Fatwa: # 41246
Category: Business Matters
Country: United Kingdom
Date: 29th October 2018


Vehicle lease


I would like to have use of a vehicle via a personal contract purchase (PCP) scheme, where for 48 months I lease the vehicle and then I am given the option to purchase or give it back- ie walk away from that car with nothing more to pay. In this scheme the vendor, who owns the vehicle, asks for a deposit and then sets 48 set monthly payments for the use of the vehicle. The vendor remains the owner and is required to service and maintain the vehicle. At the end of 48 months there is the option for the customer to pay a balloon payment and then own the vehicle outright or give it back- ie walk away from that car with nothing more to pay. Is this transaction allowable?


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

As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

Sister in Islaam,

In general, if the scheme is as stated in the query, then the scheme is permissible[1]. However, it is important to ensure that the terms and conditions of the lease contract are Shari’ah compliant. Furthermore, the right to purchase after 48 months must be optional on both sides. The lessor too should have the right of refusing to sell the car. It is a different issue that it may be in his interest to actually sell the car.

And Allaah Ta’aala Knows Best.

Muajul I. Chowdhury

Student, Darul Iftaa

Astoria, New York, USA

Checked and Approved by,
Mufti Ebrahim Desai.


[1] سنن الترمذي (3/ 626) 

1352 - حدثنا الحسن بن علي الخلال قال: حدثنا أبو عامر العقدي [ص:627] قال: حدثنا كثير بن عبد الله بن عمرو بن عوف المزني، عن أبيه، عن جده، أن رسول الله صلى الله عليه وسلم قال: «الصلح جائز بين المسلمين، إلا صلحا حرم حلالا، أو أحل حراما، والمسلمون على شروطهم، إلا شرطا حرم حلالا، أو أحل حراما»: هذا حديث حسن صحيح


سنن أبي داود (5/ 445) 

3594 - حدثنا سليمان بن داود المهري، أخبرنا ابن وهب، أخبرني سليمان ابن بلال (ح) وحدثنا أحمد ين عبد الواحد الدمشقي، حدثنا مروان -يعني ابن محمد- قال: حدثنا سليمان بن بلال أو عبد العزيز بن محمد -شك أبو داود- حدثنا كثير بن زيد، عن الوليد بن رباح عن أبي هريرة، قال: قال رسول الله - صلى الله عليه وسلم -: "الصلح جائز بين المسلمين -زاد أحمد- إلا صلحا أحل حراما أو حرم حلالا". وزاد سليمان بن داود: وقال رسول الله - صلى الله عليه وسلم -: "المسلمون على شروطهم"


التجريد للقدوري (6/ 2947) 

روى أبو هريرة - رضي الله عنه -: أن النبي - صلى الله عليه وسلم - قال: (المسلمون على شروطهم، والصلح جائز بين المسلمين)


تبيين الحقائق شرح كنز الدقائق (5/ 456)

وقال عليه الصلاة والسلام { المسلمون على شروطهم إلا شرطا أحل حراما أو حرم حلالا }

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