Q. Please can you explain if it’s permissible to use interest free finance to purchase a car.
Some showrooms let you hire-purchase cars where it’s interest free, with no deposit. There is a scheme for certain company employees that allow the following deal: 8% off rrp and 0% interest. This seems to be a popular and easy way to buy latest cars. Please can you advise?
الجواب حامدا ومصليا وسلما ومنه الصدق والصواب
A. Conventional hire-purchase agreements tend to fall foul of at least two prohibitions even if they are at 0% finance. Firstly, the joining of two inconsistent contracts in the same contract with one being conditional upon the other – in this case the contracts of hire and purchase. Secondly, the stipulation of interest charges in the event of delayed payment.