Old Vehicles to Stay for 20 Years – But Be Ready for a Heavy Re-Registration Fee

Aug 24, 2025

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Ravi, a 48-year-old government employee in Lucknow, loves his old Maruti 800. It was his first car, bought back in 2004. Well-maintained, shining after every wash, and still giving 18 kmpl, Ravi never thought of parting ways with it.

But last week, when he went to the RTO to ask about renewal after 20 years, he got a shock. The validity of his vehicle could be extended, yes—but the re-registration fee had now doubled. What was once a small amount has turned into a heavy financial burden.

This is the reality for lakhs of vehicle owners after the central government’s new rule: vehicles can run for 20 years, but re-registering them beyond that will cost a lot more.

What Has Changed?

Earlier, most private vehicles were valid for 15 years, and renewal was possible for 5 more years with moderate fees. Now:

Vehicle life extended to 20 years (subject to fitness tests).
Re-registration fees doubled once the 20-year mark is crossed.

New Fee Structure (Private Vehicles)

Vehicle Type	Old Renewal Fee	New Renewal Fee
Two-Wheelers	₹1,000	₹2,000
Cars (LMVs)	₹5,000	₹10,000
Three-Wheelers	₹3,500	₹5,000
Imported Cars	₹40,000	₹80,000

Story 1: Ravi’s Maruti 800 (2004 Model)

CTC (Total Cost of Car) then: ₹2.5 lakh
Current Market Value: Sentimental more than monetary (resale maybe ₹25,000)
Re-Registration Fee Now: ₹10,000

👉 For Ravi, the irony is clear. The government fee for keeping the car on the road is almost half of what the car is worth today. He is now debating whether to scrap it, buy a small used Alto, or keep the 800 as a memory in his garage.

Story 2: Priya’s Honda Activa (2005 Model)

Priya, a school teacher in Pune, has been riding her Activa for almost two decades. It’s still reliable and used daily for 5–7 km trips.

Re-Registration Fee: ₹2,000
Market Value of Vehicle: Around ₹8,000–₹10,000

👉 For Priya, paying 20–25% of the bike’s value just for registration feels unreasonable. She’s thinking of scrapping it and upgrading to an EV scooter with government subsidy benefits.

Story 3: Arjun’s Imported Car

Arjun, a businessman in Delhi, owns a 2003 Mercedes-Benz E-Class. He has kept it in pristine condition as a collectible.

Re-Registration Fee: ₹80,000 (up from ₹40,000)
Market Value: Still above ₹5–7 lakh for enthusiasts

👉 For Arjun, the steep fee is still acceptable—because the car holds luxury and status value. But for average owners, these costs feel punishing.

Why This Change?

The government’s logic is simple:

Old vehicles pollute more.
Higher fees push people to scrap old cars and bikes.
Scrappage + purchase of new vehicles boosts the auto industry.

What This Means for You

Well-maintained but low-value vehicles: Renewal may not make financial sense. Example – 20-year-old bikes or entry-level cars.
Sentimental vehicles: If you’re emotionally attached, be ready to spend more for keeping them on the road.
Luxury and collectible vehicles: Owners will likely pay the higher fees without hesitation.
Alternative: Instead of re-registering, scrapping gives you incentives like tax rebates and discounts on new vehicles.

Final Thoughts

For many Indian families, old vehicles aren’t just machines—they’re memories. First cars bought after years of savings, bikes that saw countless rides to college or work, and scooters that carried entire families.

The new rule doesn’t stop you from keeping these vehicles, but it makes the decision more financially challenging.

So, if your car or bike is nearing the 20-year mark, ask yourself:

Do I want to keep it at any cost?
Or is it wiser to let it go and invest in a cleaner, newer option?

The answer may not just be about money—it might also be about your heart.

Cost Comparison: Keep vs Buy New

Vehicle Type	Old Vehicle (20+ yrs)	New Vehicle (2025)	Notes
Bike (100–125cc)	₹2,000 re-registration + ~₹5,000 yearly maintenance + low mileage (40 kmpl)	₹80,000–₹1 lakh for new bike with warranty + 65 kmpl mileage	New bike pays back via fuel savings in 3–4 years
Scooter (Activa class)	₹2,000 re-registration + ~₹6,000 yearly maintenance + 35–40 kmpl	₹1.2 lakh for new EV scooter (subsidy reduces cost)	EV saves fuel costs completely
Small Car (Alto, WagonR class)	₹10,000 re-registration + ~₹12,000 yearly maintenance + mileage 14–16 kmpl	₹4–5 lakh new car, 20 kmpl mileage + warranty	Better resale, lower running cost
Luxury/Imported Car	₹80,000 re-registration + high maintenance (₹50,000+ yearly)	₹40–60 lakh new luxury car	For collectors, renewal may still make sense

Example:

Ravi’s Maruti 800 (2004) costs him ₹10,000 renewal + ~₹15,000 yearly upkeep. Over 5 years, that’s ~₹85,000—more than the resale value of the car.
If he buys a new Alto K10 at ~₹5 lakh, he gets warranty, higher mileage, and better safety.

👉 For mass-market vehicles, buying new often makes more financial sense.
👉 For collectors or sentimental owners, the higher fee is the “price of nostalgia.”