Orders placed for new vehicles grew by 12% in July, while used car demand increased by 16%, according to the latest figures from lead management firm Dealerweb.
The figures reflect the reduced lockdown measures in the wake of the coronavirus pandemic.
Enquiries also increased, with a 16.5% rise in the new sector and 27% growth in used.
Used car prices showed their largest monthly price rise for two years on Auto Trader during July, with values rising 4.6% amid signs that consumer demand is continuing to grow.
The online classified advertising specialist said that it saw online demand rise 25% year-on-year and indicated that car retailers are sticking to their guns more than ever on price as a result – with price adjustments down 29% year-on-year last month.
Dealerweb said the performance shows how well dealers are adapting to selling under social distancing measures.
James Hill, managing director of Dealerweb, added: “July shows another strong performance by dealers across the UK. A significant rise in order take for new vehicles in both June and July will feed into increased registrations over the next quarter. While the performance of the used sector continues well above usual seasonal patterns.
“It is clear that dealers are pushing harder to meet pent up demand, but I also think we see additional growth from buyers who have made savings during lockdown and have money to spend. It is key for all dealers to manage leads in this volatile market carefully.”
A total of 174,887 vehicles were delivered to customers last month, according to Society of Motor Manufacturers and Traders (SMMT) figures, but new car registrations remain 41.9% down year-to-date, at 598,054 units.
Dealerweb data shows the average value of used vehicles remained steady at £19,560 last month, while the average new vehicle value increased from £21,404 to £31,589.
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