Vehicle/Automobile Financing

In automobile financing, the most popular structure used by many IFIs is al-ijarah thumma al-bay’ (AITAB) or simply known as the Islamic hire purchase. Some jurisdictions use different terms such as ijarah wa iqtina or ijarah muntahiyah bittamlik which generally implies that the transaction is underlined by a leasing contract (ijarah) and ends with the transfer of ownership to the customer upon completion of the financing tenure. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Total Fatwas : 87
No. Title
1 Can a False Statement Be Made to the Authorities to Facilitate Tawarruq?
2 Using Cars as the Commodity in Tawarruq
3 Is It Permissible If KFH Buys Cars for the Seller to Stipulate in the Same Contract That KFH Should Rent These Cars to Him?
4 Is It Permissible for KFH to Buy Cars from a Commercial Auto Agency Providing That the Manufacturer’s Agent Stipulates in the Contract that the Cars Shall Not Be Displayed at KFH’s Auto Showroom?
5 What Are the SharÊÑah-Compliant Procedures for Exchanging the Used Car of a Customer Who Wants to Buy a New Car from KFH?
6 Charging a Fee to Change the Name on the Promissory Note for a Car
7 A Stipulation That Doesn’t Impede the Legal Implication of the Deal
8 Can a Bank Choose to Execute a Sale at a Negotiated Price Rather Than Cost Plus Markup?
9 Can a Seller of Goods by Delayed Payment Buy Some of Them Back from the Buyer by Cash Payment?
10 Is It Permissible for KFH to Charge a Certain Fee to the Customer for Changing His Name in the Promissory Note to the Name of a New Buyer He Sold the Commodity to?

 

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