At 15:10 is the most crucial and important part of this whole video. So on the Day of Judgement when you stand before Allah and say the guys from AFG said the word interest can be ignored, they can simply say ah yes, but we warned you. Why say it is alright if you wont be comfortable enough to take responsibility for it on the day that really counts?
Second hand in cash always the best way to go. If you hire a car for 3-5 years, you might be fine with the payments now but you have no idea what your finances will look over the hire period and having £200-£500 going out every month is going to be uncomfortable. Buy in cash, done.
@@RehmatDeenthen dont buy a car thats 30k if you can not comfortably afford. My dad always told me when if come to buying a car dont spend more than 20% of your yearly wage. Dont spend more than your means just to show off
sometimes people have a need and aren't even looking for a £30k car, it might even be a £8k car that they cannot afford. I think its a bit closed minded to say they should just buy it outright when mostly people go for these options through a necessity than greed.
If you have the money for the car lets say £8k, then using the uncertainty you mention..... anything can happen at any time..... you're better off paying monthly £300 than loosing that £8k, which is your safety net all in one go.
When I researched car purchasing a few years ago, I discovered that late payment penalties are prohibited (haram) in Islam. Additionally, multiple seller contracts are also not permissible, indicating that the dealer may not be the sole owner or the vehicle is financed. It became clear to me that these interest-free offers involved Riba and were prohibited, so I opted out. Alhamdulillah, I saved money and Allah blessed my savings, enabling me to purchase a car that I still own today. And Allah knows best
One key factor that was not emphasised is who the lender is. Ibrahim did mention that the lender needs to own the car but most car retailers use third party lenders.
What if someone pays off their HP agreement payments early? Say I have £7500 remaining and decide to pay it off in one go. Would this being in the agreement itself be ok?
Personally I would stick to HP. You know after the end of the term, you own the car outright. There is no big balloon payment at the end. Financially, having to return the car at the end of the term if you can't afford to pay the balloon payment is not great. Even doing a part exchange at the end of the term, will not bring great value for a deposit. If you can afford it, go for HP so at least you know all your payments go towards owning the car outright after x amount of years.
I don't know. Still sounds super sketchy. We can consider the equity payments actually as "gifts" to incentivize buyers to take on this scheme? Contractually written gifts? Hmm. Yeah sounds like a conventional riba loan to me but what do I know?
Salaam Ibrahim, remarkably useful video. Aside, better to avoid clothing emblazoned with brands for the camera as it inadvertently promote their label, unless of course you have a certain interest in those brands. I suggest IFG branded clothing or plain ones for the future.
Appreciate the effort bro but honesty this does nothing but further comfuse people. 1 could easliy deduce from this video that ultimately all the offers that we see from dealerships are permissible
The fact that the money this is based on is fiat, and the financial system generates the money from nothing makes this problematic. If God wills, we find Islam of Abrahamic Monotheism and Creed, not corrupted Hadiths of Abu Huraira et al. Sadly, a majority of Muslims are not walking faithfully with God alone, they have embraced Salat (daily prayer), Zakat (alms giving), sawm (fasting) and so on, but not gone all the way to give up on all their idols. Only God has the power to enrich us from His bounty. ... yughnihimu Allahu min fadlihi... [Quran chp 24 ver 32] ... waatuhum min mali Allahi... [Quran chp 24 ver 33 ]... inna Allaha huwa alghaniyu alhamidu. [Quran chp 31 ver 26].
I have an unrelated question. PCP discussion was interesting but I would never get a PCP car because it's a waste of money. Can you do a video on interest on directors loan. Evenry individual gets £1000 of interest tax free. I spoke to an accountant who informed me that interest on a directors loan can count towards the tax free allowance. Now it's straight forward if you're a sole owner of the ltd company, you cant charge interest on yourself. But it gets complicated if there are multiple directors and owners. Because you're not just charging interest on yourself you are charging interest on the other shareholders. Can you do a video on this topic and what agreements needs to be in place to make it halal.
What about the issue of buying from a dealer and receiving finance from a third party like motonovo etc - is that by definition not a hire but a loan as the finance company has paid the dealer?
Don’t agree with the HP and PCP … brother you opening up can of confusion there … riba is riba and the only way to distinguish is if you pay for something more than it’s current value!!!
I don't agree. Otherwise, how would Islamic finance work, Islamic banks earn a Profit Rate, instead of the Interest Rate (Riba), which is of course an extra amount to pay more than the current value. But Islam permits Profit.
Woulda been nice if an example sharia-compliant contract was shown or talked through
I always thought these types of schemes were not permissible. This definitely needs more explanation
At 15:10 is the most crucial and important part of this whole video. So on the Day of Judgement when you stand before Allah and say the guys from AFG said the word interest can be ignored, they can simply say ah yes, but we warned you. Why say it is alright if you wont be comfortable enough to take responsibility for it on the day that really counts?
Second hand in cash always the best way to go. If you hire a car for 3-5 years, you might be fine with the payments now but you have no idea what your finances will look over the hire period and having £200-£500 going out every month is going to be uncomfortable. Buy in cash, done.
I'm sure people would do that if they all had the cash, but if the car you want is £30,000 you might not have that spare cash lying around
@@RehmatDeen Then you need to fix your priorities, if you can't afford £30k in cash then you can't buy the car.
