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Your Old Car’s Lease on Life: India’s Scrappage Policy Explained Simply

Did you know your old car could be worth more as scrap than as a running vehicle? Welcome to India’s Vehicle Scrappage Policy – a game-changer for car owners, our cities, and the environment. Let’s break it down in plain language!

1. What is This "Scrappage Policy" Anyway?

  • Think of it like a retirement plan for old, polluting vehicles.
  • If your car or bike is too old or unfit to drive safely, the government encourages you to scrap it responsibly.
  • In return, you get cash discounts and tax benefits on a new, cleaner vehicle 212.

2. Why now?

  • India has over 5 million private cars older than 20 years.
  • Old vehicles pollute 10–12 times more than new ones .
  • Accidents due to brake failures or breakdowns are common in ageing vehicles.

3. Is Your Vehicle Affected?

  • Check your car’s status: Visit the VAHAN portal (mparivahan.gov.in) with your registration number.

Vehicle Type Age Limit What Happens?
Private Cars 20+ years Mandatory fitness test. Pay higher fees to re-register
Commercial Vehicles 15+ years Yearly fitness tests.
Government Vehicles 15+ years Must be scrapped – no choice
Vintage Cars Any age Exempt! No scrapping required

4. Why Scrap? Benefits You CAN’T Ignore

  • Replacing your old clunker isn’t just eco-friendly – it’s smart economics:
Discounts on New Cars:
  • Get 1.5–6% OFF ex-showroom price (e.g., ₹20,000 off a ₹10 lakh car) from brands like Tata, Maruti, Hyundai 13.
  • Luxury brands like Mercedes offer flat ₹25,000 discounts 13.
Tax Breaks:
  • 25% OFF road tax for private cars.
  • 15% OFF for commercial vehicles 12.
  • Zero Registration Fees: Save ₹1,000+ on new vehicle paperwork 8.
  • Scrap Value: Get 4–6% of your old car’s original price as cash from scrapyards 8.
  • Plus, you’ll save on fuel (new cars are 20–40% more efficient) and repairs (fewer breakdowns!) 2.

5. Beyond Savings: Greener Roads, Safer Journeys

  • This policy isn’t just about money – it’s about our future:
  • Cleaner Air: Phasing out 1 million old cars = Cutting 15–20% of transport pollution.
  • Boost for Electric Vehicles (EVs): New EV buyers get:
  • Green tax waivers
  • Subsidies up to ₹3,679 crore under the PM E-DRIVE scheme 14.
  • Job Creation: Scrapping centers need staff – 50,000+ new jobs expected 813.

6. How to Scrap Your Car in 4 Simple Steps

  • Use govt-approved centers like Maruti Suzuki’s MSRVs or Mahindra CERO 2.
  • Avoid shady dealers – only RVSFs (Registered Vehicle Scrapping Facilities) issue valid "Certificates of Destruction" 7.
  • Gather Documents:
    Registration Certificate (RC)
    Aadhaar/PAN card
    Pollution Under Control (PUC) certificate 2
  • Deregister at RTO:
    Submit the scrapping certificate to your local RTO.
    Clear pending fines or loans first 8.
  • Buy New & Claim Benefits:

    • Show your scrapping certificate to the new car dealer for discounts + tax waivers . Deadline Alert: Fitness tests for heavy vehicles start Oct 1, 2024. Other vehicles: June 1, 2025 .

7. Scrap vs. Keep: Which is Smarter?

  • Scrapping an ageing vehicle is often more economical and environmentally responsible than holding on to it.

Situation Keep Your Car Scrap It!
Fitness Test Passes easily Fails
Costs High renewal fees + Green Tax Save on taxes + discounts
Sentimental Value Vintage/well-maintained High maintenance costs
Environment High pollution Zero emissions with new EV

Example: Re-registering a 20-year-old car costs ₹5,000 + 15% green tax. Scrapping it saves this fee AND gets you ₹20k–₹50k in benefits.

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The Road Ahead: A Win-Win for Everyone

India’s scrappage policy turns your old car into cash, cleaner air, and safer roads. With 84+ RVSFs already operational 14, retiring your ride is now hassle-free.

Final Tips:

Use your scrapping benefits to upgrade to an EV – enjoy extra subsidies and near-zero running costs.

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