Scrap Your Old Car And Get 5 Percent Incentive On A New Car Purchase

• Owners scrapping their old car and buying a new one will get a 5 percent incentive.

• The incentive comes in the form of a rebate which the owner will get after the purchase.

• The policy will be effective from April 1, 2022.

• This move should encourage people to buy new cars and phase out the old polluting ones.

Budget 2021 finally saw the introduction of the Vehicle Scrappage Policy which essentially aims to reduce pollution by removing old vehicles off the road. Those who choose to scrap their old cars will get certain benefits on buying a new one.

• Scrap your car to get the Best Price

Now, the Union Minister of Road Transport, Highways and MSMEs, Nitin Gadkari, has elaborated on the various benefits under the policy. If you scrap your old car, you will be eligible for a 5 percent incentive when buying a new one. The incentive will be applicable on the purchase price of your new car as a rebate.

The new scrappage policy will be effective from April 1, 2022. Private vehicles older than 20 years and commercial vehicles older than 15 years will have to undergo fitness tests at automated fitness centres. If the car is declared unfit or polluting, it will not be allowed to ply on road and you will have to phase it out. If declared fit, you will have to pay certain taxes, including green tax, to keep it on the road.

Also Read: Here’s How The Automobile Industry Is Affected By Budget 2021-22

This will not only be beneficial for the environment but also for automakers. People will start heading to showrooms once their car is declared illegal to run on the road. This should, in turn, help increase sales gradually.