I want to ask about a leasing problem

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Ref no: 0205#

Date: Sunday, June 05, 2011


Money Matters


I want to ask about a leasing problem


I want to ask about a leasing problem. I intend to purchase a car through leasing. The car’s worth in the market is Rs7,00,000 but according to the leasing agreement I will pay Rs8,00,000 through monthly installments for three years. Kindly guide me is it legitimate to purchase the car. Please also comment on a case if I point out a particular car in the market to the leasing company to purchase it for me and then I will pay the amount through installments.


Muhtaram / Muhtaramah

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.


At the outset, one should understand the difference between leasing an item (اجارة) and buying an item (بيع). When a person purchases an item, he becomes the owner of the item and if he leases an item he does not become the owner of the item. When one leases the car from the company, one will not become the owner of the car therefore, we need to combine these two concepts i.e. اجارة and بيع. This could materialize in the following manner:

Assuming the car is Rs 7 00 000 and the leasing company intends to ultimately let go of the car at Rs 8 00 000. The lessee would pay the required amount per month and after the total sum of Rs 8 00 000 is paid off, the lessor would hand over the car as a unconditional gift to the lessee.

This effectively is اجارة (leasing) and هبة (gifting), not اجارة and بيع (purchasing).


And Allah knows best
Darul Iftaa

Madrasah Inaa’miyyah



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