Buy a car? Gen Z would rather splash out on holidays and daily iced lattes

See more Daily Mail on Google - save us as a Preferred Source Published: 20:23 EDT, 3 September 2026 | Updated: 20:41 EDT, 3 September 2026 For past generations, owning a car was a rite of passage – even if a youngster's first old banger was a rusty Ford Fiesta.But Gen Z seem to have put the brakes on buying a car, as they would rather splash out on holidays and daily iced lattes, a survey suggests.A poll of 1,000 adults aged between 18 and 29 found young people are increasingly turning their backs on car ownership, with more than a quarter (27 per cent) unlikely to buy a vehicle within the next three years.Meanwhile, 12 per cent think owning a car is simply an unnecessary expense, while almost half (47 per cent) view cars in the same way they would a household appliance such as a vacuum cleaner.More than a quarter (27 per cent) would rather spend money on mental health days and self-care, while 23 per cent preferred dining out or ordering takeaways.A further 19 per cent would choose to invest in the latest technology, upgrading phones, gaming consoles and gadgets rather than purchasing a car. And in a telling sign of changing priorities, more than one in ten (11 per cent) admitted that they would rather spend their cash on speciality coffees and iced lattes than meet the significant costs associated with vehicle ownership.The study, commissioned by short-term insurance provider Tempcover, also found that almost one in five (18 per cent) believe that their generation is less interested in owning cars than those who came before them. Gen Z seem to have put the brakes on buying a car, as a poll of 1,000 adults aged between 18 and 29 found young people are increasingly turning their backs on car ownership (Stock photo)Instead, many are embracing a more flexible approach.Nearly a quarter (24 per cent) said they would rather access a car only when they need one and pay as they go, while 23 per cent likened vehicle access to a streaming subscription service.Adam Craddock, of Tempcover, said: 'For many younger adults, owning a car is not viewed as a prized possession or a status symbol. It's a practical tool and an intentional lifestyle choice.'He added: 'For a generation that values flexibility, having access to a car when they need one is proving far more appealing than owning one outright.'Last month, a separate study, led by Greenwich University and published in the journal Emerging Adulthood, found half of Gen Z youngsters were going through a so-called 'quarter-life crisis'.