As discussed in an earlier post, new car purchases can be a useful, timely economic indicator. Figure 1 below shows the statewide number of new car registrations from January 2018 through April 2025. This is a good proxy for the number of cars purchased by California residents.
Strong Growth in Last Couple Months. Seasonally adjusted new car registrations grew 5 percent from February to March, then another 4 percent from March to April. With this strong growth, registrations reached their highest level in nearly three years. Although tariffs on imported vehicles went into effect in early April, seasonally adjusted new vehicle prices did not rise substantially.
Californians Still Buying Slightly Fewer Cars Than Before the Pandemic. Statewide new car registrations declined steadily for several years leading up to the COVID-19 pandemic. Like many other measures of economic activity, registrations plummeted in March and April 2020. Registrations rebounded substantially in the subsequent months but generally have remained below pre-pandemic levels. For example, although registrations in April 2025 were the highest in the last couple years, they were 2.5 percent lower than in April 2019.