The new car market is on a high and 2001 could turn out to be the best for registrations since 1989, claims the Retail Motor Industry Federation.

With new car registration figures released by the Society of Motor Manufacturers and Traders last week showing the private market up 17.2%, bringing the total registrations to 408,024, Alan Pulham, RMI franchised dealer director said buyers were recognising new cars were now value for money.

"Customer confidence over the past six months is indicative of the remainder of 2001, and this year's sales could well match the all-time high of 1989 when 2.3m cars were sold."

The SMMT is sticking to its original forecast of 2,250,000 registrations in 2001.

For the full Market Data report on the March sales click here.