The Government has announced plans to make mandatory the recording of vehicle mileages on registration documents in a bid to stamp out car clocking, which is claimed to cost UK motorists £100m a year.
The RMI, which has battled for stringent controls on used car traders, welcomed the move to record mileages on the V5 registration document and licence applications.
David Evans, RMI chief executive, said: "For too long the reputable end of the used car market has been saddled with the appalling image that it trades in vehicles with false mileages with the sole intention of ripping off consumers.
"The Government's plans will finally expose those cheats who persist in trying to make easy money out of unsuspecting vehicle buyers."
Competition and consumer affairs minister Dr Kim Howells announced the plans, likely to be legislated next year, to the House of Commons. The Government is also to launch a computer-based system for recording mileages during the MoT.
Mr Evans added: "What the industry needs now is a blanket ban on the sale and use of equipment designed to alter vehicle mileages, unless for legitimate purposes."