Vehicle ownership is decidedly out of vogue when it comes to Generation Z. In fact, this particular segment of society is repulsed by any kind of debt. Blame it on the housing crisis that took place during their early years or whatever else you may want to, but it is a fact that it is a lot harder for a dealership to make a sale to someone in this age group. What then might the dealership do to win these people back?
Understanding Lifestyle Differences
It has long been unthinkable that anyone could live without owning a vehicle of some sort. The design of transportation systems through the country make it highly unlikely for most to get by without a personal vehicle. Changes in the way that we live have also altered this previously understood piece of transportation dogma.
NPR examined the way that some younger people are living and how transportation touches their lives. They discovered that Generation Z is much less likely than previous generations to desire personal vehicle ownership. They have even found ways around it. This great quote from their segment sums up the thought process of the largest automakers in the country and how they are adapting to these changes:
The Big Three U.S. automakers — Ford, Fiat Chrysler and General Motors — say they are no longer just automakers. Every major car company is trying to make a move, whether it’s car-sharing, ride-hailing or self-driving.
It is true that not everyone can live in an urban environment where alternative modes of transportation are readily abundant. However, many young people are opting for this living situation.
Show Compassion And Understanding Of Their Financial Situation
First and foremost, do not attempt to take this advice as some sort of hint that you should put on an act or pretend to care about your customer. That would come off worse than if you did not understand them at all. Someone from Generation Z does not want a phony sales pitch from someone pretending to relate to them, they want the real deal. What are some of the things on the mind of a Gen Z customer:
Student Loans- Both the cost and the necessity of college have increased in the last ten to twenty years. A Bachelor’s Degree from an accredited university has become what a high school diploma used to be. Thus, many are now borrowing money in order to pay for their schooling. Of course, that money must be paid back, and this means that many people from Generation Z count this as one of their bills on the list of things they need to pay.
Housing Costs- Making the mortgage (or increasingly rent) payment each month is a struggle for even the most financially secure Generation Z person. Keeping a roof over their head is essential if they want to avoid the embarrassment and social stigma of moving back into their parent’s home. As such, this is another concern for them.
Saving For Having A Family- Birth rates are down in the United States compared to a decade ago, and even more profoundly down compared to about twenty-five years ago. Some of this has to do with tighter budgets than before and the expense of raising a family.
Needless to say, young people have a lot of things on their mind when they go into a car dealership. They may have an internal debate going on as well in their mind as to if they even need a vehicle in the first place. You have to think about that as well before you go about trying to sell them on car ownership.
Make Pricing Transparent
Technology has made pricing comparisons easier than ever to do. As the most technologically-connected generations ever, Gen Z does not prefer to jump through a lot of hoops to learn the true price of something. They will spend time comparison shopping their favorite brands of cereal, so you know that they will also put in the time to comparison shop for a vehicle.
Gimmicks that worked on previous generations to mask the true cost of a vehicle will only serve to annoy someone from this age group. They just want to cut to the chase and find out the bottom line price they might have to pay on any particular vehicle.
The short and sweet summary of all of this information is that Generation Z automobile sales are still possible, but salespeople are going to have to work a little harder for those commissions. Understanding younger people is a must, and even then some convincing may be necessary.
Topics: Sales Strategy
