Vehicle Scrappage Policy in Chandigarh

Latest Vehicle Scrappage Policy in Chandigarh for 4-Wheelers: Rules, Benefits & Process

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If you own an old car in Chandigarh, you may be wondering whether your four-wheeler needs to be scrapped, what happens after the vehicle reaches 15 years, and whether you can get any financial benefit when purchasing a new car. The vehicle scrappage policy in Chandigarh is part of India’s broader effort to remove old, unfit, and polluting vehicles from the road and promote environmentally responsible recycling.

However, there is an important distinction between private vehicles, commercial vehicles and government vehicles.

This guide explains the latest vehicle scrappage policy for four-wheelers in Chandigarh in 2026, including eligibility, Certificate of Deposit (CoD), road-tax concessions, the RVSF process and important precautions for vehicle owners.

What Is the Vehicle Scrappage Policy?

The vehicle scrappage policy provides a framework for taking old, unfit or end-of-life vehicles off the road and sending them to an authorised Registered Vehicle Scrapping Facility (RVSF).

Instead of selling an old vehicle to an informal scrap dealer, owners can submit it to an authorised facility. The vehicle is dismantled and recycled through the formal process, and the owner receives documentation that can be used for applicable benefits when purchasing another vehicle.

The Chandigarh Transport Department currently lists information relating to the Registered Vehicle Scrapping Facility (RVSF) on its official website.

Is a 15-Year-Old Private Car Automatically Scrapped in Chandigarh?

No.

This is one of the most important points for Chandigarh car owners.

Recent reporting on Chandigarh’s implementation indicates that, for private vehicles, scrapping is not simply an automatic consequence of reaching 15 years. Vehicles beyond 15 years can continue subject to applicable roadworthiness and registration requirements. If an old vehicle is found to be unfit, it may need to be scrapped through a registered facility.

Therefore, car owners should not assume that:

“My car is 15 years old, so it automatically has to be scrapped.”

Instead, owners should check the vehicle’s registration status and applicable fitness/roadworthiness requirements with the Chandigarh Registering & Licensing Authority (RLA).

How To Scrap A Car In Chandigarh

What Happens After a Four-Wheeler Becomes Old?

For an old four-wheeler, the key issue is whether the vehicle remains legally roadworthy and eligible for registration/renewal.

According to recent reporting, Chandigarh has been moving towards more scientific and automated testing of older vehicles. The proposed automated inspection and certification facility is intended to assess vehicles on multiple technical and environmental parameters rather than relying only on manual inspection.

If an old vehicle is found to be unfit for continued use, scrapping through an authorised RVSF becomes the appropriate route.

What Is an RVSF?

RVSF stands for Registered Vehicle Scrapping Facility.

It is an authorised facility where an old or end-of-life vehicle can be deposited for systematic dismantling and recycling.

Using an authorised RVSF is preferable to handing over your vehicle to an informal scrap dealer because the official scrapping process provides documentation and updates the vehicle’s registration status.

Chandigarh has an authorised vehicle scrapping facility, and recent reporting has highlighted the relatively low use of the formal RVSF route compared with informal/local scrap channels.

What Documents Are Generally Required?

Before scrapping your four-wheeler, keep the following documents available:

  • Original Registration Certificate (RC)
  • Valid identity/address proof
  • Vehicle owner’s details
  • PAN/Aadhaar or other documents as requested by the facility
  • Bank details for payment, where applicable
  • Loan/hypothecation clearance, if applicable
  • Any other documents requested by the RVSF or registering authority

The exact documentation can vary depending on the vehicle’s registration and ownership status.

What is a Certificate of Deposit?

When a vehicle is deposited for scrapping at an authorised facility, the owner receives a Certificate of Deposit (CoD) as part of the formal scrappage process.

This certificate is important because it establishes that the old vehicle has been deposited for scrapping and can be used for applicable incentives when purchasing a replacement vehicle.

The Chandigarh Administration’s policy specifically refers to the Certificate of Deposit issued by a registered vehicle scrapping facility.

Benefits of Scrapping an Old Four-Wheeler

The major benefits of scrapping the Vehicle and using the formal scrappage process are that an owner may become eligible for incentives associated with purchasing a replacement vehicle.

1. Road Tax/Vehicle Tax Concession

Chandigarh notified a concession for vehicles submitted for scrapping. The 2023 Chandigarh notification provided:

  • 25% concession for non-transport vehicles
  • 15% concession for transport vehicles

The concession is subject to the applicable conditions and is linked to the vehicle class being replaced.

For example, the notification stated that a four-wheeler should be replaced by a vehicle of the corresponding class for the concession to apply.

2. Scrap Value

The authorised scrapping facility pays the owner the applicable scrap value of the vehicle.

The amount depends on factors such as the vehicle’s weight, material, and market conditions. Therefore, there is no single fixed scrap price for every four-wheeler.

3. Certificate for the New Vehicle

The Certificate of Deposit can be important when purchasing a replacement vehicle because it provides evidence that the old vehicle has been scrapped through the recognised process.

4. Environmentally Responsible Recycling

Old vehicles contain metals, fluids, plastics and other materials that should be handled carefully.

Formal vehicle scrapping helps ensure that useful materials can be recovered while hazardous materials are managed more responsibly.

Vehicle Scrappage Policy in Chandigarh

What Is the Scrap Value of an Old Car?

Apart from government-related incentives, the owner can receive the scrap value of the vehicle from the scrapping facility.

There is no single fixed scrap price for every car.

The value can depend on:

  • Vehicle weight
  • Metal content
  • Vehicle condition
  • Recoverable materials
  • Current scrap-market rates
  • Parts and components
  • Applicable deductions or charges

Therefore, two cars of the same age may receive different scrap values.

How to Scrap a 4-Wheeler in Chandigarh

The basic process is generally as follows.

Step 1: Check Your Vehicle Documents

Keep your original RC and ownership documents ready.

Also check whether the vehicle has any outstanding loan/hypothecation or other issue that needs to be resolved before scrapping.

Step 2: Select an Authorised RVSF

Do not hand over your vehicle to an unknown scrap dealer if you need formal scrapping documentation.

Choose a Registered Vehicle Scrapping Facility recognised under the applicable rules.

Step 3: Submit the Vehicle

The RVSF verifies the vehicle and ownership details before accepting it for scrapping.

You may need to provide identity and vehicle-related documents.

Step 4: Vehicle Dismantling

The vehicle is processed through the authorised scrapping procedure.

Components and recyclable materials such as metals are recovered, while hazardous materials are handled through the prescribed process.

Step 5: Receive Scrapping Documentation

The facility provides the applicable documentation, including the Certificate of Deposit.

Step 6: Registration Record Is Updated

The vehicle’s registration status needs to be properly closed/updated as part of the formal scrapping process.

This step is important because simply handing your vehicle to a scrap dealer does not provide the same level of documentation and protection.

Step 7: Purchase Your Replacement Vehicle

If you are purchasing another vehicle, provide the applicable Certificate of Deposit and documents to the dealer/registration authority to claim benefits for which you qualify.

latest vehicle scrappage policy for four-wheelers in Chandigarh

Should You Scrap or Sell Your Old Car?

This depends on the condition and legal status of the vehicle.

Selling may make sense when:

  • The vehicle is legally transferable.
  • It remains roadworthy.
  • It has reasonable resale value.
  • The buyer can legally register/use it.

Scrapping may make more sense when:

  • The vehicle is no longer roadworthy.
  • Repairs are becoming uneconomical.
  • The vehicle has reached the applicable end-of-life stage.
  • It cannot satisfy the required fitness/emission requirements.
  • You want to purchase a new vehicle and use an applicable scrappage benefit.

Before making the decision, compare the resale value + repair costs against the scrap value + applicable replacement-vehicle benefits.

Why You Should Avoid Informal Car Scrapping

Many old cars are still handed over to informal scrap dealers.

However, if you want the official benefits associated with the vehicle scrappage policy, an informal sale/scrapping arrangement can create problems.

