Considering Buying a New Car? Watch All The Benefits of Scrapping Your Old One
You will receive a certificate for scrapping your old car, which you can use to claim a number of benefits when purchasing your new car
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Among the many measures planned to combat pollution caused by old vehicles and stimulate auto sales, the government of India has issued a draft for a vehicle scrappage policy. This policy offers various benefits and savings if you choose to scrap your old car before purchasing a new one. During a recent visit to the Bharat Mobility Global Expo 2024, we observed a fully scrapped vehicle on display and you can see just how little of it is left at the end:
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According to the policy, the scrappage centre will provide you with approximately 4 to 6 percent of the ex-showroom price of the vehicle immediately. Additional benefits for private buyers include up to a 25 percent concession on road tax for their new car. Furthermore, the scrappage centre will issue a certificate for scrapping your old car, which can be utilised to obtain a 100 percent waiver on the registration fees for a new car. This certificate can also be shared with your friends and family so that they can also avail benefits on the purchase of a new car.
As per the draft, the automakers have also been advised to provide a 5 percent discount on the price of the new vehicle upon showing the scrappage certificate of your old car.
Disclaimer: Please note that the benefits mentioned above under the vehicle scrappage policy have not yet been implemented. Therefore, the applicability of these incentives may vary between brands and models. For more information, please contact your nearest car dealership.
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Why Is Scrappage Policy Important?
A vehicle scrappage policy plays an important role in reducing the number of old vehicles that are unfit or fail to meet emission standards. This results in not only fewer disruptions from broken down old vehicles, but also an overall reduction in automotive air pollution. Additionally, it will reduce the impact of rising cost of raw materials for various industries such as automotive, steel, and electronics.
For many buyers, maintaining an old car is usually more expensive than maintaining a comparatively new one. New cars offer the benefit of optimal performance and fuel efficiency compared to vehicles that are over 15 years old, and since they are compliant with stricter emission norms they also pollute less. Therefore, this policy will also encourage buyers to replace their old cars sooner with new ones.
However, as per the draft for the scrappage policy, cars that are older than 15 years can still be used if they meet the required standards, which will be assessed in the vehicle fitness test. You will also have to pay re-registration fees to continue using your old car for the next five years.
Note: Please note that this policy of re-registering an old car is not applicable in Delhi NCR, where different compliance regulations are in play.
What are your thoughts on the vehicle scrappage policy? Are you willing to scrap your old car to avail benefits on your new purchase? Let us know in the comments.
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