The Ruling on Lease-to-Own in Car Dealerships
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The issue of lease-to-own in a car dealership: you come to them to lease a car, you pay a down payment, then you start paying the monthly installment, and the car is in the company's name.Meaning: You do not own it to sell it; you only drive it with their permission. In the end, some companies require a final payment so that you can own the car, while others are content with just paying the installments. What is the ruling on that?
Why don't they say: They lease the car to you for three years, and after the three years are complete, you or someone else buys it? Why can't it be like that? If they lease the car to me, I cannot lease it out, but do you know what the reason is?
First: They are clever; they want it to be your responsibility if it is damaged during this period, because it is my property and I am selling it to you.
Second: If it is leased for one thousand riyals a month, it will cost you two thousand riyals, because in the end you will own it. For this reason, this transaction was under review and discussion by the Council of Senior Scholars, and perhaps, if Allah wills, they will issue a fatwa on it soon. So you should not use it until the fatwa is issued.
Why don't they say: They lease the car to you for three years, and after the three years are complete, you or someone else buys it? Why can't it be like that? If they lease the car to me, I cannot lease it out, but do you know what the reason is?
First: They are clever; they want it to be your responsibility if it is damaged during this period, because it is my property and I am selling it to you.
Second: If it is leased for one thousand riyals a month, it will cost you two thousand riyals, because in the end you will own it. For this reason, this transaction was under review and discussion by the Council of Senior Scholars, and perhaps, if Allah wills, they will issue a fatwa on it soon. So you should not use it until the fatwa is issued.