Most-asked question

Is buying a car on finance permissible?

70 fatawa in the archive answer questions on this, from 5 South African Darul Iftas (AskImam, Mufti Online, Jamiat KZN, Ibn Masood, MJC). Below, each Darul Ifta’s answer is quoted word for word from the opening of one of its fatawa.

Based on the fatawa linked below. Please read the sources and double-check with a Darul Ifta for your situation.

Consult a mufti for your situation. Fatawa SA is a read-only archive and issues no rulings of its own.

What the Darul Iftas say

“The loan which the bank provides the client with to purchase a vehicle or property is an interest-bearing loan. Hence, it is not permissible for one to purchase a vehicle or property through the bank, regardless of whether the instalment is fixed or linked to the prime rate (i.e.”

Mufti Online — Vehicle and Property Financing · 15 Jan 2020

“It is not permissible to purchase a car on finance if it involves interest . Shariah strictly prohibits all forms of interest. Interest incurs the displeasure of Allah Taa'la.”

AskImam — Can you purchase a car on interest terms when there are no interest free finances avialable for cars? · 10 Apr 2025

“If you financed the vehicle through the car dealer and you will be paying more than the principal loan, then that extra will be considered as Riba, which is Haraam.”

Ibn Masood — Purchasing a Car on Finance · 10 Jun 2024

“It will be permissible for your brother to add a markup on the vehicle and sell it to you in installments on condition that: a) Your brother purchases the vehicle and takes possession of it as his own vehicle.”

Jamiat KZN — One form of vehicle financing? · 20 May 2013

Quotes are the opening words of each answer as published; the full answer, its conditions and references are on the fatwa page. Answers depend on the exact details of each question.

Read the fatawa

  1. Being forced to take out insurance when buying a car on installments Mufti Online · 11 Nov 2025
  2. Can you purchase a car on interest terms when there are no interest free finances avialable for cars? AskImam · 10 Apr 2025
  3. Purchasing a Car on Finance Ibn Masood · 10 Jun 2024
  4. Permitted model of car finance? Jamiat KZN · 18 Feb 2014
  5. How to deal with Education and Car loans MJC · 14 Sep 2023
  6. Incentives offered by car dealers to bank employees for referring bank auto loan customers Mufti Online · 10 Jun 2024
  7. Verifying the FNB vehicle finance model by Mufti Ebrahim Desai AskImam · 21 Jan 2020
  8. Referring clients to car dealers that finance their vehicles through the banks Ibn Masood · 17 May 2023
  9. One form of vehicle financing? Jamiat KZN · 20 May 2013
  10. Vehicle and Property Financing Mufti Online · 15 Jan 2020
  11. Car lease related AskImam · 6 Nov 2018
  12. Islamic vehicle financing Mufti Online · 13 Jan 2020
  13. Vehicle lease AskImam · 29 Oct 2018
  14. Car salesman arranging or assisting with finance Mufti Online · 27 Nov 2019
  15. Islamic vehicle financing in South Africa AskImam · 29 Oct 2018

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