Motorists will be able to update details on their V5C logbook online under proposals published today.
The Government wants to cut red tape by making it quicker and easier for motorists to change their name or address details on their cars logbook.
Under the proposals, car dealers will also be able to update the V5C on behalf of customers.
Car owners can already tax their vehicles online, while around two million people a year use the internet to apply for driving licences.
Almost all first registration applications made by dealers are currently done online.
However, it can take up to four weeks for an updated vehicle certificate to be issued. This could be reduced to a few days using the proposed web-based system.
Announcing a public consultation on the plans, Roads Minister Stephen Hammond said: 'The Government is committed to cutting red tape and getting rid of unnecessary, burdensome and overcomplicated regulation.
'It is right that in this digital age motorists and the motor industry should be able to go online to tell DVLA if there have been changes to a vehicle record. These proposals will make it easier and cheaper than ever to do that.'
The consultation will close on November 12.