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Is buying a car from someone who is still paying installments to a usurious bank, with the car remaining in the seller's name and the buyer completing the installments, considered unlawful (haram)?

1 min readAlso available in العربية

It is permissible to buy a car from its owner for a cash price or in installments, provided that the installments are paid directly to the owner without dealing with an interest-based bank, in order to avoid religiously prohibited matters such as opening an interest-based account or committing to paying interest.

The sale must take place directly between the buyer and the owner without the bank's intervention. The owner will undertake to pay his installments to the bank from what he receives from the buyer. It is permissible for the installment paid to the owner to be equal to the owner's installment to the bank.

If the car is mortgaged to the bank, its sale is permissible if the bank gives permission; otherwise, the sale is not valid.

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

Read the full answer on Ftawy