What is the ruling on purchasing a car through a bank that claims its dealings are Islamic, where three contracts are signed (power of attorney, a promise to buy and sell, and a final sale), and the buyer chooses the car then authorizes the bank to purchase it and receive it from the seller, with no penalty for late installments, and the bank stipulates Takaful insurance on the buyer's life?

Murabaha to the one who promises to buy is permissible under certain conditions, including: the bank owning the commodity before selling it, and taking possession of it before selling it to the client. If the contract is signed before the bank owns the car, then this is forbidden, as the Prophet, peace and blessings be upon him, prohibited selling what one does not possess. Some banks may use this transaction as a cover for usurious dealings, turning them into fictitious contracts. For this reason, scholars have prevented banks from authorizing the client to purchase the commodity except in the narrowest of circumstances.