Generation Z Prefers Feature-Heavy Used Vehicles to Cheaper New Ones
Some OEMs are targeting young buyers with affordable prices on new models. However, it turns out that young buyers prefer to bring home used vehicles with more features.
J.D. Power’s take on the Generation Z trend
At the recent J.D. Power Automotive Summit, vice president of vehicle valuations and analytics Jonathan Banks spoke to this trend. He said that Generation Z buyers “[are] definitely switching over to the used market.” The Generation Z demographic is comprised of individuals born after 1996.
Used vehicles are the better buy for young drivers with low budgets since the average new car loses 35 percent of its value in the first few years of its life. Banks also expressed that used vehicle prices are a wise choice for those who want lower monthly payments and a lower total price. Used models are typically 51 percent cheaper than new ones. They also come with 31-percent lower monthly payments.
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Sales stats confirm the trend
Which used vehicle segments are popular with Generation Z consumers? Midsize sedans and compact cars are two top options for this group. In 2018 alone, used compact car sales increased 9 percent and used midsize sedan sales increased 7 percent.
Banks predicts that this trend will continue to thrive in 2019. Used vehicles that are 3 years old or less should do particularly well on the market. Only time will tell if Bank’s forecast proves accurate for Generation Z buyers this year.
Smart Buyer: Strategies for pre-owned vehicle shopping
News Sources: The Drive, Automotive News
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