car scrapping

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/

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

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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