Is it permissible to purchase a car using the installment system prevalent in Germany, whereby the bank affiliated with the car brand pays the price of the car to the dealership, and retains the ownership document until all installments are paid, and the buyer is not entitled to sell it until full payment is made?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank owns the car and then sells it to you in installments, this is permissible, provided the contract is free of late payment penalties. The bank’s withholding of official transfer of ownership to you until the full price is paid is permissible according to some scholars, and the Saudi Council of Senior Scholars has allowed it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/168238
Where this answer came from
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- Ftawy
- Original fatwa ID
- 168238
- 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