Is the car installment system currently followed by banks – where the bank pays the price of the car to the dealership and owns it through an irrevocable power of attorney for sale, then sells it to the consumer in fixed installments while retaining the right to repossess the car upon non-payment – considered an impermissible system, and does this mean there is no Islamic car installment option?

Murabaha to the one who promises to buy (installment sale) is permissible under specific Shariah guidelines, which are: the buyer's non-binding promise to the bank to purchase a specific commodity, the bank's legitimate possession of the commodity before selling it, and the determination of installments without usurious conditions in case of delayed payment, or requiring commercial insurance, or the bank retaining ownership of the sold item. However, the bank retaining the car key, repossessing it, and transferring its ownership to itself if installments are not paid, is not permissible. Instead, it is permissible to mortgage the car to the bank, and the bank may sell it if the buyer grants permission.