There comes a time in every vehicle owner’s life when he is confused about what to do with his old car. He thinks whether it would be appropriate to sell the old car or scrap it. Apart from its economic aspect, this decision is also linked to the environmental, legal and emotional aspects.
In a country like India, where the resale value of old vehicles falls rapidly and the scrapping policy is gradually gaining momentum, this question becomes even more important. In this article, we will know in detail when it is better to scrap your car and when it can be more beneficial to sell it.
Table of Contents
Why Consider Selling an Old Car?
These are some reasons that make selling an old car a good option:
Increasing Maintenance Costs
Over time, the cost of repairing and servicing old cars increases. Parts like engine, clutch, suspension or brake system weaken over time, which increases the maintenance cost drastically. If you have to visit the service center every month, then perhaps it is a sign that it is better to sell the car.
Decreasing Fuel Efficiency
Old cars consume more fuel than new technology. This increases the additional cost on petrol or diesel. Given the rising fuel prices, if your car’s mileage has dropped, upgrading to a new car may prove to be more beneficial.
Emission Norms Compliance
With stringent emission norms like BS6, many old cars are no longer legally roadworthy. If your car is BS4 or older, selling it immediately will be the right decision.
What is Car Scrapping?
Car scrapping means dismantling an old, unusable or undriveable car. In this, the car’s parts are separated and the spare parts are either recyclable or recycled.
How Scrapping Works in India?
In India, the government has approved some Registered Vehicle Scrapping Facilities (RVSFs) such as Spinny. When you collaborate with an RVSF, the process first involves vehicle inspection, then document verification and later dismantling. At the end of this process, the owner is given a car scrap certificate.
Major Benefits of Car Scrapping
Today, car scrapping is not just an option but a wise decision for many people. When a car is no longer in running condition, frequent expensive repairs start putting a strain on your budget. Upon this, if its condition is bad than selling it also becomes challenging. In such situations, scrapping a car becomes a practical and stress-free solution. Let us know what are the major car scrap benefits are:
Financial Car Scrap Benefits
After completing the car scrap procedure, you get immediate payment in cash or through bank transfer. Also, there is no need for any negotiation or a long process of finding a buyer. It is a straightforward and transparent transaction, which gives you a fair price for your old car.
Government Incentives and Discounts
The government is now promoting scrapping of old vehicles. If you have scrapped the vehicle through an accredited scrapper, you can get benefits like exemption in road tax and registration fee on buying a new vehicle. This can lead to a significant saving in the total cost of the new car.
Freedom from RTO and Legal Liabilities
Once your car is scrapped and you get the scrapping certificate, all legal liabilities related to that vehicle also end. No challan, no worry of accidents and no fear of any fraud in future. So, the car scrap process also gives mental relief in the end.
Responsibility Towards the Environment
Old cars emit more smoke, which increases air pollution. Scrapping reduces the environmental impact of your vehicle by disposing it safely. By deciding to scrap the car, you show your care towards the environment.
Recycling of Useless Parts of Old Car
Parts that are no longer useful are recycled through scrapping instead of throwing them in the garbage. This not only saves natural resources, but also benefits the industrial sector as they can reuse these parts.
Get Rid of the Hassles of Selling
Sometimes selling an old car becomes a long process as it includes steps such as finding a buyer, dealing with negotiations, and paperwork. On the other hand, in carscrapping, you directly hand over the car and get the money and documents. No stress, no hassle.
Saves Space
If your old car is no longer in use and is just occupying space in the garage or parking, then scrapping is a great option. This frees up valuable space in your house or society, which you can use for some other purpose.
What All Things are Involved in Selling an Old Car?
Selling a used car is an option that can be beneficial for you if your car is still in working condition and has market value. It does not mean just getting rid of the car but giving it to someone who can use it for their needs.
When you sell your used car, not only can you get a decent amount but there is also a possibility of the car being reused. Reselling used cars is a popular business in the market. It helps buyers get a car in a decent condition at reasonable rates. Also, as the new buyers take care of the used cars like a new one, it eventually increases the car’s life.
Ways to Sell a Used Car
Here are a few ways of selling a used car:
- Resale Through a Dealer
- Using an Online Platform like Spinny
- Sell it to someone who knows you personally
If you want to save time and expect transparency, Spinny can help you. At Spinny, we manage the entire process systematically and securely.
Documents Required for Resale
Here are the documents you must have to sell your old car without any hassles:
- Registration Certificate (RC)
- Insurance Documents
- Pollution Certificate (PUC)
- Copy of Identity Card
- Form 29 and 30
With the help of these documents, you ensure that the ownership is transferred correctly and there is no legal hassle in the future.
Challenges in Selling an Old Vehicle
- Finding a buyer can be a challenge for some car owners.
- The price of the vehicle depends on the market. So, getting the right price can be difficult as it also depends on the brand value and model.
- There is a possibility of fraud in payment if you don’t handle it carefully.
