There is cautious optimism from the motor industry as 22,927 new cars were bought in January, up 33% on last year (17,242) and 8% up on 2012 (21,309) according to the latest figures from the SIMI (Society of the Irish Motor Industry.

Alan Nolan, SIMI Director General says: "It was clear in December that there was a strong demand for new 141 cars with dealers reporting far better levels of activity in the lead-up to January. Feedback from dealers suggests that consumer interest is continuing with a noticeable increase in showroom footfall and there certainly is a sense of optimism in dealerships that hasn't been apparent for many years.

There may have been some built-up demand from last year and the earlier Budget may also have helped people to make the decision to buy. There is also a greater availability of affordable finance and an overall improvement in the confidence among Irish consumers”

“It is very early days so we are still cautious in relation to where the market might end up this year but there is a strong sense that we're now above the bottom and beginning to move upwards. It's nice to be able to say that for the first time since 2008,” added Alan Nolan.

He also said: “There appears to be a smaller proportion of registrations in the last few days of this January compared to 2013, which is a sign that the stronger demand this year is being driven by consumers.

Demand for used cars in dealerships has also been strong, while the supply of locally sourced cars remains limited. This is reflected in the increase in imported used cars, which show an increase of 35% on 2013 and 39% over 2012 Around 50% of imported used cars are recorded as being registered by Motor Dealers.

Commercial vehicles have also seen improved levels of activity in January with sales of LCVs (vans) up 42% on 2013 and 29% on 2012, while HGVs (trucks) are 31% up on 2013 and 19% better than in 2012. Whereas the new car market tends to be a sign of consumer confidence, the commercial vehicle market is more of an indication of what is happening in the Irish Economy, confirming a noticeable increase in activity among small and medium businesses. "