Fatwa #373514 March 2002South Africa
Can i buy a car with interest?
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
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