What is the ruling on buying a car from a bank through a company system on an installment basis, with a penalty clause (fine) in the contract for late payment?

For the transaction to be permissible, the bank must genuinely own and possess the car; otherwise, the bank would be selling what it does not own or lending with interest, both of which are forbidden.

Furthermore, the bank's condition of a penalty for late payment of installments is usury itself, and it is forbidden. This is based on the statement of the Fiqh Academy: "If the debtor buyer delays in paying installments beyond the due date, it is not permissible to oblige him to pay any increase on the debt, whether by a prior condition or without one, because that is forbidden usury." Therefore, it is not permissible to purchase from a bank if it imposes a late payment penalty or if it merely acts as an intermediary for disbursing the amount.