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Car Financing Help

Fatwaa ID: 2060

Assalamu Alikum…

I need to buy a car for my wife as I drive 2 hours to work, but I don’t have enough cash to buy and the company is not allowing for 0% interest. I don’t know what to do, but if I buy the car with interest within a short period of time period and I don’t the interest amount to those in needy aside from Zakat, will it be permissible because I am feeling guilty to buy the car with interest but I am not going to use it rather than donate the same amount + of money to the needy. Will it be permissible?

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

We take note of the details of your query. May Allaah Ta’aala bless you with khayr and barakah. It will not be permissible to opt for an interest bearing financing option. It is not necessary for you to purchase a new car. You may consider a used car or even renting.

If you are adamant on purchasing a new car, you may consider requesting the dealer to tweak the contract and include the entire price as one for the purchase of the vehicle. See the following fatwaa for details on that: It may also be worth noting that in many cases, while the term interest is used, there is no loan in the contract; it is merely a fixed deferred payment plan with the seller. We suggest that you show the contract you are considering to your local competent scholar and see if it would be permissible.

We would like to point out that paying an equivalent amount as the interest to the poor and needy does not justify taking the interest bearing loan. One good act does not cancel out a major sin. For major sins, sincere tawbah and istighfaar is necessary. Engaging in a major sin while intending to make tawbah is quite bold and daring.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

07/15/1445 AH – 01/27/2024 CE | 769

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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