Latest figures show that the number of new cars sold in July was up almost 25% on the same month in 2007.
The Society of the Irish Motor Industry - which compiled the data - says the increase is due to new VRT and Road Tax rules, which came into effect on July 1.
A total of 16,386 new cars were sold last month. SIMI director general Alan Nolan says the July hike confirms that motorists held off on buying new cars in May and June, so they could avail of savings brought about by the new VRT system.
Under the new rules, cars which emit more carbon dioxide will attract higher rates of VRT, with rates ranging from 14% to 36% depending on the amount of CO2 per kilometre emitted. The cost of annual road tax for a car will also be based on this model so less environmentally friendly cars attract higher road tax.
Despite the latest increase, total sales for the first seven months of the year are down by more than 15% on the same period last year.
