December 15, 2021
While many characterize Gen Zers (those born after 2000) for their technological intelligence—they grew up to be true digital natives, after all—a recent Lang Marketing report highlighted a new trend that sets them apart from millennials and Gen X predecessors. 40% of 19-year-old Generation Z Americans (born after 2000) don’t have a driver’s license, and 48% of those aged 16 to 18 don’t drive. The numbers mark the latest milestone in a broader trend. In 1983, over 86% of 19-year-old Baby Boomers (born 1946-1964) had a driver’s license, and by 2010, the proportion of 19-year-olds with a driver’s license had dropped to 75%.
So what’s stopping Gen Z from taking the driver’s seat, and how will this trend affect the aftermarket? What factors prevent potential Gen Z drivers from getting behind the wheel? Jim Lang, After Sales Analyst and President of Lang Marketing, shares his thoughts.
In Generation Z, we are seeing a rethinking of what a vehicle is and what it really means to them. For Generation Z, a car is just a means of getting from point A to point B, and for Baby Boomers of the same age, owning a car and getting a driver’s license was more a matter of self-expression and pride than status.
Generation Z doesn’t have the same love for cars. In reality, it’s quite the opposite. Most Gen Zers are concerned about the environmental impact of driving and don’t want to contribute to issues like pollution, climate change, etc. Are environmental issues the only factor?
The social and technological environment also removes the urge to drive felt by other generations. Where is the desire to drive and own a car if you can visit and interact with people without physically getting in and driving to meet them face-to-face? It’s about those more significant external factors that shape your day.
Will this trend continue as Generation Z ages? Or is it a case of developmental delay? Much depends on the formation of the family, but in general, younger generations push back further and further those milestones that older generations achieved at a young age. If the significant changes in your life that could make the car a higher priority (things like getting married, starting a family, and buying a house) happen later, what’s the rush? If baby boomers had access to things like Uber and TikTok, they would probably be less interested in their own vehicle. I don’t think they will ever get their licenses, but this is a belated reaction. How might recent events influence this trend?
Of course, COVID-19 has disrupted almost every aspect of our lives, driving habits have changed, but the need and desire to own a personal car is growing. People want to feel able to travel safely in their own bubble without risking unnecessary health risks. For people who move out of the city, resources like ridesharing and public transportation services aren’t helping much right now, and that’s starting to create some problems. An urgency that Generation Z may not have felt before the pandemic.
What are the long-term effects of the Gen Z mindset? Gen Z sees a vehicle as a service (something that needs to be invoked and assumed, as services like Uber do) rather than something to own. They want the benefits of a vehicle—mobility and all the freedom that comes with it—without the obligation to own one, a mindset and behavioral change that could revolutionize the vehicle ownership structure we operate today. How can repair shop owners see the impact of this change on their day-to-day operations?
Millennials and Generation Z have already begun to influence their online shopping habits, and COVID-19 has only reinforced and accelerated these habits. Gen Z consumers’ perspective is to find and get most of the things they’re looking for online with ease, convenience, and a way to learn the price, and it lives up to their shopping expectations. Couple that with the notion that a vehicle is just a tool, and it could mean fewer shoppers entering the store in the long run, and shoppers entering the store are more likely to expect a different shopping experience. This change may take place in five to ten years. Still, today, repair shop owners experiencing attrition may begin to feel that the arrival of younger customers (into a store with preconceived notions based on what they have seen online) is probably only the beginning of what will happen.