Have A Scrap Car? Know The RTO Rules For Selling Car As Scrap

Neha Chandel

editor

What is a Scrap Car?

A car can turn into a piece of junk after an accident or it can just age and emit harmful gases and pollute the environment. Such a car is declared as scrap car by law. If your car is declared scrap, you are no longer authorized to drive it. So, the only option that you are left with is – to sell your car.

Since a car consists of steel mostly, even after it is not able to run smoothly on the road, the body and the accessories are of great value which can eventually fetch a decent price for your car.

You must know all the laws and the legal documents you need to provide when you want to sell a scrap car and we have sorted them all for you. But first, you should know if your car is a scrap or not based on the regulations of your state.

When does your car turn into a scrap car?

Generally, diesel vehicles older than 10 years and petrol vehicles older than 15 years are declared as scrap by the authorities. But, for each state, the laws might be different.

Here is a quick summary of till when a car isn’t considered a scrap car in various states:

1. When does a car turn into a scrap car in Delhi?

In Delhi, a petrol/ CNG car older than 15 years and a diesel car older than 10 years is considered a scrap car by law. Even if such a vehicle is in running condition, you can’t drive it.

2. When does a car turn into a scrap car in Andhra Pradesh?

In Andhra Pradesh, the age of the vehicle is not a factor in declaring it scrap as long as you can provide a valid Fitness Certificate.

A fitness certificate defines the health and emissions of a car. Mostly, it is valid for the first 15 years and then a check is needed on the health of the car. This is also called CF i.e. Certificate of Fitness. This can prevent a vehicle from being declared as a scrap car.

A car is considered scrap in Andhra Pradesh when:

• Its fitness certificate can’t be renewed
• Your chassis number and engine number are missing or match with those of other vehicles
• The vehicle doesn’t move
• The car has suffered total loss due to an accident
• The engine repair cost is higher or equal to the vehicle’s cost

3. When does a car turn into a scrap car in Maharashtra?

In Maharashtra, a car can be driven smoothly till it completes 15 years. After this, the car becomes scrap. If the car is in running condition, you can use it further by paying the green tax.

If you have a CNG vehicle then you have to take the CNG Retested Process after every 3 yrs. If it provides a positive fitness certificate, you have to re-validate the CNG from the concerned RTO. It will cost you INR 3000 for the RTO re-validation and testing center will charge you approximately INR 2000 to 2500.

4. When does a car turn into a scrap car in Karnataka?

In Karnataka, the age of the vehicle is not a factor in declaring it scrap as long as you can provide a valid Fitness Certificate. If the car is in running condition, you can use it further by paying the green tax and extending the fitness certificate.

A car is considered scrap in Karnataka when:

• It doesn’t move
• The Road Tax period ends, the RTO refuses to renew fitness certificate based on the car condition
• The  refurbishment cost is more than car value
• The car has suffered total loss due to an accident

5. When does a car turn into a scrap car in Rajasthan?

In Rajasthan, you can drive a vehicle legally for 15 years. If the car is in running condition, you can use it further by paying the green tax and renewing the fitness certificate.

A car is considered scrap in Rajasthan when:

• The vehicle doesn’t move
• The car is accidental and has suffered total loss
• The engine repair cost is higher than or equal to the vehicle cost

You can renew the fitness certificate after 15 years. The process is pretty simple. An inspection will happen at the concerned RTO and if the inspector approves the vehicle to run on the road then he can renew it.The fee structure depends on the cubic capacity of the vehicle:

• 1000CC – 2K apart from agent fee
• 1500CC – 4K apart from agent fee
• 2000CC – 6K apart from agent fee

How To Opt For Scrapping A Car & De-Registering The Vehicle?

Since the Govt has not formulated any grave rules which apply entirely as one all over the country, it is difficult to have a standard process for scrapping a car. There might be some variations state wise or as per different RTOs, but generally, the process has following steps:

1. Informing the RTO
The owner of the vehicle informs the RTO by submitting an application declaring the scrapping of a car

2. Surrendering RC & Chassis Plate to the RTO

The owner surrenders the RC & the chassis plate to the concerned RTO.

• If the RC is lost or damaged, you will have to submit two copies of Form 26 along with the copy of FIR
• If your vehicle was financed, a No Objection Certificate (NOC) from the bank has to be submitted with the application. In case the NOC is lost, a duplicate NOC is required. A duplicate NOC is easily available and can be collected from the bank after paying a certain amount of fee

Chassis plate is a metal sheet that contains a unique code of numbers worldwide. Each vehicle has a unique chassis number and this acts as a unique ID for each vehicle. As the law states, it is mandatory for a car user to submit this chassis plate to the RTO while declaring the car scrap. This ensures that your vehicle can no longer be used in any other activities and if it is still used, you will have no liability on your end.

3. De-registering the car from RTO records

The RTO checks all the certificates submitted and also verifies if there is any standing balance against the vehicle in the form of lease, loan, challan etc.

Once satisfied with all the documents and no dues, the car is declared scrap and it is removed from the RTO registers. Now your car is liable to be cut down into sheets or to be melted down to extract the metal.

In some states, the car is scrapped in front of the police authorities and a video is made while getting it scrapped

How To Sell A Scrap Car?

While selling your scrap car, you will have to provide a copy of your RC and bank NOC to the person/ business who will scrap your car. Make sure to collect your chassis number plate from them, inform the RTO and follow the process described above to de-register the car from RTO records.

Getting all the formalities done at the RTO will take a lot of time and energy. You can instead just sell your scrap car at the best price to CARS24 and we’ll take care of all the RTO formalities except de-registering the car! All you have to do is to book an appointment and drive down to the nearest CARS24 branch.