This article is written by Nishka Kamath, a graduate of Nalanda Law College, University of Mumbai. It is an endeavour to shed light upon the Vehicle Scrappage Policy in India along with the advantages, steps, and RTO rules of scrapping vehicles. Further, in order to provide a global perspective, an attempt has been made to discuss car wrecking steps and how such a facility can be hired in Hamilton.  

It has been published by Rachit Garg.

Introduction

Vehicle scrapping policies have been around since the global recession of 2008. The Government of India as well as governments across nations have been implementing car scrapping policies to assure that there is a surge in sales of new automobiles as well as that the inefficient vehicles on the roads are removed, all in an environmentally friendly manner.    

Recently, Prime Minister Narendra Modi launched the much-awaited Vehicle Scrappage Policy in India, as well, and affirmed that this National Policy will provide a new identity to the auto sector and boost the circular economy, which in turn will make the process of financial development more endurable and environment-friendly. 

Car wrecking/ vehicle scrapping in India

In India, car wrecking or scrapping is not a common activity like selling used cars. Old vehicles have been playing a key role in polluting the environment, which is why the New Vehicle Scrapping Policy (discussed below) was announced to scrap unfit vehicles off Indian roads. All the notifications pertaining to this policy by the Ministry of Road Transport and Highways (MORTH) can be accessed here

Before we go to our Indian policy, let us have a look at an automobile wrecking facility in Hamilton, to develop a global perspective on such an amazing, environment friendly policy! A note must be made that the below mentioned steps are based on car wrecking in Hamilton, whereas the article will discuss the Indian aspect of all the vehicles and/or automobiles, let alone that of cars. 

Hiring car wreckers in hamilton: how do cash for cars work?  

If you have a car that you no longer use, you can still sell it to private buyers. You have that option, or you can contact a cash for cars business and offer them your vehicle. 

These buyers will accept cars in any condition, depending on what they can get. But how does cash for cars work, and how do they process cars? This article will shed some light on how cash for cars do their business.  

  1. Fill Up The Form Or Call  

You can find local car wreckers in Hamilton by searching online or in print classifieds. They also have their phone number or website printed if they advertise. You can call them and talk to one of their members or staff about your car. If you contact them online, you will likely see a form you need to fill in with information. Submit it, and they will probably email or call you back.  

  1. Receive a partial quote  

Whether you contact car wreckers in Hamilton by phone or on their website, you might be able to get an instant quote for your car. They will give a specific amount depending on the information they get. But this is subject to change because they will have to inspect your vehicle. If the car wreckers offer a free removal service, they will haul the vehicle from your place. Otherwise, you will drive it to the shop or hire a towing service.  

  1. Acceptable model, conditions, and makes  

Most car wreckers will accept any vehicle. They will also look into junk cars that don’t run anymore. They will want cars, vans, trucks, RVs, 4WDs, jeeps, and more. Some cash for cars companies will only accept certain models and brands.  

  1. Legitimacy And Finding The Right Buyer  

Buying junk cars has been around for decades and is among the fast-growing industries. Many were able to get extra cash for selling their vehicles to car wreckers. 

Depending on the car’s condition, sellers can get as much as NZ$12,000 to NZ$15,000.  

Since it’s a legitimate business, you must conduct research to find the right one you can do business with. Not all cash-for cars operate the same way. Read online reviews about the company if they offer good customer service. One thing you need to keep in mind is to be realistic when expecting the amount they’re likely to pay.  

  1. What The Buyers Want For The Vehicle 

Cash for cars pays owners because of what they can get from the vehicle. The team will pay the owner depending on the scrap metal and parts they can resell. 

In addition, they will take vehicles involved in car accidents. The reason for that inspection is they want to see how much they can get back from buying your car. They will also want to see which parts are still working so they can sell them to private buyers.  

  1. What Sellers Should Do Before Selling Their Vehicle 

First, inspect your car before giving it up to the car wreckers. You might’ve left personal items behind and won’t get them back once the car is at the shop. If it has leftover fuel, you can use it up or drain it. You can also ask if the car wreckers can remove the drain themselves so that you can save time and effort. 

