I am currently working in Oman. I am in need of buying a car. A popular commercial bank over here is doing transaction in the name of Islamic banking. They say I have to get a quotation for a car from the company in favor of the bank. Then the bank will buy the same car for me and sell the same to me with added profit (ex 5%). I should pay 10 per cent of the value in advance and the remaining as installment basis. They are not issuing any loans for your information. Is it halal for me to buy car in this mode?
بسم الله الرحمن الرحيم
The bank should buy the car from the company and when it comes in its possession then it should sell it as murabiha by adding 5% on the selling price. This is lawful. Then it is lawful whether the takes full price from you in cash or takes some money in cash and the remaining amount in instalments.
Allah knows Best!
Darul Uloom Deoband
This answer was collected from the official ifta website of Darul Uloom Deoband in India.