New car registrations are running 26pc higher this year compared to the same period last year as more people splash out.
It now appears new car sales will crash through the 100,000 barrier for the first time since 2008.
The most popular new car purchase by far is the Volkswagen Golf, with almost 4,000 sold in the first five months of 2015.
New figures released by Motorcheck.ie reveal the confidence of business people is soaring, with a dramatic 53pc increase in the purchase of commercial vehicles this year - a welcome contrast to the bleak years of recession.
But the importation of used vehicles from abroad - which also forms part of new registration figures - is down more than 12pc this year, with unfavourable exchange rates cited. This fall compounds the problem of a shortage of good quality used cars on the market.
In all, more than 126,000 registrations (including passenger, light commercial, heavy goods vehicles, motorcycles and used imports) have been either bought new or imported second-hand from the North or from abroad so far this year.
"It's great to see new vehicle sales in both the private sector and the commercial sector continue to rise," said Michael Rochford, the managing director of Motorcheck.ie.
"However, stock shortages in the used car sector is a worrying trend and is resulting in not much choice and value in this sector for the used car buyer," he said.
"When this happens, people feel under pressure to complete sales - so we would urge buyers to ensure they perform a thorough check before parting with their hard-earned cash," he said
New statistics show:
• The top five manufacturers with the most new car registrations are - Volkswagen, Toyota, Ford, Hyundai and Nissan.
• The top five models with the most new car registrations are - Volkswagen Golf, Ford Focus, Nissan Qashqai, Volkswagen Passat and Skoda Octavia.
•The top five diesel models are VW Golf, Ford Focus, VW Passat, Hyundai 1x35 & Nissan Qashqai.
•The top five petrol models are Ford Fiesta (pictured below), Toyota Yaris, Renault Clio, Opel Corsa and VW Polo.
•The colour black has replaced silver as the most common new car colour, followed by grey, white and blue.
• The most common body types are Hatch/Liftback up 43pc followed by multi-purpose vehicles (20pc).