What is the ruling on buying a car in installments from German car companies, given that there is no third party in the sale process, as each company owns its own bank through which the sale is conducted?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the purchase is from a bank, the bank must first own the car, and then sell it in installments; otherwise, it is an interest-based loan.
As for purchasing directly from the company, there is no harm in it, even if the installment price is higher.
However, if the bank intervenes in the transaction to pay the full amount to the company and then recovers it from you in installments, this is usury (riba).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/17907
Where this answer came from
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- Ftawy
- Original fatwa ID
- 17907
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy