Interest loans to buy a car : buying a new car on interest for going to internship training in a hospital

Fatawa Question

My wife is going to do her internship for year in a hospital that is 1 hour away from home daily. We do not have any cash to buy a used car. I am looking for a reliable car. The only way I can afford it is to buy a new car. Interest is the issue here. No one at this time will offer 0 % finance. But here is what I found : The least expensive car I can find is a Dodge Neon $ 11827. If I pay with 7. 5 % interest, it will be $ 241.59 for 60 months. If I want the least APR which is 1. 9 %, they will add back to the price $ 2500 rebate that is only allowable on the 7. 5 %. The monthly payment will be $ 258 per month. What is the Islamic view of that ? Am I considered with the people who has no choice and allowed to finance. I never financed before.

Fatwa

Click hereto view more

Publication Date

2002-05-24

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Financing
• Purchasing
• Automobiles
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-725795

• APA
• MLA
• AMA