Buying car on finance

Fatwa ID: 02994

Answered by: Alimah Nasima Umm Hamza

Question:

Assalamu Alaikum Wa Rahmatullah

I can't afford to buy a car on cash and I have a family to support as well. I have to drop my children and wife to school and go to my job. Without a car, it is not possible for me to manage all this. My car is very old and I want to buy a new affordable car to meet our daily requirements.

Someone told me to go for car finance. Please advise me whether it is halal or haram. I have visited these two websites and everything is beyond my comprehension.

https://www.interestfree4cars.com/?mh_keyword=islamic%20car%20finance%20uk&gclid=CjwKCAjwpeXeBRA6EiwAyoJPKgLm7w6oeWSytYvkAcelOVx8WZ3-XJ_P-njdcrRpUDeU0w6_KOe1TRoCXrsQAvD_BwE

And

https://www.buyacar.co.uk/car-finance/566/islamic-car-finance

Mufti Sahib, I am a very sinful person but I don't want to indulge in Riba but I am totally illiterate in this matter. Please advise me whether I should go ahead with it or not. I don't want luxury cars. I just want my need to be fulfilled.

Answer:

بسم الله الرحمن الرحيم

In the name of Allah, the Most Gracious, the Most Merciful.

 

It is not permissible to take any loans or finance which involve Riba (interest).

It is advisable that you first try to purchase what is within your means. It is possible to buy a decent family car for one to two thousand pounds which will fulfil your needs and the needs of your family. 

However, the company you have mentioned ‘interestfree4cars.com’ is a permissible alternative for you as no interest is involved in this contract. You will pay the agreed price of the car over a fixed period of instalments. In Islamic fiqh, this is called a Sale of Deferred Payment (bay’ muajjal).

 

Only Allah Knows best.

Answered By Alimah Nasima Umm Hamza

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

Comments are closed.