Assalaamu Alaikum, My question is regarding the purchase of an automobile. My current situation is that I need a car to travel back and forth from my university and home. My father has purchased for me a couple of inexpensive cars in the past which have given me numerous problems. He has now decided to get an affordable new car for me in order to avoid these problems. He has given me the option to lease or finance. I would not like to finance, as it would most likely involve interest and I believe that to be haraam. He does not really care much for this issue and would actually prefer me to finance. My alternative would be to lease a car, which I like to think of as renting a car for a few years and paying a set price for that service. I have recently been informed that leasing has its own form of built-in interest, do you know about this issue….and if so, can you tell me if it would be haraam to lease a car? Also, if 0% financing is available, then is there any haraam in that? Also, in the case that my father is paying for a financed vehicle (with interest), is it still a sin on me, as I will be driving it? Thanks for your time, Wasalaam
To purchase a car on interest is Haraam.
We advise you lease a car and pay monthly for hiring. At the end of the term, if you have an option to purchase the car, you may exercise the option and the end of the leasing period.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai