If negotiations were to fail, it could mean that over-the-counter help to tax vehicles could be removed, potentially affecting thousands of drivers.
The British Vehicle Rental and Licensing Association has reached out to the DVLA for reassurances about the services currently provided by Post Offices.
In a post on its website, the BVRLA said: “There have been reports that contract negotiations have broken down, which could impact the ability to bulk tax vehicles over three years old and electric vehicles.
“The DVLA and the Post Office are currently in discussions with regards to a contract extension.
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