What is the legitimacy of a bank financing the purchase of cars for employees, where the customer pays a 15% down payment and the bank issues a delivery letter after agreement with the car company, then the remainder is paid in installments over 7 years with an addition of 40% to its original price?

There are two permissible scenarios for purchasing a car from a bank:

1. The car is owned by the bank and is in its possession. The buyer then purchases it from the bank for a price known to both parties, which is not subject to increase, along with an agreement on the method of installments. 2. The car is owned by a third party. The buyer requests the bank to purchase it. If the bank purchases and takes possession of the car, and it comes under its guarantee, then it is permissible for the buyer to purchase it from the bank for a price known to both of them—even if it is higher than its original purchase price—provided that the price is not subject to increase due to delayed payment. In this scenario, there is no objection to the buyer paying a portion of the price and repaying the remainder in installments.

However, if the bank's role is merely to lend the buyer the price of the car to recover more than that amount, then this is prohibited usury (riba).