Is it permissible to buy a car at a reduced price through financing (€13,500 instead of €15,000 cash)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
There is no objection to the price of a car differing between cash and installment payments, as long as the contract is concluded on a fixed price. As for financing, if it is a loan with an increase, then it is forbidden usury (riba). However, if it is a correct murabaha (where the bank buys the car and takes possession of it, then sells it to you in installments without a late payment penalty), then it is permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/181080
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 181080
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy