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The BVRLA is calling for the Vehicle and Operator Services Agency and the Driver and Vehicle Licensing Agency to merge.
It said such a move by the Department for Transport could save money and provide a better service for motorists.
As part of the reorganisation, the BVRLA believes the DVLA should assume all responsibility for vehicle and driver record-keeping, while VOSA concentrates on enforcement.
A combined agency would be fronted by a single online gateway, said the BVRLA, which would mean businesses and motorists would only have to deal with one access point whether they were registering a vehicle, taxing it, putting it through an MOT or Annual Test or disposing of it.
"We believe that this root and branch review would deliver real efficiencies for Government by streamlining enforcement and back-office systems," said BVRLA legal and policy director Jay Parmar.
"It would foster a more joined-up approach to motoring policies and lead to better sharing of information, while creating a one-stop-shop for motorists and fleet operators.
"The BVRLA made its suggestions in its response to a Government consultation on the future of the DfT's executive transport agencies, which include the DVLA, VOSA, the Vehicle Certification Agency and Driver Standards Agency."
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