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].

- from London, UK. 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.

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