AskImamDarul Iftaa Mahmudiyyah (AskImam)

want to buy a car and I approach the dealer they have two scheme either I can pay the amount in lumsum or I can pay 20% downpayment and rest in equal installments for 1year,

Fatwa 13506English
Finance and Commerce

Question

I stay in Saudi Arabia, I want to buy a car and I approach the dealer they have two scheme either I can pay the amount in lumsum or I can pay 20% downpayment and rest in equal installments for 1year, 2year or 3year but on this scheame they are charging 8% extra amount regardless of time period. I want to know that, this kind of transaction is halal or not.

Answer

If you had agreed on the full purchase price with the dealer, then the transaction will be valid.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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