The End of Life Vehicle directive will make recycling more expensive which might cause a surge in illegal dumping, according to Glass's Guide.
It has urged the Government to change the registration document to reduce the estimated 1.5m cars illegally dumped each year, costing taxpayers up to £37.5m.
Chris Smith, Glass's editor, said local authority figures revealed that the number of cars being dumped each year was growing by 20%.
“The approaching ELV regulations will make recycling an expensive proposition,” he said.
“Recycling remains a worthy but not cost-effective method of disposing of unwanted cars. It is up to the Government and local councils to get a firm grip on this growing problem.”