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 2025. This is a good proxy for the number of cars purchased by California residents.
Second Straight Month of Moderate Growth. Seasonally adjusted new car registrations grew 1.5 percent in June and 1 percent in July but remain 8 percent lower than three months prior. This moderate growth stands in contrast to the substantial volatility we had observed in the prior six months. Sales remained slightly lower than 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 July 2025 were 13 percent lower than in July 2019.