Business News | Give Your Festive Car Budget More Flexibility Through DigiELV’s Certificate of Deposit Marketplace

VMPL

New Delhi [India], October 22: Buying a new car during the festive season is an exciting milestone, but the final cost extends beyond the ex-showroom price. Road tax, registration fees and manufacturer offers can all influence the amount a buyer pays. A vehicle scrappage Certificate of Deposit (CoD) offers another avenue to explore potential savings, subject to the applicable rules and eligibility conditions.

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DigiELV, a Ministry of Road Transport and Highways (MoRTH)-authorised online marketplace, connects people holding CoDs with buyers looking to use them when registering a new vehicle. Instead of letting an unused certificate go unutilised, its holder can list it for sale, while prospective buyers can review category-wise trading prices and place bids or use the Instant Sell option.

Through the platform’s formal transfer process integrated with VAHAN, DigiELV helps connect certificate sellers with buyers who may benefit from eligible scrappage-linked concessions. This gives festive car buyers another option to evaluate before finalising their purchase.

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A Certificate of Deposit Can Make A Difference During Festive Car Buying

The festive season concentrates vehicle purchases into a relatively short period. The Federation of Automobile Dealers Associations (FADA) recorded 25,36,920 vehicle retail sales in September 2026, an increase of 31.82% compared with September 2025. Its October outlook also anticipated demand deferred during Pitru Paksha moving into the Navratri period from 11 to 20 October.

For many buyers, the timing of a purchase is tied to an auspicious date, a family milestone or the availability of a preferred model. That can make it useful to examine every eligible saving before booking a vehicle.

A CoD, however, originates from a separate event. A vehicle owner may decide to scrap an ageing car because maintaining it or obtaining a fitness certificate is no longer economical. The scrapping facility issues a CoD following the prescribed process, even when the former owner has no immediate plans to buy another vehicle.

This creates an opportunity for a transfer between two people with different needs. The former owner can offer the certificate for sale, while a prospective new-car buyer can consider purchasing it to access eligible scrappage-related benefits.DigiELV provides a marketplace for these transactions rather than requiring the two parties to find each other independently.

How a Certificate of Deposit Can Help With Your New-Car Cost Burden

A CoD does not automatically reduce a vehicle's ex-showroom price. Its financial value depends on the benefits available to the buyer, the state in which the new vehicle will be registered and any manufacturer offer that applies.

Three cost components are worth checking before making a purchase decision.

Manufacturer offers require particular attention. In August 2024, 11 passenger-vehicle manufacturers announced a discount of 1.5% of the ex-showroom price or ₹20,000, whichever was lower, for eligible buyers scrapping their own vehicles within the specified six-month period. That announcement should not be interpreted as a universal discount for anyone purchasing a CoD.

The road tax benefit also varies by state. Delhi, Maharashtra and Karnataka have different concession structures and conditions. Buyers should therefore confirm the benefit applicable to their registration location instead of treating the maximum central concession as a guaranteed saving.

The practical question is whether the benefits available for a particular vehicle justify the cost of acquiring the CoD and completing the transaction. Checking the applicable rules before bidding helps buyers make that comparison.

Vehicle Owners Can Sell a Certificate They Do Not Need

A CoD is not simply a receipt for scrapping a vehicle. It is a certificate issued through the prescribed scrappage process that can be transferred electronically, subject to the applicable rules.

For an owner who has scrapped a car but is not planning another purchase, the certificate may have value to someone else. Selling it through a marketplace gives the holder an opportunity to realise that value rather than leave the certificate unused.

The certificate remains subject to its original validity period of three years from the date of issue. A transfer does not restart that period. Certificates issued against government-owned vehicles or vehicles impounded by enforcement agencies are subject to separate restrictions and are not electronically tradeable under the applicable rules.

The buyer also needs the formal transfer documentation. A private agreement or payment between two individuals does not, by itself, complete the prescribed electronic transfer required for claiming the applicable benefits.

What to Check Before Buying a Certificate of Deposit

Before committing to a CoD, buyers should verify three things:

-        Remaining validity:  Check the original issue date and expiry date. A transfer does not extend the certificate's validity.

-        Applicable state benefits:  Confirm the motor vehicle tax concession and registration fee waiver with the relevant transport department or RTO. Check that the intended vehicle and registration meet the applicable conditions.

-        Manufacturer offers:  Ask the dealer whether a discount applies to a vehicle purchased against a traded CoD. Obtain confirmation of the offer and its terms before relying on it in the purchase budget.

These checks help establish the likely financial benefit before the buyer commits to the certificate and a new vehicle. They also distinguish benefits available under the applicable rules from discretionary manufacturer offers.

About DigiELV:  DigiELV is a MoRTH-authorised online marketplace for trading Certificates of Deposit issued on the scrapping of end-of-life vehicles at Registered Vehicle Scrapping Facilities. The platform is integrated with the VAHAN national vehicle database and generates the transfer certificate for each new holder. Benefits attached to a certificate depend on the regulations of the state where the new vehicle is registered.

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(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)