Consider Scrap Options: Benefits of Scrapping Old Vehicles Before Purchase

If you plan to remove an old vehicle and purchase a new one this Dhanteras, opting to scrap it at a government-recognized center might be more beneficial than selling it to a scrap dealer. At these centers, vehicle owners not only receive the scrap value of their vehicle but also obtain a Certificate of Deposit (CD). This CD can be leveraged for various benefits, which explains the growing participation of private vehicle owners at government scrap centers. As of now, around 714,000 vehicles have been scrapped, with 176 registered vehicle scrapping centers operational across 23 states and union territories until October 26, 2026. Among these, 714,000 vehicles have already been scrapped, including 217,000 government vehicles and 496,000 private ones. Notably, the target for scrapping government vehicles, which stands at 180,000, has already been achieved, accounting for 6,462 buses, police vehicles, and ambulances.

Options for Selling the Certificate

According to the Ministry of Transport, when a vehicle is submitted to an authorized government center, owners receive not just the scrap value but also a Certificate of Deposit (CD). This CD enables them to benefit from exemptions in state road tax, waivers on registration certificate (RC) fees, and discounts offered by vehicle manufacturers when purchasing a new vehicle. If you are not looking to buy a new vehicle immediately, you can also sell the CD on trading platforms to gain financial benefits.