The number of new vehicle registrations is at a record high.
The Motor Industry Association says 10,528 vehicles were sold last month; the highest January sales figures since records began.
The commercial sector broke records for the fourth month in a row, as 2235 vehicles were sold.
Motor Industry Association chief executive David Crawford said the strong New Zealand dollar and economy means people have the confidence to buy.
New car sales also recorded their best January sales since the Motor Industry Association began collecting records in 1975, with almost 8300 sales.