Is it permissible in Islamic law to purchase a car by installments, paying an upfront sum and additional profit on the remaining installments?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The described transaction has three possibilities:
1. A loan from the company repaid in installments with interest, and this is usury (riba).
2. A Murabaha sale, where the profit percentage is the company's profit from the sale, and this is permissible.
3. A Murabaha sale, where the profit percentage is a late payment penalty, and this is impermissible.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/61214
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 61214
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy