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.
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.
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:
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.
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:
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:
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!