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Old 3rd March 2016, 13:57   #16
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Default Re: 15% discount on new vehicles if you junk your old ones

Good initiative , perhaps it will get clearer when details come in / implemented - like whats maximum threshold of 15 % rebate - can I sell my 12 year old corolla and get 15% Discount on S class

Last edited by Turbanator : 3rd March 2016 at 14:18.
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Old 3rd March 2016, 14:03   #17
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Default Re: 15% discount on new vehicles if you junk your old ones

I think generally the way these things work, you have to junk it. Which means handover your old vehicle at the designated junkyard who in turn will assess and issue a coupon or a payment voucher for the scrap valuation. Now whether this is on top of that, I am not so sure. May be they will issue a 15% discount coupon for a vehicle of similar class/category!

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Old 3rd March 2016, 14:08   #18
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Default Re: 15% discount on new vehicles if you junk your old ones

I have always thought those are interesting initiatives. There have been quite a number of countries around the world who have (had) similar initiatives:

https://en.wikipedia.org/wiki/Scrappage_program

When we lived in the USA it was just towards their famous "cash for clunkers" programs. Type that into youtube and you will see an endless streams of old cars being destroyed. The engine had to be permanently disabled

E.g. like this:

what is interesting to note is that across the different initiatives there might be different motivators, ranging from environmental benefits to economic stimulus. Especially that last one was considered controversial at best.

Even on the environmental benefits its not that straightforward. Of course an old car is 'dirtier' than a new car. But it does take a lot or resources and pollution to build a new car as well. So the total environmental balance is highly questionable. Although locally (e.g. a region or a city) could benefit environmentally from it, if the polluting industries are somewhere else.

lets see what happens,

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Old 3rd March 2016, 14:18   #19
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Default Re: 15% discount on new vehicles if you junk your old ones

Some more details:

1. The offer for scrapping 4-wheelers and commercial vehicles will be Phase-I of the policy.
2. As per the policy, anyone voluntary scrapping his pre-Bharat stage II vehicle (older than 12 years) will get up to 15% discount (including manufacturer discount and rebate on excise duty) on new vehicles.
3. The government will give certificates of discounts to those scrapping their old vehicles. Those certificates could be produced at the time purchasing new vehicles. The roads ministry will also certify the scrapyards for old vehicles.
4. In Phase-II, government will provide similar incentives to owners of old two-wheeler vehicles as well.
5. There are over 40 lakh Pre BS-II (which are eligible for scrapping) four-wheeler vehicles in both commercial and passenger segment. With two-wheeler, the total goes to almost one crore vehicles that are older than 12 years.

One of the main reasons for this initiative is that Pre-BS II vehicles are almost 10 times more polluting than BS V vehicles.

This will surely help in reducing the pollution (as older vehicles are more polluting than the newer version due to improvements in technology and stricter norms by the government), and will also help in increasing the sales and overall growth of the industry.

Source: http://economictimes.indiatimes.com/...w/51232451.cms
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Old 3rd March 2016, 14:30   #20
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Default Re: 15% discount on new vehicles if you junk your old ones

And where does that money for that come from? The taxpayer? Why can't they just let the market alone? These schemes just breed more corruption and nepotism. Never helps anybody.
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Old 3rd March 2016, 14:35   #21
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Default Re: 15% discount on new vehicles if you junk your old ones

It is good for the automobile industry, no doubt. But for the environment, questionable.

Manufacturing a new vehicle will be accomplished without any pollution?

Last edited by Gansan : 3rd March 2016 at 14:36.
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Old 3rd March 2016, 14:41   #22
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Default Re: 15% discount on new vehicles if you junk your old ones

How effectively it will work is yet to be seen. As on owner of a 12+ years old car, I am more than happy with this since this 15% discount, even on Ex showroom can work out more than the market value of the car. Take into consideration the year end discounts and the deal becomes sweeter.

It all depends on what finally is approved. I believe it will not be a standard "15% rebate" thing but will come with a maximum limit in INR depending on the car being junked. Something like "15% rebate subject to a maximum amount of 60,000". And knowing how the government rebates work, there would also be other conditions to adhere to and things wont be smooth either, unless pockets are loosened a bit.
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Old 3rd March 2016, 14:57   #23
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Default Re: 15% discount on new vehicles if you junk your old ones

Scenario

I own a 12 year old Maruti Esteem and would like to change my car to, say Mahindra TUV 300.

As per new policy I would like to scrap my old esteem and avail the discount thus offered.

Ex show room price of TUV 300 = INR 900000 (SAY)

Discount on scrapping of vehicle = 10% x 900000 (considering discount offered to be 10% against 15% max ceiling)

Net Discount = INR 90000

If the policy works out in the above manner, it is good to scrap vehicle rather than re selling it (depends on resale value of the old car).

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Old 3rd March 2016, 15:08   #24
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Default Re: 15% discount on new vehicles if you junk your old ones

Quote:
Originally Posted by civic-sense View Post
And where does that money for that come from? The taxpayer? Why can't they just let the market alone? These schemes just breed more corruption and nepotism. Never helps anybody.
Quote:
Originally Posted by Gansan View Post
It is good for the automobile industry, no doubt. But for the environment, questionable.

Manufacturing a new vehicle will be accomplished without any pollution?
Let's not look with a pessimistic viewpoint and think of it step by step.

1. It'll most definitely spur the demand for the automobile industry and the economic cycle in the allied/supporting sectors.

2. It'll take away far more polluting and inefficient vehicles off the road thereby reducing the burden for the exchequer.

3. It'll take away the non safe vehicles off the road and thereby reducing the death per accident for which India holds the top most position and is infamous for. More safe vehicles will be on the road. (The number of deaths are just unacceptable!!!)

4. The government would get more people in the tax net as cash payments at dealerships will attract PAN details. Both the Direct tax and the Indirect tax collection will go up. (Even if you consider excise deductions given under scheme). Adding to that increase in tax collections by the state governments.

5. It will also give fuel to a new set of industry, the recycling industry, adding jobs ,making it more organised and setting standards of safety in the sector.

6. And in this global turmoil when the lacklustre performance and the inability of the government to implement decisions are questioned, this may be the only chance they've got to kick off the economic growth machine of the country. As they've very little wiggle room in the current scenario.

Corruption and nepotism is part and parcel of our economy. Let's not hamper our own development and kill our own people just because of that!

I own a white 2000 Maruti 800 which run well (60k kms) and I take it on a Mumbai - Pune trip once a month. (Love the feeling of driving past a Honda City or i20 and to see how irritated their driver gets when I overtake!!!. Driving it is a pleasure which you don't get in many modern cars)
Was contemplating on keeping it or gunning for the Ignis 1.3 DDiS.
Hoping the Finance ministry won't water down the recommendations and the excise cuts.
Will have to wait till the final draft before making any decision.

Last edited by johannskaria : 3rd March 2016 at 15:19.
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Old 3rd March 2016, 16:12   #25
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Default Re: 15% discount on new vehicles if you junk your old ones

Quote:
Originally Posted by civic-sense View Post
And where does that money for that come from? The taxpayer? Why can't they just let the market alone? These schemes just breed more corruption and nepotism. Never helps anybody.
Not entirely from the tax payer. I am sure discount from manufacturers will also be part of the overall equation to calculate the total discount. Do note that manufacturers will benefit due to higher sales as well as from services of these new vehicles. Additionally, part of the costs will be covered due to collection of various taxes on the new vehicle.

This could be win-win for government (economic revival, etc.), manufacturers (more sales & service revenue), general public (less pollution, safer vehicles on road, etc.).
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Old 3rd March 2016, 16:40   #26
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Default 15% discount on new vehicles if you junk your old ones

I need to buy an age old car (12 year+) for 10-20k as I plan to buy upcoming Innova crysta! I love this scheme, makes a lot of economic sense

Last edited by chakri400 : 3rd March 2016 at 16:41.
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Old 3rd March 2016, 16:48   #27
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Default Re: 15% discount on new vehicles if you junk your old ones

I am just happy that we have formal scrapping being established as it takes away the legal headache of disposing an old car. Any monetary value on top of it is a cherry on the cake
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Old 3rd March 2016, 16:54   #28
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Default Re: 15% discount on new vehicles if you junk your old ones

Very good initiative! This policy will help to reduce the air pollution to a good extent and will be a boon to automobile industry.

But I doubt last generation car lovers will scrap the old vehicle because they have an emotional attachment. One of my brother-in-law never sells a vehicle he owned, I still find generation old Luna (moped) at his garage. I own a 1991 Yamaha Rx 100 and for sure I won't scrap it.
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Old 3rd March 2016, 17:07   #29
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Default Re: 15% discount on new vehicles if you junk your old ones

Hope the policy has details on the number of owners and minimum number of years the last owner should have owned the car for.
Assuming i buy a Palio 1.6 Sports for 1.25 Lakhs now and after a year or 2 if it qualifies for the 15% buy back option(12 year+), don't I stand to gain if i plan to go for any car around the 10 lakh mark then?
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Old 3rd March 2016, 17:12   #30
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Last edited by GTO : 4th March 2016 at 17:53.
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