Car scrappage value India: RVSF rates, policy rules & certificate of deposit (2026)

A 2008 Maruti Swift in Delhi. The local kabadiwala offers ₹18,000, cash, same day. The owner hesitates, the car barely runs, the RC renewal is pending, and the 15-year mark is approaching. A visit to a Mahindra CERO facility tells a different story: ₹8,000 to ₹12,000 in scrap metal payout, but a Certificate of Deposit that unlocks a 25% road tax rebate and full registration fee waiver on a new car. When the numbers are totalled, metal payout plus road tax savings plus registration waiver, the RVSF route yields ₹45,000 to ₹65,000 in effective value. The kabadiwala's ₹18,000 suddenly looks thin.

That gap between perceived value and actual value is where most owners lose money. This page breaks down what a car is worth at end of life in India in 2026, how the scrappage policy works in practice, and where the real savings sit.

How much do you get for scrapping a car in India?

An RVSF in India typically pays ₹5,000 to ₹15,000 for scrapping a hatchback and ₹15,000 to ₹35,000 for an SUV, based on the car's kerb weight and current scrap metal commodity prices. The total economic value is higher because owners also receive a Certificate of Deposit that unlocks road tax rebates (up to 25%) and registration fee waivers on a new car purchase. The metal payout alone never tells the full story.

Here is what actually happens at the facility. The RVSF weighs the car on an industrial scale, then strips it in a specific sequence. Hazardous materials come out first: battery, engine oil, coolant, brake fluid, AC refrigerant. The battery is valued separately (a lead-acid car battery fetches ₹400 to ₹800 depending on weight and lead prices). Catalytic converters, where present, are priced independently too. They contain platinum-group metals and can add ₹1,500 to ₹5,000 to the payout depending on the converter type and condition. After stripping, the remaining shell is weighed for recoverable metal: steel, aluminium, copper wiring, plastic components.

RVSF scrap value ranges by vehicle type (estimated, 2026):

Payouts shift month to month. Scrap steel prices in India have fluctuated between ₹22 to ₹32 per kg over the past two years. A 2009 Hyundai i10 (kerb weight approximately 950 kg) scrapped in a month when steel trades at ₹28 per kg yields roughly ₹10,500 in recoverable metal value after RVSF margin deduction. That same car scrapped three months later with steel at ₹24 per kg drops to around ₹8,500. Timing matters.

Most people think the metal payout is the only number that matters. That is only half the story. The part most owners overlook is the Insured Declared Value of a 15-year-old car. At that age, IDV is functionally zero. Insurance companies will not write a meaningful policy. The car's value exists only in its metal, its Certificate of Deposit, and the tax concessions that come with formal scrappage.

RVSF vs local scrap dealer: price gap, process gap, and the legal risk no one mentions

A Registered Vehicle Scrapping Facility (RVSF) is a government-authorised centre licensed to dismantle end-of-life cars, issue Certificates of Deposit, and handle environmental disposal under CPCB norms. A local scrap dealer, the neighbourhood kabadiwala, is none of these things.

The local dealer's cash number is higher. That is the draw. But the total value calculation flips once Certificate of Deposit concessions are factored in. And the legal risk of selling to an unregistered dealer is real. The car's chassis number plate and engine number remain linked to the original owner's RC until formal de-registration happens. If that chassis number shows up in a stolen-car recovery or an accident investigation, the paperwork trail leads straight back to the original owner.

How to find an RVSF near you

Visit vscrap.parivahan.gov.in, select the state, and view the list of registered facilities with addresses and contact numbers. Each listing shows the facility's registration number and operational status.

Not every district has an RVSF. If the nearest facility is 100 kilometres or more away, transport costs eat into the payout. Some RVSFs offer pickup services for non-running cars; others do not. Towing a non-running car 80 kilometres can cost ₹3,000 to ₹6,000, which wipes out the metal payout for a small hatchback entirely.

