Gen Z’s getting keener on buying cars – and finding them on social media
According to the Cars.co.za Motor Industry Report 2025, Gen Z (the so-called “TikTok Generation”) is increasingly interested in buying cars and using social media as its primary source of info, forcing the industry to adapt its marketing and sales playbook.
For over a decade, the motor industry has wrestled with the question of car ownership relevance among younger generations. New-car price inflation, high interest rates, shrinking budgets, and the rise of e-hailing services seemed to suggest a future where, for Gen Z, buying cars was relegated from acquiring a status symbol to, at best, a nice-to-have, or at worst, just a means to an end (so, a grudge purchase).
According to the recent Cars.co.za Motor Industry Report 2025, however, Gen Z’s engagement with the automotive market is expanding, backed by data that reveals a profound shift in consumer behaviour.
Download the Cars.co.za Industry Report 2025
27.9% surge in vehicle-finance volumes
The headline figure that should capture every dealer’s attention is the staggering growth in purchasing volume from the youngest cohort. TransUnion’s Industry Insights Report (Q4 2024) highlighted Gen Z’s growing market influence in South Africa – with a 27.9% YoY increase in vehicle-finance volumes.
Gen Z now accounts for over 12% of all vehicle finance agreements underwritten in the Republic. That may not seem like a significant percentage, but given that this demographic makes up nearly half of the South African population, this segment is clearly poised for continued expansion.
Critically, this surge is focused squarely on the affordability segment. While the overall market remains constrained, the proportion of younger consumers (aged 18-25) financing vehicles in the crucial R250 000–R500 000 price range has surged by over 100% in recent years.
Gen Z buyers are largely brand agnostic and keen on buying cars that offer maximum value and utility, especially in the small crossover and compact segment. This focus on the half-million rand bracket partly explains the market dominance of value-driven brands like Suzuki, Chery, and Haval in the sales charts.
As featured on Cars.co.za’s YouTube channel:
Car-buying Gen Z considers Social Media ‘a Showroom’
The key to understanding this market acceleration lies not on the forecourt, but on the smartphone screen. Gen Z is the 1st generation for whom researching a vehicle is fundamentally a social media activity, driven by content, community, and real-time social proof, such as Google Reviews.
The Cars.co.za Motor Industry Report 2025 confirms the sheer scale of this digital influence: South Africans spend an average of 3 hours and 36 minutes each day on social media platforms. It is within this enormous engagement window that car-buying decisions are being formed.
Consequently, an estimated 92% of car buyers now conduct online research before visiting a dealership. For the younger buyer, that research is highly specific. The data highlights a growing preference for short-form video, particularly on platforms like Instagram Reels and TikTok.
This content format is driving both engagement and influence in vehicle research and decision-making.
This means a prospective Gen Z buyer is highly likely to discover a new model through a compelling 30-second video clip, move to YouTube for a detailed ownership review from an independent content creator, and then use Facebook groups to gauge social sentiment from current owners.
They rely on user-generated content, such as reviews and ratings, to shape their perception and build brand credibility, making authenticity paramount.
Gen Z does its homework before buying cars
This unparalleled access to reviews, prices and specifications, finance and affordability calculators, and peer recommendations has fundamentally altered the power dynamic between dealer and customer.
The young consumer arriving at a dealership today is not a passive recipient of information; they are an informed buyer who has already completed most of their research. They know the price, the competitive models, the common problems, and often, what a fair negotiation looks like. This shift necessitates a complete overhaul of the sales process.
For dealers to effectively engage with this segment, the report strongly reinforces the need for automotive brands to prioritise digital-first marketing strategies. This involves more than just posting photos; it requires active, 2-way communication.
Dealers can and should leverage social media to interact with potential customers through live videos, virtual showrooms, and interactive posts.
This real-time, transparent engagement is what builds trust and fosters a sense of community—factors that are now vital in converting leads to sales. The ability to promptly address queries and concerns via social channels is now part of the expected customer experience.
Digital-First Strategy is crucial to attracting Gen Z
The rapid growth in Gen Z vehicle finance, coupled with their reliance on social media for research and discovery, confirms that the traditional automotive sales model is under sustained pressure. The market is increasingly being dictated by those who grew up scrolling, liking, and sharing.
The future of sustained growth in South Africa’s motor industry depends on realising that the purchasing journey is no longer linear, but a chaotic, multi-platform ecosystem.
Brands that embrace technology-led, platform-specific marketing strategies will be better positioned to build trust, influence purchase decisions and drive sustainable growth. Conversely, those who treat social media as a mere broadcasting channel, rather than a crucial sales and trust-building platform, risk being left behind in a market defined by the informed, digital native buyer.
The message from the data is unambiguous: Gen Z is buying cars, but they are choosing them on TikTok. Dealers who succeed will be those who adapt their business to meet this generation “where they live”.
Released in conjunction with DealerCon 2025, the Cars.co.za Industry Report 2025 provides smart insights based on the proprietary market data of South Africa’s leading digital automotive marketplace, complemented by finance and consumer insights from partner TransUnion. The report utilises Cars.co.za’s lead and stock data from 2015 onwards to illustrate how much has changed in a decade, thereby enabling automotive dealers to identify market-demand hot spots.
Download the Cars.co.za Industry Report 2025
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Frequently Asked Questions
Q: What is the key statistic about Gen Z’s interest in car finance?
A: According to the TransUnion Industry Insights Report (Q4 2024), Gen Z showed a 27.9% year-on-year increase in vehicle finance volumes, and now accounts for over 12% of all vehicle finance agreements underwritten in South Africa.
Q: What price range are Gen Z car buyers primarily focused on?
A: Gen Z buyers are focused on the affordability segment, with the proportion of younger consumers financing vehicles in the crucial R250,000–R500,000 price range having surged by over 100% in recent years.
Q: Which social media platforms are Gen Z using most for car research?
A: Gen Z’s primary source of research is social media, particularly short-form video platforms like TikTok, Instagram Reels, and YouTube, which they use to find content, community feedback, and real-time social proof before visiting a dealership.




