‘Earn ₹60,000 without selling your car’: How India’s scrappage policy pays you back

Produced by: Manoj Kumar

Scrap Percentage

You can earn 4–6% of your car’s original ex-showroom price when you scrap it at an authorized center. For a ₹10 lakh vehicle, that’s ₹40,000–₹60,000—just for sending it to the yard.

Cash Transfer

After scrapping and verification, your payment is made via cheque or digital transfer. No cash dealings, no middlemen—your money comes directly from the authorized recycler.

Bonus Discount

If you scrap under the official policy, carmakers may offer ₹10,000–₹20,000 off or up to 1.5% of the new car’s price as a bonus—on top of the scrap value. Brands like Maruti and Hyundai already do this.

Tax Waiver

State governments offer up to 25% off motor vehicle tax and 100% registration fee waivers for new cars bought after scrapping. Combined, these benefits can save you tens of thousands more.

Part Profit

Engines, transmissions, and catalytic converters in decent shape can fetch extra cash. Scrap centers often resell these high-value components, increasing your final payout beyond base metal rates.

Price Swings

Scrap metal rates fluctuate. Steel, aluminum, and copper values rise and fall with global demand, meaning your payout could increase or dip by 10–20% depending on market timing.

Car Details

Older, heavier cars typically yield more scrap due to metal volume. A steel-heavy SUV may bring in ₹50,000–₹70,000, while a small hatchback might get ₹15,000–₹25,000, based on make and weight.

City Impact

Location matters: Scrap rates are higher in metros like Delhi, Mumbai, or Chennai due to demand. In smaller cities, rates might be lower, and transport charges to the scrapyard could reduce your final amount.

Legal Process

To get full value, submit your RC, ID proof, and obtain a Certificate of Destruction. This document is essential to deregister your car and unlock new-car policy benefits.