The RAC has urged the government to act as up to 15,000 foreign cars go unregistered every year costing them an estimated £3 million.
A list of the best-ever British cars has been released with an iconic vehicle topping the poll.
A third of Britain's drivers are unfamiliar with basic road signs, while many others are prone to speeding, a new survey suggests.
The boss of Vauxhall has welcomed a boom in new car sales in the UK and has said it showed "the good times are back".
With figures for March at their highest for 10 years, Vauxhall's Tim Tozer said it shows greater confidence in the economy.
But he insisted that there will not be be a return to boom and bust.
ITV Business Editor Joel Hills looks at the reasons behind the sales surge:
New data from the Society of Motor Manufacturers show new car sales in March were at their highest level since 2004.
- 464,824 cars were registered in March, a 17.7% year-on-year rise
- Sales in the first three months of the year up 13.7% compared to 2013
- Second-highest monthly figure since the introduction of twice-yearly registrations in 1999
In his first interview, the new head of Vauxhall UK has told ITV News that rising house prices are helping car sales because of increased consumer confidence.
But Tim Tozer insisted to Business Editor Joel Hills that a rise in car sales did not herald a return to "boom and bust territory".
The new head of car company Vauxhall has told ITV News Business Editor Joel Hills that "the good times are back" following an upturn in car sales.
"This is not a return to boom and bust". The new Chairman and MD of Vauxhall UK in his first interview. Watch @itvnews at 18:30.
New boss of Vauxhall UK tells @itvnews that surge in car sales due, in part, to surge in house prices but everything "under control".
Tim Tozer tells me "the good times are back". Car sales are "sustainable" and Vauxhall set to increase production at Luton and Ellesmere.
Union points out that 160 agency staff also set to lose jobs at Honda. On top of 320 permanent roles. Likely to affect suppliers too.
Unite described the expected loss of 340 jobs at a Honda plant in Swindon as "a devastating blow" and said that the fact people do not "have the cash to spend" should cause the Government serious concern.
– Tony Murphy, national officer of the Unite union
These job losses are a devastating blow, not just for these workers but for the thousands more across the industry whose work is dependent on the Honda plant.
Today's losses are also a wake-up call to the UK government.
The economy is far too fragile to proclaim a recovery - those workers losing their jobs today will find claims that the country is turning a corner an insult.
The truth is that there is simply no pick up in the incomes of Honda's customers, either here or in the eurozone.
Honda says 340 jobs likely to go at its factory in Swindon as 3 shifts become 2. Warns "haven't seen growth we'd anticipated" in exports.
Honda is to cut production at its Swindon factory from three shifts to two, threatening 340 jobs, the company said today.
On average, an additional 600 extra cars were registered per day in 2013 than in 2012. Private sales made up 1.07 million of the registrations last year - a rise of 15.6% on the 2012 share.
Both petrol and diesel-engined vehicle sales rose in 2013, but petrol's share of the market grew slightly - from 47.8% in 2012 to 48.8% in 2013 - while diesel's share dipped from 50.8% in 2012 to 49.8% in 2013. Alternatively-fuelled vehicles remained flat 1.4%.
The best selling cars in 2013 were:
1 Ford Fiesta; 2 Ford Focus; 3 Vauxhall Corsa; 4 Vauxhall Astra; 5 Volkswagen Golf; 6 Nissan Qashqai; 7 BMW 3 Series; 8 Volkswagen Polo; 9 BMW 1 Series; 10 Peugeot 208.
New car sales raced to a six-year high in 2013, the motor industry has announced.
A total of 2,264,737 new cars were registered in 2013 - a 10.8 percent rise on the 2012 figure and the best annual total since the pre-recession year of 2007, the Society of Motor Manufacturers and Traders said.
The 2013 total was boosted by a 23.76 percent rise, to nearly 153,000, in sales in December - the 22nd successive month of increases