HPI calls for car dealers to be ready for DVLA changes

As of 1 October 2014, the Driving Vehicle and Licensing Agency (DVLA) will make the widely publicised move from paper tax discs to online. Vehicle information provider, HPI, is warning dealers to ensure they don’t get caught out with fines for a car they no longer have on their forecourts.

After the paper tax disc is abolished, dealers will no longer be able to purchase vehicles with a tax disc in force; tax discs will not be transferable when a vehicle is sold. Dealers can either use trade plates, provided that the vehicle is used within the conditions for use of trade plates, or obtain new vehicle tax, if the vehicle needs to be registered in a dealership’s name.

Dealers and vehicle testers still need to apply and pay for a new trade licence once it needs renewing, but there will no longer be a paper trade licence to display with the trade plate. The new rules no longer require a trade licence holder to display a trade licence, however the rules for trade plates will not change in October.

The new rules also put the onus on used car sellers to inform the DVLA, when they sell their vehicle.  Importantly, under the new rules, used car sellers, including motor dealers are responsible for notifying the DVLA and then they will receive a refund for any months left on the vehicle tax. Dealers who fail to inform the DVLA, could be fined and they will still be liable for vehicle tax on a car they don’t even own anymore.

Car owners still need to have vehicle tax to drive or keep a vehicle on the road, but now the DVLA is taking payments online, including Direct Debit payment options or motorists can visit their local Post Office branch. Instead of using paper tax discs to spot tax evaders, police cameras will automatically check a car’s number plate.

Phil Peace, Commercial Operations Director for HPI comments, “We remind motor traders to always send the V5C to the DVLA, rather than relying on the buyer to do it. And always apply for a Certificate of Destruction (CoD) from an authorised treatment facility (ATF) for vehicles that are scrapped. We’re hoping that the new DVLA initiatives will make it harder for drivers to head out on the road untaxed. It’s easy to check if a vehicle is taxed by heading online at the Vehicle Enquiry Service, making this the first step for dealers and consumers alike who want to avoid the risk of fines.”