Buying properties on interest loans : car purchase with interest

Fatawa Question

Assalamu Alaikum, I am trying to purchase a car without paying interest. A dealer that I am interested in purchasing from doesn't have any 0 % interest financing at this time but has given me the following option. He would determine the amount I would be paying in interest on the vehicle and deduct that amount from the cost of the vehicle. Basically on paper it would appear that I am paying the interest rate (1.9 %) but in reality I wouldn't be paying that amount. Is this acceptable by Shari’ah law ? Jazakallahu Khair, Wassalam Alaikum,

Fatwa

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Publication Date

2008-02-02

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Purchasing
• Automobiles
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-729713

• APA
• MLA
• AMA