{"_id":"668da0b40b76658b4c233e5b","title":"What’s the ruling for financing cars if it’s difficult to find 0% APR?","question":"What’s the ruling for financing cars since it’s hard to find 0% APR?\nI had heard that if you are financing through the manufacturers financing arm that is okay, can you confirm? There is still interest rates but because the car is being sold my the manufacturer, the interest in this case would be Bai'i. I also have heard this, multiple times. Basically that because it's between 2 parties, the non-zero APR can be considered as \"psuedo-interest\" and thus Halal profit. I'm confused as to whether that's a valid opinion or is just some semantic gymnastics.","answer":"Engaging in a contract that entails riba (interest) is prohibited unless it becomes an absolute necessity after exhausting all permissible alternatives. Hence, it is essential to explore halal avenues, such as purchasing a used car, opting for leasing, seeking Islamic financing, or seeking assistance from family and friends, before considering any riba-based options. Merely lacking access to a 0% annual percentage rate (APR) or finding it challenging to obtain does not justify resorting to a riba-based financing arrangement since other lawful options are still available and must be pursued.\n\nDoes anyone have a fatwa pertaining to financing specifically through the manufacturer? Riba is riba regardless of whether or not the contract is being buyer and manufacturer, however if the dealer takes the interest portion and adds it to the sale price, then works out installments, that’s a different story because there’s no longer riba in the contract. In other words, it’s a sale and not a loan. Is this what you’re referring to?","tags":[{"_id":"668da01b0b76658b4c232e51","tag":"Contemporary Life: Interest","count":34}],"createdOn":"2024-07-09T20:42:28.211Z"}