Fatwa ID: 02660
Answered by: Aalimah Sabrina Saidova
I'm in the process of purchasing a new taxi.
To finance it, is it allowed for me to do a PCP.
Minimal deposit followed by 5 years of instalments. After 5 years if I want to keep vehicle I pay a balloon payment. If I don't pay the balloon payment I just return the keys .
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful.
The transaction has a fixed price for the car, and thereafter it is divided into yearly instalments as you use it and then finally, a final “balloon” payoff is required or a total cancellation. There is no involvement of interest, gambling etc., therefore this type of transaction will be permissible for you to engage in.
And Allah knows best
Answered by Aalimah Sabrina Saidova
Checked and approved Mufti Mohammed Tosir Miah
Darul Ifta Birmingham