Halal Financing
5 Things to Know Before Buying a Car the Islamic Way
12 Jun 2025 admin
Buying a car is a big decision. It brings freedom and makes daily tasks easier. But for Muslims, car ownership goes beyond practicality.
Muslims need to ensure that their car buying journey complies with Shariah law. By understanding this need, it will help them make a well-informed decision that respects their religious beliefs.
By following Islamic principles in your car purchase, you can ensure a transaction that aligns with your faith. Here are 5 key aspects to consider for a smooth journey to making a halal car purchase.
Before buying a car, determine a realistic budget based on your income and existing financial obligations. This will prevent you from entering Riba-based debt, which can burden you financially and spiritually. With a clear understanding of your financial commitments, calculate a comfortable car payment that doesn't compromise your well-being.
Look for a car from a reputable seller known for honesty and integrity. Research potential sellers beforehand, checking for a good reputation and a track record of fair dealings. Avoid sellers known for deceptive tactics, inflated prices, and selling vehicles with a history of being stolen or written off.
Conventional car loans often involve interest (Riba), which is strictly prohibited in Islam. Fortunately, several Islamic financing options exist to help you acquire a car without compromising your faith. One such option is Hejaz Islamic Auto Finance.
Hejaz Islamic Auto Finance can help you achieve your goal of car ownership while following Islamic principles. We offer Shariah-compliant financing options with fixed or variable rates to fit your budget, and a streamlined application process subject to further assessment for approval. To be Shariah-compliant, we use Murabaha financing as our method. Murabaha is an Islamic financing concept similar to a rent-to-own agreement. Hejaz acts as a facilitator, purchasing the car you desire and then selling it to you at a pre-agreed price with a profit margin included. This profit replaces interest and ensures the transaction adheres to Islamic principles.
Conventional car insurance may contain elements of Riba or uncertainty (Gharar). Look for Islamic car insurance options based on the principles of takaful (cooperative insurance). In takaful, policyholders contribute to a shared pool used to cover losses incurred by fellow participants.
Islam emphasises the importance of caring for your possessions, including your car. By regularly maintaining your car, you ensure its safety and longevity. Use it only for permissible purposes, avoiding activities that could be harmful to yourself, others, or violate Islamic principles.
Fulfil your dream of buying a car the Halal way with Hejaz Islamic Auto Finance. Contact us today to learn more and apply!
Disclaimer:
This information is provided by Hejaz Islamic Credit Solutions Pty Ltd, Australian Credit Licence 480542. The information provided is of a general information nature which doesn’t take into account your personal circumstances. The information does not constitute an offer to lend or imply the product is suitable for you. You should consider whether it is appropriate to your circumstance, and if necessary, seek appropriate independent professional advice. T&Cs, fees, charges, eligibility & lending criteria apply. See our website for more information.
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