PORTLAND — Consumer spending has been strong in the years after the pandemic recession. But that spending hasn’t extended to new vehicle purchases.

Oregonians registered about 170,000 new vehicles in 2023. That’s little changed from the prior year and down about 18% from the average in the five years before COVID-19. National data paints a similar picture for new car sales across the U.S.

Economists and auto industry officials say there are several explanations for why car sales haven’t bounded back as quickly as other sectors. They’re optimistic a rebound may finally be in the offing in Oregon and elsewhere.

“New vehicle sales have been down, but they’re coming back a little bit, I think. I think it’s because there’s better supply,” said Sata Donaca, economist with the Oregon Department of Transportation.

Auto manufacturing took a big hit after 2020 as key parts — computer chips, in particular — became hard to get during the pandemic supply chain disruptions. That meant new cars were harder to get and there were fewer on dealers’ lots for potential buyers to test-drive and purchase.

Then inflation set in, squeezing household budgets. People were more reluctant to make a big purchase, too, because elevated interest rates drove up monthly car payments.

“People are still spending money. I think where we’re seeing more of a contraction in spending is being a little more frugal in what they’re spending on,” said Greg Remensperger, vice president of the Oregon Auto Dealers Association.

Driving habits changed, too. Those working from home didn’t put as many miles on their cars. Donaca said some families realized they didn’t need a second vehicle at all when they sold an old one, or when it gave out.

“It’s not that people aren’t purchasing vehicles,” she said. “They’re just not replacing the vehicles they get rid of at the same rate.”

That could be changing. Donaca said the auto industry is finally putting the last of the COVID-19 supply chain disruptions behind it, meaning there are more cars on dealers’ lots readily available to buy.

“People still want to go walk in, test-drive it and kick the tires before they purchase it. So having inventory back on the showroom floor again” has fueled sales, according to Remensperger.

Turnout at the annual Oregon International Auto Show in Portland was up 13% last month, Remensperger said, very near pre-pandemic numbers. He said the auto show’s surveys showed a greater percentage of attendees were looking to buy in the near future.

While the first quarter of the year is always quiet for auto sales, Remensperger said, dealers are seeing indications of business picking up during the remainder of 2024.

“The feeling in general was very strong that we’re optimistic for a strong Q2 and moving forward through the rest of the year,” Remensperger said.