CA Sakchi Jain Explains How Scrapping Your Old Car Saves Money

Finance influencer CA Sakchi Jain recently shared insights on how scrapping your old car before buying a new one can be a smart financial decision. Many car owners often spend large amounts on repairs or try to sell their old vehicles, not realizing that scrapping them under the Government of India's Vehicle Scrappage Policy can offer multiple financial and practical benefits.

What is Scrapping Policy?

The scrapping policy is designed to remove old, polluting, and unsafe vehicles from Indian roads while helping owners upgrade to newer, safer, and more fuel-efficient vehicles. It also encourages car owners to invest smartly in vehicles that are cheaper to maintain and better for the environment.

Before deciding to repair your old car, knowing about this option can save both money and effort. Scrapping your car can be especially useful if it is more than 15–20 years old, as older vehicles tend to have higher maintenance costs, lower fuel efficiency, and may fail fitness tests.

Benefits of Scrapping Your Old Vehicle

Scrapping your old vehicle comes with several advantages that go beyond just selling it for scrap:

Financial Savings:

Discounts upto 4 to 6 percent on new cars when you provide a scrappage certificate to your dealer.
Lower registration charges for your new vehicle.
Possible road tax rebates from the government.

Another important benefit is environmental impact. Older vehicles contribute more to air pollution, and scrapping them helps improve air quality and road safety. The policy is part of a larger government initiative to encourage cleaner roads and a greener environment.

How to Scrap Your Vehicle

• Locate an authorized scrapping center listed on the RTO or Parivahan portal.
• Submit your vehicle documents such as RC, ID proof, and address proof.
• Get a scrappage certificate after the vehicle is dismantled.

Present this certificate to the dealer when buying a new car to claim discounts and tax benefits.

Scrapping your old car is more than just getting rid of an old vehicle. It is a financially smart choice that can save on repairs, offer discounts, reduce taxes, and provide a cleaner, safer, and more efficient car for your daily use. CA Sakchi Jain point out that before spending on expensive repairs, car owners should consider scrapping as a smarter, hassle free option that benefits both your wallet and the environment.

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