Buying properties on interest loans : interest in the contract

Fatawa Question

AA baba--In Sha Allah all is well with you and Mama and Noma. I have been shopping for car to replace the civic and am not in a hurry Alhamdu Lillahi because I want to wait for the right financing. I think I know the answer to this question, but want to ask just to make sure. The dealership's lender does not offer zero percent financing, but the dealer claims he is willing to deduct the interest amount from the vehicle selling price. The contract will remain interest-based, but he's compensating by lowering the base / principle price. My understanding is that as long as the contract is interest-based, then it is unacceptable. Is that correct or can this scenario be okay somehow. I realize obviously that the first choice is for the contract to state zero percent interest and am working towards that. 5 years with zero interest has become rare among Japanese car dealerships... Even with American cars it is now rare. Your thoughts on this question are appreciated. Salams

Fatwa

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Publication Date

2009-01-23

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Contracts
• Loans
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-729717

• APA
• MLA
• AMA