Sell Your Old Car & Get 5% Off on New Car - Scrappage Policy
Benefits of Buying New Vehicles on Scrapping of Old Car - India's Vehicle Scrappage Policy 2020
The scrappage policy was something which was in the works for a long time. The central govt finally announced with the Union Minister of Road, Transport and Authority Nitin Gadkari saying that this policy will reduce vehicular pollution and bring change for the auto industry. Shri Nitin Gadkari introduced the vehicle scrapping policy in the Lok Sabha recently. We take a look to see how it will impact the auto industry and also change the current state of affairs regarding old cars plus also what you can do if you have an old car.
Will this help the Environment and the Auto Industry?
Yes in many ways as it will boost sales and also help reduce pollution by taking old vehicles off the road. Moreover, the new cars will be more fuel efficient than the old cars helping the car owners to save on fuel cost and enable Indian goverment to reduce oil imports.This will also bring a new ecosystem and is expected to boost localization and create jobs. For the auto industry the benefits would include more sales and also for the owner there are other benefits which we would talk about below. Plus of course the recycled material will help in lowering production costs.
What type of cars fall under this scrappage program?
For private vehicles that are older than 20 years and commercial vehicles older than 15 years old plus those cars would first have an automated fitness test. The scheme also applies to Govt cars older than 15 years.
What do I need to do if I have a 20 year old car to get the new car incentive?
Fitness tests and scrapping centres would come up before the end of this year around October,2021. For you the owner of the old vehicle, there is one big benefit announced is that you get a 5 percent discount on any new car that you buy after sending your old car to the junkyard. There are more incentives coming soon too and you can also get monetary compensation when you scrap your old car. This scheme has Vintage and classic cars exempt though hence classic car owners and Vintage car owners can breathe a sigh of relief.
How has the auto industry reacted?
The Industry has reacted positively and has welcomed the change as it would increase new car sales and the incentive would make the customer switch over the old car that he/she has to a new cleaner one and also save fuel bill.
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