Purchasing a Car on Finance
Question
If I finance a vehicle from a dealer, can I consider the interest amount as part of the entire payment due? From my perspective, will this still be considered as interest?
Answer
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. Yes, if the car dealer sold the vehicle to you at a higher price on terms, and it was finalized at the time of concluding the transaction, then the transaction will be in order.
ALLAH TA’A’LA IN HIS INFINITE KNOWLEDGE KNOWS BEST!
References (Arabic / Urdu sources)
وكذا إذا قال: بعتك هذا العبد بألف درهم إلى سنة أو بألف وخمسمائة إلى سنتين؛ لأن الثمن مجهول —– فإذا علم ورضي به جاز البيع؛ لأن المانع من الجواز هو الجهالة عند العقد وقد زالت في المجلس وله حكم حالة العقد فصار كأنه كان معلوما عند العقد وإن لم يعلم به حتى إذا افترقا تقرر الفساد.(بدائع الصنائع ص358 ج4)
- Answered by
- Mufti Mohammed Desai
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