Attract Gen Z with Pre-owned Automobiles, Maintenance Offers, and Compact SUVs
In the ever-evolving automotive market, attracting and retaining younger buyers is crucial for used car dealerships. A recent study suggests that dealerships can achieve this goal by focusing on strategic approaches in inventory, service, and marketing.
**Inventory:**
To appeal to the preferences of younger buyers, such as those from Generation Z, dealerships should stock smaller SUVs and fully electric vehicles. These vehicles are increasingly favoured by younger buyers over hybrids, according to recent data. Dealerships can also use data analytics on their used inventory databases to identify cars that fit younger customers' preferences and purchasing power.
**Service:**
Leveraging service as a strategic entry point is another effective strategy. Dealerships can offer service specials targeted at younger customers, particularly those who may have purchased the dealership's brand elsewhere. This approach aims to bring these customers into the dealership ecosystem, with the hope that they will buy their next vehicle from the dealership.
Prepaid maintenance plans, convenience services, transparent and affordable repair pricing, and digital inspections with photos and videos are additional service enhancements that can help attract and retain younger buyers. These services not only encourage repeat visits but also build trust and loyalty among younger customers.
**Marketing:**
To reach younger buyers more effectively, dealerships should adjust their marketing strategy to prioritize in-market shoppers instead of focusing on a specific demographic. This approach delivers a better return on investment by serving tailored ads to those actively shopping for used cars.
Dealerships should also implement marketing strategies that target both retention (existing customers) and conquest (new customers). By educating younger buyers on dealership advantages such as certified technicians, genuine parts, and warranty protection, dealerships can differentiate themselves from independent shops.
Building strong personal relationships through service advisors who engage customers by remembering vehicle history and personal details is also essential. Loyalty programs offering discounts, free perks, and priority booking can incentivize repeat dealership visits.
By combining these inventory choices, service enhancements, and modern marketing approaches, dealerships can better attract and retain younger used-car buyers while distinguishing themselves from competitors and independent shops.
It's worth noting that during the same period, the proportion of those aged 55 and over has increased from 44.8% of new registrations to 48.6%. Conversely, the share of new-vehicle registrations by adults aged 18 to 34 has decreased from 12% in Q1 2021 to 9.9% in the first two quarters of 2025. This decrease is largely due to affordability issues, including limited inventory within an appropriate price range.
Despite these challenges, younger buyers still account for a growing share of used-vehicle customers. In the first four months of 2025, they accounted for 15.7% of used-car registrations (up from 15.1% in all of 2023). When younger buyers are attracted to a dealership through service, they may buy their next car from the dealership, according to industry expert Jordhamo.
In conclusion, dealerships looking to sell to the 18-to-34 cohort should focus on their available inventory and how it matches those buyers' preferences, particularly smaller vehicles and electric options. Dealerships should also invest more in addressable media, which delivers a higher return on investment and ad spend, to reach younger buyers more effectively. By following these strategies, dealerships can successfully attract and retain younger buyers in the used-car market.
- To generate more sales for the auto retail business, focus on keeping electric vehicles in stock, as they are increasingly preferred by younger buyers, such as those from Generation Z.
- Enhance the finance aspect of your business by offering prepaid maintenance plans, transparent repair pricing, and digital inspections, as these can help attract and retain younger car buyers, thereby boosting business growth.
