Shoreham Vehicle Auctions (SVA) has warned that the introduction of a pay-per-mile taxation scheme on electric vehicles (EVs) and plug-in hybrids (PHEVs) could lead to an increase in mileage tampering.
The firm also warned that the scheme could create a compliance burden for the motor trade, as vehicles are often driven to dealers by trade plate drivers and are test driven, all while the vehicle is ‘in trade’, leading SVA to question who would be liable for paying for these miles.
The SVA said it expects recording mileage as vehicles move through the trade to present a major challenge to fleets and dealers.
SVA said that drivers could tamper with their car’s mileage, in order to reduce costs.
The process of tampering with a car’s mileage, or ‘clocking’ is not currently illegal in the UK, although it is illegal to sell a car without disclosing any mileage discrepancies.
Alex Wright, managing director at SVA, said: “The new eVED system immediately presents challenges for the motor trade which haven’t been fully thought through by the Government.
“We have been lobbying the DVLA for years to record and track trade mileage without any progress.
“As the motor trade knows the DVLA currently does not facilitate the process of tracking the ‘in trade’ ownership of a used vehicle which allows traders to use trade plates for movement and test drives without registering the vehicle to themselves.
“If that changes and the DVLA is able to facilitate the ownership of a vehicle at all times through dynamic API feeds, then perhaps the system would be less arduous for the trade to monitor and manage.
“The Government holds all the cards in helping address both the trade mileage and clocking issues.
“The Government making the act of clocking vehicles illegal would be a great foundation to address the issue while the DVLA must address the ongoing challenge of tracking in trade ownership.”
