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Are Zero-Percent Leases Automatically Halal?

Answered as per Hanafi Fiqh by Qibla.com

Answered by Shaykh Faraz Rabbani

A car costs $27,000 however I want 0%APR so instead of $27,000 the bank is asking me to pay them $32,000. Basically the bank is calculating the amount of interest and adding it to the value of the car. On the contract it reads 0% APR for $32,000. Is this transaction halal? your little brother, Hakeem

Answer:
In the Name of Allah, Most Gracious, Most Merciful

Walaikum assalam wa rahmatullah,

Permissible leasing is not only about a “0% APR.” Rather, other conditions also need to be fulfilled. See:
Conditions for Permissible Leasing

And Allah alone gives success.

Faraz Rabbani

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