What is the ruling on purchasing a car from a dealership in installments through bank financing, where the buyer pays a down payment to the dealership, and the bank pays the car's price in cash to the dealership, then the buyer repays the installments to the bank with interest, and the car is registered in the buyer's name with a sale prohibition and mortgaged to the bank until all installments are paid, knowing that the buyer does not receive the money from the bank but rather receives the car from the dealership?
If the bank lends the buyer the price of the car and recovers more than that amount, then this is an unlawful usurious loan, and it is not permissible to buy a car in this manner. However, if the bank first takes possession of the car and then sells it to the buyer, this is a Murabahah sale for the one who commands the purchase, and it is permissible if it adheres to the Sharia-compliant conditions.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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