What is the ruling on purchasing a car in installments from a car dealership, where the dealership submits the documents to the bank for inquiry, and if the bank approves, it sends the price of the car to the dealership, and the buyer signs the documents with the bank's representative at the dealership and receives the car, then pays the monthly installments to the bank?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the bank pays the price of the car in cash to the dealership, and then collects the price from you in installments with an increase, this is prohibited usury (riba) because it is a loan that draws benefit. The permissible scenario is for the bank to genuinely purchase the car from the dealership, and then sell it to you in installments at the agreed-upon price.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/18845
- Source platform
- Ftawy
- Original fatwa ID
- 18845
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy