Is a banking transaction for selling cars, which involves promising the customer to buy, then the bank buying and possessing the car, then giving the customer the option to complete the purchase after the bank has possessed it, with the bank profiting 12%, and the customer signing the contract and promissory notes after receiving the car, Islamically permissible?

Murabahah (definition) is valid if three conditions are met: the bank genuinely owns the car, so it enters its possession and responsibility; then, a sale contract is concluded between the bank and the buyer for a specific price that does not increase with delayed payment; finally, the bank does not compel the buyer to purchase the car from it.

If the car falls under the bank's responsibility and it leaves it at the dealership as a deposit, there is no harm. Otherwise, the general rule is that it is impermissible to sell goods before acquiring possession of them, due to the Prophet's (peace be upon him) prohibition against selling goods "where they are bought until the merchants take them to their homes."