Old vehicles are prone to risks due to a lack of security features. They also pollute the environment, and so, the Government of India (GOI) has introduced the Vehicle Scrappage Policy. According to this policy, the old vehicles that do not pass the fitness test are to be scrapped by their owners.
After scrapping the old car, the owner must also obtain the car scrapping certificate. This document proves that you have scrapped your vehicle through authorised means and shall have no responsibility in case of any misuse after scrapping.
In this article, we will understand in detail what this certificate is, when it is required, how to get it, and how it affects your future vehicle transactions.
Table of Contents
What is a Car Scrapping Certificate?
A car scrapping certificate is an official certificate provided by a Registered Vehicle Scrapping Facility (RVSF). It is a valid proof for establishing that your car has been scrapped legally.
Where to Get the Car Scrapping Certificate From?
Only an RVSF authorised by the Government of India can issue this certificate. RVSF platforms like Spinny make the certificate available quickly and transparently by adopting a completely digital process.
Why Obtaining a Car Scrapping Certificate is Important?
The following reasons highlight the importance of obtaining a car scrapping certificate:
- Termination of Ownership Liability
After getting the scrapping certificate, all the liabilities related to the ownership of the vehicle are terminated. Now, if the scrapped car is used for any illegal work or activity, you shall not be held responsible for it.
- Protection from Legal Troubles
Suppose that you don’t scrap the car. Then, it will still be considered alive and running in the records. Therefore, the RTO or traffic police can hold you liable for tax or a challan. The scrapping certificate gives protection from all these problems.
- Become Eligible for Government Incentives
As per the vehicle scrappage policy issued by the GOI, road tax and registration fee are waived off upon submitting the scrapping certificate while purchasing a new vehicle.
- Required for Cancellation of RC Registration
This certificate is mandatory for the cancellation of registration i.e., RC cancellation in RTO. Without this certificate, the RTO will not delete your car from the records.
When Do You Need a Car Scrapping Certificate?
The reasons to obtain a car scrapping certificate are listed below:
- Old and Unfit Vehicles
Commercial vehicles older than 15 years and private vehicles older than 20 years must undergo a fitness test. If they fail to clear this test, it is advisable to scrap the car. The car scrap certificate is provided after dismantling or scrapping the car.
- Compliance with Mandatory Scrappage Policy
Delhi NCR, Ghaziabad, Noida, and other metro cities have restricted diesel vehicles that are over 10 years old and petrol vehicles that are 15 years old. This restriction is implemented to control pollution.
After scrapping the vehicles, the vehicle owners also have to deregister the Registration Certificate or RC. For that, they are required to submit the car scrap certificate.
- Voluntary Vehicle Disposal
If you want to permanently scrap a car or don’t want to sell it, then it is necessary to get a certificate under voluntary scrapping.
How to Get a Car Scrap Certificate?
To scrap a car and obtain the scrap certificate with minimum hassles, you must adhere to these steps:
- Connect With a RVSF
The first step is to contact a government-recognised RVSF like Spinny. Only registered facilities can provide a valid scrapping certificate.
- Submit Required Documents
You will need to provide Spinny with the vehicle registration, identity proof, and other documents. The list of documents is given in the section below.
- Get Your Vehicle Inspected for Scrapping Approval
Once you submit the documents, we will send a team to your address. This team will examine the condition of the vehicle minutely. If the vehicle is not in working condition or an unsuitable condition, the scrapping process begins after approval.
- Certificate Issuance Process
After the vehicle is scrapped, a digital scrapping certificate is issued by Spinny, which you can submit to your RTO.
Documents Required for Scrapping Certificate
The following documents are required to obtain a scrapping certificate from the RVSP:
- Original RC (Registration Certificate)
RC is required for the actual identity and ownership proof of the vehicle. This document should be completely clear and without any dispute.
- Identity Proof and Owner’s Address
Documents such as a Driving License, a Pan Card, or an Aadhaar Card can be submitted for establishing your identity.
- Owner’s Affidavit
You must also give an affidavit stating that your car was not involved in any criminal cases or illegal activities in the past.
- Consent Letter and Application Form
You need to fill out the No Objection Letter (NOC) and Application Form provided by Spinny, which legalises the process.
How Does the Certificate Affect Future Vehicle Transactions?
The car scrapping certificate proves to be useful in the following ways:
- Buying a New Vehicle
If you are planning to buy a new vehicle, presenting a scrapping certificate can get you up to a 25% discount on road tax, registration fees, and other charges.
- Insurance and Loan Benefits
Some insurance companies offer discounts on insurance premiums upon presenting this certificate. Also, this certificate may help you get a new vehicle loan easily.
- Claiming State Subsidies
Once you obtain the car scrap certificate, you become eligible for the state government subsidies, especially for those applicable to electric vehicles.
