The Finance & Leasing Association (FLA) has launched a new financed vehicle recovery scheme in partnership with the DVLA.
The agreement will allow finance companies to reclaim untaxed, financed cars that have been impounded by the DVLA, as it is a breach of contract to drive a car that is subject to a finance agreement without having tax.
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The scheme, which started on September 26, builds on the HPI Crushwatch scheme which warns lessors when financed cars seized by the police are due to be sold or destroyed and will continue to be run in conjunction with the FLA and AVCIS.
While the police have powers to seize vehicles for a variety of reasons, it is the DVLA which claims untaxed cars.
The DVLA predicts that this new scheme will identify around 1,000 cars every year, at an approximate value of £5.5m.
Paul Harrison, head of motor finance at the FLA, said of the scheme: This will help make our roads safer for law-abiding motorists and will also mean that finance companies will be able to collect their cars before they go to the crusher or are sold at auction.
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