I am working in Bahrain and want to buy a car the car show room is demanding for 17356 dinar I contacted an Islamic bank (Kuwait Finance House) and they are offering me 17070 dinar (less than the show room price) and I have to pay on installments in 4 years. I asked them that is it Islamic they said that they have bought the cars them selves and they will not pay on my behalf to show room rather they will give me a car that they have bought. I still want to make sure that I don’t do anything that can make problem for me on the Day of Judgment. For your full understanding I am sending you the link to the website that explains their method of car finance https://www.kfh.bh/en/retail-banking/automall.html They claim that they work on these principals Murabaha and Musawama. Please guide me is it right if I get car from them?
بسم الله الرحمن الرحيم
(Fatwa: 642/535/SN=6/1439)
If the bank (Kuwait Finance House) buys your desired car on their own and after taking it into their possession sells to you on installments without interest then in the question mentioned above it shall be lawful for you to buy the car. It is not an interest-based dealing.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband