Why Choose an Authorized Vehicle Scrapping Centre Over a Local Scrap Dealer?

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When a car, bike, or commercial vehicle reaches the end of its useful life, choosing the right place to scrap it becomes an important decision. Many vehicle owners consider selling their old vehicles to local scrap dealers, while others prefer an authorized vehicle scrapping centre.

Although both options may involve disposing of an old vehicle, there are important differences in documentation, vehicle traceability, environmental safety, and the scrapping process.

In India, Registered Vehicle Scrapping Facilities (RVSFs) operate under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021. These facilities follow prescribed procedures for handling, dismantling, and processing end-of-life vehicles.

In this blog, we will explain the benefits of choosing an authorized vehicle scrapping centre, the risks associated with unauthorized scrapping, and the government incentives that eligible vehicle owners may receive.

What Is an Authorized Vehicle Scrapping Centre?

An authorized vehicle scrapping centre is a facility registered by the relevant state or union territory authority under the applicable vehicle scrapping rules. These facilities are commonly known as Registered Vehicle Scrapping Facilities (RVSFs).

They follow prescribed procedures for receiving vehicles, verifying documents, removing hazardous fluids, dismantling components, recovering recyclable materials, and completing the required scrapping documentation.

The main responsibilities of a registered facility include:

  • Vehicle verification: Checking vehicle details and ownership documents.
  • Safe depollution: Removing fuel, oils, coolant, and other fluids appropriately.
  • Systematic dismantling: Separating vehicle components for suitable processing.
  • Material recovery: Directing recyclable materials to appropriate recovery channels.
  • Scrapping documentation: Issuing the prescribed certificates after completing the required process.

Vehicle owners should verify the facility’s current registration status before proceeding.

What Is a Local Scrap Dealer?

A local scrap dealer may purchase old vehicles, metal parts, and other recyclable materials. Some dealers collect vehicles and transfer them to other businesses for further processing.

However, purchasing scrap metal and operating a registered vehicle scrapping facility are not the same activity. A local dealer should not automatically be considered an authorized vehicle scrapper.

Before handing over a complete vehicle, owners should check whether the business has the required authorization for the specific scrapping activity.

Choosing a business that cannot complete the prescribed vehicle scrapping process may create problems with documentation and registration-related formalities.

Why Choose an Authorized Vehicle Scrapping Centre?

Why Choose an Authorized Vehicle Scrapping Centre?

Choosing a registered vehicle scrapping facility offers several important benefits.

1. Proper Documentation and Vehicle Records

Documentation is one of the most important parts of vehicle scrapping. Vehicle owners should ensure that their vehicle is accepted through the appropriate process and that the necessary records are maintained.

A registered facility can issue the prescribed certificates under the applicable vehicle scrapping rules.

Important documents include:

  • Certificate of Deposit (CD): Records the vehicle’s deposit with a registered scrapping facility for further processing.
  • Certificate of Vehicle Scrapping (CVS): Records the vehicle’s scrapping after the prescribed process is completed.
  • Transaction records: Provide evidence of the vehicle handover and agreed payment.

Owners should retain the relevant documents and follow any applicable Regional Transport Office (RTO) requirements for updating or cancelling the vehicle registration.

2. Environmental Safety and Responsible Disposal

Old vehicles contain materials that require careful handling, including engine oil, coolant, fuel, batteries, and other potentially hazardous components. Improper disposal can contribute to soil and water pollution.

Registered facilities must follow applicable requirements for depollution, dismantling, and environmentally sound waste management.

The process may include:

  • Removing hazardous fluids before dismantling.
  • Separating batteries and other components requiring special handling.
  • Sorting metals, plastics, glass, and other recoverable materials.
  • Sending waste materials to appropriate treatment or disposal channels.

Choosing a registered facility helps support responsible vehicle disposal and reduces the risk of improper handling.

3. Safe and Systematic Vehicle Dismantling

A vehicle contains several components, including its engine, transmission, tyres, battery, wiring, glass, and metal body panels.

Registered vehicle scrapping facilities follow prescribed procedures for vehicle treatment and dismantling.

The main benefits include:

  • More systematic separation of vehicle components.
  • Appropriate handling of potentially hazardous materials.
  • Better segregation of recyclable and non-recyclable waste.
  • Recovery of useful materials for further processing.

This approach supports responsible vehicle recycling and resource recovery.

4. Better Vehicle Traceability

Vehicle traceability helps maintain records of a vehicle’s identity and its scrapping process.

Registered Vehicle Scrapping Facilities follow prescribed procedures for recording vehicle details and completing scrapping-related documentation through the relevant systems.

Vehicle owners should take the following steps:

  • Verify the identity and registration status of the facility.
  • Provide accurate ownership and vehicle documents.
  • Obtain written confirmation of the vehicle handover.
  • Collect the prescribed scrapping documentation.
  • Follow up on applicable RTO or VAHAN record-update requirements.

These steps can help prevent avoidable complications when completing vehicle disposal formalities.

5. Avoid Unauthorized Vehicle Scrapping

Handing your vehicle over to an unauthorized scrap dealer can create problems with documentation, vehicle traceability, and official registration records. If the prescribed scrapping process is not followed, your vehicle’s disposal may not be properly recorded in the VAHAN database.

This can lead to complications when completing registration-related formalities.

To avoid these issues:

  • Choose a Registered Vehicle Scrapping Facility (RVSF).
  • Verify the facility’s registration status before handing over your vehicle.
  • Ask how the vehicle will be processed and recorded.
  • Obtain the required scrapping documents.
  • Keep payment receipts and other transaction records for reference.

Important: A local scrap dealer may perform permitted activities or work as a collection partner. Always confirm whether the business has the required authorization for the activity being performed and whether your vehicle will complete the prescribed scrapping process.

Vehicle Scrapping in Chd

6. Government Incentives for Scrapping Your Old Vehicle

One of the important benefits of scrapping an eligible old vehicle through a registered facility is the opportunity to receive incentives when purchasing a new vehicle.

These benefits are generally linked to the Certificate of Deposit (CD) issued through the prescribed vehicle scrapping process. The actual benefit depends on the applicable state rules, vehicle category, and participating manufacturer’s offers.

Major Incentives Available

  • Waiver of registration fees: The registration fee for a new vehicle purchased against a valid Certificate of Deposit is waived under the applicable central provisions.
  • Motor vehicle tax concession: Eligible buyers may receive a concession of up to 25% for non-transport vehicles and up to 15% for transport vehicles, subject to the applicable state notification.
  • Manufacturer discounts: Participating vehicle manufacturers may offer discounts on new vehicles purchased against a Certificate of Deposit.
  • Scrap value for the old vehicle: The registered scrapping facility pays the agreed scrap value based on the vehicle and the terms of the transaction. This is separate from the government incentives.

Vehicle Scrapping Incentives in Chandigarh

The Chandigarh Administration offers motor vehicle tax concessions to eligible vehicle owners who scrap their old vehicles through a Registered Vehicle Scrapping Facility (RVSF). These benefits are linked to the Certificate of Deposit (CD) issued when the old vehicle is deposited for scrapping.

Key incentives include:

  • 25% Motor Vehicle Tax Concession: For eligible non-transport (private) vehicles.
  • 15% Motor Vehicle Tax Concession: For eligible transport (commercial) vehicles.
  • Scrap Value Payment: Owners receive the agreed scrap value for their old vehicle from the scrapping facility.
  • Registration Fee Waiver: Eligible buyers can receive a waiver of registration fees when registering a new vehicle against a valid Certificate of Deposit.
  • Manufacturer Discounts: Additional discounts may be available from participating vehicle manufacturers, subject to their current offers.

Important conditions:

  • The new vehicle must belong to the same category and class as the scrapped vehicle for the applicable tax concession.
  • The benefits are subject to current government rules and eligibility requirements.
  • Manufacturer discounts depend on the offers available at the time of purchase.

