Asalam u allaikum. I\’m in need of purchasing a car. My current vehicle was purchased 4 years ago from a private owner, and have had many issues with it to a point where it\’s becoming more difficult. I want to purchase a certified vehicle from a dealer that comes with a warranty so I have some sort of security with the purchase, which otherwise I won\’t get from a third party as there is risk. I\’ve been watching Islamic lectures regarding Islamic financial institutions. I would kindly ask Mufti Sahab to please provide some recommendations that would help me make this decision in accordance with Shari\’a. JazzakAllah khair
بسم الله الرحمٰن الرحيم
الجواب حامداً ومصلياً
As-salāmu ʿalaykum wa-raḥmatullāhi wa-barakātuh.
May Allāh Taʿālā reward you for your zeal in protecting yourself from the scourge of ribā. No doubt, it is very difficult. Rasūlullāh ﷺ informed us that, “A time will come upon people in which they will consume usury.” It was said, “All of the people?” He said, “Whoever does not consume it will be affected by its dust.”
To my knowledge, there are three things that you can do:
- Try to secure an interest-free loan from family and friends.
- Negotiate with the dealership for an interest-free price, though it may be more than the MSRP. You can tell them that you want to “buy down the points” or “add the interest amount to the price of the car upfront” and that they should offer you the best price they can that allows you to pay in interest-free installments. The contract should offer you a contract that is free of any interest (0% APR). You should not be ashamed at all to ask – the consumer has the right to make whatever requests they like.
- This process and its permissibility is explained thoroughly in this previous question: Adding the Interest to the Sale Price of a Car | Tawheed Center – Farmington Hills. Additionally, a video by Shaykh Yasir Qadhi regarding his experience following this same method has been included in the footnotes for your reference.
- Recently, UIF has launched a Sharīʿah-compliant car financing model. The process has been vetted by a panel of scholars, one who I personally know and respect. Information about this program can be found here: Vehicle Financing | Islamic Financing Solutions | UIF Corporation (myuif.com).
Please note, I have no formal relationship with UIF, nor do I gain anything by mentioning their product. My mentioning them is not an endorsement – it is simply passing on information.
These are the options I am aware of. If there is anything else, please inform me for future reference.
والله تعالى أعلم وعلمه أتم وبه التوفيق
And Allāh Taʿālā Knows Best
Muftī Mohammed Wahaajuddin bin Salauddin
(May Allāh forgive him and his parents)
 The relevant part starts at around the 15 or 16 minute mark: Leasing A Car With Installment Payments at a Higher Price | Ask Shaykh YQ #28 – YouTube