AUTO
Planning to Sell Your Old Car? You Could Save Lakhs with the 2025 Scrappage Policy Instead — Here's How
If you're planning to upgrade your old vehicle by selling it off, wait a moment! Instead of selling your car for a throwaway price, the Indian Government’s Vehicle Scrappage Policy 2025 could help you save lakhs on your next new car purchase.
A recent viral Instagram reel by content creator CarsWithRohit has sparked widespread attention, explaining how using the scrappage policy instead of selling an old car can provide far better financial benefits — and contribute to a cleaner environment too.
📉 Selling vs. Scrapping: A Real Example
The reel shows a person who sold his old Honda City for ₹80,000 and upgraded to a Tata Safari. That seemed like a reasonable deal — until the numbers were crunched. As per the post, after calculating all missed benefits under the scrappage policy, it turned out the person lost up to ₹3 lakh.
✅ Benefits of the 2025 Vehicle Scrappage Policy
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4-6% of Car’s Original Value
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When you scrap your old vehicle through a certified scrapping facility, you receive 4–6% of the original ex-showroom price as the scrap value.
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5% Discount on New Car Purchase
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You get a scrappage certificate that can be used to get a 5% discount on your next new car. For higher-end vehicles, this can mean a saving of ₹1 lakh or more.
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25% Off on Road Tax
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Many state governments offer up to 25% discount on road tax for new vehicle purchases made using the scrappage certificate.
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Registration Fee Waiver
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In some states, you may also avoid paying registration fees when buying a new car with the certificate.
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💡 Why Scrapping Is Smarter Than Selling
| Aspect | Selling to Buyer | Scrapping Under Policy |
|---|---|---|
| Sale Value | ₹40,000–₹90,000 | 4–6% of car’s price (~₹50,000–₹1.5 lakh) |
| New Car Discount | ❌ | ✅ 5% |
| Road Tax Discount | ❌ | ✅ 25% |
| Eco-Friendly? | ❌ Old car stays on road | ✅ Reduces pollution |
| Hassle-Free Process | Often requires RTO paperwork | ✅ Organized and digitized |
🌍 Bonus: A Greener Choice
Beyond personal savings, scrapping your car under this policy helps reduce vehicular pollution by removing 15+ year-old polluting vehicles from Indian roads — making it a win-win for both your wallet and the environment.
🔍 How to Scrap Your Car in 2025
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Locate a Registered Vehicle Scrapping Facility (RVSF) on the official Vahan website or state transport portals.
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Submit your old vehicle for evaluation.
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Get a Vehicle Scrappage Certificate.
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Use this certificate to claim discounts and tax waivers when buying a new vehicle.
🚗 Final Thoughts
Before you sell your old car for a small amount, do the math. The 2025 Vehicle Scrappage Policy can offer you significantly better value and savings — possibly ₹1.5–3 lakh or more, depending on the new car you're planning to buy.
Think smart. Save more. Go green.