Before scrapping your vehicle, check the latest requirements with the Chandigarh Transport Department or an authorized vehicle scrapping facility.

Discounts Offered by Vehicle Manufacturers

In addition to government incentives, several automobile manufacturers have agreed to offer discounts on new vehicles purchased against a valid Certificate of Deposit (CD) issued through the vehicle scrapping process.

These discounts are separate from the scrap value paid for the old vehicle and any applicable government tax concessions.

Manufacturer discounts reported by the Ministry of Road Transport and Highways include:

  • Passenger Vehicles: Participating manufacturers agreed to offer a discount of 1.5% of the new car’s ex-showroom price or ₹20,000, whichever is lower.
  • Commercial Vehicles: Participating manufacturers agreed to offer discounts of up to 3%, subject to vehicle category and applicable conditions.
  • Mercedes-Benz: Announced a flat discount of ₹25,000 under the published scrappage incentive programme.

Important: These figures were published by the government in August 2024. The availability and validity of offers may vary by manufacturer, model, dealership, and purchase date. Contact an authorized dealership to confirm the current discount and eligibility requirements before purchasing a new vehicle.

7. Transparent Valuation and Payment

The scrap value of an old vehicle depends on several factors, including its weight, condition, reusable components, and the prevailing value of recyclable materials.

Before accepting an offer, vehicle owners should understand how the valuation has been calculated.

Consider these points before finalizing the deal:

  • Ask for the agreed scrap value in writing.
  • Confirm whether vehicle collection or transportation charges apply.
  • Clarify the payment method and expected payment timeline.
  • Ask whether reusable components affect the final valuation.
  • Compare quotations from suitable providers.

Comparing quotations alongside registration, documentation, and service terms can help owners make an informed decision.

8. Support for Responsible Recycling

Vehicle scrapping can recover valuable materials such as steel, aluminium, copper, and other recyclable resources.

These materials can be processed for further industrial use, helping reduce reliance on newly extracted raw materials.

Responsible recycling can provide several benefits:

  • Recovery of reusable metals and materials.
  • Reduced wastage of valuable resources.
  • Better segregation of recyclable and hazardous materials.
  • Support for the automotive and metal recycling industries.
  • Contribution to a more resource-efficient economy.

Choosing a registered facility that follows applicable requirements helps support an organized vehicle recycling system.

Authorized Facility vs. Local Scrap Dealer

Authorized Vehicle Scrapping Centre vs. Local Scrap Dealer

Before choosing a service provider, it is useful to understand the main differences.

Factor Authorized Vehicle Scrapping Centre Local Scrap Dealer
Registration Registered under applicable vehicle scrapping rules Authorization may vary
Official Documentation Issues prescribed scrapping certificates May not provide official scrapping certificates
Vehicle Records Follows prescribed documentation procedures Records and procedures may vary
Environmental Safety Follows applicable depollution and waste-handling requirements Practices may vary
Government Incentives Eligible owners may qualify for applicable benefits using a Certificate of Deposit A normal scrap transaction does not qualify for certificate-based incentives
Vehicle Recycling Follows prescribed dismantling and recycling procedures Practices may vary
Legal Compliance Operates under applicable RVSF rules Permitted activities and authorization should be verified
Peace of Mind Supports proper documentation and vehicle traceability Incomplete documentation may create complications

Always verify the authorization required for the specific service before handing over a complete vehicle.

Documents Required Before Scrapping Your Vehicle

Before arranging collection or visiting a scrapping centre, confirm which documents are required for your particular vehicle.

Commonly relevant documents may include:

  • Original Registration Certificate (RC), where applicable.
  • Identity and ownership documents.
  • Bank account details for payment, if required.
  • Authorization from the registered owner if someone else is handling the process.
  • Additional documents required by the facility or the relevant RTO.

