Owning Old Cars To Go Expensive

Owning Old Cars To Go Expensive

Recently, the Center has passed a draft notification regarding a hike in the fees in the cost of the renewal, registration of RC, and fitness certificate. These rules apply to vehicles that have been used for more than 15 years. This measure was taken to boost voluntary participation in the vehicle-scrapping policy announced by Mr. Nitin Gadkari in the union budget of 2021.

The Central Motor Vehicle (Amendment ) Rules 2021, issued by the Ministry of Road and Transport, has put forward a new set of rules for private and commercial vehicles commencing from October 1, 2021.

Let us dive deeper and understand more about this new set of rules. First things first, if you have a certificate of your old vehicle’s scrapping, you won’t have to pay any fees for the registration certificate of your new vehicle. But, to avail of this benefit, you have to get a scrapping certificate before October 1, 2021.

If you own a 15-year-old bike, car, jeep, etc., then you will have to pay up to 8 times more than what you paid earlier for the renewal of your registration.

Renewal and Obtaining a New Registration Certificate


If you own a motorcycle, you will have to pay  300 for a new registration certificate and 1000 to get it renewed.

Light Motor Vehicle

It will cost you 600 for a new registration certificate and 5,000 to get it renewed for a light motor vehicle.

Imported Motor Vehicle

To get a new registration certificate, it will cost you 2,500 and get a renewal certificate of a 15 year or older imported vehicle; the proposed cost is 40,000.

Further, a delay in renewing the RC of your vehicle older than 15 years is going to attract a heavy penalty. A private vehicle will attract 500 as a fine per month, and the liability for a commercial vehicle would be 50 per day for failing to renew the fitness certificate.

Testing and Renewal of the Fitness Certificate

The charges for the renewal and grant of a new fitness certificate for vehicles older than 15 years are listed below:

  • For testing a manual motorcycle, the charges will be 400, and for an automated one, 500.
  • The charges are fixed at 800 and 1000 for an automated one for testing a manual three-wheeler.
  • For medium and heavy vehicles, the charges for manual and automatic are fixed at 800-100 and 1300-1500 respectively.

In addition to this, the Road and Transport Ministry has also come up with a blueprint to set up various registered vehicle scrapping centers. A vehicle owner will be allowed to take his or her vehicle to any scrapping center in any state. The scrapping Center will have to verify all the documents regarding the ownership of the vehicle before scrapping it and providing the certificate.

Since old vehicles are a significant cause of air pollution, this move was due for a while now. The new policy incentives and penalties will encourage people to get rid of their old vehicles, which cause 8-10 times more pollution than the new vehicles. Also, all government vehicles that are older than 15 years will not get a renewed registration certificate after April 1, 2022. This is a significant first step in the right direction.

Scrapping your car or any other vehicle has a lot of benefits and it helps you do your bit towards the environment. There are a lot of parts in a car that can be reused and recycled. But if you send it to get dumped, that won’t be possible. On the other hand, if you scrap the vehicle, all these parts can be reused. Scrapping your vehicle is also a good trade for money. Since most scrapping companies pay you immediately in cash, if your car is old and non-functional, it must be taking up a lot of space. This is another problem that can be solved through the way of scrapping.