Certificate of Deposit Transfer: Scrapped Your Car? Don't Lose Its Hidden Value!

Vehicle owners who have scrapped their cars are no longer required to purchase a new vehicle to leverage their Certificate of Deposit. Through DigiELV, these certificates can be traded electronically, allowing owners to transfer them to other buyers who intend to purchase a new vehicle. For those not planning an immediate replacement, this offers a way to monetize the certificate rather than letting it expire. The process begins on the government’s V Scrap Parivahan portal and moves to DigiELV for listing and digital transfer.

A Certificate of Deposit can be transferred without buying a new vehicle

A Certificate of Deposit is issued when a vehicle is accepted for scrapping by a Registered Vehicle Scrapping Facility. The certificate is generated digitally through the V Scrap portal when the vehicle is scrapped. After the vehicle gets scrapped, the user gets another certificate called "Certificate of Vehicle Scrapping".After the vehicle gets scrapped, the user gets another certificate called "Certificate of sVehicle Scrapping. The Certificate of Deposit is the document associated with the benefits available when an eligible new vehicle is purchased and is the certificate that can be traded. An owner who plans to purchase another vehicle can use the Certificate of Deposit directly. An owner who does not plan another purchase can select Trade on V Scrap and transfer the certificate to another holder instead. A Certificate of Deposit is valid for 3 years from the date of issuance. The validity period does not restart when the certificate is transferred to another holder.

The Trading Process Begins With Registration

To begin, owners must log in to V Scrap and access the Certificate of Deposit associated with their scrapped vehicle. Ensure the certificate is valid and currently unused before initiating the trade. By selecting the Trade option, the user is redirected to DigiELV. On DigiELV, users should navigate to Login/Register and select CD Owner Registration. After entering the Certificate of Deposit number, providing the necessary documentation, and agreeing to the terms, the registration is submitted. Once registered, owners can log in to finalize their profile by inputting bank details, making the certificate visible under the List of CDs section.

Owner Can Now List the Certificate of Deposit For Sale

Within the List of CDs, owners can choose Sell this CD to set a price and create an offer. The certificate is identified by its CD number, and the asking price must fall within the platform's defined minimum and maximum range. Once listed, the offer becomes visible to prospective buyers. Under the Bilateral route, buyers submit bids that the seller can evaluate against their asking price. Sellers have the option to accept a bid or cancel the sale; DigiELV requires confirmation before finalizing any transaction. Alternatively, the platform offers an Instant Sell feature, allowing sellers to bypass negotiations and sell at the current market price. Upon confirmation, the trade is processed and the certificate is transferred.

Buyers Can Find Certificates of Deposit By Vehicle Category

The purchasing journey begins on DigiELV. After registering as a CD buyer and finalizing their profile, buyers must add funds via the Fund Management section before placing an offer. Buyers can then browse available listings in the View Market Offers section, filtered by vehicle category. It is important to select a category that matches the type of new vehicle the buyer intends to purchase. Once a suitable Certificate of Deposit is identified, the buyer confirms the price and selects Create Bid. In the Bilateral route, the seller must review and accept the bid to trigger the transfer. Once accepted, the Certificate of Deposit is transferred to the buyer, who can then access the Transfer Certificate and the Original Certificate of Deposit via the List of CDs or through Transaction History > Purchases.

How Buyers Can Utilise a Transferred Certificate of Deposit

Once the certificate is received, buyers can locate it under My Active CDs and select Utilize CD when ready to purchase an eligible new vehicle. DigiELV notes that benefits are contingent upon state regulations. These benefits are derived from two primary sources: government policies and vehicle manufacturers. The government offers a waiver on registration fees and a concession on motor vehicle tax, while manufacturers provide additional discounts.

• Motor vehicle tax concession: GSR 720(E), dated 5 October 2021, allows states to offer up to 25% concession for non-transport vehicles and up to 15% for transport vehicles. Few states are offering upto 50% road tax rebates for scrap vehicles built to BS-II or earlier standards.
• Registration fee waiver: GSR 714(E), dated 4 October 2021, waives the registration certificate issue fee when a vehicle is registered against a Certificate of Deposit.
• Manufacturer discount: Vehicle manufacturers have separately committed to CD-linked discounts. For CDs, the discount is upto 2.75% of ex-showroom price for commercial cargo vehicles above 3.5 tonnes, 1.25% for those below 3.5 tonnes, and 1.5% or ₹20,000, whichever is lower, for passenger vehicles