Like Millennials before them, Gen Z (born between 1997 and 2012) has some thoughts on owning a car, and in case it wasn’t obvious, they’re in no rush to get behind the wheel. MarketCast’s latest research found that 38% of Gen Zers don’t even have a driver’s license. While the reasons are aplenty here’s a breakdown to help auto researchers and marketers better understand what Gen Z is thinking as they enter this next purchasing phase of their lives.
This study included more than 1,600 survey respondents, as well as in-person discussion groups and social media research, with the aim of understanding generational attitudes towards driving, auto brands, and car purchasing.
Behind the Numbers
Given today’s economic climate, affordability is Gen Z’s biggest challenge. Fifty one percent say their top barrier to ownership is that they can’t afford it where they are in their lives presently. And who can blame them given interest rates, ongoing supply chain issues, and the industry’s shift to high-margin vehicles?
But cost isn’t the only thing on Gen Z’s mind. We’re seeing a generational shift in mindset that OEMs should heed now as they think about how to reach them.
But There’s Hope
Gen Z may not be able to afford a car now, but they do have their sights set on owning a vehicle a little further down the line. In fact, 58% of Gen Zers surveyed say they’ll likely buy their dream vehicle in the future. But that’s not all.
While affordability may be top of mind now and used vehicles more attainable and appealing as a result, there is an anticipated change with Gen Z in just a few years’ time.
What’s Next?
Knowing what Gen Z thinks about their relationship to vehicles now, what kind of car buyer is this generation expected to become? Check back soon for Part 2 of our Automotive Fandom Report where we dive deeper into Gen Z auto buying trends.
In the meantime, contact MarketCast directly to get a full readout of the report.