FINANCING
Financing a car without paying interest
Someone who refuses interest cannot buy from an ordinary dealer. That is exactly why we exist. This page explains how our model works — not merely that it complies.
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The underlying principle
No money is lent to you. The financing partner buys the vehicle, becomes its owner, and then resells it to you at a price that states the trade margin openly. The difference is not a matter of wording: a lender earns from the passing of time, a trader earns from goods it owned and whose risk it carried.
Murabaha — a sale with a disclosed margin
The vehicle price and the margin appear separately in the contract. Both are final at signature. If payment is late, the amount owed does not grow: a Murabaha margin is set once and never recalculated. That is the practical difference from a loan, whose cost rises with time.
Ijara — a lease with a purchase option
The partner remains the owner, you pay for use, and at the end you may take the vehicle over. Because the partner remains the owner, it also carries the burdens of ownership — the condition under which the rent stays permissible rather than becoming a loan in disguise.
Paying cash — cheaper, and we say so
Pay outright and you pay less: we deduct the equivalent of three to five monthly instalments. Hiding that option because it earns us less would be dishonest.
Why an annual percentage rate is shown anyway
Under §§ 506 and 491 of the German Civil Code, any sale in instalments to a consumer counts as consumer credit — even where no interest is charged. German law therefore requires an annual percentage rate to be stated. That figure is a statutory comparison measure, not interest you pay: your total remains the amount written in the contract.
Early repayment
Repay early and part of the margin may be waived (ibra'). It is a discount, not a contractual entitlement — which is precisely the classical position in Islamic finance: a waiver guaranteed by contract would be interest again, in reverse.
Work out your instalment
Enter the purchase price, the deposit and the term — you immediately see your fixed monthly instalment, the trade margin and the total.