New car registrations leapt 17.7 percent compared with a year earlier to 464,824 units - the most in a single month since March 2004, the Society of Motor Manufacturers and Traders said on Friday.

Sales in the month are typically strong as new registration plates are issued every six months, in March and September. But the jump last month meant car sales in March beat even their pre-recession average.

The data is "a reflection of intensifying consumer confidence and the availability of great new products," Mike Hawes, SMMT Chief Executive said.

"Given the past six years of subdued economic performance across the UK, there is still a substantial margin of pent-up demand that is contributing to a strong new and used car market."

The strong demand is being supported by a wider range of financing deal and record low interest rates. The Finance & Leasing Association said new car financing for consumers jumped 26 percent in February.

(Editing by Toby Chopra)

By Ana Nicolaci da Costa