Requirements may vary depending on the vehicle’s ownership status and circumstances. Vehicles involving outstanding finance, insurance claims, court cases, or ownership disputes may require additional checks.

Contact the registered facility before your appointment to confirm the applicable paperwork.

How to Choose the Right Vehicle Scrapping Centre

Follow these steps before handing over your old car, bike, or commercial vehicle.

Step 1: Verify the facility’s registration

Ask for the facility’s RVSF registration details and verify them through the relevant government authority or official vehicle scrapping portal.

Step 2: Understand the scrapping process

Ask how the facility receives, inspects, dismantles, and processes vehicles.

Step 3: Confirm the valuation

Get clarity on the agreed scrap value, collection charges, and payment method before finalizing the transaction.

Step 4: Check the documentation

Confirm which documents you need to provide and how the prescribed scrapping certificates will be issued.

Step 5: Ask about government incentives

If you plan to purchase another vehicle, ask the facility or dealership how to use your Certificate of Deposit and whether you qualify for registration-fee waivers, motor vehicle tax concessions, or manufacturer discounts.

Step 6: Keep your records

Retain the payment receipt, vehicle handover confirmation, and scrapping documentation. Follow up on any applicable RTO or VAHAN record-update requirements.

Frequently Asked Questions

1. Why choose an authorized vehicle scrapping centre?

It provides a regulated scrapping process, proper documentation, and responsible vehicle recycling.

2. Can a local scrap dealer issue a scrapping certificate?

Only a properly registered and authorized vehicle scrapping facility can issue the prescribed Certificate of Vehicle Scrapping.

3. Do I get government benefits for scrapping my vehicle?

Eligible owners may receive registration-fee waivers, state tax concessions, and manufacturer discounts when purchasing a new vehicle, subject to applicable conditions.

4. How is the scrap value of a vehicle calculated?

The value depends on the vehicle’s weight, condition, reusable parts, and current scrap material prices.

5. How can I verify an authorized scrapping centre?

Check the facility’s registration details through the relevant transport authority or official vehicle scrapping portal.

Choose Always RVSF Scrapping

Choose Always RVSF

The difference between authorized and unauthorized vehicle scrapping goes beyond the price offered for an old vehicle. Proper registration, documentation, responsible dismantling, and environmentally sound waste management are all important parts of the process.

If you are planning to scrap an old car, commercial vehicle, or two-wheeler, make sure you verify the facility’s registration and understand the complete scrapping process before proceeding.

Contact Select Auto Scrap to enquire about vehicle scrapping services and the documentation required for your vehicle.

 

Why Choose an Authorized Vehicle Scrapping Centre Over a Local Scrap Dealer? Read More »

7 Signs It’s Time to Scrap Your Old Vehicle

7 Signs It’s Time to Scrap Your Old Vehicle

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Is your old car costing more to maintain than it is worth? Frequent breakdowns, expensive repairs, and declining performance can turn a once-reliable vehicle into a financial burden. Knowing when to scrap your old vehicle can help you avoid unnecessary expenses and make a more informed decision. While some older cars can remain reliable with proper maintenance, others may eventually become unsafe or uneconomical to repair.

Here are seven warning signs to look for before deciding whether to repair, sell, or arrange scrap car removal.

1. Your Repair Costs Keep Increasing

Frequent repair bills can be a strong indication that your vehicle is becoming expensive to maintain.

Watch for these signs:

  • Repeated engine or transmission repairs.
  • Frequent replacement of worn-out components.
  • Increasing labour and maintenance expenses.
  • Repair costs approaching or exceeding the car’s market value.

What should you do?

Ask a qualified mechanic to assess the vehicle’s current condition and identify any likely upcoming repairs. Compare the estimated costs with the car’s market value before investing more money.

If repairs are no longer financially practical, checking your scrap car value may help you decide what to do next.

2. Your Car Breaks Down Frequently

A car that regularly breaks down can make everyday journeys stressful and unreliable.

