Legal formalities for disposing a vehicle

How to dispose a vehicle that has no resale value or is not useful any more?

Keeping up useless vehicles, which can neither be used nor be sold, only sheds out the money from the owner's wallet. Yup! It must be disposed. Well, disposal of vehicles is a real hurdle for many who own scrap vehicles. However, this is a useful article about the legal formalities for disposing vehicles for those who want to know about the same.

Scrap Motorcycle

What all problems you have to face owning a useless vehicle at home?
If you own a useless vehicle at home, you are supposed to pay road tax, insurance, and other payments. Most of us don't know about this and don't pay the bills. Eventually, you will be charged fine. Well, it is not at all a good idea to pay tax and insurance for a useless old vehicle. So, it is better to dispose the machine as soon as possible.

Why disposing vehicle in junkyard or selling to scrap dealers is risky?
The best option to dispose the vehicle is junkyard and most of us prefer to dispose old cars and bikes there. But disposing at scraps is risky too. Because, if the disposal procedures aren't perfectly done, the scrapped-vehicles may go to wrong hands. They may use it for any anti-social activities. So we must be very accurate and well bothered while following the disposal procedures of vehicle in junkyards. To avoid any illegitimate happenings in the future after disposing the vehicle at scrap, confirm the cancellation of vehicle's registration from the RT Office.

Scrap Motorcycle

What are the legal formalities for disposing a vehicle?
Even if the procedures are little longer, it is easier if we follow the instructions correctly. Let's check out the steps to be followed to legally dispose a vehicle at junkyard.

1. Take pictures of the vehicle where the engine and the chassis numbers are engraved.

2. Remove the vehicle's identification plate (a plate on which chassis and engine numbers are scribed), and keep it with you. (It is hard to remove. So get a mechanic's help.)

3. Go to the nearest scrap dealer and handover the vehicle. You will be paid some amount. Now, get the scrapping certificate from the dealer. Please note that you should not handover the registration, insurance and other documents of the vehicle to the scrap dealer.

4. Along with the scrapping certificate, identification plate of the vehicle, photographs, and all registration and other documents, go to the RT Office where the vehicle was registered. Get the form for cancelling the registration of the vehicle. After filling up the form, submit it along with the rest documents mentioned above. Then, confirm yourself that the vehicle is no more registered. Otherwise, you will have to pay the tax, insurance, and other levies of the vehicle.

5. Now, go to the insurance company where your vehicle was insured. Cancel the insurance and receive the No Claim Bonus (NCB) certificate, which is valid for 3 years. You can use the NCB when you buy another bike or car within 3 years.

Donation of vehicle in the name of charities is great thing. You can also donate the vehicle to engineering students who do research and development. The other solution is to gift the vehicle to anybody who is closely related to you. It can be your friend or relative or neighbour. Whoever may be the receiver, while you donate and gift, make sure that the ownership has been transferred from your name to the reciever,s name.
Written by .
Last updated on 06-05-2013. Published on 06-05-2013.
Published by Bikes4Sale in category Tips


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I am having an old kinetic honda two wheeler to dispose off. It is 20 years old. I don't want to take fc for further use of this two wheeler. What is the procedure in Telangana.
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By Carlos Esteves on 20-09-2018
Nice article. We can also scrap vehicles via companies like CERO (JV between Mahindra Accelo and MSTC, a Government of India Enterprice). They take care of these formalities and give a payment for scrapping!
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I am having an old kinetic honda two wheeler to dispose off. It is 15 years old. I dont want to take fc for further use of this two wheeler. What is the procedure in Tamilnadu.
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I talked to few scrap vendors in Chennai, nobody is agreeing to provide scrapping certificate
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Very good suggestion and feed back. How to get scrapping certificate. Any authorised scarap dealer in Chennai. Sample format will be very much useful
By How To Get The Scrapping Dealer. Any Authorised Dealer Chen on 17-10-2016
Wanted scrop bike
By Kannan on 18-07-2016

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