Owners must take the plate numbers and surrender them to the agency where they registered. The last thing you want is for other people to use the plate number when it can be traced to the registered name. Inform your insurance company that you’re no longer using the vehicle. The car wreckers won’t be responsible for the issues that come later concerning vehicle documentation.  

  1. How Do Cash For Cars Process Cars?  

The process of dismantling vehicles varies from one wrecker to another. But they will likely have similar methods of retrieving essential car parts. They will attend to the disconnection of wires and other pipes to remove the engine. The engine is one part of the car up for recycling.  

Next, they will drain the leftover liquids such as gasoline and antifreeze. Car wreckers must follow safe ways of draining, so they won’t harm the environment. 

The wreckers will then strip the vehicle of all metal parts for selling as scrap metal. Non-metallic parts they can sell are blinkers and tail lights, windshields, and transmissions.  

The car wreckers will also look into plastic parts for recycling. They must follow the law to keep the business operating. Safe measures for recycling are good for the environment and keep more waste away from landfills.  

To conclude, car wreckers offer cash in exchange for vehicles of all kinds and conditions. They will pay for what they can get out of the car. It is also important to remember to be realistic about how much you can expect for your car. So, try to contact different car wreckers to work out a deal and see which ones can give you a better offer. They’re only a phone call away.

Vehicle scrapping policy in India 

On August 13, 2021, a new Vehicle Scrappage Policy was announced by the Government of India. The Vehicle Scrapping Policy (discussed in brief below) was launched by Prime Minister Narendra Modi at an Investor Summit. As per the policy, the focus is to de-register private cars (also known as passenger vehicles), which have been used for over 20 years, and commercial vehicles that have been used for over 15 years. 

Object of the Vehicle Scrapping Policy

The main object of the policy is to remove all the unfit vehicles and recycle them in a systematic manner. The ultimate motive is to curb environmental pollution caused by old vehicles that have been used for a long time and do not have a valid fitness certificate. This policy will not only aid in reducing air pollution but also help in recycling old parts and machinery of the vehicles, along with key materials like steel, plastic, and copper. This policy was also implemented with the aim of bolstering vehicle sales. 

Fitness test under the Vehicle Scrapping Policy 

Vehicles that are older than the set age (15 years for private vehicles and 10 years for commercial vehicles)  will have to undergo a fitness test as per the new policy if the owners want to run their vehicle on the streets of India. The test will have several ways to determine the fitness of the vehicle, such as:

  1. The condition of the engine,
  2. The emission status,
  3. The fuel efficiency of the vehicle,
  4. The safety and the safety features, inter alia

What happens if the vehicle does not pass the fitness test under the Vehicle Scrapping Policy   

If the vehicle does not pass the fitness test, its registration will be cancelled. Such a vehicle will then be sent with other vehicles for scrap. The said policy is under the Voluntary Vehicle Modernization Programme (VVMP); thus, if the vehicle fails the fitness test, then the owner will have to deposit his car in 60-70 registered scrap facilities across the country. For this, the owner will get a scrap certificate issued from there, which will be valid for 2 years. He can avail himself of the discount certificate to get a discount of up to 5% of the ex-showroom price at the time of buying a new vehicle in lieu of a certificate of deposit for scrapping an old vehicle.

Advantages of the Vehicle Scrapping Policy

General advantages of the vehicle scrapping policy  

The vehicle scrapping policy in a country like India will result in the following positive outcomes: 

Cleaner air

The first and foremost advantage of this policy is that the air will be a lot cleaner. Considering the fact that ineffective vehicles are taken off the roads, the air pollution level will undoubtedly drop.  

Increase in sale of new vehicles

This new policy will ensure that there is a surge in the sale of new vehicles, with the old ones being scrapped. 

Easy, safe and faster commute 

Commuting on Indian roads will be a lot safer, hassle-free and faster considering the advanced and superior features the vehicles of this era come with, along with the added safety measures. 

Employment opportunities 

The Government of India is setting up several authorised vehicle scrapping facilities, which will yield massive employment opportunities in India.

Metal recycling 

Vehicle scrapping will act as a major breakthrough for recycling raw and precious metals in the recycling industry of India, thus yielding better revenue. 

