How to scrap your vehicle legally and get benefits

If you own an old car or bike, you may have heard about India’s vehicle scrappage policy. Many vehicle owners are now wondering how to scrap your vehicle legally and get benefits. The process may seem confusing, but once you understand it, scrapping an old vehicle can actually be rewarding. This guide explains the entire car scrapping process, including eligibility, documents, incentives, and the steps to follow under the vehicle scrapping policy in India.

What is vehicle scrapping

Vehicle scrapping means safely dismantling an end of life vehicle that is no longer fit to run on the road. Old and unfit vehicles are a major source of air pollution and road safety issues. The government introduced India’s vehicle scrappage policy in 2021 to remove such vehicles and encourage people to buy cleaner, fuel-efficient ones.

Under the policy, commercial vehicles older than 15 years and private vehicles older than 20 years must undergo a mandatory fitness test at an authorised automated testing station. If the vehicle fails, it is declared unfit and must be sent to a registered vehicle scrapping facility.

The idea behind the vehicle scrappage policy is to promote road safety, reduce air pollution, and support the automobile industry by increasing sales of new vehicles.

Why vehicle scrappage policy is needed

The vehicle scrappage policy announcement was made to tackle multiple problems caused by old and unfit vehicles. Here’s why it’s important:

• Reduce air pollution: Old diesel vehicles and petrol vehicles emit harmful gases, which cause severe air pollution in cities.
• Improve road safety: Vehicles with poor brakes, steering, and lights can cause accidents.
• Boost automobile sector: Scrapping old vehicles increases demand for new vehicles, creating jobs in the automobile industry.
• Save fuel: Modern vehicles offer better fuel efficiency.
• Lower maintenance costs: Old vehicles need frequent repairs, while new ones are more reliable.

In simple words, the vehicle scrappage policy is designed to help both the environment and vehicle owners.

What happens when your vehicle gets old

When your private vehicle completes 20 years or your commercial vehicle completes 15 years, you must take it for a fitness test at an automated testing facility.

If your vehicle passes the fitness test, you can renew your vehicle registration by paying registration renewal charges and fitness test fees.

If your vehicle fails, it becomes an end of life vehicle and must be scrapped at a registered scrapping facility.

Once scrapped, your vehicle registration certificate (RC) will be de-registered by the regional transport office (RTO), and you will receive a scrappage certificate (also called a certificate of deposit).

Step-by-step guide on how to scrap your vehicle legally and get benefits

Scrapping your old vehicle is now easier and transparent. Here’s a simple step-by-step process for how to scrap your vehicle legally and get benefits in India.

Step 1: Locate a registered vehicle scrapping facility

Find a registered scrapping facility or government authorised scrapping centre near you. You can use the official VAHAN portal or the Parivahan website to search for authorized centers. Avoid local or illegal scrapyards because only certified centers can issue a scrapping certificate.

Step 2: Prepare your documents

Before starting the scrapping process, you’ll need:

• Original registration certificate (RC)
• Aadhaar card and PAN card
• Photographs of the vehicle
• Bank account details
• Authorization letter if someone else submits on your behalf

Step 3: Submit your vehicle for inspection

Your vehicle identification number (VIN) and chassis number are verified. The vehicle scrapping facility checks details like fuel tank, steering wheel, windshield washer fluid, and other components before dismantling.

Step 4: Vehicle de-registered by RTO

The scrapping center contacts the regional transport office (RTO) to de-register the vehicle officially. Once this is done, your car or bike is no longer legally valid for road use.

Step 5: Receive the scrappage certificate

After your scrapped vehicle is dismantled, you receive a scrappage certificate or certificate of deposit. This is the most important document because it allows you to claim benefits on your new vehicle purchase.

Step 6: Claim your benefits

Using the scrapping certificate, you can avail several incentives offered under the car scrappage scheme or new vehicle scrappage policy.

Benefits of scrapping old vehicles

Here are the major advantages of scrapping your old car, two-wheeler, or heavy commercial vehicle through the car scrappage scheme applicable in India:

1. Financial benefits

Scrap value: Get 4–6% of the ex-showroom price of a new vehicle as scrap value from the scrapping facility.

Discount on new vehicle: Many vehicle manufacturers offer 5% discount when you exchange your scrapping certificate.

Road tax rebate: State governments may give up to 25% road tax rebate for personal vehicles and 15% for commercial vehicles.

No registration fees: You don’t have to pay registration fees for your new vehicle.

2. Environmental benefits

Reduce air pollution by removing old petrol and diesel vehicles.

Encourage recycling of metals, plastics, and rubber safely.

Support sustainable development and cleaner air.

3. Safety and convenience

Avoid breakdowns caused by old vehicles.

Save money on repairs and maintenance costs.

Reduce chances of accidents due to faulty steering wheels or weak brakes.

4. Economic growth

Encourages growth in the automobile sector.

Generates employment in scrapping facilities, automated testing stations, and recycling plants.

When done through a registered scrapping facility, the process of how to scrap your vehicle legally and get benefits becomes easy and profitable.

Which vehicles are eligible for scrapping

The car scrappage scheme covers all commercial and private vehicles that fail the fitness test or cross their age limit:

Important points to remember

• Always scrap your vehicle at a government authorised scrapping centre.
• Don’t sell your old unfit car to unauthorized dealers — it’s illegal.
• Keep your scrappage certificate safe; it’s required to claim discounts.
• Make sure your vehicle registration is de-registered before buying a new vehicle.
• Pay the fitness test fee and registration renewal charges only at official centers.

Frequently asked questions (FAQs)

1. What is the legal age to scrap a vehicle in India?

Private vehicles older than 20 years and commercial vehicles older than 15 years must undergo a fitness test. If the vehicle fails, it must be scrapped.

2. Where can I scrap my car legally?

At a registered vehicle scrapping facility or government authorised scrapping centre listed on the VAHAN or Parivahan portal.

3. What is a scrappage certificate?

It’s an official document issued after your vehicle de-registered and dismantled. It helps you claim discounts and rebates on your next new vehicle.

4. Can I get benefits for scrapping my old car?

Yes, you can get scrap value, road tax rebate, and discounts from vehicle manufacturers.

5. Do I have to scrap my vehicle if it passes the fitness test?

No, if your vehicle passes the fitness test, you can continue using it legally.

Conclusion

Now you know how to scrap your vehicle legally and get benefits in India. The process is simple if you follow the official steps, take your vehicle for a fitness test, scrap it at a registered scrapping facility, get your scrappage certificate, and enjoy discounts on your new vehicle.

By scrapping old and unfit vehicles, you help reduce air pollution, improve road safety, and support the automobile sector. Whether you own a light motor vehicle, two-wheeler, or heavy commercial vehicle, the new vehicle scrappage policy ensures that the process is transparent, legal, and beneficial for everyone.

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ARN: Zuno/Blog/DM/How to scrap your vehicle legally and get benefits/10/25/18