In the Name of Allah, the Most Gracious, the Most Merciful.
As-Salāmu ‘Alaykum Wa-Rahmatullāhi Wa-Barakātuh.
Generally, in the conventional arrangement, the bank does not purchase and sell the vehicle; rather, it provides an interest-bearing loan to the customer, which is then repaid in instalments. The fact that the interest-rate is fixed throughout the payment period does not change the ruling.
If you are referring to a specific financing arrangement offered by a bank, kindly provide us with further details regarding the nature and terms of the transaction so that we may issue an accurate ruling.[1]
And Allah Ta’ala Knows Best.
Abdour-Rahmaan Lim Voon Heek
Student Darul Iftaa
Port-louis, Mauritius
Checked and Approved by,
Mufti Muhammad Zakariyya Desai.
https://iftaa.co.za/9277/purchasing-a-vehicle-through-a-bank-with-a-fixed-interest-rate/