Potential issues include:

  • RC not being properly cancelled
  • Vehicle remaining linked to the previous owner
  • No valid Certificate of Deposit
  • Difficulty claiming applicable tax benefits
  • Lack of proper scrapping documentation

For a vehicle that is genuinely at the end of its useful life, using the formal RVSF route is the safer option.

Vehicle Scrappage Policy for Government Vehicles

Government vehicles are treated differently from privately owned vehicles.

Chandigarh has implemented measures for scrapping government vehicles that have crossed the applicable age limit. The policy framework has also provided for mandatory scrappage of vehicles that reach the relevant critical age and fail prescribed fitness and emission requirements.

Therefore, private car owners should not directly apply government-vehicle scrappage rules to their own cars.

Benefits of Scrapping an Old Four-Wheeler

There are several potential advantages to using the formal scrappage process.

1. Scrap Value

You receive the value of the recyclable material in your old vehicle.

2. Certificate of Deposit

The CoD provides formal evidence that the vehicle has been deposited for authorised scrapping.

3. Possible Road-Tax Concession

Eligible replacement vehicles may receive the applicable Chandigarh motor-vehicle-tax concession, subject to the policy conditions. The notified rates include up to 25% for non-transport vehicles and up to 15% for transport vehicles.

4. Environmentally Responsible Recycling

Authorised dismantling allows metals and other materials to be recovered while hazardous components are handled through controlled processes.

5. Permanent Exit of an End-of-Life Vehicle

Proper scrapping helps ensure that an unusable vehicle does not continue circulating through informal channels.

latest vehicle scrappage policy for four-wheelers in Chandigarh

Chandigarh Car Scrappage Policy: Quick FAQ

Is a 15-year-old private car automatically scrapped in Chandigarh?

No. Vehicle age is important, but private vehicle owners should also consider registration renewal and applicable fitness/roadworthiness requirements.

Can I drive my old car after 15 years?

It depends on the applicable registration and fitness requirements. Do not assume that crossing 15 years automatically means either permanent road use or automatic scrapping.

What is RVSF?

RVSF stands for Registered Vehicle Scrapping Facility, an authorised facility for formal vehicle scrapping.

What is a Certificate of Deposit?

A Certificate of Deposit (CoD) is documentation issued in connection with depositing an eligible vehicle for authorised scrapping. It can be relevant for claiming applicable scrappage incentives.

How much road-tax concession can I get after scrapping a car?

Chandigarh’s notified policy provides a concession of up to 25% for non-transport vehicles and up to 15% for transport vehicles, subject to applicable conditions.

Can I get the benefit when buying another four-wheeler?

The Chandigarh notification provides the concession subject to vehicle classification and other conditions. A four-wheeler scrapped under the applicable scheme is relevant to a corresponding four-wheeler replacement.

Should I scrap my 15-year-old car immediately?

Not necessarily. First check its RC, registration renewal requirements, fitness/emission status and current eligibility.

Where can I verify the latest Chandigarh scrappage rules?

The Chandigarh Transport Department publishes information regarding the vehicle scrapping policy on its official website.

Scrap Your Old Car with Select Auto Scrap

Don’t leave your end-of-life vehicle with an unknown scrap dealer.

If you are looking for a Government Authorized RVSF Center in Chandigarh, Select Auto Scrap can help you with the formal vehicle scrapping process.

From vehicle inspection and valuation to pickup, documentation, Certificate of Deposit and deregistration, the team provides an end-to-end vehicle scrapping solution.

Whether you have an old Maruti, Hyundai, Tata, Honda, Toyota, Mahindra, Kia, Renault, Volkswagen, Ford or other four-wheeler, contact us to check the applicable scrapping process and valuation for your vehicle.

Ready to Scrap Your Old Car?

Send your vehicle details on WhatsApp or contact Select Auto Scrap today.

Call / WhatsApp: +91 93560 22555

Select Auto Scrap – Govt. Authorized RVSF Center, Chandigarh

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Scrap Center in Chandigarh

Benefits of Vehicle Scrapping Policy in India

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Talking about the benefits of India’s scrappage policy, it comes with multiple incentives! For those opting to scrap their vehicles, the government has disclosed several offers and incentives.

