If you choose to scrap your old car today, you can get some valuable incentives from the 15 year old vehicle scrap policy in India. Under the Voluntary Vehicle Modernisation Program, the government and automobile manufacturers are encouraging owners to retire ageing, polluting vehicles and upgrade to newer, cleaner models.

Once you scrap your car at an authorised Registered Vehicle Scrapping Facility, you receive a Scrappage Certificate under the car scrappage policy India. This works like a discount token for your new car purchase. Here are some of the additional incentives you will receive:

• Leading brands such as Maruti Suzuki, Tata Motors, Hyundai, Kia, Mahindra, Renault, Nissan, and more are offering up to 1.5% of the ex-showroom price or ₹20,000 (whichever is lower) as a special scrappage-linked discount under the scrapping policy in India.
• Similarly, Mercedes-Benz offers an additional flat ₹25,000 on top of other offers.
  Many states also provide concessions on road tax, lower registration charges, and other fee waivers when you buy a new vehicle using your scrappage certificate.

When you combine the scrap value, the manufacturer’s discount, and the government’s concessions, upgrading to a new car becomes much more affordable and environmentally beneficial.

Also Read: Cancel Your RC After Scrapping Car

Save Money on a New Car

When you scrap your old vehicle, you get special discounts, road tax benefits, and lower registration fees. These savings directly reduce the cost of buying a new car, making the upgrade surprisingly affordable.

Less Costly Repairs

Older cars mean unexpected garage visits, rising repair bills, and declining mileage. When you upgrade to a new model it gives you better reliability, performance, and predictable maintenance costs.

Step Up in Safety

Today’s cars come with modern safety features such as multiple airbags, strong crash protection, ABS, stability control, and more. This means you and your family enjoy a much safer driving experience.

Cleaner Air

Old vehicles release higher levels of harmful emissions. When you complete the process of old car scrapping, you help reduce air pollution and contribute to healthier, cleaner cities.

Quieter Roads

Engines of new cars run smoother and quieter. If you replace noisy old cars, you can make our roads calmer and more pleasant.

Recycling of Materials

When a car is scrapped, materials like metal, rubber, and plastic are recycled and reused. This reduces the need for new raw materials and supports sustainable manufacturing.

Promotes Multiple Industries

Recycled parts support sectors like steel, plastics, rubber, electronics, and more, strengthening the overall economy.

Creates More Jobs

Vehicle scrapping and recycling centres create new employment opportunities in dismantling, transportation, logistics, and even new car production.

Step 1: Contact the Authorised Scrapping Centre

Start by calling a Registered Vehicle Scrapping Facility or contacting them online. Once your appointment is set, you can either drive your car there or have it towed from home.

Step 2: Submit the Documents

To begin the process, you will need to provide a few basic documents, such as your PAN copy, original RC, address proof, cancelled cheque, ELV certificate, and a photo ID. If someone else is handling it for you, you must share an authorisation letter.

Step 3: Starting the Actual Scrapping Process

If you want to continue using your vehicle, you can take a fitness test at an Automated Testing Station.

If you are scrapping it, the centre will safely remove tyres, batteries, fluids, and all internal and external components before crushing the empty shell for recycling.

Step 4: Recycling and Reusing the Remaining Part of the Vehicle

Every usable material, such as steel, rubber, and plastic, is recycled responsibly to minimise environmental impact.

Step 5: Issuing the Scrapping Certificate

After the car is fully scrapped, you will receive a Certificate of Destruction. Use this to deregister your vehicle and claim your scrap value digitally or by cheque.

Step 6: Enjoy Your Incentives

This scrap certificate benefits you with scrappage discounts, tax benefits, and fee waivers when you buy your new vehicle.

• • You must write a letter to the RTO office about scrapping the vehicle.
• You must submit an affidavit stating that the vehicle was not involved in the act of theft. Additionally, you must also declare that there are no bank loans, insurance claims, traffic penalties, or court cases against the vehicle.
• You must also submit the vehicle’s original documents and the number plate that was cut out from the vehicle during the scrapping process.
• The scrapping centre must provide you with a confirmation letter on their letterhead and photographs of the scrapped vehicle to submit at the RTO office.
• If all the above documents are satisfactory, the RTO authorities will deregister your vehicle.

The government has announced the Voluntary Vehicle Modernisation Program, with a clear goal of making it easier for people to retire their old, polluting vehicles and switch to cleaner, safer ones. It is designed not only to reduce pollution but also to breathe new life into India’s automobile sector, which has struggled since the 2019 slowdown.

To support this, a growing network of Registered Vehicle Scrapping Facilities and Automated Testing Stations has already been set up across the country. There are more than 60 RVSFs and 75 ATSs, with many more on the way.

Additionally, automakers have also stepped forward with limited-period scrappage incentives. All rules and regulations related to the car scrapping policy will be defined and issued by the Ministry of Road Transport and Highways (MoRTH).

When combined with government benefits such as tax concessions and reduced registration fees, these incentives make upgrading to a new, cleaner vehicle far more affordable.

Fitness tests are essential for deciding whether an older vehicle is still suitable for the road or needs to be scrapped. After completing the test, you will receive a Vehicle Fitness Certificate (FC). A vehicle FC is like a health check-up report for your car, as it confirms that the vehicle is safe to drive and not polluting more than it should.

Here are some of the reasons why the fitness test is important:

• Keeps Pollution Under Control: The test measures how much your vehicle pollutes. If emissions are too high, the vehicle is flagged to protect air quality.
• Essential for Renewing Registration: Once the original fitness period ends, the vehicle must pass a test at an authorised Automated Testing Station (ATS). If it fails, its car registration cannot be renewed, and it may have to be scrapped.
• Done Only at Approved Centres: To maintain fairness and accuracy, fitness tests are carried out only at certified ATS facilities with automated systems.
• Identifies Unfit Vehicles: Well-maintained older cars may still pass the test. For those nearing the end of their life but not ready for scrapping, a 10–15% green cess may be applied due to higher emissions.
• Promotes Safer Roads: By helping determine roadworthiness and vehicle pollution levels, this fitness test guides scrapping decisions.

Also Read: RTO Rules for Car Scrapping and Deregistration

• If you own a commercial vehicle that is more than 15 years old, you will have to pay a higher fee for its fitness test. Additionally, the charges for the fitness certificate will also be higher.
• If you own a private vehicle that is more than 15 years old, you will have to pay a higher fee for the renewal of its registration.
• You will also have to pay an additional green cess of 10-15% above the road tax for an old vehicle.

• Check if You Can Extend the Vehicle’s Life: If you are not ready to let go of the car, check if your car can still pass a fitness test. In stricter regions like Delhi, only well-maintained vehicles stand a chance. You must also consider whether keeping the car makes financial sense.
• Plan Ahead: Once your vehicle reaches the end of its authorised life, it must be scrapped. If you continue to use it, you may incur hefty fines. Try to start planning at least a month before the deadline so you are not rushing at the last moment.
• Know What to Expect Financially: Scrap value is not usually very high. It is around ₹15–₹20 per kg of metal. If some parts are still in good working condition, selling them separately can help you earn more. Planning gives you time to find the right buyers.
• Deregister the Vehicle Properly: Only scrap your vehicle at an authorised centre. They will provide proof of scrapping, such as photos and the chassis number, and update the details in the VAHAN system within the required period.
• Keep Your Documents Read: Have your RC, ID proof and any authorisation letters on hand. If the owner has passed away, a death certificate will be needed to proceed.
• Make an Informed Decision: Parting with a long-time vehicle can be emotional. Take time to assess its condition, the cost of upkeep, and the benefits of scrapping. Once you decide, visit a government-authorised scrapping centre with all the required documents.

When you add up scrappage value, manufacturer discounts, better fuel efficiency, and the freedom from constant repairs, the savings from scrapping an old car are substantial. A new vehicle not only costs less to maintain but also delivers better safety and performance.

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