prioritizing ease of use and constant access to information and entertainment.
Learnings for Brands to Use in 2025:
Technology is a key differentiator for Gen Z car buyers.
Social media (especially TikTok) is a powerful marketing channel.
EVs are gaining traction with younger consumers.
Affordability remains a significant factor.
Strategy Recommendations for Brands to Follow in 2025:
Prioritize In-Car Tech: Invest in user-friendly infotainment systems, connectivity features, and driver-assistance technologies.
Leverage TikTok Marketing: Create engaging content and partner with influencers to reach Gen Z on the platform.
Promote EV Affordability and Benefits: Highlight the cost savings and environmental advantages of EVs.
Offer Customizable Tech Packages: Allow buyers to choose the specific tech features they want.
Monitor Chinese EV Brands: Understand their appeal to younger consumers and adapt strategies accordingly.
Integrate Social Media: Allow consumers to use social media in car.
Final Sentence (Key Concept): The data on Gen Z car buyers reveals a Tech-Centric Car Culture, driven by Convenience & Connectivity and influenced by TikTok-Driven Auto Decisions, signaling a major shift towards prioritizing in-car technology and a growing interest in electric vehicles.
What Brands & Companies Should Do in 2025: Companies in the automotive industry should develop tech-centric marketing and technology features in their vehicles.
Final Note:
Core Trend: Digitized Driving: The transformation of the car from a primarily mechanical machine to a connected, technology-rich platform, reflecting the digital lifestyles of younger generations.
Core Strategy: Tech-Forward Development: Prioritizing the integration of advanced technology, connectivity features, and user-friendly interfaces in vehicle design and marketing.
Core Industry Trend: The Software-Defined Vehicle: The increasing importance of software and digital services in defining the functionality and value of a car.
Core Consumer Motivation: Seamless Integration: Seeking a driving experience that seamlessly integrates with their digital lives, providing convenience, entertainment, and constant connectivity.
Final Conclusion: The Auto Trader research provides compelling evidence of a fundamental shift in car-buying priorities among Gen Z. This generation, raised in a digitally saturated world, views the car as an extension of their connected lives, prioritizing technology and connectivity above all else. This has profound implications for automakers, who must adapt their product development, marketing strategies, and even their core business models to cater to this tech-centric car culture. The rise of electric vehicles, particularly those from tech-forward Chinese brands, further underscores this trend. The future of the automotive industry will be defined by its ability to meet the digital demands of this new generation of drivers, transforming the car into a seamless, connected, and personalized mobile platform.
