The National Green Tribunal recently passed an order that banned the use of cars that are above the age of 15 years in the Delhi NCR. Thus outlawing all cars bought before January 2003, as per the law regional transport departments in the nation’s capital have now stopped re-registering vehicles that go above this date and have even put a stop to fitness checks for these cars. However, a lack of useful information in this regard has sparked confusion among owners of these older cars as no clear road-map has been laid as to what the process is for removing these cars that have now suddenly been made illegal. This story should be a ready reckoner for those with these vehicles and how they could get the most out of their older car.
One option that seems to be most profitable for owners whose cars are not yet deregistered is to sell or transfer their vehicle to a neighbouring state. However, this only applies to those whose cars are soon to be expired, once deregistered cars cannot be sold or transferred. Once the car is sold in the other state, it will have to be re-registered at the new RTO, and this registration has to be updated in the records of the old RTO. This will ensure that the car cannot be reused for illegal activities. If that’s not the case, and the vehicles are not in working condition the next best option is would be to get the vehicle scrapped.
Car Scrapping Explained
Now the reason why scrapping is such a good alternative for old vehicles is that it forms the basis for an all-around win-win situation. For one the environment wins with polluting cars coming off the road. Scrapping at a government authorised scrap shop would ensure that the parts of your vehicle disposed of in a responsible eco-friendly way but also relieves you of the harassment of your vehicle or chassis number being used for illegal activities.
During the scrapping process, the chassis number is taken out before the scrap is sent for recycling. This is a due process that all authorised scrap dealers are supposed to follow, the vehicle’s owner, however, is required to ensure that the scrap dealer is an authorised entity. In essence, it would be required of them to ensure that there is no adverse impact on the environment.
It is also required to inform the RTO about the scrapping vehicles, this allows them to deregister vehicles once the scrapping is done.
Prior to scrapping the vehicle, the scrap dealer is required to inspect the vehicle and provide a quote based on the weight of the vehicle. Upon consensus on the price, the scrap dealer will remove the car parts and segregate them into rubber, plastic, iron, etc
It is the vehicle owners onus as to what price he gets for the various ancillary parts that include tyres battery and tool-kit etc. This price depends on the condition and the age of the parts. CNG dual fuel cars can negotiate for the price of the cylinders.
It is adviced that one takes precautions to ensure that the scrapping process is actually complete.
It is not necessary for one to submit the original Registration Certificate to the scrap dealer, car owners need only provide a photocopy.
It is also advisable to take photographic evidence of the scrapped vehicle to ensure no discrepancies during the deregistration process at the RTO.
Valuation and Registration Process for Old Cars:
The value that you receive for your car is largely dependent on the condition of the vehicle. For example, a vehicle in running condition can be sold for spare parts. If the car is not in running condition, then the price of the car will be determined by the weight of the metal at Rs 15 per kilo.
The owner will also have to surrender their original RC along with the Chassis number plate that was cut out from the vehicle. This information will be kept at the RTO as part of their records. A written correspondence from the scrap dealer is also required on their official stationery with a complete address of the scrapping station.
The RTO will then verify the documents against, reports from the traffic police and National Crime Records Bureau (NCRB). Verification is also done for the records maintained at the RTO office regarding sale or purchase of the car. If all records are found to be satisfactory, the car will be deregistered by the RTO.
A proposed policy for owners of vehicles scrapped asks that the government provide these incentives:
1. Discounts on next car purchase based on the receipt from the scrapper for the next vehicle.
2. 50% off the excise duty and road tax for the next vehicle