Purchasing a car in Saudia Arabia on instalments

Q: In Saudi Arabia, the Toyota Cars company will sell the car on installment and the procedure is as follows: (1) First of all they will make an agreement, that they are giving this car on rental basis and fix some amount as a monthly rent. (2) After completing 4 or 5 years, they will sell the car to the same person who took for 4 to 5 years on a rental basis, by considering that now, this car is second hand car and hence they will take some lumpsome amount of SAR 15,000/- or SAR 20,000/- etc. Lastly they will transfer the car to that party. (3) Is it permissible to take the car as above said procedure based on Islam. (4) Please clarify and reply me.

Bismillaah

A: It is permissible.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)