Halal Car Finance

Product description

Halal Car Finance is Sharia-compliant vehicle financing from Ayan Capital, based on the Ijara wa Iqtina (lease-to-own) model. Under this model, Ayan purchases the customer’s chosen vehicle and remains its legal owner for the duration of the agreement, while the customer makes agreed payments for the use of the vehicle. Each payment includes a rental component, which represents Ayan’s income, and a portion that contributes towards the customer’s path to acquiring the vehicle. The model does not involve interest (riba) or excessive uncertainty (gharar): the financing terms are transparent and agreed in advance, and the payments are linked to a real asset — the vehicle. Ayan does not charge arrangement fees or early repayment fees. Once the customer has fulfilled their obligations under the Ijara agreement, they can purchase the vehicle. The transfer of legal ownership is completed under a separate Sale & Transfer agreement. Customers also have the option to purchase the vehicle early by settling the outstanding balance. In this case, Ayan does not charge future rental payments or any fee for early termination of the agreement. Halal Car Finance is available for personal use, businesses, and private hire. Customers can apply online and, once approved, choose a vehicle from more than 8,000 dealers across the UK. Financing is available to customers regardless of their faith and is subject to status and affordability checks

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