India vehicle scrappage policy 2026: which cars must be scrapped and which can re-register

The scrappage policy does not force private car owners to scrap outright. It requires cars older than 15 years (petrol) or 10 years (diesel, in specific states and cities) to pass a fitness test at an Automated Testing Station (ATS) before re-registration is permitted. Cars that fail the ATS test face mandatory de-registration, and at that point, scrappage through an RVSF becomes the only formal option. This framework flows from MoRTH notification G.S.R. 653(E) dated 2021 and subsequent amendments that tightened the diesel car timeline.

Government-owned vehicles 15 years or older are already under mandatory scrappage. That rule has been active since April 2022. For private owners, the policy is effectively mandatory only when the car cannot pass fitness.

State-by-state enforcement varies sharply. Delhi NCR enforces the 10-year diesel rule and 15-year petrol rule actively, with the National Green Tribunal backing enforcement orders. Gujarat and Maharashtra have operational ATS centres and are issuing fitness test notices. Several other states have ATS centres approved on paper but not yet functional on the ground.

The re-registration cost trap: when it makes more sense to scrap

Take a 2010 Maruti Alto in Delhi, petrol, 16 years old. Re-registration requires: green tax (₹2,500 to ₹5,000 annually, varies by state), ATS fitness test fee (₹300 to ₹500), increased insurance premium for an aged car (if an insurer agrees to cover it at all), and the re-registration fee itself (₹3,000 to ₹5,000 for a car this age in Delhi).

The re-registration route costs ₹8,000 to ₹15,000 upfront, plus recurring green tax every year. The car's private resale value sits at ₹25,000 to ₹40,000 at best. Now compare: scrapping at an RVSF yields ₹5,000 to ₹10,000 in metal payout plus a Certificate of Deposit worth ₹15,000 to ₹40,000 in concessions on a new car. If a new purchase is planned, scrappage wins. If the owner intends to keep driving the car for 2 to 3 more years and has no plans to buy new, re-registration might make sense, but only if the car passes fitness.

Here is the break-even logic: when the car's remaining private-sale value exceeds the total scrappage benefit (metal plus CoD plus tax concessions), selling privately is rational. For a 2010 Alto, scrappage almost always wins. For a 2010 Honda City in decent condition with a private resale value of ₹1,20,000, the private sale wins.

Certificate of Deposit: what it's worth and how long it lasts

The Certificate of Deposit (CoD) is a formal document issued by the RVSF after a car is fully scrapped and dismantled. It is legal proof of end-of-life disposal and the document that unlocks road tax rebates and registration fee waivers when buying a new car. The CoD is issued by the RVSF, not the RTO. Owners do not need to visit the RTO to obtain it.

The CoD contains: original vehicle registration number, chassis number, engine number, date of scrapping, RVSF name and registration number, owner details, and a unique certificate number linked to the VAHAN database.

That changes the timeline. Without a CoD, none of the government concessions are accessible. A local scrap dealer cannot issue one. Only a registered RVSF can.

One detail worth flagging: the CoD may or may not be transferable to a family member. Some interpretations of MoRTH rules allow immediate family members (spouse, children) to use the CoD when purchasing a new car. Others restrict it to the registered owner of the scrapped car. Clarity on this point varies by state and by the RTO officer processing the registration.

Tax concessions and registration discounts: state-wise breakdown for 2026

The central government guideline under the Vehicle Scrappage Policy offers up to 25% rebate on road tax for non-transport cars and up to 15% for transport cars when a Certificate of Deposit is presented during new car registration, as per MoRTH's notification on scrappage incentives. The registration fee for the new car is fully waived in most states that have adopted the policy.

The actual benefit depends entirely on which state the new car is registered in. Some states have adopted the full central concession. Others offer reduced rates. A few have not formally notified any concession yet.

Some OEMs offer additional exchange bonuses when a CoD is presented. Maruti Suzuki, Tata Motors, and Hyundai have run scrappage exchange programs at various points. Check current offers at the dealership level, as these change quarterly.

