New car registrations increased 14.2% in October to 179,714 units, marking the 32nd consecutive month of growth.
October also saw registrations exceed the two million milestone. The total figure for the year is 2,137,910 cars, said the Society of Motor Manufacturers and Traders today.
This is the first time the market has passed two million units in October since 2007.
After months of marketwatchers predicting emerging stability in the market, October's performance exceeded expectations, with the quantity of finance packages available to buyers continuing to fuel the market.
Mike Hawes, SMMT chief executive, said, "The October new car market outperformed expectations, with registrations showing the strongest growth in a month since March’s 18% rise.
"With economic confidence still rising, customers continue to benefit from attractive financial packages on exciting new models.
"We still expect the overall market to level off as we head towards 2015, but the exception to that rule will be alternatively-fuelled vehicles, demand for which will continue to accelerate."
The popularity of alternatively-fuelled vehicles continues to grow, with the market up more than 50% in both month and year-to-date.
Chris Sutton, Black Horse managing director, said: “As we witness another month of positive car sales it’s a question more of when will this good news story end?
"And as we enter the final quarter of 2014 consumers will be anticipating new models in the new year and may well be considering upgrading or part exchanging their current car so this continued growth trajectory may continue but more than likely at a slower pace than we have previously seen.
"Alongside this we should see manufacturers and finance providers continuing to work hard to offer affordable and competitive finance options to consumers so all in all we should anticipate continued good performance till the end of the year and a promising start to next year."
The Ford Fiesta, Ford Focus, Vauxhall Corsa and Volkswagen Golf were the top selling cars in October and year-to-date.
January - October registrations 2005 - 2014 (Source: SMMT)
> For historic registration figures for each brand with fleet, business and retail split, plus sales per outlet go to www.am-online.com/ami (free to dealers).