How Gen Z Plans To Outsmart Tariff Price Hikes on Cars
Written by
Emily Fowler
Edited by
Zuri Anderson
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For drivers already worried about affording car purchases, the new auto tariffs could push those costs even higher. Despite often having tighter budgets, younger buyers are already looking at ways to make ownership more affordable.
According to a recent JDMBUYSELL survey, 63% of Gen X are planning to buy a car in 2025. Rather than deciding they’re priced out of the market, many Gen Zers are finding creative ways to make ownership work.
Turning to Used Cars
According to CarEdge, new car prices are still almost at record highs, so it’s no surprise that almost one in three Gen Z shoppers plan to buy used over new. Today’s cars tend to last longer than they used to, so a few years and a few thousand miles on the clock can still be a reliable choice, especially for younger drivers.
The potential issue here is supply. More demand for used cars could lead to prices rising. Bargain deals may become rare, but for many buyers, not just Gen Z, the used lot feels like the most economical choice.
Opting for Cheaper Brands
Brand loyalty doesn’t carry as much weight with Gen Z. Many older buyers like to stick with the same car brand, but younger shoppers are willing to make the switch if it saves money. According to the survey, about a third say they’ll lean toward cheaper brands.
This could benefit domestic brands, as imported cars are hit hardest by tariffs. Smaller cars, compact SUVs and affordable trucks may become more popular, while import-heavy models could lose buyers if prices rise.
Considering EVs
Electric vehicles (EVs) remain a small part of the overall market, but Gen Z is much more open to them than older generations. Fourteen percent of Gen Z buyers in the JDMBUYSELL survey say they’d consider an EV, nearly five times the rate of baby boomers.
Incentives play a role, though timing now matters. Under the One Big Beautiful Bill Act, the federal clean vehicle credit ends for EVs purchased after Sept. 30, 2025. In other words, the tax break worth up to $7,500 disappears after that date. Â
The Road Ahead
With so much talk around rising prices, it’s clear that affordability is a worry for buyers of all ages. The survey found that 73% of Americans worry about affording a car, with the number rising to 75% for financially stretched Gen Zers.
Still, the strategies younger buyers are using show that even in a tough market, it’s possible to make car ownership work.
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