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Vehicle Scrappage Value
Old vehicles (15+ for petrol, 10+ for diesel) eligible for voluntary scrappage. Get a Certificate of Deposit (COD) — use for 25% road tax discount + 5% manufacturer rebate when buying a new vehicle.
Take to a Registered Vehicle Scrapping Facility (RVSF). Get Certificate of Deposit. Use COD when buying new vehicle for tax + manufacturer benefits.
How the scrappage benefit stacks up
Under the Voluntary Vehicle Modernisation Programme (VVMP), petrol vehicles older than 15 years and diesel older than 10 years can be scrapped at a Registered Vehicle Scrapping Facility (RVSF). You get three things: scrap value (4–6% of new ex-showroom price), a Certificate of Deposit (COD) that gives 25% road-tax rebate on a new private vehicle (15% commercial), and a 5% manufacturer discount from most OEMs.
Worked example
A 2008 Maruti Alto in Delhi (16 years old, end of petrol life) might fetch a scrap value of ₹18,000–22,000. Buying a new ₹8 lakh ex-showroom hatchback in Delhi, the COD saves roughly ₹26,000 on road tax (25% of ~₹1.05 L) and ₹40,000 (5%) as OEM rebate. Total benefit ≈ ₹85,000–90,000 — meaningfully better than selling the old car privately for ₹35,000 and paying full tax on the new one.
When to use this
- Petrol cars approaching 15 years in Delhi-NCR (already mandatory de-registration)
- Diesel vehicles past 10 years in NCR or about to fail PUC repeatedly
- Replacing a fleet of commercial vehicles to claim staggered COD benefits
- Buyer of a new car wants to maximise on-road-price reduction
See the RTO road tax calculator to estimate the exact rebate value in your state, or read about on-road price components in India.
FAQ
Why scrap vs sell second-hand?
Sell: 2nd-hand market value (sometimes higher) but no road tax discount. Scrap: lower direct value but COD gives 25% road tax discount + 5% manufacturer rebate on new vehicle. Net often beats 2nd-hand sale.
Scrap value computation?
4-6% of original ex-showroom for cars, 4% for commercial. RVSF determines actual based on weight (steel scrap rate) + recoverable parts.
Mandatory scrappage when?
BS-IV diesel vehicles 10+ years in NCR (court-ordered). Govt vehicles 15+ across India. Private petrol / diesel countrywide — voluntary, becoming mandatory progressively.