Scrapping a 2009 Honda City in Maharashtra and buying a new Tata Nexon

A worked example. A 2009 Honda City (kerb weight approximately 1,100 kg) scrapped at an RVSF in Maharashtra:

• Metal scrap payout: ₹10,000 to ₹16,000
• Certificate of Deposit: issued (no direct cash value, but enables concessions below)
• Road tax rebate on new Tata Nexon (ex-showroom approximately ₹10 lakh): 25% of Maharashtra road tax. Maharashtra road tax on a Nexon is approximately ₹1 lakh, so the rebate comes to approximately ₹25,000
• Registration fee waiver: approximately ₹6,000 saved
• Total effective value of scrapping: ₹41,000 to ₹47,000

Now compare to private sale. A 2009 Honda City in running condition sells privately for ₹80,000 to ₹1,20,000 in most cities. If the owner can find a buyer at ₹1 lakh or more, private sale wins. If the car is not running, has failed fitness, or cannot find a buyer, the RVSF route delivers more total value than a local kabadiwala's ₹20,000 cash offer.

Check the car's private market worth on the used car valuation calculator before making the call.

The scrappage process step by step

The scrappage process in India follows a seven-step sequence from the moment a car fails its ATS fitness test (or the owner voluntarily decides to scrap) to the final bank credit. The entire process takes 7 to 15 business days in most cases, though the RVSF-to-RTO de-registration step can stretch longer in states with manual processing.

1. Car fails ATS fitness test or owner decides to scrap voluntarily. No fitness failure is required for voluntary scrappage. An owner can walk into an RVSF with a running car and request scrapping.
2. Book a slot at an RVSF. Use vscrap.parivahan.gov.in to find a registered facility. Some RVSFs accept walk-ins; others require advance booking, especially in Delhi NCR where demand is higher.
3. Deliver the car to the RVSF with documents. Required: original Registration Certificate (RC), valid ID proof (Aadhaar or PAN), address proof, insurance policy (even if lapsed), PUC certificate if available. If the car has an active loan or hypothecation noted on the RC, a No Objection Certificate (NOC) from the financing bank is mandatory.
4. RVSF inspection, hazardous material removal, and valuation. The facility removes battery, fluids, AC refrigerant, and fuel first. The car is weighed. Recoverable components are catalogued. Typically takes 1 to 3 days.
5. Car scrapped, Certificate of Deposit issued. Once dismantling is complete, the RVSF generates a Certificate of Deposit through the VAHAN-linked system.
6. RVSF initiates de-registration with the RTO. In most states, the RVSF sends the de-registration request directly to the jurisdictional RTO through the VAHAN system. The owner does not need to visit the RTO separately.
7. Scrap value payout credited to the owner's bank account. Payment is made via NEFT or RTGS to the bank account linked to the owner's KYC. Timeline: 3 to 7 business days after CoD issuance.

Old car scrap value: how Delhi, Mumbai, and Bangalore differ

Scrappage value is not uniform across India. Three factors create city-level variation: the number of operational RVSFs (more facilities means more competition and slightly better payouts), local scrap metal commodity rates (steel prices vary regionally by ₹2 to ₹4 per kg), and state-specific tax concessions.

Delhi NCR: Strictest enforcement in the country. The National Green Tribunal's diesel car ban (10 years) and petrol car limit (15 years) are actively enforced. Delhi has the highest concentration of operational RVSFs, including Mahindra CERO's facility. Competition among facilities can push metal payouts slightly higher. Typical hatchback scrap value range: ₹6,000 to ₹13,000 metal payout, with CoD concessions adding ₹20,000 to ₹35,000 when buying a new car in Delhi.

Mumbai / Maharashtra: Maharashtra offers the full 25% road tax rebate and registration fee waiver. Mumbai has fewer RVSFs than Delhi, which means less competition but also longer wait times for appointments. Transport costs to an RVSF outside Mumbai city can add ₹2,000 to ₹5,000.

