New car sales have contributed over €450m to the Exchequer during the first three months of the year, according to a new quarterly review by the Society of the Irish Motor Industry and DoneDeal.

The survey, conducted by economist Jim Power using data from SIMI and online classifieds site, says that new car sales have risen by 27% during the first quarter of the year.

In terms of motoring costs, the report says that the cost of buying a new car is 2.7% lower than in the same period of 2013.

The price of fuel is also down, with petrol 5.3% cheaper and diesel costs down 4.7%.

Motor taxation costs have remained stable year-on-year, however the cost of motor insurance has increased by 4.4% during the same period.

Meanwhile, more than 60,000 private cars were sold on DoneDeal during the first three months of the year, according to the site’s figures.

Its motor section recorded sales to the value of €280m during that period, a rise of €30m.

SIMI projects that there will be 85,000 new car sales in Ireland this year, and hopes to grow that by 10,000 sales each year until 2017.

If this target is met, according to the body, it would result in 5,000 new jobs in the sector over the next three to four years.