Gen Z shifting gear to pay-and-go options.

Bankwest’s latest Spend Trends report has highlighted a generational behaviour switch, with Western Australian Gen Zs seemingly trading the coming-of-age rite of a first car with the now myriad rental options.

Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify responses to economic conditions, with February spending showing an intriguing difference between Gen Z and other generations.

Year-on-year transaction volumes for Auto Rentals surged 81 per cent for Gen Z – currently aged 13 to 30 – compared to significant declines for Millennials (-17%) and Gen X (-16%), and stability (+1%) for Boomers.

The boom aligns with increasing diversity in transport options, particularly in metro areas, from extended public transport networks to short-term vehicle rental apps, and micromobility options such as e-scooters.

The two bookending generations – Gen Z (+1%) and Baby Boomers (+5%) – were also the only generations to increase in year-on-year volumes for Other Transport – the category that includes rideshare spend.

The data also showed that overall cost-of-living pressures continued to influence spending behaviour in the state, with the number of customers spending year-on-year declining (-6.1%).

However, there were also indications that while people were spending less frequently, they were making more expensive purchases, as exemplified by a decline in the volume of transactions (-4%) at Electric Appliance retailers, but a significant increase in the value of those transactions (+14%).

The analysis also showed a counterintuitive trend, with Baby Boomers the only generation to decline in the year-on-year volumes (-4%) at Travel Agencies, with all others surging by up to 17 per cent (Gen X).

Bankwest General Manager Products Peter Bouhlas said: “The Spend Trends data for February has highlighted an interesting trend difference between generations, with Gen Z again blazing their own trail.

“We know the community is finding cost-of-living challenging at the moment and car ownership can obviously be costly when budgets are stretched thin, from running and maintenance costs to insurance.

“Our data can’t tell us whether or not Gen Z is choosing to not own a car, but it certainly indicates they are opting for rental options at far higher rates than other generations.

“Gen Z has also grown up with the ubiquity of technology and smartphones, so they are naturally early adopters of new innovations and options, of which there are an increasing number available.

“Overall, we still see cost-of-living pressures impacting spending choices, with volumes stable but the number of customers spending year-on-year continuing to decline.

“We urge any customers experiencing financial difficulties – or those concerned they might in future – to contact us, so our colleagues can work with their individual circumstances and provide support.”