That could be a viable solution.
Any modifications performed on the car to require a DOT certificate (sort of like the engineering certificate for high performance mods now)
Then they just need to put a plaque on the inside of the engine bay/door sill with the registered modification number and link the database of certifications to police PDA's.
Of course there will be a few people who try to go illegal and mod their cars without certification however it would allow a better equilibrium than we have now.
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