For starters, they shall be rewarded with a best scrap value. The good news doesn’t end there, as the owners will be charged zero registration fees for their new vehicle if they carry and show their certificate of deposit. Additionally, vehicle manufacturers have also been advised to offer a discount on the purchase of new vehicles when shown the certificate of deposit.

On top of that, the state governments have also been asked to offer concessions on motor vehicle tax. These concessions are believed to be up to 25 percent and 15 percent for non-commercial and commercial vehicles, respectively.

However, scrappage policy benefits will also include a reduction in pollution. Once vehicles with high emissions are taken off the road, air pollution will come down. New car sales are also expected to see a rise after the removal of old vehicles from the road.

As new vehicles come with many more safety features than the older ones, the buyers will get a higher safety during travel. Furthermore, the vehicle scrappage centres set by the government will create huge employment opportunities.
Last but not the least, the scrapping of old cars will create a lot of raw materials through recycling, thereby supporting both raw and precious metal recycling industries.

Rules for scrapping an old car:

a.) Write a letter to the RTO about your decision to scrap the vehicle.
b.) Surrender the registration certificate (RC) and the chassis
c.) Submit an affidavit that the car is not under a loan, insurance claims, or pending case court.
d.) The affidavit should even state that the car isn’t involved in any criminal activity.
e.) The concerned insurance company should also be notified about the scrapping of he vehicle
f.) Once all the paperwork is cleared the vehicle scrapping policy, the vehicle is deregistered by the RTO.

Select Auto Scrap is the Govt. authorized scrap centre in Chandigarh, If you want to scrap your old vehicle please contact us at-+91 93560 22555 or visit our website-www.selectautoscrap.com. We have a amazing offer and incentives for your vehicle

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Scrap Center in Chandigarh

Vehicle Scrappage Policy in India- Explanation and Benefits!

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The Vehicle Scrappage Policy, 2021 focuses on phasing out old and unfit vehicles. It aims to de-register private cars over 20 years old and commercial vehicles over 15 years old.

What is Vehicle Scrappage Policy in India

The Vehicle Scrappage Policy is a government-funded programme to scrap old and unfit vehicles and replace them with modern and new vehicles on Indian roads. The primary goal of the policy is to create an ecosystem for phasing out unfit and polluting vehicles to achieve a lower carbon footprint in the country.
Beginning April 1, 2023, fitness testing of Heavy Commercial Vehicles (HCVs) shall be conducted only through Automated Testing Stations (ATSs). For other types of Commercial Vehicles (CVs) and Private Vehicles (PVs), the fitness testing shall also be conducted through the ATS and begin on June 1, 2024.
Commercial vehicles and private vehicles older than 15 and 20 years, respectively, shall be scrapped if they fail the fitness test. If a vehicle fails the fitness test, it shall be defined as an ELV (End-of-Life Vehicle).

What is the aim of Vehicle Scrappage Policy

Here are some of the key takeaways of the vehicle scrappage scheme.

1.) Reduce pollution by scrapping vehicles without valid fitness and registration.
2.) Improve passenger, road and vehicular safety.
3.) Generate employment in the automobile industry.
4.) Formalise the current informal vehicle scrappage industry.
5.) Improve fuel efficiency and reduce maintenance costs for vehicle owners.
6.) Increase availability of low-cost raw materials for automotive, steel and electronics industry.

Benefits of the Vehicle Scrappage Policy

Here’s a list of potential benefits of the new vehicle scrap policy for the economy, automobile sector, vehicle owners, and others.

1.) Scrapping unfit vehicles will result in less air pollution and better air quality.
2.) With old vehicles being scrapped, the demand for new vehicles will rise as the old ones will need to be replaced by new ones. More than 51 lakh light motor vehicles (private and commercial) are more than 20 years old.
3.) Overall, the automobile sector will benefit from the new scrappage policy leading to more job opportunities. For example, new vehicle scrapping centres will need manpower.
4.) New advanced vehicles will be comparatively safer. For example, new cars come with superior safety features.
5.) The recycling industry will also be more active leading to higher revenue.
6.) Vehicle owners might receive tax benefits as an incentive to scrap an old vehicle.
7.) Vehicle owners might also get the best price for car scrappage for workable parts such as tyres.