Common warning signs include:

  • Difficulty starting the engine.
  • Repeated overheating problems.
  • Persistent electrical faults.
  • Frequent roadside breakdowns.
  • Multiple workshop visits within a short period.

Why does it matter?

Repeated failures may indicate that several components are wearing out. Although individual faults can sometimes be repaired affordably, ongoing problems can increase the total cost of ownership.

If your vehicle is no longer dependable, consider a professional inspection and compare the repair costs with available scrap vehicle removal options.

Scrap Your Old Vehicle

3. Your Engine or Transmission Has Major Problems

Engine and transmission repairs can be expensive, particularly when an older vehicle has other mechanical issues.

Look out for these symptoms:

  • Persistent knocking or unusual engine noises.
  • Excessive exhaust smoke.
  • Repeated engine overheating.
  • Slipping gears or difficulty shifting.
  • Significant oil leaks or persistent warning lights.

What should you consider?

  • Get a professional diagnosis before assuming the worst.
  • Request an itemised repair estimate.
  • Compare repair costs with the vehicle’s current value.
  • Consider whether other major repairs are likely soon.

If the vehicle is uneconomical to repair, a reputable scrap car buyer may be able to assess its remaining value.

4. Rust or Structural Damage Is Affecting Safety

Rust and accident damage can become serious concerns when they affect essential structural components.

Warning signs include:

  • Extensive corrosion around the chassis or frame.
  • Rust near suspension mounting points.
  • Visible structural damage following an accident.
  • Problems identified during a professional safety inspection.

Why is this important?

Structural damage can compromise vehicle safety, even when the engine still runs normally. Surface rust does not automatically mean a car needs scrapping, so the extent of the damage matters.

Have the vehicle inspected by a qualified professional. If it is unsafe or uneconomical to repair, scrapping the old car may be a practical option. Arrange recovery if the vehicle is unsafe to drive.

5. Your Vehicle No Longer Meets Safety Requirements

Older vehicles can develop problems that affect their roadworthiness and the safety of their occupants.

Check for issues involving:

  • Brakes and steering.
  • Tyres and suspension.
  • Headlights, indicators, and other essential lights.
  • Emissions or other applicable inspection requirements.

What should you do?

  • Find out why the vehicle failed its inspection.
  • Ask which repairs are essential for safe operation.
  • Compare the repair estimate with the vehicle’s value.
  • Check the applicable local roadworthiness and registration rules.

Some faults are relatively inexpensive to fix, while others require extensive work. If repairs are not financially worthwhile, consider scrap vehicle disposal through a Govt. Authorized RVSF Center. Never drive a vehicle with a serious safety defect.

Finding Replacement Parts Is Becoming Difficult

6. Finding Replacement Parts Is Becoming Difficult

Parts availability can become a challenge for discontinued models, older imports, and vehicles with uncommon components.

You may experience:

  • Long waiting times for essential parts.
  • High prices for imported components.
  • Difficulty finding compatible replacements.
  • Repeated delays that keep the vehicle off the road.

Are used parts a solution?

Sometimes. Suitable used car parts may provide a more affordable alternative to new components, depending on compatibility, condition, and safety requirements.

Before deciding to scrap your vehicle:

  • Ask a mechanic about compatible replacement parts.
  • Compare the cost of new and suitable used components.
  • Consider the time and expense required to complete repairs.

If essential parts remain unavailable or the total repair cost is too high, selling the vehicle to a reputable recycler may be worth exploring.

7. Your Car Has Reached the End of Its Useful Life

Sometimes, several small problems gradually make a vehicle unreliable rather than one major fault bringing it to a stop.

Signs your car may be nearing the end of its useful life include:

  • Increasing maintenance requirements.
  • Declining fuel efficiency.
  • Repeated warning lights and minor faults.
  • Persistent performance problems.
  • Several ageing components requiring attention.

How can you make the right decision?

