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Is it permissible to purchase a car through a Murabaha system in the manner in which the bank buys the car from the dealership, then sells it to the client in installments with an increase in price, after which the car is transferred from the dealership to the client's name?

1 min readAlso available in العربية

If the bank first owns the car and then sells it to the client for a higher price, this is a valid Murabaha sale, and there is no harm in it. The fact that the car is not officially registered in the bank's name does not affect the validity of the sale, as this is merely a legal documentation procedure.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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