What are the incentives for scrapping old vehicles?

Here are the incentives when you scrap old vehicles.

1.) Automatic deregistration of the RC and automatic clearance of all outstanding challans
2.) No registration charges: Upon declaring the Certificate of Deposit, the registration fees for the new vehicle are waived.
3.) Concession on road tax: State governments may offer a concession on the road tax on the new vehicle. The concession can be up to 25% for non-transport vehicles and 15% for transport vehicles.
4.) Avail a discount: After scrapping the vehicle, the owner may receive around 4 to 6% discount on the new vehicle’s cost (ex-showroom).

How to scrap a car in India?

Here is the vehicle scrapping process in India.

Step 1: Contact the scrapping centre
Step 2: Complete the documentation
Step 3. Valuation of legal inspection done by the scrapping centre
Step 4. Agreed scrap value of the vehicle will be deposited to the owner account
Step 5: Get the scrappage certificate
Call the authorized recycler or reach out to them via our websites.

Get the Used Parts of Vehicle-

1.) Get the all types of car spare parts for any make and model
2.) All our spare parts are genuine and reliable
3.) All parts are quality tested
4.) We provide the Doorstep deliver anywhere in India

Fix an appointment with Select Auto Scrap we are a Govt authorized scrap centre in Chandigarh and , you can drive the car to our scrapyard or request us to collect the car from your place. For more info Please contact us at-+ 91 93560 22555 or visit our website-https://selectautoscrap.com/

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Car scrapping center

Things You Should Keep In Mind Before Scrapping Your Vehicle

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Here in our country, the MoRTH (Ministry of Road Transport and Highways) has set forward specific rules to discard old vehicles plying on the Indian roads. Also, now in India, scrapping an old car has become more accessible than ever.if you wish to scrap the vehicle you own, here are the things should know before you do so.

1. Plan early to scrap a vehicle.

Starting with the plan to scrap is ideally a good idea. Take a note of the exact process and the documents you’d need to carry the process forward. We recommend planning to scrap your vehicle at least a month before the vehicle’s RC expires

2. Should you scrap or sell your vehicle?

Depending upon where you live and the fuel your vehicle runs on, you can ideally go with two things. One is the straightforward way to scrap the vehicle or sell your car outside of the Chandigarh. Well, it is the Chandigarh and the Tri-City region where the scrappage policy is taken a little too seriously.

3.How to scrap it?

Now, if you have decided to scrap your vehicle, firstly, we’ve been there, it is not easy to see your vehicle in the crushing yard. So, you’d need to find the nearest government authorised scrap yard. Talking about Chandigarh, here are Selectautoscrap you can go to. All you have to do is take your vehicle to the centre with the documents and it’ll be done. Stay put to know the documents required.

4. Documentation

To deregister your vehicle, you’ll need to submit the car’s fitness certificate declaring the car to be unfit. Also, a copy of the RC, Pan card, crossed cheque and bank account details to transfer the deposit. In the end, authorisation of the vehicle owner is a must. But if the owner is deceased, the death certificate will do.

5.Deregistering the vehicle

Now that you’ve gathered all the necessary documents, how to deregister your vehicle? After scrapping the vehicle, it’s simple, that the authorised facility will upload the chassis number and a photograph of the dismantled and scrapped vehicle.
As per the latest government notification, the scrapping facility will not immediately release the chassis number and keep it to itself for six months. Later the certificate will automatically be uploaded to the VAHAN database. So, this is done to prevent any misuse of the vehicle. Also, do remember to go to a government authorised scrapping centre.

6.The Price of Scrap car

Well, the sad part is you’ll not be getting much amount for getting your vehicle scrapped. For one, it’ll either be cut into the bare metal, and you’ll receive the amount according to per kilogram of metal.But you can get more by selling individual car parts if it is in working condition.

