January saw a 29% increase in the number of new cars registered. The motor industry said the increase in sales is worth €30m to the Irish economy.
The Society of Irish Motor Industry said a total of 21,078 new cars were bought last month - traditionally the busiest month of the year for car sales.
SIMI's director general Alan Nolan said that although official figures are not yet finalised, garages have confirmed that interest in the scrappage scheme has been very strong so far this year.
'We expect that demand will continue to be high until the end of June when the scheme ends,' he added.
Today's SIMI figures reveal that the most popular brand sold last month was Toyota, followed by Ford and Volkswagen. Over 70% of the cars sold were diesel, while almost 28% were petrol.
The figures are released as the country's credit unions announce a new initiative to provide loans to purchase cars.
The 'Direct Access to Credit Unions' initiative between the credit unions and the motor industry will provide easier access to funding for customers buying second hand cars.
