Hi Autocar Team, I would like to understand the government’s vehicle scrappage policy for older cars in India. I currently own a car that is nearing 15 years of age and am considering replacing it. Could you please advise whether opting for scrapping the car under the policy is more beneficial compared to selling it in the used car market? | Ask Autocar Anything | Autocar India
A 15-year-old private car and you are planning a replacement – in most parts of India, selling a running car will usually get you more money than scrapping. The clear exception is Delhi-NCR. There, diesel cars over 10 years and petrol cars over 15 years cannot be used, and the RC cannot be renewed, so an authorised scrap yard is the clean, legal way forward.
Here is how the policy works in simple terms. After 15 years, a private car can be renewed in many states if it passes a fitness test, but fees and taxes at renewal are higher than before, and some states add a green tax. The central policy encourages scrapping by offering benefits with a scrap certificate, like a waiver of new registration fee and possible state road tax rebate, and some brands give an extra discount. In practice, these benefits vary by state and by car brand, and are not guaranteed.
Why selling often wins: scrap value is based on weight of metal, so it is usually much lower than what a used-car buyer might pay for a clean, running car. Also, if your car is in good shape with clear papers, you can transfer it to a buyer in a state that allows renewal after 15 years.
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