Search all the listings in this section
Browse by Category:|
I know interest is haram, but I have heard that leasing a car is agreed to be okay by majority of scholors. One group says its like renting, so its okay, while the other group says that no matter how you look at it, there is interest involved and it's wrong.
Praise be to Allaah.
The ruling on a thing is based on the way it is understood, so it is not possible to state whether this purchase is permissible or forbidden without studying the contract and its clauses.
There are two common forms of buying and selling by installments (leasing):
1 – Where you buy a car from the owner, whether the owner is an individual or a company, on the basis that you will pay for it in installments. There is nothing wrong with this, even if the price in installments is higher than the price if paid for in cash.
2 – Where you buy the car through a company or person who does not own it, rather they pay the price to the owner on your behalf, on the basis that you will pay off the price in installments with interest. This is haraam, because what this contract means is that this company or bank is giving you an interest-based loan, and is not buying anything in such a way that it becomes their property so that they can sell it on to you.
But if we assume that the bank buys the car in real terms and becomes its owner, then sells it to you in installments for a higher price, there is nothing wrong with that; this is akin to the first scenario.
The Standing Committee was asked:
A man asked his friend to buy a car for him with cash, then sell it to him for a deferred payment with extra money as a profit. Is this regarded as riba?
If a man asks another to buy a specific car for him or a car that meets certain requirements that he stipulates, and promises to buy it from him, and he buys it from the one whom he asked to do that and takes possession of it, it is permissible for the one who asked for it to buy it from him after that for cash or in installments with a specific amount of extra money as a profit. This is not a kind of selling what one does not have, because the one who you asked for this product is selling it to the one who asked for it after buying it and taking possession of it. He does not have the right to sell it to his friend, for example, before he buys it, or after he buys it and before he takes possession of it, because the Prophet (peace and blessings of Allaah be upon him) forbade selling goods until the merchant has them in his own possession.
Fataawa al-Lajnah al-Daa’imah, 13/152
And Allaah knows best.
Question Date: 2010-05-11
* The views posted are the opinions of the individual author of each posting, and are solely meant for education, discussion, and debate, not for any illegal purpose. The authors are not responsible or liable for the intentional, reckless, or negligent actions of any individual, and we assumes no responsibility for the content of the authors. Thus, the articles and materials posted do not represent, endorse or express the views of Muslims of Calgary or any of its affiliate organizations.
* Alcohol in Perfumes (2010-12-04)* Any Shari`ah Compliant Banks in Calgary for House Mortgage? (2011-04-23)* Attracted to Homosexuality (2010-12-30)* Bank Account Opening Bonus (2010-10-28)* Being a Comedian? (2012-04-17)* Birds as Pet (2010-06-16)* Business Loan (2010-02-05)* Celebrating Birthday (2010-10-08)* Celebrating Halloween (2011-10-17)* Coffee & Tea Drinks (2010-08-27)* Committed Adultery and Had Baby (2013-01-31)* Committed Zina While in Hospital Due to Mental Illness (2012-10-22)* Dental Surgery (2010-06-25)* Drawing Faces in Classroom (2011-03-09)* Drinking Soft Drinks (2011-11-24)* Earnings from Lottery / Tobacco in Franchise (2010-02-20)* Eat Meat Not Islamically Butchered? (2011-03-18)* Eating Beef or Chicken at Fast Food Restaurants (2012-05-04)* Eating Food Cooked with Alcohol (2010-09-10)* Eating Kosher Food (2013-03-11)* Eating Lobster (2012-10-25)* Eating Vegetarian Food at Hindu Restaurants (2012-03-12)* Engaging in Dangerous Sports Like Skydiving (2012-11-15)* Escort and Modeling Business Service (2012-07-21)* Excluding Disobedient Children From Will (2012-01-16)* Fast Food (2010-01-05)* Food in the West, such as Cheddar Cheese (2010-08-24)* Food Produced in the West, such as Gelatin (2010-08-08)* Found Wallet, Lied on Parents & Do not know Owner (2010-01-04)* Future Plans With My Young Girlfriend (2011-03-23)* Getting My Body Waxed by a Non-Muslim (2011-08-15)* Giving Away Interest Earned on Saving Account (2011-09-17)* Had a Mut'ah Marriage and Got Pregnant (2011-05-22)* Haraam Jobs (2010-03-03)* Having Non-Muslim Friends (2011-03-31)* Health Care Aide Job & Washing Body's Privates (2012-04-30)* Ijara Conversion Product (2011-04-26)* Intercourse With a Wife in Her Rectum (Back Passage) (2011-06-25)* Interest Loan to Buy Properties to Rent (2012-02-29)* Internet Chatting - The Eye Commits Zina (2010-07-06)* Is it Haram to Masturbate? (2010-01-06)* Is the Stock Market Haram? (2010-03-30)* Is This Money Lawful? (2010-07-05)* Making a Kaaba Model for Kids Education (2012-10-23)* Making Dua’a for non-Muslim (2010-01-26)* Marijuana & Prayers (2010-11-28)* Masturbation and Strong Sex Drive (2012-02-07)* Meaning of Maa’ilaat Mumeelaat (2011-08-15)* Medication to Put me Sleep When Depressed & Frustrated (2012-04-03)* Menstruating Woman Touching & Reciting Qu'ran (2010-10-08)* Mouthwash Containing Alcohol in Ingredients (2010-06-17)* My Career and Pleasing My Parents (2012-03-11)* My Friend is Addicted to Pornography (2011-11-30)* My Hair is Thinning (2011-05-19)* My Husband Selling Drugs (2013-02-28)* Non Alcoholic Beer (2010-12-04)* Owning a Chain Business Serving Sausage & Bacon (2011-10-21)* Permissible Seafood (2011-04-23)* Pizza Order Taker & Pork Products (2010-08-17)* Pregnant from Zina (Adultery) (2010-05-03)* Prophet Muhammad's Belongings Publicized, Any Truth or Value (2012-09-03)* Purchase Foreclosure Home (2012-07-16)* Purchasing House from Someone Who Bought it on Mortgage (2011-04-11)* Received a Gift that was Bought by Stolen Credit Card (2012-07-23)* Removing Armpit Hairs With the Help of Another Person (2011-08-15)* Removing Upper Lip Hair (2011-07-14)* Rent to Own - Buying a House (2010-02-14)* Revenge (2010-05-04)* Ruling on Putting Nutmeg in Food (2012-03-07)* Ruling on shaking hands with the opposite sex (2010-01-14)* Ruling on Taking Boyfriends or Girlfriends (2011-02-13)* Ruling on Using Materials to Which “Animal Glycerine” Has Been Added (2011-05-19)* Severity of Watching Pornography (2011-06-06)* Sex Before Marriage Then Converting (2013-03-06)* Sexual Concerns (2010-04-18)* Sexual Desires & Temptation of Women (2010-04-24)* Slaughtering Goat as Udhiyah (2012-10-23)* Soaps Containing Animal By-Products (2010-03-31)* Studying Law in the West (2011-05-19)* Surrogate Mother (2010-01-25)* Taking Child Benefits While Not in Country (2011-05-24)* The Crime of Zina and Repentence (2011-10-14)* Thinking of Girls Too Much (2010-05-10)* Toys Characters in the House (2011-10-09)* Why Dating Not Permissible in Islam? (2011-11-26)* Woman Putting Kohl (2011-01-15)* Working at Pizza Shop That Sells Ham (2012-05-18)* Working for a Canadian Bank (2012-06-27)* Working in a Riba-Based (Interest-Based) Bank (2010-01-06)* Working Out at Gym & Showering in an Open Area (2012-06-14)