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Bringing Gen Z Into The Dealership: Strategies To Appeal To Young Buyers

As Generation Z enters the workforce and gains buying power, car dealerships have a unique opportunity to engage with this new generation of consumers. Born between the late 1990s and early 2010s, Gen Z is digital-first, environmentally conscious, and values both convenience and transparency. For dealerships, adapting finance strategies to meet Gen Z’s expectations is key to capturing their interest and building long-term customer relationships. Here’s how dealerships can tailor their financing options and digital experiences to welcome Gen Z buyers.

Post its placed on a wall, with one showing 'Gen Z' on it.

Understanding Gen Z: Why Their Needs Are Different

Gen Z is unlike any previous generation when it comes to spending habits. They grew up with instant access to information, high digital engagement, and a strong focus on sustainability. According to recent studies, Gen Z is more likely than older generations to delay car purchases, partly due to concerns about affordability and environmental impact​. But as more of this generation enters the market, they’re looking for options that align with their unique values, lifestyle, and financial situation.

“Gen Z car buyers aren’t just looking for a mode of transportation,” says Sarah Blewett, head of research at Carwow. “They want a vehicle that aligns with their values – whether that’s sustainability, technology, or cost-efficiency.” For dealerships, this means creating a buying experience that reflects these priorities, from financing options to in-store interactions.

Finance Options That Appeal to Budget-Conscious Buyers

Affordability is a key factor for Gen Z. Many of them are just starting their careers and may have limited credit history. To make financing more accessible, dealerships can offer tailored finance plans that meet the needs of this younger demographic:

  1. Flexible Payment Terms: Offer financing options with low monthly payments, shorter loan terms, and deferred payment start dates. This can make car ownership more attainable for younger buyers who are managing student loans or entering entry-level roles.
  2. Lower Down Payments: Providing financing plans that require a minimal down payment can ease the initial financial burden for Gen Z buyers. This flexibility is particularly appealing to those who might not yet have significant savings.
  3. Non-Prime Financing Options: With limited or no credit history, many Gen Z buyers may not qualify for prime financing. Marsh Finance specialises in non-prime finance options, including non-prime PCP car finance. We make it possible for dealerships to offer competitive terms to this growing segment, without compromising on quality. Want to tap into near-prime market? Get in touch with us today to learn more.
A red model car sat on stacks of coins.

Subscription And Lease Options For Short-Term Commitment

Unlike previous generations, Gen Z is comfortable with the concept of “access over ownership.” Monthly car subscriptions and lease options align well with this preference, allowing younger buyers to drive a vehicle without the long-term commitment of traditional ownership. These options provide flexibility, allowing Gen Z to change vehicles as their needs and lifestyles evolve. By offering easy access to car subscriptions or lease programmes, dealerships can position themselves as responsive to the values of today’s younger consumers.

Subscription and lease options are particularly attractive for Gen Z buyers looking to transition to electric vehicles (EVs), which require less commitment and let them “try out” an EV without a major financial investment. EV subscriptions also allow dealerships to showcase cutting-edge models, such as electric and hybrid vehicles, appealing to Gen Z’s interest in sustainable, eco-friendly options.

The Role Of Digital Conveniences: Seamless, Tech-Friendly Financing

To engage Gen Z, the car-buying experience must be as digital-friendly and seamless as possible. From pre-approval to paperwork, they expect everything to be available online. Recent studies reveal that nearly all (94%) of car buyers in the Gen Z demographic expect a “connected and simple” process across online and in-store experiences​.

Here’s how dealerships can meet those expectations:

  1. Online Pre-Approval And Virtual Paperwork: Gen Z wants to research, get pre-approved, and complete as much of the financing process as possible online before they ever set foot in a dealership. Offering online pre-approval and digital paperwork not only saves time but also provides transparency, helping buyers feel more confident about their decisions.
  2. Transparent, Easy-To-Understand Financing Terms: The digital finance process must be simple and clear. Gen Z expects transparency in loan terms, fees, and interest rates. By providing upfront, straightforward information, dealerships can build trust and reduce the chance of confusion or dissatisfaction later in the process.
  3. Mobile-Friendly Solutions: Since Gen Z relies on smartphones for nearly all online activities, ensuring that every step of the financing process is mobile-friendly is essential. From mobile pre-approval forms to responsive chat support, dealerships can enhance convenience and accessibility through a fully mobile-compatible experience.
Hands gently holding a piece of cardboard with the word 'Trust' written on it, symbolising care, reliability, and the importance of building trust.

Building Trust Through Digital Engagement And Sustainability

For Gen Z, brand trust is critical. They look for brands that align with their values, particularly around transparency and sustainability. Dealerships can build credibility with Gen Z buyers by:

  1. Showcasing Sustainable Financing Options: Highlight any eco-friendly vehicles, hybrid or EV financing options, or any incentives for green purchases. Transparency about eco-friendly offerings and energy-efficient options can build rapport with buyers who prioritise environmental impact.
  2. Engaging In Social Media And Digital Marketing: Gen Z spends a considerable amount of time on social media, so dealerships should use these channels to build brand awareness and trust. Sharing customer testimonials, educational content on financing, and videos about dealership offerings on platforms like Instagram and TikTok can help dealerships engage directly with younger buyers.
  3. Offering Transparent Trade-In Valuations: For many younger buyers, a trade-in might be their first step toward affording a new car. Providing an easy and transparent online trade-in valuation tool can help Gen Z feel confident in their choice, as they’re likely to research trade-in values and expect a fair, accurate price.

Investing In A Gen Z-Ready Dealership

By adapting finance strategies and digital tools, dealerships can better cater to Gen Z’s preferences, creating a car-buying experience that feels convenient, accessible, and aligned with their values. As this generation continues to grow its buying power, dealerships that recognize and respond to Gen Z’s unique needs will be best positioned to capture their loyalty.

At Marsh Finance, we’re dedicated to helping dealerships offer financing solutions that are flexible, accessible, and transparent – exactly what today’s Gen Z buyer is looking for. By supporting these key shifts in the car-buying process, we empower dealerships to welcome a new generation of customers who value both affordability and convenience, ultimately building a foundation for long-term relationships with the next generation of car buyers.

Learn more about partnering with Marsh Finance today!