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 November 2025. This is a good proxy for the number of cars purchased by California residents.
Registrations Dropped in November. Seasonally adjusted new car registrations declined by 4 percent in November. After two weak months, registrations are now 4 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 November 2025 were 8 percent lower than in November 2019.