It was the standout figure in the latest retail sales index report — purchases of new motor vehicles were up 59.2 per cent year-on-year.

And while official figures for January have yet to be released, the month has outstripped each of the previous 13 months with an estimated 110 new car sales.

The figures are impressive, and leading car dealerships on the Island have expressed renewed optimism. However, there is still some way to go for car sales to return to the levels seen before the economic downturn took hold in 2008.

Residents have been holding onto their cars for longer than they used to, resulting in fewer new cars being purchased and likewise fewer second-hand cars on the market.

Overall, the number of cars on Bermuda’s roads has not changed, according to Michael Butler, general manager of Bermuda Motors. He believes the figure to be around 25,000 cars.

Before 2008, there were typically 2,000 new private cars sold each year in Bermuda. Then the recession hit and things changed.

As jobs were either lost or relocated, and household budgets were squeezed, car sales plummeted.

When a large number of guest workers left the Island due to the downturn another phenomenon played out as they sold their cars.

“When all the expats left there were a lot of nice, fairly new vehicles being sold,” said Mr Butler.

“There are a lot more older vehicles out there, about half or 60 per cent are eight years old or above.

“We are getting to the point now where there’s a lot of older vehicles that need replacing.”

Glen Smith, managing director at Auto Solutions, said: “When we had the exit of overseas people between 2007 and 2010 that created a big second-hand car market. Those cars are now coming to the end of their life.”

New car sales reached their lowest point in 2012 when only 893 were sold, representing a 56 per cent drop from five years previously.

Since then there has been a steady improvement. Transport Control Department figures forecast 1,250 new car sales this year.

But sales of new private cars are not shooting straight back up to the once normal figure of 2,000 per year. Mr Butler believes that is due to a combination of people having less money to spend and car loans not being as easily secured as they were in the past.

He has also noticed a change in the choices customers are making.

“Kia cars are the biggest selling brand on the Island,” he said.

“The reason is that the cost versus quality is good. We give a five-year warranty and have a fixed price maintenance schedule. It is a good quality car at the right price so that you know what you are going to be paying for the next five or 10 years.”

He said there had been a shift in the SUV (sports utility vehicle) market on the Island.

“Ten years ago the SUV ‘H’ class was the big seller, but that has reversed and people are going for smaller vehicles. People don’t want to pay the higher licence fees.”

His company is currently promoting the Ford EcoSport, which is a smaller class SUV.

Strong growth in car sales have been recorded at Auto Solutions, based in St John’s Road, Pembroke.

Mr Smith said: “Since 2013 our car sales have gone up about 30 per cent.”

“We have seen more senior executives that have moved to Bermuda. That is a positive sign.”

The company sells the ‘H’ class Mitsubishi ASX and is bringing in Honda’s new HR-V, which replaces the CR-V. However, its best-selling brand is Hyundai.

Mr Smith expressed optimism. “We are blessed to have the America’s Cup coming, and who knows what that will bring,” he said.

He pointed to developments in the hotel sector, including the Hamilton Princess, Ariel Sands and Pink Sands, and the prospect of a new hotel in St George’s, as encouraging. And he said Auto Solutions was seeing companies updating their fleets of trucks, and taxi drivers opting for larger-sized vehicles.

At Bermuda Motors, on Church Street, Mr Butler said: “In the short term I’m optimistic. We have the America’s Cup coming. People will be wanting cars and there is going to be money spent.

“But in the long term we need to get something out of it; more people or larger investment in the Island by new companies or new hotels. We need to get tourism back.”