Advantages of vehicle scrapping policy for car owners 

The following are the major advantages for car owners who scrap their vehicles: 

Discount certification

Vehicle owners, for scrapping their old vehicles, will receive a discount certification of up to 5% of the ex-showroom price at the time of buying a new vehicle. This certification can be attained within a period of two years. This discount is usually over and above the scrap value an individual receives for their vehicle. 

No registration fee for a new vehicle 

An individual, upon buying a new vehicle, will not have to pay any registration fee, upon declaring the Certificate of Deposit. 

Tax rebates 

State governments will offer a concession on road tax of up to 25% for non-transport vehicles (personal vehicles) and 15% for transport vehicles (commercial vehicles) for the new vehicle. 

Steps to scrap a car or any other vehicle in India

The following are very brief steps for scrapping a car or any other vehicle in India under the Vehicle Scrapping Policy: 

Step 1: Contact the service centre

Step 2: Complete the documentation 

Step 3: Let the evaluation of the dealer begin

Step 4: Let the scrappage start after the evaluation is complete 

Step 5: Get the scrappage certificate

RTO rules for car/automobile scrapping and deregistration of old cars and vehicles 

The following are some of the key rules an individual must follow for deregistering and scrapping a vehicle in India: 

  1. The owner of the vehicle must inform the concerned RTO about scrapping the old vehicle. 
  2. The owner must hand over the vehicle registration certificate along with removing the chassis number plate while scrapping the vehicle.
  3. The owner must submit the confirmation document that the vehicle scrap dealer has provided.
  4. The owner must also hand over an affidavit with the application for deregistration of the vehicle.
  5. The owner must also affirm that the said vehicle is not under loan, insurance claims or any pending court case(s). 
  6. The RTO will then follow a verification process for the documents submitted, verify the records of the vehicle on to their database,  procure diligence reports from the traffic police and National Crime Records Bureau and if found satisfactory, will proceed towards deregistration and eventually scrapping of the old vehicle. 

Why is India in a dire need of amends in the Vehicle Scrapping Policy

Indian consumers are upset with the Government’s vehicle scrappage policy and are of the opinion that amendments should be made to the policy. Some of the suggestions include the following: 

Kilometres driven instead of age to define old vehicles

Consumers want kilometres driven instead of age to define old vehicles. There is a possibility that a vehicle that is used for over 15 or 20 years of age may be in the best condition and need not be scrapped. 

Increase the age of taking a fitness test or re-registration by 2 years 

The COVID-19 Pandemic has put several vehicle owners in trouble, especially auto and taxi drivers. The auto and taxi unions have urged the government to increase the last 2 years, i.e., 17 years for commercial vehicles and 22 years for private vehicles. With the implementation of this policy, several taxi and autorickshaw owners lost their means to earn their bread and butter, which left them no choice but to return to their respective hometowns. 

Urge banks to inculcate an easy pay EMI (Equated Monthly Instalment) option for new vehicle owners 

Further, the government can urge the banks to add an option of easy-pay EMI (Equated Monthly Instalment) option for new vehicle owners, as not every vehicle owner will have the necessary funds to buy a new vehicle. Moreover, there are certain commercial drivers, say, auto and taxi drivers, who barely make ends meet, let alone have funds for buying a new vehicle. 

Make scrapping old automobiles a more inviting prospect

Vehicle owners are of the opinion that the government must make amends to the policy, thus making it more alluring to invite prospective owners to scrap their vehicles. With the present policy, maintaining an old vehicle with all the requisite certifications becomes over-priced. Further, the added incentives provided to buy a new vehicle are clearly inadequate to please the typical Indian consumer.

Conclusion 

For attaining the aim of boosting economic flow and creating a circular economy that turns waste into wealth, the Vehicle Scrappage Policy can be very efficient. Further, the principles of the 3 Rs, i.e., reuse, recycle, and recover, would uplift the automobile sectors and metal industries of India.

However, with all such developments, it is pertinent that the government pays close attention to the needs, conditions, and demands of middle-class families, thus making an impact on the overall development of the nation and not just one segment. 

Please note: The above information is for informational purposes only. It is always recommended to take guidance from an expert before making a decision. 

References 

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