Assalamu’alaykam
I have gone to a local car dealership run by a muslim brother who says you can buy a car with 0% finance
He says however say the car is £20,000, if you bought the car upfront with cash it would be £20,000
But if you bought the car over 3 years with 0% finance, they add a subsidiary, say £1,000 which would have been the equivalent if any interest you had paid to a bank over 3 years, and then you pay that over 3 years or however long you want to have it for
So for example a £20,000 car on 0% finance would cost you £21,000 over 3 years with £583.33 each month, rather than £555.55 for 36 months which would have brought it to £20,000 exactly
Is this halal? Or just a form of interest?
jazakAllahu khayrun
Mohsin