The Automobile Association is expecting an influx of Bay of Plenty motorists rushing to relicense their vehicles come Wednesday.

Depending on the type of vehicle, ACC levies on car registrations will drop by an average of 41 per cent, along with levies on petrol dropping by three cents per litre.

The AA Auto Centre on Hewletts Road, Mount Maunganui.

According to the AA's website, it translates to savings of $42-$132 for petrol-powered vehicles, and $82-$172 for diesels and is dependent on factors like age and safety ratings.

AA spokesman Mark Stockdale says an increase in vehicles relicensed for shorter periods followed the announcement of the ACC levies changes earlier this year.

This is where people opted to register their vehicles only to July 1 this year, so going forward their new registration cost would be cheaper with the introduction of the reduced rates.

'That's been a success and as a result a great number of Kiwis have renewed their licences for shorter periods so it expires in July,” says Mark. 'But that also means there will be a lot more cars' licences expiring annually on July.

'We still encourage people to think about relicensing for a shorter periods; three, six or nine months, which means they're not paying for their licence all in one lump and it'll help spread the renewals out.”

Transport Minister and Tauranga MP Simon Bridges says the drop in licencing fees will be a great result for local drivers.

The Government views the upcoming drop in price as another tax cut for the people of Bay of Plenty, says Simon.

'This will mean more hardworking local drivers can keep more of their hard-earned money in their back pockets which is always a great thing.”

To find out exactly how much you will save on relicensing a vehicle, visit the NZ Transport Agency's Rightcar website at: www.rightcar.govt.nz