Bangalore / Karnataka: Karnataka has adopted the central concession framework. RVSF availability in Bangalore is growing but still limited compared to Delhi. The practical challenge here is that many 15-year-old cars in Bangalore are still in running condition due to better road conditions and climate, making private sale a more viable alternative than scrappage.

Frequently asked questions

How much money do I get for scrapping my car at an RVSF in India?

The RVSF metal payout for a hatchback ranges from ₹5,000 to ₹15,000, and for an SUV from ₹15,000 to ₹35,000, depending on kerb weight and current scrap metal prices. The total economic value is higher when Certificate of Deposit concessions are added. Road tax rebate (up to 25%) and registration fee waiver on a new car can add ₹15,000 to ₹40,000 in effective savings.

Is the vehicle scrappage policy mandatory in India in 2026?

Not for all private cars. Private cars that fail the ATS fitness test cannot be re-registered, which makes scrappage the only formal option. Government vehicles 15 years or older are already under mandatory scrappage since April 2022, as per MoRTH notification G.S.R. 653(E). For private owners whose cars pass the fitness test, scrappage remains voluntary.

What is a certificate of deposit in vehicle scrappage?

A Certificate of Deposit (CoD) is a formal document issued by a Registered Vehicle Scrapping Facility after a car has been fully dismantled. It proves that the car was disposed of through authorised channels and entitles the owner to road tax rebates and registration fee waivers when purchasing a new car. The CoD is generated digitally through the VAHAN system and carries a unique certificate number.

Can I scrap my car without visiting the RTO?

In most states, yes. The RVSF handles de-registration directly with the RTO through the VAHAN database. The owner's responsibility is limited to delivering the car and documents to the RVSF and receiving the Certificate of Deposit and payout. Some states may still require an owner visit for final de-registration, though this is gradually being phased out.

What is the difference between an RVSF and a local scrap dealer?

An RVSF is a government-registered facility authorised to dismantle cars, issue Certificates of Deposit, and manage environmental disposal under CPCB guidelines. A local scrap dealer is unregistered, cannot issue a CoD, does not handle de-registration, and offers no legal closure on the car's identity. The RVSF payout is typically 15 to 30% lower in cash, but the total value (including CoD concessions) usually exceeds the local dealer's offer.

How much road tax refund do I get when I scrap my old car and buy a new one?

The central government guideline provides up to 25% rebate on road tax for non-transport cars and up to 15% for transport cars. The actual percentage depends on the state where the new car is registered. The rebate is applied only when a valid Certificate of Deposit is presented during new car registration. State-specific rates range from 15% to 25%.

What documents do I need to scrap my car at an RVSF?

Required: original Registration Certificate (RC), valid government ID (Aadhaar, PAN, or passport), address proof, insurance policy (even if expired), and PUC certificate if available. If the car has a loan or hypothecation recorded on the RC, a No Objection Certificate (NOC) from the financing bank is mandatory before the RVSF will accept the car.

Is it better to sell my old car privately or scrap it at an RVSF?

It depends on the car's condition and residual resale value. For most 15-plus year old hatchbacks (Maruti Alto, Hyundai Santro, Maruti WagonR), the total scrappage benefit, metal payout plus CoD concessions, exceeds what a private buyer would pay. For well-maintained sedans and premium models (Honda City, Hyundai Verna, Toyota Corolla) with private resale values above ₹80,000 to ₹1 lakh, selling privately typically yields more. Run both calculations and compare against a used car valuation to make the call.

What happens to my car after it is scrapped at an RVSF?

The RVSF first removes all hazardous materials: battery acid, engine oil, coolant, brake fluid, and AC refrigerant, following Central Pollution Control Board (CPCB) disposal guidelines. Reusable parts that meet safety norms (headlights, mirrors, starter motors) are catalogued and may be resold. The metal body is shredded and sold as scrap to steel and aluminium recyclers. Plastic components are separated and sent to authorised plastic recycling facilities. The entire process is logged and reported to MoRTH through the VAHAN-linked system.