Halal Cars (Car Financing)


I came across this website (halalcars.co.uk) and they offer 0% car financing & was Wondering if the way they do things is permissible.

They have been accredited as being Sharia Compliant by the International Centre for Research in Islamic Economics.

I have spoken to them over the phone & they Mentioned that their way of doing business is that the finance company will purchase the car on behalf of you (finance company will have ownership) & then They will sell the car back to you at a higher price & split that over a fixed monthly period. From the research I have done, I’ve found that this way of financing in the Islamic world is considered permissible given that the amount is fixed & has Been determined from the beginning of the contract. Within the contract it also states that there is 0% interest charged.

I ask spoke to them about how the late payment fee element would work & they stated that if an individual feels as if they will miss a payment they can call up the finance company and explain Their situation and they will work out a payment plan for you to allow you to pay off any outstanding payments without adding any extra on top. However, they do charge a fixed fee of £12 to pay for administration fees, is this halal?

Overall, I have had a positive experience in enquiring about their service and from their google reviews, other Muslims seem to have also had a positive experience and have actually used their service to purchase their cars.

My question is: is this company, Halal Cars, really halal?


@Mufti_Faraz_Adam @Mufti_Billal

@Mufti_Billal @Mufti_Faraz_Adam


Could I please get an update on this :slight_smile:

Another point to add. Halal cars have stated that they have been accredited by AAOIFI.

Jazakhallah Khair