@@RehmatDeenthen dont buy a car thats 30k if you can not comfortably afford. My dad always told me when if come to buying a car dont spend more than 20% of your yearly wage. Dont spend more than your means just to show off
sometimes people have a need and aren't even looking for a £30k car, it might even be a £8k car that they cannot afford. I think its a bit closed minded to say they should just buy it outright when mostly people go for these options through a necessity than greed.
If you have the money for the car lets say £8k, then using the uncertainty you mention..... anything can happen at any time..... you're better off paying monthly £300 than loosing that £8k, which is your safety net all in one go.
When I researched car purchasing a few years ago, I discovered that late payment penalties are prohibited (haram) in Islam. Additionally, multiple seller contracts are also not permissible, indicating that the dealer may not be the sole owner or the vehicle is financed. It became clear to me that these interest-free offers involved Riba and were prohibited, so I opted out. Alhamdulillah, I saved money and Allah blessed my savings, enabling me to purchase a car that I still own today. And Allah knows best
One key factor that was not emphasised is who the lender is. Ibrahim did mention that the lender needs to own the car but most car retailers use third party lenders.
Good video but would also be great if you could walk through some examples on the market
Thank you very much brother..
Jazak allah khayeran
APR means interest= usury = Riba = Harram
What if someone pays off their HP agreement payments early? Say I have £7500 remaining and decide to pay it off in one go. Would this being in the agreement itself be ok?
make video on how to buy house if you dan't have the full payment in halal way
This is what I was thinking because PCP is basically like renting with a deposit then you return the car
Personally I would stick to HP. You know after the end of the term, you own the car outright. There is no big balloon payment at the end. Financially, having to return the car at the end of the term if you can't afford to pay the balloon payment is not great. Even doing a part exchange at the end of the term, will not bring great value for a deposit.
If you can afford it, go for HP so at least you know all your payments go towards owning the car outright after x amount of years.
Brothers what’s your thoughts on Islamic coin?
It looks pretty sound with a lot of real life integration and a native gold backed stable in Q1 2024
The only bits I understood was when khizr came for a few seconds each time😂.
I don't know. Still sounds super sketchy. We can consider the equity payments actually as "gifts" to incentivize buyers to take on this scheme? Contractually written gifts? Hmm. Yeah sounds like a conventional riba loan to me but what do I know?
What if there are late payment fees in the contract?
That is riba
Spot on - that is the core of Riba.
Better to avoid this all, Allah will make a way out for you.
May Allah bless you.
Salaam Ibrahim, remarkably useful video. Aside, better to avoid clothing emblazoned with brands for the camera as it inadvertently promote their label, unless of course you have a certain interest in those brands. I suggest IFG branded clothing or plain ones for the future.
Appreciate the effort bro but honesty this does nothing but further comfuse people. 1 could easliy deduce from this video that ultimately all the offers that we see from dealerships are permissible
How is this bro making APR, interest normal? End of times
Hmm… aren’t the payments in a HP agreement going towards the equity of the car?
Try not to include ghayr mahram women in your [stock] videos. Jazakumallahu Khairan Wa Ahsanu jazaa'
The fact that the money this is based on is fiat, and the financial system generates the money from nothing makes this problematic.
If God wills, we find Islam of Abrahamic Monotheism and Creed, not corrupted Hadiths of Abu Huraira et al. Sadly, a majority of Muslims are not walking faithfully with God alone, they have embraced Salat (daily prayer), Zakat (alms giving), sawm (fasting) and so on, but not gone all the way to give up on all their idols.
Only God has the power to enrich us from His bounty.
... yughnihimu Allahu min fadlihi... [Quran chp 24 ver 32]
... waatuhum min mali Allahi... [Quran chp 24 ver 33
]... inna Allaha huwa alghaniyu alhamidu. [Quran chp 31 ver 26].
Can I take a car on finance with a fixed Interest rate, is it still riba ?
Yeah still interest whether it's fixed or not mate. Not rocket science
@@E3S4 u okay in the head
I have an unrelated question. PCP discussion was interesting but I would never get a PCP car because it's a waste of money.
Can you do a video on interest on directors loan. Evenry individual gets £1000 of interest tax free. I spoke to an accountant who informed me that interest on a directors loan can count towards the tax free allowance.
Now it's straight forward if you're a sole owner of the ltd company, you cant charge interest on yourself. But it gets complicated if there are multiple directors and owners. Because you're not just charging interest on yourself you are charging interest on the other shareholders. Can you do a video on this topic and what agreements needs to be in place to make it halal.
What about the issue of buying from a dealer and receiving finance from a third party like motonovo etc - is that by definition not a hire but a loan as the finance company has paid the dealer?
This is exactly what I was thinking, the video didn't really go into detail regarding this
Kids need more knowledge just buy a cash car or travel on bus simple
Dont try to make halal what is haram.
No good brother. What is the evidence for everything. You just making fatwa your own. Fear Allah. Everything is recording with allah.
Subhanallah so true.
The Halal is clear and the Haram is clear , between them are doubtful affairs.
Don’t agree with the HP and PCP … brother you opening up can of confusion there … riba is riba and the only way to distinguish is if you pay for something more than it’s current value!!!
I don't agree. Otherwise, how would Islamic finance work, Islamic banks earn a Profit Rate, instead of the Interest Rate (Riba), which is of course an extra amount to pay more than the current value. But Islam permits Profit.
Brother this is well out of your zone. Fear ALLAH!