This, in essence, is one of the findings of TransUnion’s Mobility Insight for the first quarter of this year (Q1 2025).

The report's findings include the increasing roles of Gen Z and Millennials in driving vehicle demand; the expansion of low-cost vehicle options and alternative financing models; the growing gap in insurance coverage among financed vehicles and the accelerating influence of social media on the car-buying journey.

TransUnion is a key player in providing data and analytics for risk management and decision-making for both consumers and businesses.

Important trend:

Underestimate the power of social media at your own peril. The report shows that 63% of South Africans actively seek brand content on social media platforms (the fourth highest in the world). Unlike traditional one-way advertising, social platforms enable reciprocal interactions between manufacturers, dealerships and finance institutions engaging directly with potential customers in real time.

Facebook still in the lead:

Well, nothing wrong with that as the report indicates that Facebook has a 59.9% Adult Reach Rate when it comes to social media advertising. This is in contrast to a world average of only 39.4% and locally still a more preferred platform than YouTube (52.7%), TikTok (52.5%) and Instagram (15.9%), the only platform with a lower uptake rate than the international norm.

And don't be mistaken; South Africans are digitally savvy and smart shoppers, the Q1 2025 Mobility report shows:

• South Africans spend 3.6 hours a day on social media;
• 76% use social platforms for product research;
• 92% research online before visiting a dealership;
• TikTok ads grew 34% on a year-on-year (YoY) basis.

South Africans spend an average of 9 hours and 37 minutes online each day with work, movies, research and of course social media platforms taking up the 3.6 hours mentioned above. This figure puts South Africa in the number 3 spot in the world for time spent on social media platforms.

Of the social media engagement, 63% look at brands for more information; 75.9% follow influencers for product recommendations and 33.6% do direct product and brand research.

Why social media?

As mentioned, some 76% of local social media users rely on the different platforms for brand and product research with an estimated 82% of car buyers who conducted an online search before walking through a dealer's doors.

Car buyers arrive at the dealership well informed about most aspects like price, specifications and who the competitors are. This knowledge leads to streamlined negotiations and shortens the path to the purchase.

Real-time interaction is increasingly expected with social media serving as a primary channel for enquiries and complaints.

Roughly one in three users follow influencers for product recommendations, placing South Africa fourth globally and highlighting the value of trusted voices in automotive marketing.

Nearly half of all South Africans use social media to stay informed. This means brands have a platform to share vehicle news, updates and other insights.

Let us take a look at the generational trends when purchasing a car:

TransUnion's Industry Insight Report for Q4 2024 highlighted Generation Z as the growing market influence with a 27.9% YoY increase in vehicle finance volumes.

Younger consumers' reliance on social media for research and brand discovery reinforces the need for automotive brands to prioritise digital-first marketing strategies.

The different generations' preferred online platforms:

• Gen Z (born between 1997 and 2012) -- focus on affordability and digital features -- TikTok, Instagram and YouTube.
• Millennials also called Gen Y (born between 1981 and 1996) -- practicality and resale value -- Facebook and Instagram.
• Gen X (born between 1965 and 1980) -- Reliability and brand loyalty -- Facebook and YouTube.
• Baby Boomers (born between 1946 and 1964) -- comfort, prestige and longevity -- traditional channels.

What are the social media strategies driving car purchase decisions?

Automotive brands are adopting platform-specific strategies to influence digital first-time consumers.

Engaging content: High-quality visual interactive storytelling and immersive digital experiences can build brand engagement and influence decisions by highlighting vehicle features, performance and design.

User-generated content: Encouraging customers to share reviews, photos and videos helps to foster trust, drive community engagement and enhance brand credibility.

Influencer marketing: Collaborating with influencers (particularly micro-influencers) can extend reach and lend authenticity. Automotive enthusiasts and industry experts often create content that resonates more than traditional adverts.

Short-format video: Like TikTok and Instagram, reels are effective in reaching digital-first audiences. These platforms support culturally relevant storytelling, behind the scenes content and targeted product highlights.

Emerging technology in automotive social media marketing: Augmented and virtual reality -- AR and VR test drives, 360-degree showroom tours and interactive customisation tools are transforming the online buying experience.

AI and machine learning: Chatbots, real-time support and tailored recommendations improve the digital experience. Machine learning can also strengthen advert targeting, helping to ensure the right message reaches the right audiences.

Social Commerce: Shopping posts, direct scheduling and integrated customer support tools are enabling automotive brands to deliver friction-free experiences that support browsing, conversation and engagement.

(Source: TransUnion).