Selectusedparts is the Govt. authorised scraping centre in Chandigarh. Here you can scrap your Commercial vehicle, Private vehicle & two-wheelers. We offer the best value and Govt. benefits & incentive for your car. Contact or WhatsApp us today at-+91 93560 22555

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Car Scrapping

Should you sell or scrap your car and when? Here is the list of cases to consider

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When should you sell?

Selling a car is often a subjective choice, with some wanting to dispose it of within two years, while others want to retain it for 20 years if it’s still in working condition. If, however, you are keen on getting a good resale value for your car before you buy a new one, what should you do? When should you sell it and how should you ensure that it fetches you a good price? Here are 4 situations under which you should consider selling.

When maintenance costs are low
Experts point out that the best time to sell a car is after 4-5 years or within 1,00,000 km of running. Most cars also come with warrantees of 5 years, beyond which resale anyway become difficult. An easy way to decide if it is the right time to sell is to find out the current value of your car and the immediate or expected repairs and maintenance in the next six months or a year. If the costs add up to more than the car’s value, retaining the car will not do you much good.

​When resale value is high

Importantly, the car depreciates in value by around 50% after 4-5 years, and if you want to get a good resale price, you should sell it before it slides down further. Most people do not want to buy a car that has done more than 50,000-60,000 km or is older than 4-5 years as it will incur a higher maintenance cost.

When affordability falls

If your income has fallen in tandem or can’t keep up with the soaring fuel prices, it would be a good idea to dispose of your car and get a more fuel-efficient option such as a CNG or an electric one. State governments offer a range of cash subsidies on purchase of electric vehicle (EV) which include exemption from road tax and registration fee, as well as lower public charging fare. These exemptions are besides the 5% lower GST and income tax break of Rs 1.5 lakh on interest under Section 80EEB, if you take a loan to purchase an EV.

When should you scrap it?
If your car has run its due legal permissible working age in your state, you can opt to either sell it in another state where the expiry date is longer, or scrap it as you will not be allowed to use it beyond this period. To avoid the hassle of selling a car in another state, you can have it scrapped. This is besides the 25% rebate on road tax and registration fee waiver on buying a new car, if you scrap your old car.

Best way to sell

While you can sell your car directly to dealers or manufacturers, even through mechanics or social media, the best option these days is online car selling companies, which have a huge network of dealers. They carry out the valuation, inspection, legwork as well as paperwork for you and ease the process of selling. It is, however, a good idea to compare several websites before agreeing to a price. You should also ensure that your car is clean, serviced, well-maintained with all the service records and other documents in place before starting the resale process.

​Transfer insurance & benefits
After selling the car, you will need to inform the RTO about the transfer so that you are no longer liable for any misuse or illegal activities involving the car. You should also inform the insurer, especially if you are passing on the insurance. If not, inform them about the cancellation of the policy.

When to scrap
A car can be scrapped if it suffers severe damage in an accident or remains unused for a long time and is not in working condition, or exceeds its expiry date and the registration certificate (RC) or certificate of fitness are not renewed by the RTO. The expiry date varies across Indian states. In Delhi, for example, you cannot drive a car that is over 15 years old if it is a petrol car, 10 years if it is a diesel car, whereas in other states, the expiry is determined by fitness of the vehicle and can even go up to 20 years.

How to scrap it
You need to locate and go to a government authorised scrapping facility or recycler. Going to an authorized scrapper is crucial as only he will provide the certificate to be used to deregister. To go ahead with the dismantling, certain documents need to be submitted.

What price will you get?
The price is determined by weight of the vehicle to be scrapped and is typically Rs 15 per kilogram of metal parts. If the car is in working condition and its parts can be sold, you can get a higher price for the vehicle.

Select Auto Scrap offer top scrap vehicle removal service, so get in touch if you want to arrange collection of your old unwanted vehicle. For more info visit us at- https://selectautoscrap.com/ Or call us at- +91 93560 22555

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