0

Assalamu'aalaykum,

I'm looking to buy a car and stumbled across some Islamic financing websites.

This is from one of the websites: "...promises to sell the commodities and the customer promises to buy the commodities from time to time on an agreed ratio of profit added to the cost."

It seems like they are twisting riba as profit added to the cost, especially when the car will go down in value over time.

Is this allowed?

Improve this question

1 Answer 1

Reset to default
1

How do you think business works if they aren't allowed to make a profit?

You are agreeing to buy a commodity from them; they are agreeing to sell that commodity to you for a specific price. As long as that price is agreed upon at the time of sale and doesn't change over time, it is not riba.

Improve this answer
1
  • Ah as long as the time/price don't change. That makes sense now. I was thinking they calculate the interest upfront and include it as profit over the term agreement. Thanks
    – Ayt uname
    Commented Jan 8, 2022 at 5:50

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .