The California Department of Motor Vehicles (DMV) is about to unveil a new format of plate numbers after they run out. This is the first time in nearly 50 years that the DMV has had to roll out a new format of number plates. This means that millions of drivers will start seeing new number plates in 2026, according to estimates by DMV officials.
Why California Is Running Out of Plates
The current format of number plates was introduced in 1980. The format includes one number, followed by three letters and three numbers (1ABC234). The first number plate was 1AAA000, and the sequence will officially run out at 9ZZZ999. DMV officials estimate that the number plates will run out sometime in 2026.
However, the system may run out earlier than 2026 due to a surprising surge in new car sales across California.
According to the California New Car Dealers Association, there has been an 8.3% increase in the registration of cars from last year. In the first quarter of 2025, 463,114 new vehicles have been registered, and this has happened in March and April. This surge is attributed to President Trump’s new tariffs, which have led buyers to hurry to purchase vehicles before the potential increase in prices.
The California New Car Dealers Association further warns that the rush to buy vehicles may be short-lived if the prices of vehicles spike.
The New License Plate Format
The DMV will not recycle old number plates. Instead, it will flip the existing structure. This means that, instead of the current format (a number, three letters, and three numbers), the new cars will receive number plates with three numbers, three letters, and a number at the end. For example, 000AAA1.
Who Will Be Affected?
The new format of number plates will only apply to standard passenger vehicles. Therefore, commercial vehicles, motorcycles, trailers, and custom or specialty plates will not be affected. So, if you drive a work truck, a motorcycle a vanity plate, the number plates will not change.
What Drivers Must Know
Drivers should note that the old plates will remain valid and therefore won’t be required to be replaced. Only those who register a new vehicle in 2026 or later will use the new number plates.
The new number plate sequence signifies the end of an era. Soon, the current number plate sequence that started in 1980 will end, and drivers will start seeing cars with a new generation of license plates.
Car Sales and Tariff Uncertainty
The shortage of license plates being experienced in California is directly related to high car sales at the start of 2025 but it might not last for long.
The California New Car Dealers Association now predicts a 2.3% decline in car sales in 2025, with only 1.71 million vehicles expected to be sold by December.
The uncertainty in sales of vehicles is due to Trump’s tariffs, which are expected to make vehicles more expensive, leading to decreased sales. Those in support of Trump’s tariffs argue that they will boost local manufacturing and create jobs.
Already, the tariffs have reshaped customers’ buying patterns, with thousands of Californians now rushing to buy vehicles at the beginning of the year before the prices spike.
Conclusion
License plates are officially running out in California after nearly 50 years of using the 1980 system. The DMV estimates that in 2026, drivers will receive plates in a new format of three numbers, three letters, and one number at the end. This will be the first time the state uses this format since 1980.
Every driver who registers a new vehicle in 2026 will most likely use the new plates. This is inevitable since the state has no choice but to create a new license plate format.