With Gen Z, the first generation of digital natives, purchasing and renting cars for the first time, expectations for personalised, digital-first technologies, as well as worries about costs and current leasing and purchasing processes, are set to upend the industry.
Gen Z is leading a shift towards AI agent-powered car buying and maintenance, according to recent Salesforce research, with 74% stating they'd like AI agents to tell them the best time to buy based on price fluctuations, deals, or incentives.
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Automotive CIOs and leaders must understand and respond to these generational trends to create effective consumer engagement and product development strategies.
Gen Z Using AI To Research Cars
According to research, Gen Z is more likely than older generations to use AI to research cars and find the best deals. Around 79% of Gen Z users want AI agents to find and recommend the best car for their needs, compared to 58% of baby boomers.
Compared to 53% of baby boomers, 68% of Gen Z users and 71% of millennials want AI agents to recommend the best vehicle financing solutions.
Younger generations also welcome AI-powered maintenance solutions, such as predictive diagnostics and automated scheduling, and 67% of Gen Z users want agents to automatically schedule service appointments for them, compared to 39% of baby boomers.
Technology-First Mindset
Gen Z have a desire to lean on technology first, which may be because they are having trouble locating a car that fits them and figuring out when to buy it.
Around 39% of Gen Z users say they'd delay or cancel buying a car due to difficulties choosing the right vehicle, compared to only 21% of baby boomers. Additionally, 37% of Gen Z say they'd delay or cancel buying a car because they're unsure of the right time to buy amid price fluctuations, compared to 27% of baby boomers.
Gen Z Have More Trust In AI, Prefer Subscription, Personalisation
Gen Z is more trusting of AI than older generations, with 71% believing AI agents will make car maintenance easier, compared to 49% of baby boomers.
Gen Z is also leading in knowledge about non-AI innovations. While only 39% of baby boomers are familiar with the term “connected car,” 69% of Gen Z are aware of it. Younger generations are also increasingly interested in connected features.
Software-defined vehicles is a term known by 71% of Gen Z, compared to 25% of baby boomers. Around 72% of Gen Z have heard of mobility, or mobility-as-a-service, compared to just 18% of baby boomers.
Gen Z users are also nearly twice as likely than baby boomers to want to use innovative payment options, such as subscription payment plans. Compared to only 21% of baby boomers, 40% of Gen Z prefer subscription pricing for advanced driver personalisations like adaptive cruise control settings based on driving habits, personalised head-up display, or customised sensitivity levels for safety features.
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