Is vehicle financing permissible?

Question:

السلام عليكم

I would like to purchase a car to get to work and home easier. I Currently Reside in South and work in the North and it is difficult for me to travel to and from work.

Are there any facilities in Trinidad that can facilitate financing of a vehicle for persons who cannot afford to purchase one outright?
I am looking for any type of vehicle that can take me from A to B.

I have looked at some Foreign used facilities who have said that they offer financing but after investigation, I found that they go through the Bank and it is basically a loan that is taken. I would like to avoid taking interest.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

At the outset, we commend you for your interest and sensitivity on adopting halal and abstaining from haram.

As you mentioned, the financing offered by the vehicle companies is generally an interest based loan, which is Haraam and must be avoided.

If one is unable to find a vehicle dealer who is ready to sell the vehicle on installments (without financing from a bank), then the only option is to approach the financing bank and ask for them to fully purchase the vehicle from the dealer, then resell you the vehicle on installments (accordingly the bank will still make their same profit).

However as Muslims, even in the absence of  proper Halal alternatives it is imperative we strive to abstain from Haram. The Muslim community should also endeavor to provide such Halal solutions for the Muslim community. We hope and make Dua that in the near future there will be such resources available for the Muslim community.

And Allah Ta’āla Knows Best

Mufti Arshad Ali

Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)

www.fatwa-tt.com /www.jaamia.net