Want to buy a car and I approach the dealer they have two scheme either I can pay the amount in lumsum or I can pay 20% downpayment and rest in equal installments for 1year,

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Shaykh Ebrahim Desai

I stay in Saudi Arabia, I want to buy a car and I approach the dealer they have two scheme either I can pay the amount in lumsum or I can pay 20% downpayment and rest in equal installments for 1year, 2year or 3year  but on this scheame they are charging 8% extra amount regardless of  time period. I want to know that, this kind of transaction is halal or not. 

Answer:

If you had agreed on the full purchase price with the dealer, then the transaction will be valid.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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