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Having grown up in the age of the internet and technology, online shopping is second nature to Generation Z.
According to the survey, one-third (32%) of Generation Z consumers shop online at least once a day data From marketing company Tinuiti.
However, 80% of Gen Z drivers prefer to purchase a car in person.According to a recent survey, only 9% of people prefer to do it online Report Cars.com defines Gen Z adults as those between the ages of 18 and 28.
“When we’re talking about them completing the transaction in person, it means they’ve done extensive research online,” said Rebecca Lindland, senior director of industry data and insights at Cars.com. “There are a lot of benefits to going in person to complete the transaction.”
The Cars.com survey was conducted from August to September and included 4,000 participants, evenly divided across four generations. Baby boomers are the only generation more likely than Gen Z to purchase a car in person (89%), while Millennials are the most likely to prefer to buy online (16%).
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Affordability is important for Gen Z adults, who face many challenges as they enter early adulthood and enter the workforce. In addition to student loan debt, they face high housing costs and lower wages.
Buying a car in person allows you to test drive the vehicle. It can also help you negotiate with dealers, who may be inclined to offer discounts at the point of sale.
“Besides a home or a home, a car is typically the next biggest transaction that people make. Any time you can get that number down is a good thing,” said Paul Waatti, industry analyst at market research firm Auto Pacific.
Car prices expected to stabilize in 2024
While the cost of new cars remains generally higher, prices are starting to cool as inventory builds and dealers offer incentives.
According to data, the average transaction price of a new car in the United States in December was $48,759. data From Cox Automotive Kelley Blue Book. Although it increased by 1.3% from the previous month, it fell by 2.4% from the same period last year.
Used car prices are also expected to stabilize by the end of 2024. The average listing price of a used car last month was $26,091, down 3.9% year over year.
In fact, “the transition from a seller’s market to a buyer’s market is well underway,” Cox Automotive executive analyst Michelle Krebs said in a statement.
While only 25% of Gen Z drivers finance their cars through a dealer, according to Cars.com, they can use market shifts to their advantage.
“Gen Z doesn’t get credit for how savvy they actually are,” Vaty said. The percentage using dealer financing shows they are undervalued.
Financing yourself ‘is usually a better deal’
Check before going to the dealer direct loan From a bank or credit union. If you go to a dealership in person, it’s crucial to shop around for a car loan because you don’t have to rely on dealer financing. You’ll learn what outside financing and payment options you qualify for when you show up.
“It’s usually better to try to finance it yourself than to go into a dealership and take what they offer,” Varty said.
Even if you’re still willing to accept the dealer’s offer, be sure to secure pre-approved financing. “Having options is really key when it comes to trading,” he added.
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