NEW car sales boomed in March, according to experts at Parker’s Car Price Guide, with 438,075 cars taking to the road for the first time.

Although overall registrations in the first three months of this year still trail behind the first quarter of 2002 by a narrow margin - about 8,000 cars or 1.4 per cent down - another record was set this March, with more than 14,000 more registrations than in March 2002.

Total sales in 2003 should be around 2.4 million cars, so the March figure means that about 18 per cent of all the new cars sold this year will have passed through the showrooms in a single month.

Nic Barfield, editor of Parkers Car Price Guide, said: “These astonishing figures from the Society of Motor Manufacturers and Traders show the new car business defying gravity.

“Despite the war in Iraq, the hikes in National Insurance contributions and council tax from April, and a cloudy economic outlook, car buyers are still heading for the showrooms in record numbers.

“In the longer term, new car sales must fall. Today’s demand levels are sustained by cheap credit plus cut-throat discounts and incentives from the major car manufacturers.

“Put simply, many car makers are buying business. The latest campaign from MG Rover shows just how far they will go to shift cars. The hook is simple: the company pledges to beat any genuine offer.”

Although the Peugeot 307 has been on sale for nearly two years, the previous 306 still looks acceptably modern.

A 1.6 GLX hatchback on 1999 T-plate with 20,000 miles is £8,500; or £7,500 buys a 30,000-mile 2.0 HDi Meridian estate on 00 X-registration. Enthusiasts might opt for the GTi6 six-speed gearbox, alloy wheels, rear spoiler and 0-60 mph in eight seconds, at £10,000 on 00 W-registration at Peugeot dealers.