Motorists in Scotland spent over £400 million the the '07 registration plate was launched last month. High sales were helped after the car prices were slashed by the dealers to boost trade.
This has resulted in new car sales going up by 2.3 per cent.
Motor trade officials said, "The upturn is a welcome boost to dealers who hope that confidence is returning to the market after a disastrous 2006 when sales fell by 4.3%.
"A total of 40,163 new cars were bought in March. The total marks an increase of 919 sales over last March."
It has been the second rise dealers have seen in the last six months but sales for the first three months in 2007 are now ahead by 0.7% as compared to the same period of last year.
Car dealers recorded their best sales in the Borders region with a 15% surge in sales during March while sales in Strathclyde rose by 5.6% to 20,144 vehicles, however in the Lothian area sales dropped by 9 %.
The best selling car last month in Scotland was the Renault Clio with 2,472 sales.
