Gen-Z buyers are spending five times more on their first car

Gen Z car buyers are spending five times more on their first car and are more concerned about connectivity and tech features than styling, according to new data from Auto Trader.

New research saw Auto Trader survey 1,000 17-25 year olds today and 1,000 47-55 year olds today who were aged 17-25 in 1994 to get unique insights into the first cars they drove.

The research shows nearly two thirds (63%) of drivers aged between 17-25 stated that the car’s technology features are more important than what it looks like when looking to buy a car.

The Ford Fiesta came out on top as the most owned first car for both the current generation of 17-25 year olds and those in that age around 30 years ago.

However, the price paid by young drivers for their first car differed hugely between the two generations as young drivers back in the mid-nineties only paid on average £826 whereas young drivers today have forked out on average £4,143.

Social media driving purchase decisions

With a 22,300% increase in dash cam interest on TikTok and a 321% rise in car accessories searches, over the last four months, young drivers are turning to the platform to inspire purchase decisions. 

Around one in 10 (11%) even use TikTok to help them find their first car—highlighting its growing influence in the car-buying journey.

While the insurance cost of the car (52%) and how cheap it was run (46%) was a key factor in young drivers' decisions when buying their first car, having parking sensors or cameras, which can be seen as an expensive feature, were reported as a key consideration for 16% of young drivers in their car search.

As well as this, other innovative tech features including built-in navigation (14%), and heated seats (12%) inside the car were important to this age group.

Car modifications haven’t disappeared—they’ve just evolved.

Instead of souped-up engines and racing stripes, today’s most popular upgrades include LED lights (44%), car air fresheners (41%), and phone charger mounts (40%), and over a quarter (27%) saying that having Android Auto or Apple Car Play already installed in the car was important to them.

The most popular modifications/accessories added by young drivers aged 17-25 today

• LED lights (44%)
• Perfume/car fresheners (41%)
• Phone charger mount (40%)
• Dashcam (34%)
• In car blue tooth connection (32%)
• Mirror accessories (27%)
• Mini bin (23%) 

Over a quarter of Gen-Z buyers are interested in EV

Despite only 7% of young drivers saying they currently own an electric vehicle, 28% have expressed their desire to buy an electric vehicle as their next car.

Nearly a third (32%) of these would consider buying one as they believe they are better for the environment, while 31% would purchase an EV because of the cost of ownership savings it offers.

Auto Trader’s recent Road to 2030 report2 also revealed how high-tech Chinese electric car brands are winning over younger UK consumers.

As Chinese brands like BYD, GWM, and Omoda gain ground in the UK market, four in 10 UK consumers are willing to consider a Chinese car brand.

The greatest support for Chinese brands comes from the 17-34 age group, with 57% attracted by factors including innovative technology and affordability.

Erin Baker, editorial director at Auto Trader, said: "The mid-nineties was a popular period for young drivers to show off to others their fast and powerful cars with impressive looking racing stripes, big spoilers and noisy exhausts.

"Our research reveals that the tastes of the current generation have noticeably evolved since then and they would rather focus on having the latest technology and accessories inside their vehicles than what it looks like on the exterior.

"With electric vehicles set to grow in popularity over the coming years, today’s young drivers also feel that these types of vehicles can give them access to the most up to date technology that they are after but also recognise the environmental and long term cost savings that making the switch to electric can offer.”