QUESTION:
What is the ruling regarding buying a car through finance if you don’t have cash up front to pay for it? The car would be a great necessity for convenience.
ANSWER:
Financing a motor vehicle through the conventional banks is not permitted, as it consists of Riba (interest) and insurance which are Haraam. By getting involved in an interest-bearing transaction one is waging war against Allah Ta’ala and His Rasul Salallahu Alahi Wasallam, hence no good can be expected of such a transaction. The Quraan Sharif states:
فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍۢ مِّنَ ٱللَّهِ وَرَسُولِهِ (البقرة آ:279)
If you do not (avoid interest) then be warned of war from Allah and His Rasul Salallahu Alahi Wasallam
Another narration states, “Rasulullah Salallahu Alahi Wasallam cursed the one that consumes interest, the one that pays interest, the one that records the transaction and the one who witnesses the transaction.” These people are cursed on the tongue of Rasulullah Salallahu Alaihi Wasallam till the day of Qiyaamah.
وَقَالَ ابْنُ مَسْعُودٍ آكِلُ الرِّبَا وَمُوكِلُهُ وَكَاتِبُهُ وَشَاهِدُهُ إذَا عَلِمُوا بِهِ مَلْعُونُونَ عَلَى لِسَانِ مُحَمَّدٍ – صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ – إلَى يَوْمِ الْقِيَامَةِ – كَذَا فِي النِّهَايَةِ (الجوهرة النيرة ص212 ج1)
Hence, you should never get involved in interest. We fully understand that a vehicle is a necessity particularly in our times, hence we suggest that you adopt one of the following options:
- You request a financial institute to purchase the vehicle of your choice from the car dealership. After paying for the vehicle, they should take possession of the vehicle and then sell it to you with a profit. The price of the vehicle, monthly instalments, terms of payment should be fixed. Also, you should request them to exempt you from insuring the vehicle. If you are required to sign a contract, then ensure that all the clauses of the contract are in line with the laws of Shariah.
- The second option will be to purchase a vehicle on terms from a reliable and honest car dealership. Since, the vehicle will be purchased on credit, the selling price can be slightly higher than the cash price. However, the selling price, instalments, terms, etc, should be fixed as explained above at the time of concluding the deal.
- You take an interest free loan from family members and friends to purchase the vehicle. Thereafter, you may settle the loans with them over time. Also, a friend or family member can purchase the vehicle, take possession, and sell it to you at a profit as explained above in paragraph one. In other words, the transaction can be concluded privately instead of purchasing from a dealership.
We understand that people are not willing to assist in our times but do remember that Allah Ta’ala has full power over everything. You turn to Allah Ta’ala, perform Salaatul Haajaat daily, recite 100 times Durood, 500 times La Hawla Wala Quwwata Illah Billah followed by 100 times Durood and engage in Dua. We have hope that your matter will be resolved with the help of Allah Ta’ala with ease.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Maulana Abdul Kader Fazlani
Date: – 16 Rabi ul Aakhir 1445 / 01 November 2023
CHECKED AND APPROVED BY:
Mufti Mohammed Desai Saheb
