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 August 2026. This is a good proxy for the number of cars purchased by California residents.
Registrations Held Steady in August. Seasonally adjusted new car registrations were just 0.4 percent lower in August than in July. This modest change stands in contrast to the substantial volatility we saw in May, June, and July.
So Far, 2026 Not Looking Good. From January through August 2026, Californians registered 5 percent fewer new cars than in the first eight months of 2025.
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 August 2026 were 13 percent lower than in August 2019.