Is the amount taken for guaranteeing the purchase of a car in installments permissible (halal)?

It is not permissible to charge a fee for a guarantee (kafalah (definition)) or surety, because it transforms the contract of guarantee into an interest-based (ribawi) contract, where the loan becomes one with an increase, which is precisely usury (riba). Jurists such as Ibn Qudamah and Al-Tabari have explicitly stated the invalidity of a guarantee for a fee, because it is a loan that draws a benefit. The Islamic Fiqh Academy has affirmed that a guarantee is a gratuitous contract, and it is not permissible to take compensation for it. However, it permitted administrative expenses for issuing a letter of guarantee.