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 December 2025. This is a good proxy for the number of cars purchased by California residents.
Registrations Fell Slightly in December. Seasonally adjusted new car registrations declined by 1 percent in December. After three weak months, registrations are now 5 percent below the average level over the last couple of years.
Californians Still Buying 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, registrations in December 2025 were 13 percent lower than in December 2019.