[Elito11]

I had my Getz scrapped via OLX Autos and got a certificate for the same. I am now in the market for a new car. Would there be some benefits while purchasing a new car?

[Newtown]

Originally Posted by Elito11

I had my Getz scrapped via OLX Autos and got a certificate for the same. I am now in the market for a new car. Would there be some benefits while purchasing a new car?

Were you able to use the scrap certificate to any benefit to buy a new car? I am in a similar position and not sure whether to sell or scrap a soon to be 15 year old car. Thanks!

[shortbread]

Hoping someone can help, looking for some clarification regarding the 5% for scrapping the old car.

Q1) Is it:

- One gets 5% rebate on the ex-showroom price of the new car?
eg. One is buying a 2022 Scorpio (costing 15 lacs ex showroom) by scrapping a 2005 Scorpio. Will the buyer get a Rs. 75k rebate (5% of new car) via the scrappage scheme?

OR

- One gets a rebate equivalent to 5% of the scrapped car's ex showroom price at the time of purchase.
eg. One is buying a 2022 Scorpio by scrapping a 2005 Scorpio (ex. showroom 8 lacs at time of purchase). Will the buyer get a Rs. 40k (5% of old car) rebate via the scrappage scheme?

Q2 Who and when is this rebate processed?

- One gets the 5% in hand as soon as the older vehicle is scrapped, from either the scrappage co. or the govt?

OR

- One gets the 5% deducted at the time of purchase of the new car processed via the dealership?

OR

- Post scrappage and purchase of new car, relevant documents need to be sent to claim this rebate.


Just to avoid confusion, I am hoping someone can give only verified info rather than opinions. Thank you.

[condor]

Not sure if this has been posted earlier:

For a car to be scrapped, is it necessary for the car's RC to be valid at the time of scrapping, or can one scrap a car who's RC has expired ?

[anjan_c2007]

Originally Posted by anjan_c2007

Those concessions in state/ Union Territory (UT) taxes as enumerated in the scrappage policy that are issued as advisory by the Union Road Transport Ministry to the respective state and UT governments like registration fee and road tax rebates are the sole prerogatives of the respective state/UT government as per the concurrent list (centre and state/UT jurisdiction) of the Motor Vehicles Act 1988 that covers all amounts payable like fines/taxes. Registration fee rebate is a paltry sum that most states/UT's can forego, but road tax generates a huge revenue for their coffers and hence many states/UT's could ignore such an advisory or reduce the rebate offered by them.

Hence, Gadkari's rosy picture could have lots of thorns !

The concessions to be given to the owner of a scrapped car are from the manufacturer and probably the state/UT govts.

Till today there is no announcement of any GST (not likely too) rebate from the Central government that is under their own Finance Ministry. Looks awkward because you announce a major policy decision, finalise it through the official channels, issue the notification and then do PIGGY BACK riding on the manufacturers and state/UT governments who may or may not oblige.

[Pennant1970]

I am not sure if this is the correct place to post this link, but here goes!

Accurate shredding work tries to segregate the most important parts while disassembling a car.

This is impressive, scary and a bit poignant at the same time.

[ravradha]

Passenger vehicle manufacturers such as Maruti Suzuki, Tata Motors, Hyundai, Kia, Toyota, and others will offer a 1.5% discount or Rs 20,000, whichever is lower, on new car purchases against scrapped vehicles.


https://www.businesstoday.in/auto/st...186-2024-08-27

[samyakmodi]

Originally Posted by ravradha

Passenger vehicle manufacturers such as Maruti Suzuki, Tata Motors, Hyundai, Kia, Toyota, and others will offer a 1.5% discount or Rs 20,000, whichever is lower, on new car purchases against scrapped vehicles.


https://www.businesstoday.in/auto/st...186-2024-08-27

While everywhere you search - it clearly states that the government has asked the manufacturers to give a 5% discount when given a certificate of scrapping an old car. Wonder what brings it down to 20k or 1.5% - seems like no incentive whatsoever for scrapping cars.

[rdhawan15]

Originally Posted by samyakmodi

While everywhere you search - it clearly states that the government has asked the manufacturers to give a 5% discount when given a certificate of scrapping an old car. Wonder what brings it down to 20k or 1.5% - seems like no incentive whatsoever for scrapping cars.

There are 2 elements to the scrapping discount.

One part of the discount will be borne by the manufacturer. In this case, it could be anywhere between 1.5-3.5% of the Ex-showroom price. Please understand that the manufacturer has only a limited scope to offer scrappage discounts.

However, there is no clarity on exemptions to taxes from the Central Government and the State Governments.

So, for an example, consider the case of a car to be scrapped in Delhi. If it is a diesel car, the owner would have paid the road tax for 15 years.

1. In an ideal scenario, the road tax chargeable on the new car must be adjusted against the road tax already paid.

2. To encourage scrapping, the governments would need to give some incentive to the new car buyers. Both Governments charge 14 percent GST over the ex-factory price.

So, if I was scrapping my diesel car to adopt the environment norms in Delhi, I should ideally get the following benefits:

1. Road tax adjustment for the 5 years paid on the old diesel vehicle
2. A discount from the manufacturer on ex-showroom price
3. A tax exemption from the Central and the State Governments on the tax collected on the new purchase.

At this point in time, none of the 3 items are being offered to the buyer. So, as an owner of the scrapped vehicle, I have no interest or inspiration to buy a new car.

Or, I would prefer to buy a small car in place of an SUV to save my capital.

The Governments and the manufacturers need to realize that people cannot be forced to buy new vehicles once the old vehicles are scrapped.

The system is alienating people like me.

[PreludeSH]

What advantages will scrapping provide ? I think based on the intent if its economic or environmental, the benefits should be provided by the right party. The consumer loses everything in this and they are talking about giving 20K (25K in case of Mercedes)

[Mortis]

Are they still charging the full 15 years of road tax on new Diesel vehicles registered in Delhi ? If so this is criminal !!