Car more than 15 years old? State govts announce discounts for scrapping; 5 things to know about how to scrap an old car – ET Auto


If you own a vehicle that is more than 15 years old, here is all you need to know about scrapping your car.

Do you own a car that is more than 15 years old? Then you should know that 21 states and union territories (UTs) are offering up to 25% discount on personal vehicle price or road tax for customers who scrap their old vehicles and buy a new one, stated a Times of India news report. For commercial vehicles, the discount is 15%.The Voluntary Vehicle Fleet Modernization Program aims to eliminate old and unfit vehicles that cause pollution and harm the environment. The policy will start after the car registration is completed, and the vehicle will undergo a fitness test after a certain period. According to the Motor Vehicle Laws, a vehicle is considered fit for only 15 years. After 15 years, the vehicle pollutes the environment more than any new vehicle.In 2022, automated testing was used to inspect commercial vehicles. Starting June 1, 2024, all passenger vehicles over 15 years old will also be subject to this same rigorous testing.

Concessions offered by states

Several states, including Bihar, Madhya Pradesh, Uttar Pradesh, Haryana, Karnataka, Maharashtra, Gujarat, Punjab, and Kerala, have announced concessions to promote the scrapping of old and unfit vehicles. The central government has made it mandatory for states to promote this initiative.

Dipak K Dash of Times of India reported that discounts range from 10% to 25% and are based on different criteria, such as the scrap value or price of the new vehicle. For instance, Haryana offers a discount of 10% or lower than 50% of the scrap value, while Uttarakhand provides a 25% discount or a maximum of INR 50,000, whichever is less. Karnataka, on the other hand, is offering a fixed discount on road tax based on the price of the new private vehicle. For example, vehicles priced above INR 20 lakh are eligible for a discount of INR 50,000. Lastly, Puducherry is giving a generous 25% discount or a maximum of INR 11,000, whichever is less. These discounts are expected to provide relief to private vehicle owners who are struggling amidst the ongoing pandemic.

If you own a vehicle that is more than 15 years old, here is all you need to know about scrapping your car.

What is the age of your car

Different age criteria apply to commercial and private vehicles. Under the government’s vehicle scrapping policy, personal vehicles purchased with petrol or diesel fuel require re-registration after 15 years. The approval is valid for only 5 years. If you wish to continue driving your vehicle after 20 years, it must undergo fitness tests every 5 years. However, Delhi-NCR has different rules. Petrol vehicles have a maximum age limit of 15 years, while diesel vehicles have a maximum age limit of 10 years. If a car older than the limit is found on Delhi’s roads, there will be a fine of INR . 10,000, and it will be sent directly for scrapping.

Old vehicle problems

If your car or bike is older than 15 years, you may have to pay a green tax on re-registration. The tax can be up to 50% of your road tax and is based on the pollution level in your state. Electric/CNG-fuelled vehicles are exempt. You’ll also need to pay higher fees for registration renewal and fitness tests.

How to scrap a car

When you scrap your vehicle, its former number will become available again. It’s important to notify your auto insurance company in advance to avoid any issues. It’s also crucial to cancel your Vehicle Registration Certificate and insurance policy to prevent future misuse of your vehicle papers. If you cancel your policy, you may be eligible for a refund on a pro-rata basis, provided that you haven’t filed any claims on your active policy.When a car is severely damaged in an accident, unused for an extended period and no longer functional, or its registration certificate (RC) or certificate of fitness is not renewed by the RTO, it can be scrapped. The expiry date for a car’s registration varies among different states. In Delhi, for example, petrol cars that are more than 15 years old and diesel cars that are 10 years old cannot be driven, while in other states, the expiry date is based on the vehicle’s fitness and can be up to 20 years.To dispose of your car legally, we recommend visiting one of the four government-approved car scrappers in the NCR region, as designated by the Delhi Transport Department. Upon arrival, ensure you have all necessary documents before submitting them for review. Once verified, the car will be dismantled in accordance with all relevant regulations and guidelines.When you decide to scrap your vehicle, it’s important to go to an authorized scrapper to get a certificate of vehicle scrapping. The certificate will help you deregister your car from the VAHAN database, preventing it from being resold or misused. The scrapper will take a photo of the scrapped car and provide you with the chassis number. However, according to the latest government notification, the scrapper will keep the chassis number with them for six months before destroying it. The car will be deregistered after uploading the scrapping certificate to the VAHAN database. Choosing an authorized scrapper is crucial as only they can provide the certificate needed for deregistration.

  • Documents to be submitted

To have your car dismantled at an authorised scrapper, you will need to provide a few documents. These include a copy of your RC, a fitness certificate to declare the car as unfit, your PAN card, bank account details where the deposit can be made, a crossed cheque, authorisation from the car owner, and if applicable, a death/succession certificate in case the registered owner has passed away.

  • Price you will get for scrapping

The cost of scrapping a vehicle is determined by its weight. You can expect to pay roughly INR 15 for every kilogram of metal parts that need to be scrapped. If the vehicle is in good condition and its parts can be sold, you may receive a higher price for it.

  • Published On May 3, 2024 at 01:00 PM IST

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