As salaamu aliekum,
I saw another thread about purchasing a car in installments, but I wanted to clarify some details. Here in the U.S., many car dealers offer installment based options for car purchases, but there is interest in the contract. I also read in one of your blogs, that the sharia doesn’t care for the form of the contract, but rather the substance of the contract. For example:
Car costs $25,000 cash
$430 /month payment for 60 months at 4.00% APR
Is it permissible to purchase with installments? Does it depend on if the dealer is financing to you directly or if you go to a third-party to provide the loan for the installment payment?
Technically, you do not own the car and are given a “temporary” title until you make the last payment and then the bank will give you the full title/ownership to the car.