*The following is excerpted from an online article posted on MotorTrend.
A new study conducted by Cox Automotive suggests that Generation Z car shoppers will be much different from the Millennial generation that came before them. Research by both outlets indicates that Generation Z will be more careful with their money and be more sensible even if they have ample funds.
According to Isabelle Helms, vice president of research and market intelligence for Cox Automotive, the parent company of AutoTrader and Kelley Blue Book, Generation Z accounts for 23 percent of the population today, and by 2020 they will “translate to $3.2 trillion in purchasing power, which is larger than the GDP of some small countries.” Even though they live in a world shaped by technology, major events such as the 2008 Market Crash means Generation Z will have a different outlook from Millennials when it comes to cars.
Some of the key highlights include the fact that Generation Z wants to own and drive cars, with 92 percent planning to own a vehicle and 97 percent wanting to get a driver’s license. The study also points out that unlike Millennials, members of the Generation Z population look forward to driving because it makes them feel free, responsible, and excited. Of those who took part in the survey, 29 percent said a car represents freedom and 21 percent said convenience, while 6 percent said it’s not a reflection of who they are. Additionally, Generation Z is also willing to give up more to drive including social media, new clothes, or their mobile phones.
While they find self-driving vehicles appealing, 61 percent of those surveyed say they will lead to safer roads while 41 percent said that there would be less accidents. However, 65 percent said that they don’t have much trust in autonomous driving technology and another 41 percent stated that autonomous cars won’t drive as well as people, preferring minimal intervention from onboard systems.