Darul Iftaa Mahmudiyyah

Can i buy a car with interest?

· 30 Dhuʻl-Hijjah 1422 AH1 min readFatwa 3735English

Question

Assalumalaikum I intend buying a car and have only 2 options of purchasing it .The one option would be to buy the car from a relative and pay 25% interst - they however call this interest profit . My second option would be buying it from the bank at a lower interest rate. My question is , is either allowed ? I have no other way of buying the car ? My parents and siblings cannot borrow me the money to buy the car cash as they don't have that amount of money .Another relative could borrow me the money , i however fear that he will constantly remind me that he bought the car for me , and i'll be forever in his debt.I want to buy the car but fear that i have no option but to buy it with interest .Please advise as i really need a car.

Answer

It is not permissible to purchase a car on interest.

As an alternative, your relative may purchase the car and thereafter sell the car to you with a profit. The profit mark up may be equivalent to the interest rate.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/3735
Fatawa SA: https://fatawa.co.za/fatwa/askimam-3735

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