What are Gen Z looking for from their cars?
For every generation, buying their first car is a rite of passage, the first step into the world of car ownership and one that will shape an individual's car owning journey throughout their life.
Perhaps we are romanticising the first car buying experience, but it is certainly a milestone in most people’s lives.
But every generation has a different experience and looks for something different from their first car.
Right now, generation Z or Gen Z (those born after 1996) make up the majority of first-time buyers and, in some newly commissioned research we surveyed 1,000 people currently aged between 17 and 25, and 1,000 47–55-year-olds who were aged 17-25 in 1994. We uncovered what this latest generation of car buyers are looking for from their first car compared to what the older generation prioritised thirty years ago.
Looking for inner beauty
Our research found that Gen Z prioritise the car’s gadgets and tech over its exterior looks, with nearly two thirds (63%) of drivers aged between 17-25 stating that the technological features are more important to them than what it looks like.
This is in stark contrast to those who were buying their first car in the mid-nineties, with just under a quarter of 47–55-year-olds today, stating that they prioritised a cars’ array of gadgets in their search.
But whilst Gen Z has different priorities for older car buying generations, some things transcend generations. Insurance and running costs remain key considerations, with 52% or Gen Z drivers highlighting insurance as a key factor and 46% pointing to running costs.
But having newer technologies, that were unavailable in the nineties, are also key considerations for current first-time buyers. Parking sensors or cameras, which can be seen as an expensive feature, were reported as a key consideration for 16% of young drivers in their car search with other innovative tech features including built in navigation (14%), and heated seats (12%) inside the car being important to Gen Z.
One of the key drivers for this tech trend is social media. With a 22,300% increase in dash cam interest on TikTok and a 321% rise in car accessories searches, over the last four months, young drivers are turning to the platform to inspire purchase decisions. Around one in ten (11%) even use TikTok to help them find their first car—highlighting its growing influence in the car-buying journey.
Similar cars, different aspirations
Despite the differences in what first-time buyers from different generations are looking for from their first cars, the types of first cars these generations choose as their first cars remain the same. A comparison between first-time buyers in the 90s and Gen Z buyers shows an enduring popularity for the humble hatchback, with the Ford Fiesta coming on top as the most owned first car for both the current generation of 17–25-year-olds and those in that age around 30 years ago.
However, the price paid by young drivers for their first car differed hugely between the two generations as young drivers back in the mid-nineties only paid on average £826 whereas young drivers today have forked out on average £4143.
But, whilst the types of cars they started with are very similar, Gen Z do aspire to own different cars to older generations. Whilst just 7% of younger drivers currently drive an EV, 28% have expressed their desire to buy an electric vehicle as their next car. Nearly a third (32%) of these would consider buying one as they believe they are better for the environment, whilst 31% would purchase an electric vehicle because of the cost of ownership savings it offers.
Our latest edition of the Road to 2030 report also revealed how high-tech Chinese electric car brands are winning over younger UK consumers. Chinese brands like BYD, GWM, and Omoda are seeing some success in the UK market with four in ten UK consumers willing to consider a Chinese car brand. However, it is younger drivers who are the most open to these new entrant brands, with 57% of 17–34-year-olds drawn to these brands due to their affordability and prevalence of hi-tech features.