Many times, lack of trust, complexity of documentation process and time constraints come up in personal transactions. This is the reason why many people have now started preferring organized and trusted platforms such as Spinny, where a streamlined process has been set for selling used or old cars.
Key Differences between Scrapping vs Selling
Both selling or scrapping cars can be beneficial. It depends on your car’s actual condition, market value, and some other factors. Let’s compare the key differences between selling and scrapping cars so that you can make the right decision for your vehicle!
Process and Documentation
The process of scrapping is generally simple. All you have to do is deliver the vehicle to the scrapping centre, get the documents verified and you get the scrapping certificate. On the other hand, selling involves a lot of paperwork like RC transfer, Form 29 and 30, copies of identity proof and insurance documents.
Time and Effort Required
Car scrapping saves much more time if you compare it with selling. To sell a car, you must first find a reliable buyer who also agrees on the price set by you. Then, the entire documentation process including transfer of ownership, insurance, etc. make the process lengthy.
Return on Investment (ROI)
Selling a car can be a profitable option only if it’s in good condition. Both the interiors and exteriors should be in fine shape and form. The performance of the engine should also be in a top-notch condition. Failing to meet any of these conditions can lower the price you quote considerably.
Scrapping usually only fetches the value of the metal and parts. However, if the vehicle is in really bad shape, scrapping it can prove to be the better option. It is because of the less paperwork and formalities required in car scrapping.
Legal and Environmental Compliance
Scraping is a completely government approved process, which has a positive impact on the environment. On the other hand, if you sell the car but don’t transfer the RC, you may be named in traffic challans or criminal incidents.
Transfer of Ownership and Liability
In scrapping, the ownership is completely terminated and you are free from any kind of responsibility in the future. While selling, the responsibility remains until the transfer is completely updated in the RTO records.
The summary of the differences between car scrapping and selling is given below:
| Aspect | Car Scrapping | Car Selling |
| Purpose | To safely dispose of an old or unfit vehicle | To transfer the vehicle to a new owner |
| Benefits | Car scrap certificate, tax rebate, eco-friendly disposal | Instant cash, reuse of vehicle by another person |
| Condition of Vehicle | Can be scrapped regardless of condition | Needs to be in good condition for better resale value |
| Documentation Required | RC, ID proof, NOC (if applicable) | Complete documents like RC, insurance, PUC, etc. |
| Time Involved | Fast and structured process | Finding a buyer may take time |
| Legal Liability | Ends after RC is cancelled post scrapping | Continues unless ownership is properly transferred |
| Profit or Payout | Limited payout (based on metal and parts value) | Can fetch a better price if the car is in good shape |
| Discount on New Car | Eligible for tax/registration rebate via car scrap certificate | No such benefit available |
| Environmental Impact | Environmentally responsible recycling | Older vehicle may contribute to pollution if resold |
Conclusion
Old cars can make you emotional. However, if maintaining it is becoming a headache, then selling or scrapping it makes more sense. Scrap a car if you think it is completely unusable.
On the other hand, if your car is still usable and you want to sell it for a good price, then this option is also open. Every person’s situation is different, and hence it is important to take a well-thought-out decision.
Spinny can help you in both selling and scrapping cars. With a safe, transparent, and hassle-free process, you can get doorstep inspections, fair online quotes, and safe transactions for both selling and scrapping cars with Spinny. Contact us today and find which option is better for your car!
FAQs on Scrapping vs Selling your Old Car
Q. My old car is still working. Should I scrap it?
Yes, if the repair costs are frequent and take a toll on your budget, it may be a better idea to scrap it. Scrapping not only gives you a certified receipt but also benefits like tax breaks on a new car.
Q. How reliable is the scrapping process and how long does it take?
Government-approved scrapping centres like Spinny follow a transparent process. The process usually takes 5 to 7 working days, including vehicle evaluation, paperwork, and issuance of a final car scrap certificate.
Q. Can scrapping my car benefit me more than selling it?
Yes, in some cases it can. If your car is very old, its market value has fallen drastically and it is difficult to find a buyer, then scrapping can be a better option. On scrapping, you get a lump sum payment as well as a discount or relief in registration tax on buying a new car in some places. Also, you do not have to worry about the paperwork associated with selling the old vehicle.
Q. If I sell my old car, can there be any problem related to it later?
Yes, if you do not get the papers of the vehicle transferred properly after selling it, then there can be problems later. For example, if that car meets with an accident or is used for illegal work, then you shall be responsible for it. Therefore, if you are selling the car, then it is very important to complete the transfer of ownership in the RTO and submit all the necessary forms (such as Form 29 and 30) on time.
Q. How to scrap a car with Spinny?
At Spinny, we offer a hassle-free and quick car scrapping process. If you are selling a car, it prices your car correctly, finds a buyer and handles the necessary paperwork. Also, if you want to scrap, Spinny’s RSVFs handle the entire process in a transparent manner, as per government regulations. The best part is that you don’t have to run around as Spinny manages everything for you in a hassle-free manner.
