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Is it permissible to purchase a car by installments, where an initial down payment is made, followed by monthly installments, and the ownership of the car is not transferred to the buyer until the last installment is paid?

1 min readAlso available in العربية

Firstly: There is no objection to purchasing by installments, whether with a down payment or not, provided that the contract is free from a penalty for late payment.

Secondly: Upon the conclusion of the contract, you become the owner of the car, and its price remains a debt upon you.

Thirdly: Registering the car in the buyer's name is for documenting the right and is not a condition for the validity of the sale.

Fourthly: It is permissible for the seller to stipulate pledging the car as a guarantee for his right, so that the buyer cannot dispose of it by selling it until after paying the installments and releasing the pledge.

Therefore, delaying the registration of the car for increased documentation does not affect the validity of the sale, and you legally own the car upon the conclusion of the contract. If it is pledged, it is not permissible to sell it except after releasing the pledge or with the seller's permission. The Council of the Senior Scholars' Commission has permitted the seller to retain the car's registration (istimara) for documentation purposes.

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

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