Vehicle Leasing Terms and Distance-Based Contracts

22-10-2023 | IslamWeb

Question:

Assalamualaikum i would like to know a ruling on the following scenario.if a person wants to do a business of renting vehicles mainly autorickshaw those found in the asian countries.He buys ten vehicles and has a garage dedicated for storing the vehicles.The business works like this drivers who wish to drive will rent them and pay rent at the end of their shift and it is daily but you won't be charged if you didn't drive the vehicle only after usage you pay an agreed amount which can be 10 dollars at the end of the day when you are done using.Is this halaal?and permissible?

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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.

There is nothing wrong with leasing these vehicles for a known fee, for a known period, or for a known distance. The fact that the contract is based on usage, not on time, does not affect it as if the contract was such that every specified distance has a specified fare. So, if he travels a distance of a kilometer, his fare is such and such, and if he travels half a kilometer, his fare is such and such. In other words, the fare is based on the distance traveled, so apparently there is nothing wrong with it due to its well-defined regulation and the absence of ignorance in it.

If the intended meaning is something else, kindly provide clarification so that we may offer an accurate answer.

Allah knows best.