Praise be to Allaah.
If what is meant is that
you are buying the car from the company by instalments, whereby you give a
first payment of approximately ten thousand, then you pay monthly
instalments, there is nothing wrong with that, because it is a valid
transaction, which means that the car will enter your possession with the
first payment, but the company has the right to stop you selling it, which
means that it is held in pledge for them until you have paid off all the
This contract has nothing
to do with hire-purchase, but it is not clear why they are taking the
payments that you mention, which is approximately two thousand and eight
If the contract is a
contract for renting the car, paying such and such every month, with a
promise that you will take possession of the car at the end of that period,
this is permissible so long as the rental contract is a genuine contract and
is not a cover for selling in which liability for the rented item (the car)
is borne by the entity that is renting it out (the company), and not by the
one who is renting it, as is basic maintenance apart from running costs
throughout the rental period. This is different than a sale, because in a
sale the liability and basic maintenance pass to the buyer because he takes
possession of the item as soon as the contract is done.
It is permissible for the
rental contract to be accompanied by a separate contract of giving,
conditional on the entire rent being paid off, in which it is stated that
the item is being rented for a specific fee and for a specific length of
time, then it states that it will be given, such as if it says: The two
parties have agreed that the first party (the company, for example) will
give the car to the second party (the customer) when the time period ends
and he has paid off all the instalments that he owes.
The Islamic Fiqh Council
has issued a statement on hire-purchase agreements, and has explained the
various forms (of such contracts) that are permissible or not permissible.
They have stated that it is permissible for a rental contract to be
accompanied by “a contract giving the item to the renter, subject to the
condition that he pay the rent in full. That may be in a separate contract
or a promise to give it after he pays off the rent in full.” End quote. See
also the text of the statement in full in Fiqh al-Nawaazil by Dr.
Muhammad Hasan al-Jeezaani (3/301).
If the company has
stipulated that the liability and basic maintenance of the car – apart from
running costs – are to be borne by the renter, then it is an invalid
contract and is not really a rental, and it is not permissible for you to
enter into this transaction.
There also remains a
problem with the first payment and with the fees that are approximately two
thousand and eight hundred. If the first payment is counted as part of the
rent, there is nothing wrong with that, otherwise it is essential to explain
the reason why this amount is to be paid.
As for the fees, we do not
know their conditions
What we advise you to do is
to buy a car by instalments directly from the seller or by means of what is
known as muraabahah, so you buy it through al-Rajihi Bank, after the bank
buys it from the seller. This is safer and more beneficial for you, and you
will become the owner of the car when the transaction is done, unlike the
case with a hire-purchase agreement, where you will still be renting until
the end of the period, and the company may or may not fulfil its promise at
the end, and there is the possibility that you may fall into haraam if you
do not fulfil the conditions of this transaction.
And Allaah knows best.