Despite growing concerns over an economic downturn, new figures from the Revenue Commissioners show that 162,196 new cars were sold by the end of July this year, compared to 152,808 for the same period last year. The sale of used cars has also increased by 8.8%.

And while the rise in ownership of SUVs continues to be a subject of debate, they represent just 9% of the market, with Toyota and Ford models continuing to dominate. Irish punters have splashed out on 298 new Jaguars so far this year, 6,277 new BMWs, 4,690 new Mercedes, four new Cadillacs and just two new Smart cars.

According to Cyril McHugh, chief executive of the Society of the Irish Motor Industry (SIMI), the continued rise in car sales shows consumers still believe in Ireland's strong economy.

"There have been various attempts to convince everyone that the economy is experiencing a downturn, but I think overall this reflects the buoyancy of the economy and particularly the confidence of the consumer in the economy, " McHugh told the Sunday Tribune. "The economy is still strong because employment figures are still strong. Car ownership levels tend to be in line with employment."

McHugh said the hundreds of thousands of SSIA accounts that reach maturity this year had also contributed to the overall rise in sales.

"There's no doubt about it, SSIAs have played a part in the purchase of new cars, " he said. "But it's not actually the SSIA money directly that people are spending. They're using the monthly instalment they were putting into the SSIA into a new car instead."

However, McHugh said the noticeable increase in the sale of used cars could be attributed more directly to SSIAs. "Used cars are actually being bought with SSIA money, " he said.

"They're moving very well this year."

The number of new cars bought this year represents a huge increase on the 90,000 bought in 1997. However, according to McHugh, Ireland remains on the lower end of the European scale for car ownership, with just 40% of people in possession of a vehicle compared comparison to 50% in countries such as the UK and Italy.