Ford Fiesta deals were especially popular with British motorists last month, new figures have revealed.
According to the Society of Motor Manufacturers and Traders (SMMT), the model was the top-seller in February 2010, with more than 3,200 vehicles being sold.
This contributed to a 26.4 per cent increase in the new car market during this period.
The SMMT said this was mainly fuelled by private buyers, although it noted demand among businesses is also getting stronger.
Paul Everitt, chief executive of the group, commented: "A clear and consistent approach to CO2 based taxation and improved access to affordable credit are essential elements in sustaining recovery in the new car market."
However, the group acknowledged that uncertainty over the coming Budget and general election could affect the new car market over the next few months.
Similar views were expressed by Sue Robinson of the RMI, who said customers are likely to spend cautiously in the near future.
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