According to a Capital One Auto survey, Generation Z members currently between 18 and 28 years of age accounted for the largest share of first-time car buyers and led in near-term buying.

The survey results go on to show young car shoppers typically spend more time looking for a car, visit more dealerships during their car-buying experience, and make decisions based on how much they can afford given the total cost of a vehicle.

Auto expert Philip Reed says these results may indicate Gen Z car shoppers are moving through the car-buying experience with confidence.

"They are focusing on fact-based information and total ownership costs, so they can realize the American dream of owning a car,” Reed said.

Capital One Auto Navigator shared more about these findings from Capital One's annual Car Buying Outlook and what this subset of car shoppers may be prioritizing during their car-shopping experience.

Gen Z Car Buyers May Be More Excited About Visiting Dealerships

Gen Z respondents stated that buying a car is a priority for their generation, and 67% deemed owning a car "more important" for their generation than for their parents and grandparents.

The survey results also show people in this age group generally spend more time car shopping than other generations. Survey results reveal 45% of Gen Z respondents spent between three and 12 months searching for their car. On the other hand, 65% of millennials, 62% of Gen Xers, and 75% of boomer+ respondents reported spending less than three months. Additionally, Gen Z respondents were the most likely to shop either exclusively online or shop both online and in person.

Even with the availability of online tools that show local inventories, Gen Z shoppers still visited more physical locations on average than other groups, averaging 3.4 dealerships over the course of their car-buying experience. Millennial respondents averaged 2.9 dealerships, Gen X respondents averaged 2.8, and Boomer+ respondents averaged 2.6 dealerships.

Reed says these results could indicate younger car shoppers are leveraging all available resources to make a well-informed investment.

"Gen Z buyers often do their due diligence by checking reviews of dealerships and calling ahead to get the right salesperson," Reed said. "Once they're on the lot, they can focus on making the right decision."

Gen Z respondents not only visited more dealerships but were also the most likely to view walking into a dealership as "an exciting opportunity." Quantitative survey data shows that Gen Z and millennial shoppers report higher levels of trust and transparency in dealerships than older generations do. In fact, recent focus groups with auto dealers echoed this trend, with dealers noting that Gen Z buyers enter showrooms with their "guards down" and higher trust compared to previous generations.

"Clearly, they're actually enjoying the process rather than treating it as a chore to be done with as quickly as possible," Reed said.

Gen Z Car Shoppers May Be More Conscious of Car Ownership's Total Cost

Given the rising costs of gasoline, insurance premiums, and average monthly car payments, Gen Z car shoppers may be thinking beyond a vehicle's sticker price. According to the survey results, 25% of Gen Z respondents selected the total cost of ownership — inclusive of gas mileage, maintenance, and upkeep — as the most important financial factor when buying a car. On the other hand, millennial, Gen X, and boomer+ respondents all identified final sales price as their most important financial factor.

"There seems to be heightened awareness among younger car buyers these days about fees, up-sales, and add-ons," Reed said. "Using internet tools to check affordability, get prequalified, and use car calculators to estimate taxes and fees, Gen Z shoppers can estimate their own out-the-door price for the car they want, which is a huge advantage."

After walking into the financing office, Gen Z respondents were most likely to finance with a down payment or trade-in vehicle (versus financing with no down payment or trade-in, or paying in cash) compared with other generations.

Overall, these results could indicate a growing trend of younger car shoppers taking advantage of all the resources available to make informed decisions.

“Gen Z shoppers are setting an example for the rest of us that it’s possible to leverage available information to make smart car-buying choices,” Reed said.

Survey methodology

The Capital One Car Buying Outlook consists of findings from two surveys targeted to car buyers and dealers respectively, both of which were conducted on behalf of Capital One Auto Finance through Rep Data. Diagnostic tests (panel-level, statistical, logic-based, refielding) were conducted to remove low-quality respondents and ensure the integrity of the final sample.

The analyzed buyer survey was conducted online from August 12 through August 24, 2025 with a margin of error of +/-2.2%. The analyzed car buyer survey consists of 2,042 U.S. car buyers (recent and future), ages 18+. Of these, 829 purchased a car in the last six months and are considered “current car buyers”, while 1,213 said they’re planning to purchase a car within the next year and are considered “future car buyers”. Generational data was pulled for Boomers and older (ages 61+) Generation X (45-60), Millennials (29-44) and Generation Z (18-28).

The analyzed dealer survey was conducted online in two parts, from August 11 through August 22, 2025 and September 15 through September 17, 2025​ with a margin of error of +/-4.4%. The analyzed dealer survey consists of over 489 U.S. car dealers. These respondents currently work for an automobile dealership as an owner, general manager, F&I director, sales manager, internet manager or in the business development center at dealerships with an approximate annual sales volume of at least $1M.

Findings are compared to the 2024 Car Buying Outlook (fielded between May 1-20, 2024 to 1,994 U.S. recent car buyers with a margin of error of +/- 2% and 600 U.S. car dealers, with a margin of error of +/- 4%), the 2023 Car Buying Outlook (fielded between October 10-15, 2022 to 2,210 U.S. recent and future car buyers with a margin of error of +/- 2% and 400 U.S. car dealers with a margin of error of +/- 5%), the July 2022 Car Buying Outlook (fielded between June 7-13, 2022 to 2,209 recent and future car buyers with a margin of error of +/- 2% and 400 car dealers with a margin of error of +/- 5%), and the 2021 Car Buying Outlook (fielded between October 1-20, 2020 to 1,000 future and recent car buyers with a margin of error of +/- 3% and 401 car dealers with a margin of error of +/- 5%).

All data in this report is from self-reported, anonymous research of U.S. respondents broadly, not specifically from or about Capital One customers or employees.

This story was produced by Capital One Auto Navigator and reviewed and distributed by Stacker.