Is purchasing a car through a financing company, with a nominal contract that makes me the initial owner for customs purposes, then ownership reverts to the company until the installments are paid off, with an increase in price due to the installment plan, considered usury (riba)? And what is the ruling on a lease-to-own (ijara muntahiya bi al-tamleek) agreement if it includes this nominal contract and the insurance costs are borne by the lessee?
Evading customs to purchase a car is not usury (riba), but its sinfulness depends on the type of law being evaded. Increasing profit due to installments is permissible, as debt has a share in the price, and selling on credit differs from selling for cash. Mortgaging the car with the seller as collateral for its price is also permissible.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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