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Car on lease or on financing?

Last updated: 23rd August 2022
Question ID: #7415
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Hello, I am Abdul Haseeb Shoaib and I live in Canada. I am planning to get a new car and thus I am interested in knowing if is it Halal or not. Firstly there is an option of financing a car but when I tell the dealer that I am a Muslim and I don't want to take it on the interest he said that it won't be possible but what we can do is we can calculate all the interest payment and you pay a downpayment for that. Then there would be only car installments without interest left. Eventually, I am paying so is it Halal or not? Secondly, one dealer told me that he is also a Muslim and the Islamic way is to lease a car though it has interest included in it it is the Islamic way as we are renting a car. So I would like to ask is it right is any of these are Halal or both are Halal or there is only Halal cash option?



بسم الله الرحمن الرحيم

الجواب حامداومصليا

It is not permissible to purchase a car on finance with interest or lease with interest. The contract in itself is interest based. Hence, both cases will not be permissible.

And Allah knows best

26 Muharram 1444/ 24 August 2022

Mufti
Answer last updated on:
17th September 2022
Answered by:
Ulamaa ID 04
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