New car registrations in Britain increased by three per cent year-on-year, new figures from the Society of Motor Manufacturers and Traders (SMMT) show.
As it is illegal to drive without car insurance in the UK, this will have resulted in a corresponding rise in car insurance purchases.
A slight (1.9 per cent) dip in private car registrations was cancelled out by strong sales in fleet and business sales - which were up by 6.4 and 5.6 per cent respectively.
Overall, there were 137,960 new vehicles bought in December - and the SMMT said that the strong sales were likely to continue in 2008.
SMMT chief executive Paul Eviritt said: "Last year, demand for new cars was stronger than many had predicted"
Industry speculation that the ongoing credit crunch would put a dent in high-value purchases such as vehicle sales was denied by Mr Eviritt.
"There is little sign that the US credit crisis or rising fuel prices have affected demand and we foresee only limited changes through 2008," he added.
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