Gen Z Will Have A Massive Impact On The American Car Industry

In some ways, it feels like the automotive market has been frozen in time for a couple of decades. Sure, since the year 2000, we’ve seen the growth of the hybrid market, we’ve seen SUVs usurping minivans as the go-to family vehicle, and we’ve seen every muscle car but the Ford Mustang riding off into the sunset. But, the Ford F-150 remains the top-selling vehicle overall, the Toyota Camry is still the best-selling sedan, and the last few years have proven that most Americans are not quite ready to go fully electric just yet.

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So the coming shift in automotive culture as Generation Z becomes an increasingly significant portion of the car-buying market. Well, it might wind up being a seismic event as we find out what those born between the years of 1997 and 2012 are interested in driving. You can say this about every generation, but these kids and young adults are coming of age in a world that is very different from the one their parents and older siblings knew, and that has produced an age group that sees personal transportation differently than the rest of us.

The following is based on research into the new car and used car market. Any opinions offered thereupon are those of the author unless otherwise attributed.

Gen Z May Represent The Biggest Shift In Automotive Culture We’ve Ever Seen

For the last 50 years, the Ford F-Series truck lineup has been the top-selling vehicle in America, and competing full-size pickups like the Chevy Silverado, GMC Sierra, and Ram 1500 can usually be found in the top-ten sellers. One other point you can make about the auto market for the last fifty years: Baby Boomers have been the biggest age group of car buyers.

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The average age of a new car buyer has been trending upwards for the first quarter of the 21st Century. The 55+ set saw a 15% increase in its makeup of the car-buying public from 2000 to 2019, according to an article published by Hedges & Company. In 2019, Baby Boomers made up 62% of new car buyers.

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As of early 2023, according to a report published by The Zebra, the 55+ set made up around a quarter of new car owners, while the 25-54 age bracket made up the majority at 42.6%.

In short, almost everything we know and take for granted about the car-buying public in the United States is based on the needs and wants of older drivers, but that could change sooner than we know it. According to a story published by the New York Post in 2024, 76% of Gen Z reported purchasing their first vehicle before they were 21. That number was just 56% for Millennials.

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While Zoomers are primarily buying used cars at the moment, they’ve already shown a greater interest in driving and could wind up leapfrogging right over their older siblings to become a more significant force in the new car market than Millennials.

Practicality Is King For Gen Z

According to a study published by Kelley Blue Book, the Ford F-Series dominance ends with the youngest members of Generation X. Millennials are more partial to teh Honda Accord, and Gen Z’s favorite new vehicle is the Civic, followed by the Accord, and then the Camry (some things never change). Not a single pickup makes Gen Z’s top ten, nor do any SUVs.

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Zoomers may come around on the SUV thing once they start having families of their own, but for the time being there’s a strong preference for sedans.The list also leans East, with Honda, Toyota, Nissan, and Hyundai making up 80% of the top ten. The Chevy Malibu and Ford Fusion are Gen Z’s eighth and ninth favorite cars, respectively, and everything else is Japanese and Korean compacts and mid-sizes.

Gen Z Dream Cars Tend Towards Japan And Korea

When it comes to classics and dream cars, Gen Z has a very different idea of what qualifies as a true gem in comparison to older drivers. Hagerty reports that Boomers are particularly fond of Corvettes, Camaros, and Mustangs, and those tastes have largely been passed on to their Gen X sons and daughters. As for Gen Z, there’s a lot of respect for mid-century American muscle, but there’s also a very strong interest in Japanese classics like the 1989-1994 R32 Nissan Skyline GT-R, and the 1999-2005 Lexus IS300.

Maybe you can pin that on the Fast and Furious movies, showcasing supercool Asian cars like the GR Supra and the 1995 Mitsubishi Eclipse. It could also have to do with the fact that these cars tend to be more economical and modern than gas-guzzling V8s from the 1960s, or maybe it’s because so many Zoomers start out in Toyotas and Hondas, and they want to see what the superpowered versions of those cars looks like.

Tastes Change As We Age

It should be noted that we’re talking about the automotive preferences of teenagers and twenty-somethings here. Some things don’t change as you get older. If you wanted a Camaro when you were 16, you’ll probably want a Camaro when you’re 60. But, as you start to earn more money, you might develop a fondness for luxury cars that you didn’t have in your twenties or thirties. As you start having kids of your own, maybe you’ll see the purpose of a mid-size SUV.

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So, while we can make projections based on what Zoomers are buying (and what they’re daydreaming about buying someday), this data doesn’t necessarily guarantee that the era of the crossover is over as soon as Zoomers start to make up half of the car-buying public.

But, we could be looking at a future where the Ford F-Series is no longer America’s favorite vehicle, full-size pickups are a niche product, and American Lexus dealerships are outselling BMW by a ratio of two to one as Gen-Z enters middle age and pushes the luxury segment toward premium Asian brands.

Sources: Insurify, Hagerty, Kelley Blue Book, Hedges & Co., New York Post.