I Asked Experts Which Cars Gen Z Should Avoid in 2026 — Here’s What They Said
Buying a car has always been a major financial decision, but for Gen Zers in 2026, the stakes are higher than ever. With many Gen Zers in entry-level jobs and facing rising prices, steep interest rates and high insurance costs, the wrong choice can break the most careful budget.
To find out which cars to avoid, I asked industry experts to break down the biggest financial traps young buyers face today.
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Luxury and Entry-Level European Cars
For the Gen Zers who can afford luxury vehicles, such as BMWs and Mercedes, buying these brands may feel like a sign of high status, but experts say they’re one of the easiest ways for Gen Z to overspend, even if the cars are used.
Zander Cook, co-founder of auto fintech Lease End, called them “notorious depreciation traps for younger buyers … drivers simply don't keep them after the lease because they would often be upside down on the loan and the post-warranty upkeep can be brutal.”
Cook compared a used BMW 3 Series at $32,000 versus a Honda Civic at $25,000, noting that the BMW “loses more value, costs roughly twice as much to insure for a young driver and can run $2,000 to $4,000 a year in post-warranty maintenance.”
The sheer cost of maintenance, repair and insurance “don’t align with their resale value,” said Devon Jakes, sales operations team lead at USAWheels.
High-Performance Cars and Sports Trims
Cars built for speed or style often come with hidden costs that hit Gen Z drivers hardest, Cook said.
“Drivers under 25 also pay two to three times the national average for insurance. That penalty falls hardest on sports coupes, performance trims and anything with a turbo,” he said.
Gretchen Seidel, automotive consultant and certified financial education instructor (CFEI) at Seidel & Co., explained how this catches buyers off guard.
“I’ve seen people buy a car and then realize they can’t afford the $350 a month to insure it,” she said.
“Add this to the cost of insurance provided by a high-performance sports car manufacturer… and your bill could quickly spiral out of control,” said Alan Gelfand, owner of German Car Depot (based in Florida).
Some EVs and Specialty Vehicles
Electric vehicles (EVs) aren’t always a clear win financially, either, especially older models, Cook said. While they often have lower overall maintenance costs, he pointed out that battery repairs can run $10,000 and up.
Gelfand added that older EVs typically have rapid depreciation as well, and many of them still carry higher upfront costs and insurance.
Cars Packed With Features and Add-Ons
Beyond the car itself, features and dealership add-ons can significantly increase the total price.
“Extended warranties, paint and fabric protection, key replacement plans and theft etching regularly get bundled,” Cook said.
These can run an additional $3,000 to $5,000 per deal, he said.
Gelfand added that features like “panoramic glass roofs and semi-autonomous driving aids” are not worth it once the warranty has expired.
What Gen Z Should Choose Instead
Cook said that Gen Z should focus on “reliability, resale value and total cost of ownership, in that order.”
They should choose vehicles “that are inexpensive to own, but also maintain,” Jakes added.
Gelfand suggested the Toyota Corolla, Toyota Camry, Honda Civic, Honda CR-V and Mazda 3 as some wise choices, new or used.
Choose Loan Life Wisely
Lastly, the terms of a car loan can turn a good car deal into a bad one. Opt for shorter loan terms over longer so you don’t end up overpaying in interest. The wrong financing structure can turn any car into a bad deal.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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