The automotive showroom floor has effectively moved to the smartphone screen, according to a comprehensive new study released by Snapchat in partnership with Havas and Alter Agents. The research surveyed over 5,000 recent and prospective car buyers across five key global markets, revealing a fundamental restructuring of the consumer journey where digital channels—specifically social media and augmented reality (AR)—are now primary drivers of vehicle sales.
The study underscores that while volume in the market has returned since the pandemic, the pathway to those sales has changed dramatically. One in every two Gen Z car buyers surveyed bought their vehicle online and an even large group, 65 percent, are thinking of purchasing their next vehicle online. Millennials were not too far behind, buying online at a 42 percent rate with 59 percent wanting their next purchase to be online. Among younger demographics the traditional model of advertising and a trip to the physical dealership is being supplanted by a digital-first ecosystem.
The Generational Divide in Motivation
One of the study’s most critical findings is the distinct difference in purchase motivations between generations. While Gen X buyers are still largely influenced by traditional factors, younger buyers—Gen Z and Millennials—are approaching vehicle ownership with a different set of priorities.
For younger shoppers, an improved financial situation is the primary trigger for 44 percent of new vehicle purchases. As affordability continues to strain the market that number is likely to continue to rise. Many prospective Gen Z buyers would love to purchase a car right now, but have to wait until they have more money to do so.
That mindset also influences how and why younger buyers purchase Electric vehicles. While Gen X mainly view EVs as a way to reduce their environmental impact, younger buyers are driven by the immediate, practical benefits. Their top reasons for considering EVs include saving money on fuel (46%), exciting technology and innovation (37%), and a smooth driving experience (37%). This pragmatic, tech-focused mindset requires a significant pivot in marketing messaging, moving away from broad sustainability claims and toward tangible user benefits and economic efficiency.
Social Media as the New Showroom
The study establishes what we’ve all known for years now that social media is no longer just a top-of-funnel awareness tool but a critical component of the entire purchase journey. Over 60 percent of all car buyers use social media during their shopping process, a figure that surges to 74 percent among Gen Z. Furthermore, nearly half of all shoppers use these platforms specifically for inspiration and recommendations.
Creators play an outsized role in this new ecosystem. The data shows that 69 percent of younger shoppers say creators make them more aware of vehicle brands, and 61 percent trust creator recommendations and reviews. While in person test drives are still important to buyers, the initial “test drive” experience is increasingly being vicariously consumed through trusted online personalities before a consumer ever sets foot on a lot.
The Rise of Augmented Reality in Auto Retail
Perhaps the most forward-looking insight from the report is the rapid adoption of Augmented Reality (AR) in the research phase. Currently, two in five shoppers use AR features when researching a vehicle. The potential for growth here is immense, with 43 percent of non-users expressing a desire to use AR to virtually visit dealerships or visualize vehicles in their own driveways.
For automotive brands, this presents a clear opportunity: effective digital immersion is not a novelty and provide a real advantage over competitors. Shoppers are using AR to customize vehicles, discover new brands, and bypass the initial friction of physical dealership visits. Brands that fail to offer these immersive digital experiences risk being excluded from the consideration set entirely.
Implications for Automotive Strategy
The Snapchat study serves as a final wake-up call for automotive marketers still relying on legacy media strategies. The data also indicates that media planning must become more tailored to the age of the buyer. A unified message across all age groups is no longer effective. Instead, brands must develop distinct campaigns: one targeting the tech-savvy, financially motivated younger buyer through social and creator partnerships, and another addressing the traditional priorities of an older demographic that still has plenty of money to spend.
As the industry moves into 2026, the dealership experience has officially expanded beyond the physical walls. The brands that succeed will be those that treat the digital screen as the primary point of entry, leveraging social influence and immersive technology to meet the modern buyer where they truly live: online.
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