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Fatwa Answer

Question ID: 1136 Category: Permissible and Impermissible
Leasing vs Financing Car - Permissible Cases

Assalamualaikum,

Please shed more light regarding islamic stance on leasing and financing a car, is any case allowed in islam and the reason behind it.

Jazakallah Khair

 

الجواب وباللہ التوفیق

In general, Shariah does not allow leasing a car since it involves interest.

But due to payment in installments:

  1. if the interest is added to the original price of the vehicle to establish the final price.
  2. if final price of the car remains exact same irrespective of changes in the duration of lease.

When above conditions are satisfied, the lease becomes acceptable. 

واللہ اعلم بالصواب

Question ID: 1136 Category: Permissible and Impermissible