Save up to ₹50,000+ on your new car purchase by scrapping your old, unfit vehicle. Explore concessions, rules, and calculate your exact savings below.
Scrappage calculations are verified against the **MoRTH GSR 653(E)** guidelines for Registered Vehicle Scrapping Facilities (RVSF) and Central Motor Vehicle Rules.
Estimate your scrap payout, road tax concession, manufacturer discounts, and fee waivers instantly based on current ex-showroom prices.
*Concessions vary based on state rules and manufacturer guidelines.
The Indian government offers powerful monetary incentives to encourage vehicle owners to scrap their old, polluting passenger and commercial vehicles:
Vehicle manufacturers are officially advised to provide a 5% discount on the purchase of a new car or commercial vehicle against a valid Certificate of Deposit (Scrap Certificate).
State governments offer a substantial rebate on the Road Tax of new vehicles—up to 25% for personal vehicles and up to 15% for commercial vehicles.
No registration fees are charged by the RTO when registering a new vehicle, provided a valid Certificate of Deposit (CoD) from an authorized scrapping facility is submitted.
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Scrapping your vehicle is a fully digitized and safe process. Follow these steps to complete the protocol:
Find a government-approved Registered Vehicle Scrapping Facility (RVSF). Never hand over vehicles to local unauthorized scrap dealers, as your RC won't be deactivated, causing serious legal liabilities.
Provide the physical vehicle, original RC, owner identity proofs, bank details (for scrap value payout transfer), and a clean verification certificate showing no active hypothecations or police cases.
The facility will weigh the vehicle, pay you the scrap rate based on actual metal weight, and issue a digital Certificate of Deposit linked directly with your Aadhaar.
Present your Certificate of Deposit at the new vehicle showroom. The dealer will instantly apply a 5% discount, waive your RTO registration fees, and update the Vahan record to trigger road tax rebates.
The National Vehicle Scrappage Policy, launched by the Ministry of Road Transport and Highways (MoRTH), aims to phase out unfit and polluting vehicles from Indian roads. Personal vehicles older than 20 years and commercial vehicles older than 15 years must undergo mandatory automated fitness tests to check emissions and safety standards.
Scrapping provides four major financial benefits: 1) Scrap Value of the old vehicle (approx 4-6% of a new car's ex-showroom price). 2) Road Tax concession (up to 25% for personal vehicles, 15% for commercial). 3) Registration fee waiver on the new vehicle. 4) Automobile manufacturers offer up to a 5% discount on a new vehicle against a valid Certificate of Deposit.
Scrapping itself is not strictly mandatory based solely on age, but passing the automated fitness test is. If a personal vehicle older than 20 years (or commercial older than 15 years) fails the fitness test, it cannot be registered again and must be scrapped. Additionally, steep re-registration fees and Green Taxes are levied on old vehicles.
A Certificate of Deposit is a digital document issued by a Registered Vehicle Scrapping Facility (RVSF) when you scrap your vehicle. This certificate acts as proof of scrapping and is transferrable, allowing you to claim all tax concessions, fee waivers, and discounts on a new vehicle purchase.
You must scrap your vehicle only at a government-authorized Registered Vehicle Scrapping Facility (RVSF). They are digitally linked with the National Vahan registry to automatically deactivate the RC and issue the Certificate of Deposit, ensuring the vehicle cannot be misused.