Some Mistakes to Avoid While Obtaining a Car Scrap Certificate
Car scrapping involves many legal and technical aspects. Some formalities can be completed only with proper guidance. A slight mistake can create problems like legal troubles, financial loss, or loss of benefits in the future. Here we are explaining some common mistakes in detail, which you should avoid at all costs:
- Not Connecting with an Authorised Scrapper
This is the biggest and common mistake that vehicle owners often make. In a hurry or in greed for some money, they give their old car to a local car scrap dealer. These dealers are generally not recognised by the government. So, such unauthorised scrap car dealers cannot give a valid scrapping certificate.
This may create the following problems for you:
- Your vehicle cannot be removed from the RTO records.
- If there is any criminal activity related to the vehicle in the future, the responsibility may fall on you.
- You will not be eligible for government benefits and tax exemptions.
Solution: Always choose a government-certified RVSF like Spinny, which provides legally certified certificates.
- Misplacing or Losing the Certificate
Many times, after completing the scraping process, people consider the certificate as just a piece of paper. Due to negligence, they misplace or lose it. This certificate is not only a legal document, but it also forms the basis for many benefits.
Solution: Make multiple digital and hard copies of the certificate immediately after acquiring it. Also, keep them in a safe place. On platforms like Spinny, this document is also available online. Therefore, you can download it anytime in the future.
- Not Cancelling the RC (Registration Certificate) On Time
Even if you have scrapped your car, as long as your vehicle is registered in the RTO records, you will be considered its legal owner. Many people assume that their responsibility is over after scrapping, but in reality, it is mandatory to cancel the RC. For that, you need the car scrapping certificate.
If the RC is not cancelled:
- There is a possibility of a challan or fine in the name of the vehicle.
- You may be questioned in case of accident or criminal activity.
Vehicle insurance companies may demand a certificate for future claims, which is related to the cancellation of the RC.
Solution: As soon as you get the scrapping certificate, immediately submit it to your Regional Transport Office (RTO). This completes the process of cancelling the RC. Services like Spinny also help you in this process.
- Starting the Scrapping Process with Incomplete Documents
Many times, vehicle owners start the scrapping process without complete information. Lack of required documents gets the process stuck in the middle and wastes both time and labour.
For example:
- Lost RC
- Incomplete identity proof
- Self-declaration form not ready
Solution: Make a checklist of required documents before starting the scraping process.
- Ignoring Vehicle Valuation
Many people scrap cars without getting them evaluated. However, later they realise that they did not get a fair price for the car’s scrap metal or parts. This usually happens with local car scrap dealers who do not maintain transparency.
Solution: RVSF companies like Spinny do free evaluation before scrapping and give a fair price as per market rates. The process is completely transparent and in favor of the customer.
- Delay in Availing the Scrapping Certificate
Many vehicle owners do not use the certificate even after getting it, or delay using it. The result is that they miss out on subsidies, tax exemptions, or insurance benefits as the deadline has passed.
Solution: Use the scrapping certificate as soon as it is received. Present it to the dealer and the RTO when buying a new vehicle. Tax exemptions, insurance premium reduction, or other benefits will be available only if the certificate is presented on time.
Conclusion
The car scrapping certificate is not just a paper document, but it is proof of the safe and legal end of your old vehicle. This certificate not only frees you from legal responsibilities but also gives access to government benefits on the purchase of a new vehicle.
If you are considering scrapping your old car, then starting the process with an authorised RVSF like Spinny is the safest and easiest option. It is important to submit the required documents on time, keep the certificate safe, and get the RC cancelled at the concerned RTO in the process.
By scrapping the car, you keep the environment safe, and by obtaining the car scrap certificate, you keep yourself away from legal hassles in the future. So, whenever you decide to scrap cars, give priority to this certificate and take all the necessary steps correctly.
Frequently Asked Questions on Car Scrapping Certificate
Q. What exactly is a car scrap certificate?
It is an official document that confirms that your car has been scrapped by a certified RVSF by following the correct procedure.
Q. Is obtaining the scrapping certificate just a formality once we scrap cars?
This is not a simple formality. This certificate is mandatory if you want your vehicle registration to be completely cancelled and avoid any legal hassles in the future. Without this, you may also be deprived of tax benefits or discounts on a new vehicle offered by the government.
Q. Who issues this certificate?
A government-approved RVSF issues the car scrap certificate. At Spinny, we have adopted a digital process to streamline everything related to car scrapping.
Q. Is the car reused after scrapping?
No, the car cannot be used once you scrap the car legally and obtain the certificate. Yet, some of its parts, especially the metal parts, may be repurposed or recycled for other uses.
Q. When should I get this certificate?
When your car is 15 or 20 years old, or its condition is so bad that it is no longer safe for the road, then it is the right time to scrap it. Apart from this, it is also necessary to get a certificate if you want to get rid of the vehicle voluntarily.
Q. Can I scrap a car if it is on a loan?
If there is a loan outstanding on the vehicle, first repay the loan and get a No Objection Certificate (NOC) from the bank. That vehicle cannot be scrapped without the permission of the bank. Spinny provides documentary assistance in this process.
