Buying a new car? Get 5 pct REBATE; here is your big opportunity

Buying a new car is always a big dream for an earning individual. For car buyers, Union Minister Nitin Gadkari has this plan - get a 5 per cent rebate when you buy a car provided you already have an old one that you will bring in as part of the scrappage policy. In a recent media interaction in New Delhi, Gadkari said that folks who junk their old vehicles and buy a new one under the purview of India's vehicle scrappage policy will receive about 5 per cent rebate from automakers on the new vehicle purchase.

Commenting upon the recent developments in regard to the scrappage policy, Minister Nitin Gadkari said, "Automobile manufacturers will provide about 5 per cent rebate on new car purchases to the consumers in lieu of scrapping the old. There are four major components of the policy...Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout the country and we are working in that direction."

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As per the Scrappage Policy in India, private vehicle owners will get incentive on new purchases from the automakers on scrapping their 20 year old vehicles. For commercial vehicles, the time-period is 15 years to avail scrappage policy incentive from the automakers on new purchases without a fitness test.

However, the government hasn't yet shared specifics about the fitness test, but from what we know so far, private and commercial vehicles over 20 and 15 years old, respectively, will be required to undergo a fitness test at government's automated vehicle fitness centers. Above mentioned automated fitness test centres will be set up under public private partnership (PPP) mode and the government will also aid private partners and state governments to establish scrapping centres.