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To what extent is a car purchase transaction permissible when buying in installments from a bank that deals with Islamic Murabaha, given that the car was received directly from the dealership, and is this transaction considered usurious?

1 min readAlso available in العربية

If the bank purchases the car and takes possession of it, whether actual or constructive, then sells it to you on a murabaha basis with installments, without stipulating an increase for late payment, then the transaction is permissible. Your receipt of the car from the dealership does not invalidate the transaction, and there is no harm in the bank preventing the sale of the car before the installments are settled.

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

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