Drivers are taking emergency loans to cover car registration costs to stay on the road.
Good Shepherd Microfinance has experienced a 125 per cent surge in motorists seeking no-interest loans to pay their rego in the past year.
Others are taking payday loans with exorbitant fees.
A Financial and Consumer Rights Council report, to be released today, is ramping up pressure on the State Government to allow all drivers to pay registration in instalments.
"The cost of car registrations has increased dramatically in recent years, and it is tough for thousands of Victorians to pay $770 in one lump sum," FCRC executive officer Peter Gartlan said.
"It's about time the Government sets a date (for) change."
Victoria is the only state that fails to give pay-by-instalment choices to car owners.
Outdated VicRoads technology has been blamed.
For many Victorians, having a car is not a luxury they can do without
The FCRC report calls for flexible payments of one, three, six or 12 months for all drivers.
VicRoads has six-monthly payments only for pensioners and healthcare card holders.
The report recommends giving pensioners and Centrelink recipients an option of deducted welfare payments for car registration via Centrepay, and expanding the 50 per cent registration pensioner concession rate to those unemployed for more than three months.
Mr Gartlan said unaffordable car rego was draining welfare agencies and community organisations footing the bill through emergency relief.
"For many Victorians, having a car is not a luxury they can do without, especially for those seeking employment or living in areas without public transport," the report said.
"For some, their car is also the roof over their head."
Almost 67,000 people have signed a petition from Colac mum and financial counsellor Julie Barrow demanding affordable payment options.
No-interest car registration loans sought from Good Shepherd Microfinance more than doubled to 2784 last year.
At one Geelong agency, car regos made up a fifth of their special payment budget.
Do you think it's time for Victoria to provide flexible payment options for car registration? Let us know in the comments below.