PCP permissibility


I’ve been looking into purchasing a car and have seen PCP as an option. Seen a couple links to a blog on IFG regarding the different purchasing options but that blog is no longer available and throws a 404 error.

After reading a couple posts on this forum, it looks as though PCP could be permissible depending on factors within the contract.

@Mufti_Faraz_Adam @Mufti_Billal was hoping you would be able to shed some light on the factors to consider within the pcp contract that will deem the purchase permissible? And what I would need to look for in the contract to know whether it is shariah compliant?

JazakAllah for your help, time and efforts!

So I have found the below page that lists the different options:

My question on the back of this would be?

  1. If you take out a PCP with a local dealer (not the manufacturer) who will provide a PCP option via a Bank (e.g. Barclays), is this still counted as a hire / lease agreement?

  2. If you take out a PCP from a main dealer (e.g. Mercedes) who provide you a PCP through their own financing team, does this meet the requirement of it not being a loan and is a hire agreement?

In both the above scenarios, the owner of the vehicle is the finance company, whether that’s the bank or the main dealer.