The auto industry is shifting gears fast, and the driving force behind the change is Gen Z. Digitally fluent and mobile-native, these buyers don’t just prefer online experiences; rather, they expect them. It doesn’t matter if they’re scrolling TikTok for vehicle reviews or asking AI tools like ChatGPT for the best SUVs under $20K, Gen Z is reshaping how cars are researched, discovered, and ultimately purchased.
If your dealership wants to stay competitive in 2025 and beyond, it’s time to rethink your digital marketing playbook.
Gen Z Buys Differently
Let’s start with the numbers:
- 82% of Gen Z starts the car-buying process online.
- Over 50% expect to apply for financing or estimate trade-ins without speaking to a salesperson.
- Nearly 40% turn to TikTok or YouTube to research vehicles and find dealerships.
That’s a dramatic departure from the habits of older generations. They’re not waiting for traditional ads or walking into dealerships on a whim—they’re doing their homework in places you might not expect.
And by 2026, Gen Z is expected to account for more than 30% of all U.S. vehicle buyers. So ignoring them? Probably not a good look.
Search Isn’t Just Google Anymore
Gen Z doesn’t limit their search to one platform. Instead, they hop between:
- TikTok videos
- Instagram reels
- Google Maps
- YouTube reviews
- AI chat tools like ChatGPT and Perplexity
Gen Z is shifting toward AI powered car buying solutions. That means your dealership’s visibility must extend far beyond your website or paid Google rankings.
Welcome to the age of decentralized search.
Today’s buyers are asking AI-powered platforms complex, natural-language questions.
“What’s the most reliable AWD SUV for under $25K?” “
Where can I find a dealership with good financing options near me?”
AI tools respond not with links, but with direct answers. If your content isn’t structured in a way AI understands, you’re pretty much invisible.
What’s GEO—and Why Should You Care?
Traditional SEO is about keywords and backlinks. However, to appear in AI-generated responses, you need Generative Engine Optimization (GEO).
That means:
- Writing content that directly answers common buyer questions
- Structuring pages with rich data like schema markup
- Including citations, reviews, and trust signals
- Refreshing content often to stay relevant
Think of it as SEO for a new era. All designed for the way Gen Z actually searches. (Check out this AI search optimization checklist we created to see if you are optimized for AI search.)
Social Media Is the New Showroom
For Gen Z, social media isn’t just entertainment—it’s a trusted research tool. That walkaround video you post on TikTok or that 30-second reel explaining how to finance a car with no credit? That’s what drives trust and engagement.
Tips to keep in mind:
- Prioritize authenticity over polish. Gen Z values real over rehearsed.
- Educate, don’t just promote. Finance tips, model comparisons, and how-to videos all perform well.
- Be platform native. What works on YouTube won’t necessarily fly on Instagram. Create your content accordingly.
- Integrate with your CRM. Ensure that social traffic can be converted into real leads.
It’s time to face the music. Social isn’t a side gig anymore. It’s a core marketing channel.
Don’t Sleep on Programmatic Advertising
Gen Z lives across a variety of devices. This is a group that’s scrolling Instagram, watching streaming TV, and browsing in apps. To meet them where they are, dealerships need smarter targeting.
Enter programmatic advertising: AI-driven ad buying that serves tailored messages to in-market buyers at the right time.
Benefits of this approach include:
- Personalized offers based on behavior and preferences
- Retargeting for shoppers who dropped off
- Cross-platform reach (web, mobile, streaming, etc.)
- Trackable ROI tied to leads and showroom visits
It’s more cost-effective, as well as more relevant, than a “spray-and-pray” local media buy.
Local SEO Still Pulls Its Weight
Yes, Gen Z is digital, but local still matters.
Google reports:
- 76% of people who search for something nearby visit a business within a day
- 28% of those visits lead to a purchase
That means your Google Business Profile, online reviews, and mobile optimization are still important. People may find you through AI or TikTok, but they’ll still rely on maps and search to get directions, check hours, or read reviews.
So don’t ditch traditional SEO, simply just upgrade it.
Build for the Buyer, Not the Algorithm
The rules of automotive marketing are being rewritten. Gen Z wants speed, transparency, and relevance—delivered on their terms.
To meet them where they are, dealerships need to:
- Be present across platforms
- Structure content for both humans and AI
- Engage with authenticity on social
- Use data to personalize outreach
- Stay consistent with local search fundamentals
At the end of the day, your dealership doesn’t have to chase every trend. Instead, the goal is to build a connected, intelligent strategy that meets today’s buyers in the moments that matter.
Because one thing’s for sure, Gen Z isn’t waiting for the old playbook to catch up.