Credit price higher than cash price
Question
I want to buy a Prado on instalments but I do not have sufficient downpayment so there is this dealer who is offering me a Prado without any downpayment. The price of the car is 73000 AED right now but if I calculate the instalments that I have to pay then it sums up to 85000 AED. So is this haraam or allowed in Islam?
Answer
If the price is fixed from the beginning and there will be no interest charged on late payment of the instalments, then it is permissible.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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