Compare the following before committing to another repair:

  • Repair costs: How much will it cost to fix current and known upcoming problems?
  • Market value: What could you reasonably receive if you sold the vehicle?
  • Reliability: Is the car likely to remain dependable after repairs?
  • Replacement costs: Would another suitable vehicle be a better long-term option?

Age alone does not mean a car should be scrapped. However, when poor condition, rising expenses, and reduced reliability occur together, checking your old car scrap value can help you evaluate your options.Scrapping Your Old Vehicle Checklist

What to Do Before Scrapping Your Old Vehicle

Once you decide that scrapping may be the right option, a few practical steps can help make the process easier.

1. Check Your Scrap Car Value

  • Compare quotes from suitable vehicle recyclers.
  • Ask how vehicle condition, weight, and reusable components affect the offer.
  • Confirm whether towing or collection involves additional charges.

2. Choose a Reputable Recycler

  • Check the business’s credentials and reputation.
  • Ask about its vehicle collection and recycling process.
  • Confirm payment terms and the documents provided.

3. Prepare Your Documents

  • Keep ownership and registration documents ready.
  • Check local requirements for ownership transfer or deregistration.
  • Confirm what paperwork you should receive after disposal.
4. Remove Personal Belongings and Data
  • Check the glove compartment, boot, and storage areas.
  • Remove personal documents and other valuables.
  • Delete saved contacts, navigation history, and connected-device information where possible.

5. Arrange Safe Vehicle Collection

  • Request recovery if the vehicle is unsafe to drive.
  • Confirm the collection arrangements in advance.
  • Get clarity on the final price and any additional fees.

Taking these steps can help you arrange scrap car removal with greater confidence.

Is Scrapping Your Car Better Than Selling It?

Deciding whether to sell, repair, or scrap your old vehicle depends on its condition, repair costs, and remaining value. If your car has become unreliable or expensive to maintain, scrapping it through an authorised facility may be a more practical choice.

At Select Auto Scrap, we help vehicle owners take the next step towards responsible end-of-life vehicle disposal through a government-registered RVSF (Registered Vehicle Scrapping Facility).

  • Repair Your Car: If the damage is minor and repairs are affordable, keeping your vehicle may still make sense.
  • Scrap Your Car: If your vehicle has reached the end of its useful life, explore scrapping it through our government-registered RVSF for appropriate processing and recycling.

Even a vehicle that is no longer suitable for the road may contain valuable recyclable materials and reusable components. Choosing a registered scrapping facility helps ensure that the vehicle is handled through the appropriate disposal process.

Scrap Old Car in Chandigarh

Frequently Asked Questions

1. When should I scrap my old vehicle?

Consider scrapping your vehicle when repeated breakdowns, major mechanical problems, or extensive damage make repairs uneconomical or the vehicle unsafe to use.

2. How is scrap car value calculated?

Scrap car value can depend on vehicle weight, metal prices, condition, reusable components, and local demand. Collection costs and buyer policies may also affect the final offer.

3. Can I scrap a car that no longer runs?

Yes. Non-running vehicles may still have value because of recoverable metals and suitable reusable components. Collection arrangements and documentation requirements depend on your location.

4. Are used car parts worth buying?

Used car parts can reduce repair expenses when they are compatible and in suitable condition. Safety-critical components require particular care, and some parts may not be suitable for reuse.

5. What happens to a car after it is scrapped?

Depending on the facility and local regulations, a vehicle may be depolluted, dismantled for suitable reusable components, and processed to recover recyclable materials.

Ready to Say Goodbye to Your Old Car?

If your old vehicle is costing more to maintain than it’s worth, it may be time to consider responsible scrapping. Choosing the right facility helps ensure your end-of-life vehicle is handled through the appropriate disposal and recycling process.

At Select Auto Scrap, you can take the next step towards scrapping your vehicle through a government-registered RVSF (Registered Vehicle Scrapping Facility).

Ready to scrap your old vehicle? Contact us today to learn more about the vehicle scrapping process and the documentation required.

7 Signs It’s Time to Scrap Your Old Vehicle Read More »

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

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