Buying properties on interest loans : car purchase

Fatawa Question

Assalamu-Alaikum Dr. Monzer, Thank you for your speedy response to my email. I did try calling at your son’s residence however I think you may have been out. I needed some advice from you regarding purchasing a car. I have an opportunity to purchase a car through a 0 % financing ; however the dealership is offering a $ 3000 cash incentive (discount from the purchase price) for cash buyers. Would it be considered Haram or interest if I were to opt for the 0 % financing over 5 years ? From what I have read online it seems like it would be ok since the car is a commodity and the seller has the right to set the terms of sale ; and there is no increment in the payments over the 5 years. As long as I make sure that the payments are not late and paid on time, would this option be considered Halal ? I wanted to confirm this with you and get your expert advice before we made any decision. Jazakallahu Khairan, Wasalam Thanks Mohammad

Fatwa

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Publication Date

2012-07-05

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Purchasing
• Automobiles
• Usury
• Discount

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-729859

• APA
• MLA
• AMA