Buying a car on hire purchase


Question: I am a working man with a small salary, and I do not have any other way to buy a car other than via the bank – in an arrangement whereby I rent the car [at a higher rate], which ends with me owning it. This is the only way I am able to own a car.

Response: No my brother, this arrangement is not permissible – whereby you rent the car [at a higher rate], which ends with you owning it. The Council of Senior Scholars have [thoroughly studied this matter and subsequently] issued a ruling prohibiting this. [That said] however, if you do not have a car, then you can rent one until such time you have enough funds to buy a car [outright].

He is a graduate of the Islaamic University of Madeenah, having graduated from the Institute of Arabic Language, and later the Faculty of Sharee'ah in 2004. He currently resides in Birmingham, UK.

Related posts