New car sales have increased for the 42nd month in a row, with more than 1.6 million registrations so far this year.
A total of 79,060 new cars were sold in August, an increase of 9.6 per cent on the same month last year, driven by finance deals.
Registrations have increased by 6.7 per cent so far this year to a record high, the Society of Motor Manufacturers and Traders (SMMT) said.
Gains were made across all sectors compared to August 2014, with registrations up in the private, business and fleet markets.
The popularity of alternatively-fuelled vehicles grew 52.3 per cent year-on-year, maintaining a steady 2.4 per cent share of the overall market.
SMMT CEO Mike Hawes said: “August’s strong performance has again been driven by attractive finance deals and a diverse range of technologically advanced models.”