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 July 2026. This is a good proxy for the number of cars purchased by California residents.
Registrations Declined in July. Seasonally adjusted new car registrations dropped 6 percent in July. Nevertheless, due to strong growth in May and June, registrations remain slightly higher than in the first few months of 2026.
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 July 2026 were 14 percent lower than in July 2019.