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 September 2026. This is a good proxy for the number of cars purchased by California residents.
Registrations Remained Weak in September. Seasonally adjusted new car registrations declined by 1 percent from August to September. From January through September 2026, Californians registered 5 percent fewer new cars than in the first nine 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 September 2026 were 13 percent lower than in September 2019.