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Fatwa CenterPurchased a Car through Partially Interest-Based Financing
Question
I am a Muslim, living in the UK, with a wife and a baby. I need a car. My car started to give me trouble, I traded it in and the difference in price is to be paid through finance (interest). Is this Halal as this was the only way I had?
Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
Riba (usury and interest) is a major sin. Allah, The Exalted, states in the Quran that those who deal in Riba are warriors against Him and His Messenger.
Allah Says (what means): {O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.… } [Quran 2: 278-279]
Moreover, the Prophet said: “Allah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” Said: “All of them are equal in sin.” [Muslim]
It is forbidden to deal in Riba unless there is a dire necessity such as a necessity that allows you to eat the dead meat. Thus, we state that purchasing a new car does not constitute a need that makes Riba lawful.
Our answer is based on the inquirer's saying that the transaction he is going to do is Riba.
Anyway, if you give clear details of the mentioned transaction, we will make it clear if it lawful or not.
Allah knows best.
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